Outcome: The District and the PFF negotiated an early retirement notification payout of $3000 for faculty and staff to submit their retirement paperwork by February 21, 2020. This was meant to allow the District to be able to effectively plan for Fiscal Year 2020-2021. The secondary goal is to avoid Reduction In Force (RIF) notifications for our colleagues.
Facts:
19 faculty took advantage of the early notification payout.
The total of faculty salaries saved will be $2,222,995 per year.
The STRS contribution that the District annually pays on these salaries into the retirement fund will amount to $361,904. With salary savings added in, this is a total of $2,584,899. This is an ongoing cost savings.
The one-time payout cost was $57,000 for faculty ($3,000 per faculty member, to be paid after retirement).
If the District chooses to backfill all the classes that were taught by these departing full-time faculty with part-time faculty, the District would pay $950,000, at $5000 per class.
That leaves a savings for this year of $1,634,899. This is ongoing cost savings.
Please note, these are faculty numbers only. Further savings will come from classified staff and administrators who are choosing to retire as well.
Bottom Line: This significant savings is the direct result of cooperative and creative negotiations. PFF would like to thank those faculty members who got their paperwork in on a tight deadline and wish them a very happy retirement. Their cumulative 491 years of service to the Palomar should be commended and is appreciated.