Official’s Demotion Set for Review

The Orange County Retirement Board will meet Thursday to review its handling of beleaguered former administrator Mary-Jean Hackwood, who was accused of abusing her authority by forcing employees to run personal errands.

The meeting comes a month after the board voted to demote Hackwood to portfolio manager and rent a separate office for her in an effort to reduce contact with other pension system employees.

But county officials who reviewed the arrangement last week have raised concerns, sources said Tuesday.

Retirement system officials had hoped the demotion plan would proceed smoothly through the county personnel process. But county objections to portions of the settlement have forced the pension board to consider changes in the arrangement, the sources said.

Retirement board representatives met with top county officials last week to discuss the concerns, but details of the meeting were unavailable.

County Chief Executive Officer Jan Mittermeier could not be reached for comment Tuesday, and an attorney for the retirement board said only that the panel would consider the matter Thursday.

Hackwood, who denies any wrongdoing, has been on paid leave since December. Employees have called for Hackwood’s ouster and criticized the board for being too lenient with her.

The panel, which oversees the investments of 20,000 current and retired government workers, voted 7 to 2 to demote Hackwood. Under the plan, she would continue working for the system until 1997, when she reaches her 10th year of employment with the county and becomes eligible for full pension benefits.