UESF News |
Paras Set to Move Into Social Security on October 12thReprinted from the August 2011 SF Educator After months of delay, the SFUSD will finally tran- sition paras out of the PARS retirement system and into Social Security, starting with the pay peri- od beginning October 12, 2011. Last year para- professionals voted overwhelmingly to enter Social Security, a far superior retirement option to PARS. According to the agreement with the SFUSD that was approved in the para vote, all assets already earned by paras in the PARS system will be transferred into an account that will be under the control of the individual para, not the district. Those funds can be invested in a variety of differ- ent options, including a 403(b) plan or a tax-shel- tered annuity. Previous balances in the PARS system are set to transfer over to these private accounts starting in the beginning of the 2012 calendar year. All para- professionals at that time will have to choose a vendor to set up their personal accounts. According to UESF Vice-President for Paraprofessionals Carolyn Samoa, UESF will con- tinue to advocate for the SFUSD to provide free financial counseling to all paras to help aid them in making this important financial decision. "Because of serious tax implications, paras should think twice about what to do with this money," says Carolyn. "They should think careful- ly about what kind of fund they would like to place their money in, taking into account their age and what level of risk they are comfortable with." According to the SFUSD, paraprofessional's individual PARS accounts are currently sitting in a safe mutual fund with Union Bank, pending trans- fer to the private accounts next year. Recent fluc- tuations in the stock market have not affected those balances.
Agreement Finalized: Paras Set to Move into Social Security In mid-December, negotiators for UESF came to an agreement with the SFUSD to make the transition to Social Security. The agreement then went to a vote of all paraprofessional members, which closed on January 3, 2011. The UESF Elections Committee has certified the results of that election, with 358 people voting to accept the agreement, and 12 against. The agreement was then approved by the UESF Executive Board on January 5th. With both sides officially signed on to the agreement, we can now begin the transition to Social Security. UESF will work with district administrators to contact the Social Security Administration in the coming days. It is hoped that the transition can be completed by April 1st. As part of the agreement with the SFUSD, all paraprofessionals will be able to keep every penny of the money in their PARS accounts. The SFUSD has agreed to put out a Request for Quotes (RFQ) for a third-party group to offer financial counseling to help paras determine what is the best way for them to invest their money. UESF will provide regular updates as we move forward with the implementation of the agreement. In the meantime, all paraprofessionals should continue to save all information they receive from the Social Security administration and the PARS system for their records. Thanks to the many people who worked over the years to get paraprofessionals into a retirement system that will enable them to live their retirement years in dignity. Special thanks are in order to UESF Vice-President for Paraprofessionals Carolyn Samoa (pictured at right above), who worked tirelessly to not only advocate for paras, but to make sure that they were continually informed about the progress of our negotiations. More information about the settlement:
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