Vector Control Looking To Increase Pensions

A year ago, the Orange County Vector Control District general manager attempted to get the OCVCD Board of Trustees to approve a huge pension spike, from the current 1.67% at 57 years old to 2.7% at 55.

Tomorrow at the OCVCD's 3:00 p.m. meeting they'll make a renewed push to increase the pension to 2% at 55.

The increase is being pitched as a cost-savings measure based on switching from OCERS to CALPERS will result in a lower cost. This is from the agenda:

ADOPT RESOLUTION OF INTENTION TO CONTRACT WITH CALPERS FOR 2% AT 55 RETIREMENT FORMULA (FUTURE TIME ONLY):

Attached is a Resolution of Intention (Exhibit E, Resolution No. 307) authorizing the contracting with California Public Employees’ Retirement System (CalPERS) for employee retirement benefits effective January 5, 2007. The District Manager is recommending that the District contract with CalPERS for a 2.0% @ 55 retirement formula based on highest 12 months compensation with an annual cost of living adjustment of 2%. This retirement formula is the most common one offered by public agencies. The benefit formula will be applied to future time only with no improvement to past service time.

The estimated cost of this benefit is 15.901% (employer/employee combined rate) for an estimated cost of $557,000. The current cost for the 1.667% @ 57 3/8 through the Orange County Retirement System (OCERS) is 23.370% (employer/employee combined rate) for an estimated cost of $817,000.

Currently, the District pays for 55% of the employee’s portion of retirement costs. Although not part of this action, the District Manager is recommending that the District pay for remaining employee portion (3.15%) at a annual cost of $110,000. In addition, the District Manager is recommending that the District’s Deferred Compensation matching program be increased by $25 per pay period at an annual cost of $32,500. These recommendations will be scheduled for action in December, if the Resolution of Intention with CalPERS is approved.

The full implementation of this program will result in an annual savings of $117,500. In addition, the CalPERS rates are guaranteed to remain at the same percentage (15.901%) until June 30, 2009.

The following is an example of the effect of the proposed retirement formula through CalPERS. The example is based on an employee at age 55 with 30 years of service under the retirement plan:

OCVCD Proposed Plan (2% @ 55):

Retirement                                                            Percentage of
Year                                                                  Final Compensation

2006       (Current Retirement Formula)                    44.8%

2016       (20 years OCERS, 10 years CalPERS)           49.8%

2026       (10 years OCERS, 20 years CalPERS)           54.9%

2036       (30 years CalPERS)                                    60.0%

Other Plans:

2.5% @ 55 Agencies (30 years)                                 75.0%

2.7% @ 55 Agencies (30 years)                                 81.0%

Unlike some of the enhanced plans, District employees planning for a successful retirement will have incentive to continue working into their 60’s. This will limit the District’s future liability for retirement and retiree medical benefits.

Recommended Action: It is the District Manager’s recommendation that the Board of Trustees adopt by roll call vote Resolution No. 307, Resolution of Intent to Contract with California Public Employees’ Retirement System (CalPERS) for employee retirement benefits of 2% at 55, future time only, effective January 5, 2007.

Comments

[They got it right]

Vector has privatized many of its functions and has kept their benefits below all other O.C. agencies. This is an example of responsible planning for hiring and retention without gouging taxpayers.

[This increase doesn't Bug me!]

Vector control needs this increase! When you consider the dangers they face each day from insects and rodents it's surprising they are not asking for more! There are also compression issues withing the ranks and compared to Vector Control agency's in other parts of the state they are practically working for free! Next time you have Fire Ants or African Bees in your backyard call a Blogger to remove them!

Signed,
Wife of a Vector Control Officer

[MrWhipple]

Or, take responsibility for your own property instead of foisting the bill on the public -- call Western Exterminators.

Signed,
A taxpayer who would eliminate Vector Control