Orange County Grand Jury
• 1999-2000
County of Orange 1992 Defined Benefit Retirement Plan
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 5 findings
F1
The Plan assets have not been invested to realize a return sufficient to provide the benefits promised to the employees and to minimize the County’s cost of the Plan. The fund assets reside in the Treasurer’s Investment Pool where they are invested in short- term maturities earning approximately 5 percent. A response to Finding 1 is required from the Treasurer-Tax Collector.
Related Recommendations (1)
R1
The Plan assets should be invested to realize a return sufficient to provide the benefits promised to the employees and to minimize the County’s cost of the Plan. A response to Recommendation 1 is required from the Treasurer-Tax Collector.
F2
Certain provisions of the Plan are unclear, incorrect, or ambiguous. A response to Finding 2 is required from the Treasurer-Tax Collector. 2
Related Recommendations (1)
R2
The Plan be thoroughly reviewed and those provisions that are unclear, incorrect or ambiguous, be amended. A response to Recommendation 2 is required from the Treasurer-Tax Collector.
F3
In accordance with the Plan §10.8 and the brochure supplied to the employees, a determination letter was to be obtained from the Internal Revenue Service (IRS). This letter was not obtained. The Plan provides that the deductions from employee earnings shall be post-tax until a determination letter is obtained from the IRS, then pre-tax. The County is currently making deductions on a post-tax basis. A response to Finding 3 is required from the Treasurer-Tax Collector.
Related Recommendations (1)
R3
A determination letter be obtained from the IRS as soon as the Plan is amended and the County should make deductions on a pre-tax basis. A response to Recommendation 3 is required from the Treasurer-Tax Collector.
F4
Only two actuarial valuations have been made of the Plan since inception. County Counsel, on two occasions, recommended that there be annual evaluations (or at a minimum every three years). A response to Finding 4 is required from the Treasurer-Tax Collector.
Related Recommendations (1)
R4
An actuarial valuation of the Plan be made as soon as possible. A response to Recommendation 4 is required from the Treasurer-Tax Collector. 3
F5
The actuarial valuation as of January 1, 1998 recommended a County contribution. The County did not make this contribution. A response to Finding 5 is requested from the County Executive Office.
Related Recommendations (1)
R5
The actuary’s recommended contribution, if any, be made. A response to Recommendation 5 is requested from the County Executive Office.
Additional Recommendations 1
These recommendations are not explicitly linked to specific findings.
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R6The Plan be frozen for current employees, and a new defined-contribution plan for less- than-half-time and extra-help employees be established and administered by the County Executive Office, Office of Human Resources, Employee Benefits, and a determination letter for this new plan be obtained from the IRS. A response to Recommendation 6 is required from the Board of Supervisors and requested from the County Executive Office. 4
No Responses Found 1
Government entities assigned to respond to this report. No response documents have been linked in our database.
Orange County
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