Governor Signs Correa Orange County Hybrid Retirement Plan

From File: State Senator Lou Correa addressing the Senate during Floor Session

State Senator Lou Correa addressing the Senate

The following press release came out from Senator Correa’s office today:

SACRAMENTO, CA — Governor Schwarzenegger has responded to calls for pension reform by signing into law a measure authored by Senator Lou Correa (Orange County) that could well serve as a template throughout California.

Senate Bill 752 enacts a reform in pension law that was negotiated between both the Orange County Employees Association and the Orange County Board of Supervisors.

The new hybrid retirement plan will provide that both new hires and current employees would be given the option of choosing the existing defined benefit plan or a new hybrid that combines a smaller defined benefit payment with a 401(k)-style individual investment plan– at a cost savings of at least $10 million the first year and possibly millions more thereafter.

In response to the approval, Senator Correa stated, “this historic measure is a breakthrough program that the workers, the Orange County Employees Association and the County of Orange have agreed to. It is a plan that can serve as a role model for the rest of the state.”

In their joint support for the bill, Orange County leaders hailed the proposal as an innovative partnership of the OCEA and the County, addressing the needs of our workforce while remaining responsible stewards of taxpayer dollars.

Senator Correa concluded by adding, “As the author of Senate Bill 752, I am pleased that all parties collaborated to achieve this success. This solution preserves precious Orange County funds, while protecting the pensions of hard-working Orange County Employees, a win-win for all, especially Orange County Taxpayers.”