Agenda - 05-11-1999 - 4 - Laserfiche WebLink

Browse Search

✓ At age 55 if separated from service or age 59 1/2 if still employed. 5. Benefits for the Employee ❑ Retirement income and security ❑ Tax savings ❑ Full ownership, 100% vested immediately ❑ Hardship withdrawal provisions ❑ Loan provision 6. Employee Participation ❑ One of the key purposes of an employer contribution is to encourage employee participation in the supplemental retirement plans. This supports employees in actively planning for retirement. The experience of the 401(k) plan has been that an employer contribution has the effect of significantly increasing employee participation. ❑ As of April 30, 1999, 159 Orange County general government employees participate in the 401(k) plan by making an employee contribution. By salary grade, the following numbers of employees make a voluntary contribution: Salary Grade Category Number Employees Grades 57 -63 46 Grades 64 -70 83 Grades 71 and over 30 For the 159 general government employees making a voluntary contribution, the average salary grade is grade 65. The average salary is $28,000. (For County employees as a whole, the average salary grade is 65 and the average salary is about $32,000.) ❑ As of April 30, 1999, 137 employees participate in the 457 Plan (another type of supplemental retirement plan with some different provisions as outlined in Attachment 1). By salary grade the following numbers of employees make a voluntary contribution. Salary Grade Category Number Employees Grades 57 -63 35 Grades 64 -70 73 Grades 71 and over 29 For these 137 employees, the average salary grade is 66 and the average salary is about $39,000.