Copyright© 2002 by School Services of California, Inc.

Volume 15                   For Publication Date: December 20, 2002             No. 25

Ask SSC . . .

                     Will the Governor Offer a “Golden Handshake” to School Personnel?

Q.        We are looking at options to encourage certificated and classified employees to retire early (in some cases not replacing them). Have you heard anything about the Governor offering a Golden Handshake to school personnel in light of his proposed cuts?

 A.        We receive a lot of questions about the Golden Handshake. We do not expect that the Governor will extend this to school employees at this time for a variety of reasons.  However, whether he does or not is, in our view, immaterial. You have the ability to use a PARS- or Keenan-type early retirement plan at your discretion within current law. Depending upon demographics, these plans usually pay the employee more and cost the district less than the Golden Handshake. 

 If you want to have a serious discussion about early retirement plans, we recommend you call either Keenan and Associates, or Phase II Systems (PARS).

                                                                                                                                                                                 —Ron Bennett