Separation Incentive Plan PAEA
Certificated Employees
What is a Separation Incentive Plan?
PAUSD's Voluntary Separation Incentive Plan is for employees who meet specific eligibility requirements and can separate from their employment with PAUSD. This program is administered by Public Agency Retirement Services (PARS).
An information meeting for certificated employees will be held on Thursday, December 19 at 4:30 p.m. at the District Offices in the Board room.
Does this mean retirement?
This DOES NOT mean retirement - participating employees would no longer work for PAUSD but can continue to work for another organization. Any consideration for an employee to begin collecting from their retirement system (STRS or PERS) is solely up to the employee - this program has no affiliation with STRS or PERS.
Incentive Payments:
Regarding the basic incentive under this plan:
The District shall make non-elective employer contributions to the participant’s
403(b) annuity contract held at Pacific Life Insurance Company (“Pacific Life”).
Certificated Non-Management Employees: The sum of the contributions shall
equal 50% of Final Pay, according to the following schedule:
Contribution Date Percent of Final Pay
July 10, 2025 10%
July 10, 2026 10%
July 10, 2027 10%
July 10, 2028 10%
July 10, 2029 10%
Total Contributions 50%
For purposes of this plan, Final Pay shall be defined as the 2024-2025 Contract Salary (based on placement on the 2024-2025 salary schedule, inclusive of longevity and any applicable degree stipend), multiplied by the participant’s current FTE (full-time equivalence). Final pay shall exclude extra duty pay.
Monthly forms of payment of equivalent present value shall be offered. They shall
include:
a) Lifetime payments;
b) Joint-and-survivor payments;
c) Lifetime with a ten (10) year guarantee; and
d) Fixed term payments from five (5) to fifteen (15) years. These payments are
guaranteed to the participant for the full term selected.
The amount of monthly cash payment shall be fixed upon annuity purchase date and
shall not be subject to increase thereafter.
The choice of form of payment (and the choice of payment beneficiary if choosing a
joint-and-survivor form of payment) shall become final upon February 6, 2025 and shall
not be subject to change thereafter.
Participants shall not have a cash option to the employer paid 403(b) contributions.
All contributions into the participant’s 403(b) account must be made in accordance with
applicable IRS Rules and Regulations.
SIP benefits are scheduled to commence on August 1, 2025.
Eligibility and Plan Specifics?
In order to participate in the plan, you must meet the following criteria set forth by the District:
- Certificated Non-Management employees who are employed by the District as of November 12, 2024 with a minimum of a 50% assignment
- Are fifty-five (55) years of age as of June 30, 2025
- Have twelve (12) years of District service as of June 30, 2025
- Have resigned from District employment effective after the completion of the 2024-2025 school year on or before June 30, 2025
- Have submitted all required SIP enrollment materials and District Letter of Resignation to the PARS office no later than 5:00PM on February 6, 2025
How do I participate and where do I get the information and registration packet?
PAUSD has provided PARS with the contact information for all eligible certificated employees. PARS will be mailing out packets and registration forms to employees.
Questions?
Please attend the information meeting on Thursday, December 19 at the District Office or call (800) 731-7884 or email: plansupport@pars.org