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Update

IMPLEMENTATION OF NEW 1.62 RETIREMENT BENEFIT FORMULA FOR NEW EMPLOYEES OVERVIEW MAY 6, 2010 Updated August 18, 2010. Update. The Board of Supervisors approved the new “1.62 at 65” Retirement Benefit Formula for new employees on April 20, 2010

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Update

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  1. IMPLEMENTATION OF NEW 1.62 RETIREMENT BENEFIT FORMULA FOR NEW EMPLOYEES OVERVIEWMAY 6, 2010Updated August 18, 2010

  2. Update • The Board of Supervisors approved the new “1.62 at 65” Retirement Benefit Formula for new employees on April 20, 2010 • The Resolution provides for new employees to elect either the “2.7 at 55” retirement formula or the “1.62 at 65” retirement formula combined with a voluntary defined contribution plan and employer match component

  3. Update • New employees must make their election within 45 days of hire • Elections will be considered irrevocable • If no election is made, employee will be deemed to have elected the “1.62 at 65” retirement formula

  4. Update • The election between the two formulas is effective for new hires in eligible bargaining units, and non-represented employees, hired on or after May 7, 2010 • For the Administrative Management Unit, the election is effective for newly hired employees on or after August 27, 2010 • HR Departments will play an important role in communicating the information to new employees and in following up to ensure new employees make a timely election

  5. Implementation for current employees is on hold at this time Update

  6. Eligible Employees • New employees (non-safety) hired into the following Bargaining Units are eligible and are required to make an election: • Orange County Employees Association (OCEA) Units: • General (GE) • Office Services (CL) • Supervisory Management (SM) • Community Services (CS) • Healthcare Professional (HP) • Sheriffs Special Officer and Deputy Coroner (SO)

  7. Alliance of Orange County Workers (AOCW): Operations and Service Maintenance Unit (OS) International Union of Operating Engineers (IUOE): Craft and Plant Engineer Unit (CP) Non-Represented (non-safety) Employees: Executive Management (E1, E2 and E3) Executive Aides and Executive Assistants (MB) Orange County Managers Association (OCMA) Administrative Management Unit (MA) – non-safety only Important Note: At this time – only new employees hired into the eligible representation unit codes are eligible to make the Retirement Formula Election Eligible Employees

  8. Defining a New Employee • Human Resources staff will need to determine if an employee is considered “new” for purposes of eligibility to make a retirement formula election • If there is any question as to whether the employee should be considered “new” for purposes of eligibility to make a retirement formula election, Department Human Resources staff should consult with their HRD Service Team Manager

  9. Newly hired employees into one of the eligible representation units who have not previously worked for the County are eligible Rehired employees into one of the eligible units who have been separated for more than 15 days are considered “new” for purposes of eligibility for making the election Eligible Employees

  10. Eligible Employees • Extra help employees and part-time employees (less than 20 hours) being hired as new, regular employees are eligible to make the election upon hire to regular status

  11. Employees who are not Eligible for the Election • Current County employees who are transferring by way of reassignment, reduction or promotion to one of the eligible bargaining units are not considered “new” for purposes of making an election • Employees who are hired/transferred from the Superior Court or Special Districts will not be considered “new” for purposes of making the election, unless they have been separated from the Court or Special District for more than 15 days

  12. Employees who are not Eligible for the Election • Part-time, regular employees (more than 20 hours) being hired as full-time, regular employees

  13. Information for New Employees • Prior to, or upon sign-up of new, eligible employee, the department Human Resources representative must give the employee all pertinent information for the employee to review • Information consists of: • “Choosing Your Retirement Benefit Formula” form • “New Employee Acknowledgement” form • “Retirement Plan Election / Member Affidavit” form • Information regarding the Defined Contribution component of the 1.62 Plan

  14. Information for New Employees • New employees who have elected the 1.62 Retirement Formula will be sent a Welcome Packet by TIAA-CREF with important plan and investment fund information regarding the voluntary defined contribution plan, along with an enrollment form which will need to be returned by the employee to Human Resources Department/Employee Benefits

  15. These employees will also be contacted personally by a representative from TIAA-CREF and offered an individual, personal consultation to discuss the Plan, investment funds and investment advice services available at no cost to the new employees Human Resources shall strongly encourage the new, eligible employees to attend the New Employee Retirement Orientation at OCERS. They can attend either prior to their hire date, or on County time after their hire date Information for New Employees

  16. Information for New Employees • All forms and information, including PowerPoint presentations, will be available on the OCERS website at www.OCERS.org • Information on the Defined Contribution component of the 1.62 Plan will be available on the TIAA-CREF website at www.tiaa-cref.org/oc162dcplan

  17. Role of Human Resources/Processing New Hires • Human Resources staff will need to track and follow up with the new employees prior to the 45 days if they have not informed HR of their Retirement Formula election • If employees do not make an election, they will automatically be placed in the 1.62 Retirement Formula

  18. Processing of New Hires • HRD staff have updated the Personnel Action Reference Guide – HIRE procedures with a new employment status and other changes; Department Human Resources staff will need to follow these procedures for processing of new hires who are eligible for the Retirement Formula Election

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