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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 $41,500 over twelve <br />months. <br />Beginning July 1, 2013, the County matched employee contributions for up to an additional <br />$1,200 per year ($50 semi - monthly). This had a significant impact on employee contributions as <br />many employees recognized the value in doubling their investment. Effective July 1, 2014, the <br />County increased its matching contribution to $1,512 per year ($63 semi - monthly). <br />The chart below shows employee contributions to all supplemental retirement plans from 2010 <br />(when the contribution was suspended) to present. <br />Because the County does not pay Social Security or Medicare tax on the majority of these <br />contributions, there is a savings of approximately $88,208 annually in payroll taxes. Employee <br />contributions to the Roth 401(k), totaling $135,240 annually, are taxed at the time of the payroll <br />deduction, and do not provide any tax savings to either the employee or the County. <br />The amount the County matched on the first payday of August 2014 was $38,193 compared to <br />$23,585 in the first pay day of August 2013. <br />A -7 <br />Monthly Employee <br />Contribution to All Plans <br />Annualized Employee <br />Contribution to Pre -Tax Plans <br />2010 <br />$32,203 <br />$386,436 <br />2011 <br />$37,638 <br />$451,656 <br />2012 <br />$38,360 <br />$460.320 <br />2013 <br />$73,678 <br />$884,136 <br />2014 <br />$96,087 <br />$1,153,043 <br />Because the County does not pay Social Security or Medicare tax on the majority of these <br />contributions, there is a savings of approximately $88,208 annually in payroll taxes. Employee <br />contributions to the Roth 401(k), totaling $135,240 annually, are taxed at the time of the payroll <br />deduction, and do not provide any tax savings to either the employee or the County. <br />The amount the County matched on the first payday of August 2014 was $38,193 compared to <br />$23,585 in the first pay day of August 2013. <br />A -7 <br />