Head of O.C. Pension Board Fired in Clash Over Direction

The Orange County Retirement System abruptly dismissed its executive director amid growing clashes with the board of directors over the way the organization is run.

Officials on Wednesday declined to give specifics concerning last Friday’s ouster of Ray Fleming but said it did not involve malfeasance or suggest problems with the system’s $5-billion pension fund.

“He was dismissed because the board desired to move to a new management style,” said Harvey Leiderman, attorney for the Retirement Board.

Two sources who spoke on the condition of anonymity said the board of directors thought Fleming was not responding quickly enough to the board’s staffing and organizational goals.

County Treasurer-Tax Collector John M.W. Moorlach, a member of the board, said concerns about the way the office was being managed had been building for some time.

“I think it’s more of an issue of providing smoother operations for the office than anything else,” he said. “This will improve the whole structure.”

The retirement system has about 20,000 members, most of them employees of the county. Workers for the Orange County Transportation and Fire authorities, Orange County Sanitation District and other special districts also belong.

Moorlach moved to reassure current and retired government employees that all pension funds are in good shape and that investment issues had little to do with the decision to remove Fleming.

Board officials are beginning a search for a successor for Fleming. He could not be reached for comment.

Last year, Fleming’s predecessor, Mary-Jean Hackwood, paid $8,500 to settle a lawsuit alleging she underreported gifts and violated conflict-of-interest rules. She was accused of abusing her authority by forcing employees to wrap Christmas presents, wash her car and run other personal errands.

Fleming did not have direct oversight of pension investments, though he did manage the delivery of benefits to retirees and personnel matters. He began his tenure in December 1996. Previously, he managed retirement funds for the cities of San Diego and San Bernardino.

The pension fund grew substantially during Fleming’s time as head administrator, helped by a rosy economy and bullish stock market.