David Rice has written an excellent article regarding questionable benefits packages and payouts in the Ozark School District. Also a great exposure of the NGOs that have undue influence on school districts, robbing them of local control.
From the article:
"The School Board adopted the "PRIME CHOICE® Plan" offered by Precision Retirement Group, which allows public employers to convert certain forms of compensation like accumulated sick leave, vacation time, and incentive payments into contributions to either a medical trust called the "PRIME Plan" or special deferred compensation plans like 401(a) or 403(b) accounts. Copies of the Prime Plan are at the end of the article.
The materials promote these conversions as allowing tax-free reimbursements for retiree health expenses in the PRIME Plan trust, or opportunities to defer federal and state taxes in the deferred compensation plans. They also advertise eliminating FICA tax obligations for both the employer and employee.
While portrayed as benefits for employees, such specialized retirement plans allowing favorable tax treatments on back-end payouts have been criticized by some as forms of excessive "golden parachutes" for highly-compensated public officials and administrators."
Well worth reading, with links galore to get you up to speed on the issues.
