PARS Plans & Products
Retirement and Separation Incentives (SRP and SIP)

PARS Retirement and Separation Incentives are designed to increase and accelerate the retirement rate over and above natural attrition.  This enables an agency to accomplish specific objectives such as fiscal savings, personnel restructuring, program enhancement, etc.  Fiscal savings are driven by:

  • Retirement of employees  high on the salary  schedule and

  • Replacement with employees lower on the salary schedule

PARS-SRP and PARS-SIP provide valuable benefits to departing employees and increased bargaining flexibility to both the Agency and bargaining units, producing a win-win situation for both the Agency and employees.

Some of the benefits include:

Agency Benefits

► Reduced Compensation Costs
► Opportunity for Staff Reorganization
► Opportunity for Program Enhancement
► Customized Tax-Qualified Plan
► PARS "Turn-Key" Plan Administration
 

Employee Benefits

► Increased Retirement/Separation Income
► Choice of Payout Options
► IRA or Qualified Plan Rollover
► Opportunity to Retire Earlier
► Personalized Enrollment Process
► Toll-Free Service Telephone Access
 

What's in it for the Employee?

Additional income from PARS plans can enable employees to retire or depart earlier.

Savings Calculation Method

A PARS Analysis is based on actual demographics of eligible employees:

  Retirement Income
without SRP/SIP
  Retirement Income
with SRP/SIP

Compensation Differential
 (Departing Employees
versus Replacements)

        Salary Savings
     -  Retiree Health Care Costs
     -  Retirement Incentive Costs
     -  Natural Attrition Loss
     =  Net Savings
     

Contact a PARS consultant today at:

(800) 540-6369

The information and analysis provided in this publication is
based upon PARS' understanding of the facts.
Before taking any action based on this information and analysis,
the agency should consult with its professional advisors.

Updated: April 16, 2010