2018-02-28 Pension Unfunded Liability Article

From From FB group Orange Talk

Also see LA Times article

http://www.latimes.com/projects/la-me-pension-crisis-davis-deal/

This was from the .PDF document here

 http://www.ocgrandjury.org/pdfs/2015_2016_GJreport/2016-06-15_Website_Report.pdf

“Here were the Grand Jury’s findings about how the entire county should deal with pension reform:

RECOMMENDATIONS

In accordance with California Penal Code §933 and §933.05, the 2015-2016 Grand Jury requires

(or as noted, requests) responses from each agency affected by the recommendations presented in

this section. The responses are to be submitted to the Presiding Judge of the Superior Court.

Based on its investigation titled “Orange County’s $4.5 Billion Unfunded Pension Liability &

Retirement Plans”, the 2015-2016 Orange County Grand Jury makes the following seven

recommendations:

R.1. The County should encourage the OCERS Board of Retirement to maintain financially

sound assumptions and to oppose any relaxation of current assumptions. (F1)(F3)

R.2. The County should establish and adopt a plan, working with OCERS, to increase the

pension percent funded liability to 80% from its current level of 70% by making additional

payments to OCERS. This plan should be developed as part of the County Strategic

Financial Plan is being updated in late summer 2016. As the 2017-2018 budget is being

developed, the first advance payment of the Plan should be included. (F1) (F2)

R.3. The County should develop a policy to continue issuing short term Pension Obligation

Bonds, so long as the discount from OCERS is available and there is enough net savings

(which should be defined) after paying for cost of issuance and underwriter’s discount. (F4)

R.4. The County should direct its lobbyists or work through the California State Association to

find support in the legislature for a bill with additional pension reforms, beginning with the

next legislative session that would further reduce the impact of unfunded pension

liabilities. (F6)

R.5. The County should conduct a thorough analysis including the financial impact of

implementing a Defined Contribution Retirement Plan or a hybrid plan, replacing the

current Defined Benefit Plan, before January 2017. (F1) (F7)

Orange County’s $4.5 Billion Unfunded Pension Liability & Retirement Plans

2015-2016 Orange County Grand Jury Page 24

R.6. The County should review the current practice of using taxpayer money to benefit eight

non-County employees through the 401(a) retirement plan by the end of 2016. (Executive

Director LAFCO; Executive Manager- Children & Family Commission and six OCERS

executives). (F8)

R.7. The Board of Supervisors should, by the end of calendar year 2016, publicly revisit and

determine if the Executive Compensation package 401(a) supplemental retirement plan for a County elected officials and top executives is still justifiable. (F8)”

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