SERP is a unique plan developed by Keenan to encourage employees to retire earlier than anticipated. The program provides an attractive incentive to valued long-term employees while taking into consideration the agency’s financial ability in funding the plan.
SERP generates cost savings through the differential in salary costs for a retiring employee and a new hire.
*Guarantees are based on the claims-paying ability of the issuing insurance company.
Our analytics are based on a 5-year projection. This provides a much more reliable forecast than the 10-year views used by other organizations. Savings are not artificially inflated by including natural retirement attrition.
Keenan’s program also considers the historical rehire position, so that realized SERP savings are not diminished by future staffing changes. If your district needs to cut its payroll expenditures, in this environment, SERP is a superior choice as a fiscal solution.
✔ Workforce Flexibility: Positions do not have to be eliminated but can be filled at the bottom of the salary range, under-filled or reclassified
✔ Cash Flow Flexibility: SERP can be paid for in one lump sum or in 1-to 5-year annual payments –you know the cost up front and it is fixed
✔Employee Choice: Employees have multiple options for receiving the additional retirement income and the income can be deferred into an IRA
✔IRS Compliance: SERP is structured as an IRS qualified 401(a) plan
✔Our Individual Enrollers: Trained counselors who themselves are school district retirees