Popejoy Would Let Pension Fund Out of Pool

Responding to a move by the Orange County Employees Retirement System to remove its funds from county authority, county Chief Executive Officer William J. Popejoy said Wednesday that he has no objection to the pension board managing its own affairs.

“They should do what they think is in the best interest of the retirees,” Popejoy said.

Citing a lack of confidence in the county’s leadership, the pension board voted Tuesday to withdraw retirement funds from the control of the county treasurer.

The pension board also decided to stop relying solely on the county auditor-controller’s annual audit of its financial operations. The board said it planned to hire an independent auditor as a backup to the county’s auditor.

Popejoy said the county would not “jettison” its overview of the retirement system, but would be willing to let the pension board handle the administration and management of its own funds.

“The last thing we want is the retirees to lack confidence in how the county handles the retirement funds,” Popejoy said. “We should be looking for more things to privatize.”

Mary-Jean Hackwood, administrator of the retirement system, did not return telephone calls for comment. Instead, inquiries were directed to the board’s attorneys.

Attorney Benjamin S. Seigel, who is representing the pension board, said Popejoy’s comments were “wonderful news. I think it’s very wise for him to say that.”

The pension board has $110 million tied up in the county’s collapsed investment pool. The money, while needed, represents less than 5% of the pension fund’s $2.5 billion in assets, pension board members said. Like other participants in the county’s failed investment pool, the pension board members are reviewing the county’s plan to disburse the remaining assets in the pool.

Meanwhile, the board members have another problem with the county.

In addition to withdrawing from county authority, the pension board on Tuesday filed a lawsuit against the county seeking more than $10 million, plus interest, in pension funds withheld from members’ paychecks since the Dec. 6 bankruptcy filing. The board contends that the county is holding onto the money illegally.

County officials say they are trying to resolve the issue out of court with the pension board’s attorneys.