Supervisors Delay Action on Retirement Accounts

At the request of employee unions, the Board of Supervisors Tuesday postponed action on a proposal to transfer control of deferred compensation accounts of county workers from the treasurer’s office to a private firm.

The move comes after Treasurer John M.W. Moorlach expressed concerns about the plan, which would make the National Assn. of Counties and two other firms responsible for the $83 million that some employees have set aside voluntarily for retirement.

Moorlach raised questions about a portion of the plan that requires the county to deposit only $75 million of the $83-million total with the National Assn. of Counties.

The county could keep a portion of the $8-million difference, depending on the amount of reimbursements the association makes to employees.

Moorlach said the plan might prompt the association to charge higher fees or offer lower returns to county employees.

County Chief Executive Officer Jan Mittermeier and other officials disagree with Moorlach’s criticism. They insist that the proposal would save the county money and benefit workers.

Officials said that county employees would earn the same returns and pay the same fees as the thousands of other participants from around the country who already use the program.

John Sawyer, general manager of the Orange County Employees Assn., said he shared some of Moorlach’s concerns and urged the county to reexamine the proposal.

“This needs to be explained to employees in plain English. They need to know the downside,” Sawyer said. “The county needs to make sure the workers are not put at risk by this.”