1.62 Defined Contribution Plan for New Employees

About the Program

Category: Personnel Management, Employment and Training (Best in Category)

Year: 2012

In an effort to address increasing pension costs, Orange County initiated steps towards implementing a new lower retirement formula, "1.62% at 65," combined with a Defined Contribution Plan. The implementation of the proposed retirement program required legislative approval through the State. On October 11, 2009 Senate Bill 752 was approved, which permits in Orange County to require certain employees to make a written election between two specified retirement formulas. On April 20, 2010 the Board of Supervisors approved the implementation of the new lower retirement formula. The lower formula resulted in significantly lower cost to the County and to the employees. Overall, this is a successful opt-in program that decreases pension costs for the county.