Legislation to implement a new two-tiered pension plan for county employees in Orange County breezed through its first committee hearing today.

Senate Bill 752, by Orange County State Sen. Lou Correa, D-Santa Ana, passed out of the Assembly Committee on Public Employees, Retirement and Social Security on a bipartisan, 4-0 vote this morning.

The legislation enacts certain legal changes necessary to implement the pension plan crafted by the Orange County Employees’ Association and Orange County officials.

Under the proposal, which has been hailed a historic and a model for other government agencies, current employees get to decide whether to keep their old benefits, or select a hybrid plan that features a reduced pension but also a defined contribution component, similar to a 401K. New employees will also get to choose between the two plans.

The two-tiered system is expected to save the county millions.

“This sounds very innovative,” said Assemblyman Warren Furutani, D-Long Beach, before voting for the bill.

SB 752 now heads to the Assembly floor for consideration. Meanwhile, Orange County supervisors are expected to consider the plan locally next week.

Posted in: Assembly • California Legislature • OC Government • Senate |

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