Newport-Mesa schools’ top business official prepares to retire with $22,194 monthly pension
Tuesday’s Newport-Mesa Unified School District board meeting was the last for deputy superintendent and chief business official Paul Reed before he retires at the end of the year with what a state agency says will be a pension benefit of more than $22,000 a month.
Trustees presented Reed, 69, with a Board of Education Distinguished Service Award in recognition of his 14 years with the district.
“Paul is known for his high level of integrity, work ethic, leadership and dedication,” trustee Dana Black said. “He was a part of bringing Newport-Mesa Unified School District through the Great Recession in sound financial status, keeping us solvent and moving forward.”
Reed, who oversaw the district’s fiscal, information technology, transportation and maintenance operations, earned a base salary of $259,143 this year, along with a $7,800 transportation allowance and a $1,200 cellphone allowance, according to district documents.
His retirement benefits came under scrutiny this year after John Caldecott, the district’s former director of human resources, brought to light that the district had paid into separate tax-sheltered annuities for Reed as an incentive to delay his retirement. The payments were first made in the 2010-11 fiscal year.
As of April this year, Newport-Mesa had paid $200,897 into Reed’s retirement annuities.
His contract states the annuity fund was established “in recognition of the board’s desire that the deputy superintendent continue to serve the district past the optimal STRS [State Teachers’ Retirement System] retirement age of 62.”
The district also reimbursed Reed for his annual purchases of credit toward additional service time, which increased his pension benefit from CalSTRS.
Reed will receive an ongoing monthly pension benefit of $22,194, according to CalSTRS spokeswoman Michelle Mussuto.
“I would be remiss if I didn’t thank you all for your kindness the past 14 years,” Reed told the board Tuesday. “I sincerely mean it when I say that is it one of great fortunes of my life to serve Newport-Mesa.”
During Reed’s leadership, the district executed two extensive bond programs that modernized existing facilities and added new ones, such as for performing arts and sports, according to district officials.
Officials have long praised Reed’s fiscal responsibility and leadership through changes in state funding.
In his 48 years in education, Reed has taken on the roles of principal, labor negotiator and special-education teacher.
With his departure from Newport-Mesa, the board will reorganize the business role.
The chief business official role will become a chief operating officer position that will be responsible for the district’s facilities and fiscal department.
The district will establish a new chief financial officer position for administrative tasks.
The district is working to create job specifications for both positions before the district goes through the hiring process.
Staff writer Hannah Fry contributed to this report.
Twitter: @AlexandraChan10
