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2 <br />Due to recently implemented cost reduction measures, additional funds have become available <br />which make it possible to re-instate the Employer Contribution of $27.50/pay period ($715/year <br />per employee to the traditional (pre-tax) 401(k) Supplemental Retirement Plan for all eligible <br />employees effective January 1, 2011. <br />Staff recommends that the County reinstate the $27.50 per pay period ($715 per year) <br />contribution for general employees. The Orange County contribution of 5% of salary for Law <br />Enforcement Officers is not affected. <br />The Board approved this amendment on first reading at its September 21, 2010 regular <br />meeting. Since the change was only approved by majority vote and not unanimously, approval <br />by the Board on second reading is required for amendment approval. <br />FINANCIAL IMPACT: The cost of reinstating the $27.50 per pay period Employer contribution <br />to the 401(k) plan is estimated to be $270,000 for 760 general full time equivalents (FTEs) for <br />the remainder of FY 2010-11 (January-June 2011). The annual cost is estimated to be <br />$543,000. <br />RECOMMENDATION(S): The Manager recommends the Board amend the Orange County <br />Personnel Ordinance Article IV, Section 9.4 as provided in Attachment 1, which reinstates the <br />County contribution to employee 401(k) accounts effective January 1, 2011. <br />