School Board analyzes post-retirement program


A program that pays retired Henrico school system employees a percentage of their final annual salaries in exchange for their part-time work within the system saves considerable money on substitute teacher expenses but could provide even more value to the system with several adjustments.

That was the conclusion of an in-depth analysis completed by county and school system finance officials, who presented their findings to the School Board Sept. 13.

At the beginning of the current fiscal year in July, the board increased the requirements of retirees who participate in the Post-Retirement Earnings Plan (PREP) program, mandating that they work at least 28 days during the school year in order to receive pay equal to 20 percent of their final annual paychecks. Eligible retirees may participate in the program for a maximum of seven years; 388 participate currently.

It was the third change made in the past three years by the board, which is seeking to squeeze more value from the 32-year-old program while reducing its annual cost. The PREP budget has dropped from its peak of $8.9 million in 2009 to $5.6 million during the current fiscal year. Prior to this year’s change, PREP participants received 22 percent of their final paycheck in exchange for working 24 days a year.

The program was created in 1980 as a way to provide a benefit to employees, encourage early retirement and save the school system money. During its budget process this spring, the School Board sought specific data to better determine the effectiveness and value of the program. But last week’s work session was proof that categorizing that value is a challenging exercise.

Though it’s relatively easy to determine the cost savings that results from using PREP retirees as substitute teachers – since there is a standard rate of pay for substitutes – it’s much more difficult to determine the value of administrative retirees who perform a variety of other responsibilities, Henrico Finance Director Gene Walter told the School Board.

Walter and his staff studied 507 PREP participants who entered the program during the past seven years and whose replacements were hired immediately upon their retirement. (The study didn’t include nearly 50 other participants whose former positions were eliminated, he said.)

Of those 507, 317 were retired teachers whose combined participation during those seven years saved the system $1.18 for each $1 it spent on the program, Walter said.

But Walter and his analysts could not determine a dollar-to-dollar estimate for the other 190 participants because their roles within the system were less defined and often entailed duties for which the system wouldn’t have hired temporary help.

School system officials recommended that the board consider a number of changes to the program that would make it easier to determine a clear value for each dollar spent in the program, including:

• assigning every participant to serve either as a substitute teacher (if qualified) or to fill another capacity with specific and direct calculable benefit to the system (such as SOL remediation);

• capping the maximum allowable salary to a participant at $90,000 annually;

• increasing the number of required years of Henrico service from 10 years to 15 years for eligible retirees and reducing the number of required years of service in the Virginia Retirement System from 16 to 15;

• requiring that interested participants notify the system of their intent by Dec. 1 annually and begin their participation the following July 1 (as opposed to the current system, which permits entry throughout the year – a minimum of 30 days after retirement – and makes budgeting for the program less predictable);

• grandfathering all current participants under the current standards until they have completed their seven years or dropped out of the program.

“We have determined that there’s a large responsibility on everyone’s part here to develop something that’s going to be very beneficial and cost-effective and also value-added to the school system,” Superintendent Pat Russo said during the work session. “That’s where we want to move this program.”

Current guidelines require that participants be at least 50 years old without having attained the age for full, unreduced Social Security benefits. The program initially was designed in part to serve as a bridge between retirement and Social Security, HCPS Finance Director Kevin Smith told the board. Using current standards, 854 current school system employees would be eligible to participate in the PREP program if they retired, HCPS Human Resources Executive Director Howard Banks said.

The board is expected to discuss the recommendations and the PREP program again at a meeting next month.
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Rolls-Royce supplier lands in Henrico


A United Kingdom-based supplier for Rolls-Royce has established an office and manufacturing center at the Byrd Industrial Park in Eastern Henrico, the Greater Richmond Partnership announced July 18.

Erodex Ltd., a graphite products maker, recently signed a five-year agreement with Rolls-Royce to supply goods to the automotive company's Crosspointe campus in Prince George, Va. Erodex invested $2 million and hired four to quickly ramp up production for its client. > Read more.

New Walmart opens in Eastern Henrico


JULY 19, 7 A.M. – Eastern Henrico's first Walmart Supercenter opens to the public today at 5001 Nine Mile Road. The store, which occupies about 190,000 square feet and employs about 300 people, is located at the site of the former Fairfield Commons Mall, which is now known as Eastgate Town Center. > Read more.

Unattended oily rags cause fire in commercial building near Richmond Raceway


Unattended oily rags that spontaneously combusted caused an early morning two-alarm fire Tuesday in a commercial building in the 3800 block of Carolina Avenue, across from Richmond Raceway.

Henrico firefighters were called at about 5:10 to respond to reports of smoke coming from the building. Once they arrived five minutes later, they found thick smoke pushing from the rood on two sides of a warehouse whose tenant specializes in woodworking and hardwood floors. > Read more.

Crime Stoppers’ Crime of the Week: July 17-23, 2017


Crime Stoppers needs your help to solve a Hit & Run in the City of Richmond.

The crime occurred in the Carver neighborhood at the intersection of West Broad and Goshen Streets, around 6:45 p.m. on Sunday, May 7. Officers were told the victim was on his motorcycle and traveling westbound on West Broad Street. > Read more.

Henrico County property transactions, July 3-9


A sample of property transactions during this period appear below:

5304 Coxson Rd. – $126,500, 1,819 SF (built in 1953), from Madeline M. Weaver to Kyle and Aja O. Powers.

2451 Yarnell Rd. – $140,700, 1,196 SF (built in 1972), from Albert C. and Mary E. Nolan to Albert C. Nolan Jr.

909 Bowitch Ct. – $194,500, 1,824 SF (built in 2001), from Agnes H. Jones to Mark A. Dawkins. > Read more.

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