Accessibility   |   Management & Operations   |   Motorcoach   |   Rail   |   Sustainability   |   University

April 23, 2013

OCTA changes pension plan

Employees of the Orange County Transportation Authority (OCTA) will pay their full share of pension costs under a plan approved by the agency’s board of directors.

OCTA has been paying an average of 8% 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 contributed 100% of the employee share.

OCTA’s administrative employees serve at-will and are not members of a union. There are no automatic step increases, promotions or cost of living adjustments and OCTA does not pay for employee medical care after retirement.

Beginning Jan. 1, 2014, administrative employees will contribute an average of 2% of their salaries to their pensions. That contribution will increase each year until employees are paying 100% of their employee share by Jan. 1, 2017.

The plan will result in an $8.2 million savings to taxpayers over the three-year period. During the next 20 years, employees paying their own pension shares are expected to result in a savings of $85 million.
OCTA employees belong to the Orange County Employees Retirement System and the overwhelming majority – 96% – have a retirement formula of 1.67% at the age of 57.5. This is one of the lowest pension formulas in the state.

“This agency operates entirely with a business mindset,” said CEO Darrell Johnson. “Each one of our decisions is guided by public policy that continuously asks the basic question, ‘Does this make financial sense for our future?’”

OCTA has a merit-based pay-for-performance model much like the private sector where employees only receive raises if they achieve clearly defined goals and objectives. In response to the Great Recession, from mid-2009 through 2012 OCTA administrative employees received no merit-based pay raises.

deli.cio.us digg it stumble upon newsvine
[ Request More Info about this product / service / company ]

    There are no comments.

E-NEWSLETTER

Receive the latest Metro E-Newsletters in your inbox!

Join the Metro E-Newsletters and receive the latest news in your e-mail inbox once a week. SIGN UP NOW!

View the latest eNews
Express Tuesday | Express Thursday | University Transit

White Papers

Mass Transit Capital Planning An overview of the world-class best practices for assessing, prioritizing, and funding capital projects to optimize resources and align with the organization’s most critical immediate and long-term goals.

The Benefits of Door-to-Door Service in ADA Complementary Paratransit Many U.S. transit agencies continue to struggle with the quality of ADA service, the costs, and the difficulties encountered in contracting the service, which is the method of choice for a significant majority of agencies. One of the most basic policy decisions an agency must make involves whether to provide door-to-door, or only curb-to-curb service.

Mass transit mobile Wi-Fi & the public sector case study How Santa Clara Valley Transportation Authority successfully implemented Wi-Fi on its light rail and bus lines

More white papers


STORE
METRO Magazine - August 2013

METRO Magazine
Here are the Highlight:
  • Paratransit Survey: Operators Grapple with Funding Retention
  • Temsa Vehicles Bring Smoother, Quieter Riders to U.S. Market
  • Ridership Growth Spurs Twin City’s Transit to Expand Services
    And much more…
  •  
    DIGITAL EDITION

    The full contents of Metro Magazine on your computer! The digital edition is an exact replica of the print magazine with enhanced search, multimedia and hyperlink features. View the current issue