An Orange County taxpayer’s organization awarded OCTA one of its coveted honors for a proactive pension reform plan that will save more than $8 million over the next several years.
The Orange County Taxpayers Association or OCTax is a countywide organization representing taxpayers to ensure that taxes and tax-supported programs are fair, understandable, cost-effective and good for the economy.
Approximately 230 participants including more than 55 elected officials gathered at the "Roses, Radishes and Royalty" awards to celebrate businesses and public agencies with taxpayer policies that reflected these values.
OCTA’s pension plan calls for administrative employees to contribute an average of two percent of their salaries to their pensions beginning Jan. 1, 2014 with increases each year until employees are paying 100 percent of their employee share by Jan. 1, 2017.
OCTA CEO Darrell Johnson said phasing in the plan will help minimize the impact to its employees while addressing the long-term financial sustainability of the transportation agency.
The agency has been paying an average of eight percent for each administrative employee’s share of their pension costs. OCTA’s 1,100 union-represented coach operators, maintenance workers, facilities technicians and parts clerks already contribute 100 percent of the employee share.
The plan will result in an $8.2 million savings to taxpayers over the three-year period. Financial analysts say employees paying their own pension share is expected to result in a savings of $85 million during the next 20 years.
OCTax also honored the Transportation Corridor Agencies and the cities of Anaheim, Orange and Newport Beach for their pension reform efforts.