For the second time in as many years, the Santa Cruz County grand jury has investigated Pajaro Valley Unified School District, this time taking a close look at the way district officials gave retirement benefits to upper-level employees.

The benefits, known as Supplemental Employee Retirement Plans, offered longtime employees up to 95 percent of their salary as an incentive to retire. The plan is designed to save money by making room for lower-salaried employees. Such programs are widely practiced in districts having financial difficulties.

The report criticized the district for giving a SERP to an already retired employee who was working in an interim capacity, and said that trustees didn’t have enough information when they set the standards for which employees were eligible.

The report also found that the district failed to adequately determine the savings from the SERP, and jurors also found that the district could have saved money by offering less than the 95 percent salary incentive.

For the complete article see the 06-25-2009 issue.

Click here to purchase an electronic version of the 06-25-2009 paper.

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