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10 <br /> SUPPLEMENTAL RETIREMENT CONTRIBUTIONS <br /> Orange County contributes $715 per year ($27.50 per pay period) to either a 401(k) or a 457(b) <br /> Supplemental Retirement Account for each permanent employee. Employees can designate <br /> one of three Plans — Prudential 401(k), ICMA-RC 457, or Nationwide 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 twelve months. The County does not pay any Social <br /> Security/Medicare taxes on these contributions, for a payroll savings of $41,000 over twelve <br /> months. <br /> The County contribution was suspended between July 1, 2009 and January 1, 2011. The chart <br /> below shows employee contributions to all supplemental retirement plans from September 2010 <br /> (during the suspension of the contribution) and August 2012. <br /> Total Annual Employee <br /> Contribution to All Plans <br /> 2010 $772,872 <br /> 2011 $903,310 <br /> 2012 $920,640 <br /> Because the County does not pay tax on $840,900 of these contributions, there is a savings of <br /> approximately $64,300 over twelve months. Employee contributions to the Roth 401(k) are <br /> taxed at the time of the payroll deduction, and do not provide any tax savings. <br /> A - 8 <br />