A new pension tier approved by the Board of Supervisors promises to reduce our $3.1 billion unfunded pension liability while offering employees a bump in take home pay.

Orange County government currently has 13,000 workers covered by a generous 2.7% at 55 formula approved by the Board in 2004. I cast one of the “no” votes in that controversial 3-2 vote, as I believed it was unsustainable over time and encouraged our most experienced workers to retire at the height of their productivity.

The new pension option allows employees to retire with a 1.62% at 62 formula. That is 1.62 times the number of years worked times final salary. The formula is less generous, but enrolled employees will pay far less out of their paychecks.

Current employees and new employees may opt either for the existing 2.7@ at 55 or the new 1.62% at 62 plan. Those choosing the latter will see an immediate 7% boost in take-home pay, as the employees contribution is considerably less. An employee at $50,000 annual salary, for example, would take home $3,500 more in yearly pay under the new plan and would retire at 62 rather than 55.

County government will save money, too. We’ll see an annual savings of $1.4 million if only 10% of employees opt in. That goes up to $3.5 million if 25% of our employees opt in.

This separate tier needs enabling legislation in the form of SB 752, introduced by State Senator Lou Correa, which is expected to pass. State law currently allows for uniform pensions at the county level. The largest county union—OCEA-has already agreed to it.

Some critics doubt enough employees will opt in to the new pension to generate significant savings. Only time will tell how popular the new plan is. But the Board cannot yet impose a new pension without approval of the union, and this is a small but important first step.

Public safety employees—OC Sheriff’s deputies and most police and fire departments—have a far more generous 3% at 50 formula. Unlike non-sworn employees, they pay nothing into the system; it’s all borne by taxpayers. Reforms there are still too far on the horizon.

Ultimately, public pension reform must come at the state level. Pensions for current employees are not sustainable over the long run for future employees. Current employees promised generous pensions must agree to future cuts or the entire system could collapse.

Martha is the sweetest, kindest, nicest and most grateful woman I have ever known. The former Martha Phillips, a Tustin resident, and I were married on July 20 at a family ceremony at the Fullerton office of the OC Clerk-Recorder.

Martha and her three children—Ana (10), Gary (9) and Iris (7) will share my Fullerton home with my son, Alex, who will be returning to USC in a few weeks.

We’re already involved in the First Presbyterian Church of Fullerton, and the kids are enrolled in swimming and basketball at the Fullerton YMCA. Their dog “Bobby” will be moving in, too, where he keeps my pooch “Honey” company.

Waste Management Commission: Meets 2nd Thursdays, 2:00. $100 stipend. Advises the Board of Supervisors on solid waste (trash) disposal and landfills.

Senior Citizens Advisory Council: Meets 2nd Fridays, 9:00 at various locations. Minimum age: 60. $30 stipend. Advises the Board of Supervisors and various OC departments on policies related to older adults.

Assessment Appeals Board: Meets Monday-Thursdays, 9:00 a.m., Old OC Courthouse or as-needed. $200 daily stipend. Hears property tax assessment disputes. Appellants typically feel their properties were assessed higher than true market value, for purposes of taxation, and seeks lower assessments.

To apply, call Kara in my office at 714-834-3440

What OC city has the highest per-capita policing costs? What city has the lowest?

Answer in next newsletter.