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13 <br />SUPPLEMENTAL RETIREMENT CONTRIBUTIONS <br />Orange County-contributes $715 per year ($27.50 per pay period) to either a 401(k) or 457(b) <br />Supplemental Retirement Account for each -permanent employee. Employees -can designate <br />one of three Plans-Pruden#ial 401(k), ICMA-RC 457, or ~iationwide 457 for the County's <br />contribution and may elect to make a payroll deduction -up to legal limits. The $715 per <br />employee is approximately $543,000 over tw-elve months. <br />The County contribution was suspended between July 1; .2009 and January 1, 2011. The chart <br />below shows the increase in employee con#ributions from September 2010 (during the <br />suspension of the contribution) and August 2011-. <br /> Total Annual Employee <br />Contribution to All- Plans <br />2010 $772,872 <br />20.11- $903;310 <br />A recent employee survey asked for input relating to the relative value of the 401(k) in light of <br />rising -health care costs. When asked what the County should do with the $715 contribution to a <br />supplemental retirement plan, responses were divided nearly evenly among the choices. One- <br />third wanted the $715 contribution to continue towards a supplemental retirement benefit; <br />another one-third wanted it to go towards health insurance, and the remaining one-third wanted <br />the health insurance plan to be developed without loss of the $715. <br />When given a .choice- between (a) continuing-to receive the $715 supplemental retirement <br />benefit and (b) using- the $715 to defray their own employee health care premiums, employees <br />would choose to continue receiving the $715 towards their supplemental retirement benefit, as <br />shown below. <br />As of 8/2012011- Number of Continue receiving $715 Use the $715 <br /> Respondents as Supplemental towards health <br /> Retirement Benefit reaniums <br />All Em to ees 372 59% 4't% <br /> 21 76% 24% <br />Enforcement Officers <br />General Em to es 351 58% 42% <br />All Employees without 178 65% 35% <br />De endents <br />Employees with 182 63% 48% <br />De endents <br />* Sworn law enforcement officers would not be able to reduce the state-mandated County <br />contribution to 401(k). <br />A-11 <br />