Orange County Grand Jury • 2004-2005 • Agency Response
Response to: Another County Crisis: Pensions, Health Care, and Other Benefits 06/28/05, 251K

Another County Crisis: Pensions, Health Care and Other Benefits*

Published: August 24, 2005 4 pages
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Findings and Recommendations 1 findings

F6 Page 1
4 Pensions are not based on salaries alone. Rather, they are enhanced with add-ons required under the Ventura Decision (California Supreme Court 1997), thus enlarging an employee's pay for pension purposes. However, employee contributions to the pension fund are based only on the employee's base salary. Response: Disagrees wholly with the Finding Employee contributions are based on base salary as well as other salary components that are part of the employee's final pay based on the Ventura Decision. Exhibit 2 6.5 The Performance Incentive Program was designed to encourage employee productivity but morphed into a 2% bonus for a large number of county employees and now offers paid time off instead of cash. Response: Disagrees partially with the finding The Performance Incentive Program was implemented to reward employees for achieving goals consistent with the department's business plans and objectives. Currently the plan provides for paid time off in lieu of cash for employees, with the exception of employees represented by AFCSME and Probation Unit. 6.6 During 2004 labor negotiations, the BOS sought, but was unable to obtain, agreement for a shift in how county employee pensions operate. Response: Agrees with finding Response to
No recommendations for this finding

* This report's PDF did not contain easily extractable text and required Optical Character Recognition (OCR) for analysis. There may be minor errors in the extracted findings and recommendations due to OCR limitations with scanned documents.