County to Pay Social Security Debt

The Los Angeles County Board of Supervisors voted Tuesday to pay $15 million to settle a dispute with the Social Security Administration over the county’s withdrawal from the Social Security system.

After the county withdrew from the system at the end of 1982, the Social Security Administration assessed an additional month’s contribution of $12.1 million, based on money that county employees earned in December, 1982, but were not paid until January of 1983, County Counsel DeWitt W. Clinton said. The county challenged the assessment in federal court but lost.

In recommending the settlement, Clinton noted that administration had offered to waive 45% of the interest accrued to date, as well as future interest, and to allow the county to pay the settlement amount in three installments. The first payment would be due on July 1, 1991. Richard B. Dixon, the county’s chief administrative officer, said the settlement will cause no budgetary problems.