Deal Could Retire 5% of O.C. Staff

More than 800 Orange County government workers -- about 5% of the county workforce -- are expected to retire next summer if the county and workers ratify a contract that includes a significant pension increase, a top union official said Wednesday.

Workers represented by the Orange County Employees Assn. are voting this week on a three-year contract that would make many veteran workers eligible for significant pension increases starting in July. Some workers at age 55 could become eligible for retirement pay equal to 100% of their final salaries under the plan.

The tentative contract calls for workers to reimburse the county for the increased benefits by forgoing raises and paying about 2% of their salaries into the county retirement system.

A mass exit would affect many county departments and include such employees as social workers, engineers, secretaries and contract analysts. Although the retirements would cause a loss of talent and experience, they would create a cash savings for the county and encourage the hiring and promotion of young, energetic workers with new ideas, said Nick Berardino, general manager of the union that represents about 13,500 county workers.

Supervisor Chris Norby said he was concerned about the potential loss of so many workers.

“A lot of these are seasoned managers that we really need that would be really difficult to replace,” he said. “That’s a problem you have when you make retirement so attractive that people can’t afford to work.

“On the other hand, it gives the county the opportunity to hire younger workers with different ideas and maybe infuse some new blood into the county.”

One worker who said he hoped to take advantage of the new retirement system is Joe Chaikin, a 21-year county employee who works as a planner in the housing department. Chaikin said he was thinking about retiring next spring but would wait until July if the new benefits were approved. By waiting, he would get an additional $1,300 per month.

“When I found out about this proposal I was definitely happy about it,” Chaikin said. “I would have quite likely retired in the same time frame but with a considerably smaller pension.”

Darcy Vantiger, a 26-year county employee who supports the contract proposal, said a sudden rush of retirements would create opportunities for her to be promoted.

“I’ve not been able to move up because there’s a lot of older workers that stay a long time,” said Vantiger, who works in the resources development and management department. “With this amount of turnover, I might be able to get a promotion.”

The contract would most significantly benefit older workers, who would receive a significant pension increase without having to absorb much of the expense. Younger workers would make payments to cover the increased benefits for many years before they would be able to retire.

That fact is causing tension, with some younger workers unhappy that their paychecks would be smaller because of the pay freeze and increased payments into the retirement system. One worker set up an Internet site criticizing the contract. Another met with representatives for two county supervisors Wednesday to express concerns.

The Board of Supervisors is expected to vote on the contract at its Aug. 24 meeting.

Norby said he planned to carefully study the contract and its potential financial impact on the county. By one estimate, the increased pension benefit would create $300 million in additional liability to the county retirement system, which is already underfunded by more than $1 billion.

“I have two concerns,” Norby said.

“Is this something the employees really want and, No. 2, is this something the taxpayers can afford?”