Oxnard corrects illegal retirement plan (mal)practices

By George Miller

CosioTabin

Oxnard HR Director Tabin Cosio. Photo: CitizensJournal.us

One down, about 100+ to go…  An operational audit of the city revealed 128 significant problems needing to be addressed. One of them was Oxnard’s longtime failure (after repeated previous warnings) to make pension or Social Security payments for hundreds of part time, temporary and seasonalemployees – exactly how long, no one is saying. At the 10-20-15 City Council meeting, Human Resource Director Tabin Cosio, who joined the city in April, announced that this had been remedied, via setting up  a 457 deferred compensation retirement plan. Employees and the city will each contribute 3.75% of gross employee earnings. 355 employees are affected and an unspecified number of past employees. Cosio failed to state the costs , until prodded by Councilman Bert Perello. He then shared with us that annual cost is about $94,000 to comply. How much it costto research this and implement it was unspecified.

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Advertisement- 740 South B Street, Oxnard, (805) 486-6878

They looked at ICMA (selected), Mass Mutual and Nationwide as 457 plan providers. This plan is a legal alternative and is cheaper than providing Social Security.

Cosio still didn’t reveal past liabilities for this matter. When we asked him afterward, he said that the City is liable for the last three years.

 

From meeting agenda:

Human Resources Department
4. SUBJECT: Adoption of a Section 457 Deferred Compensation for Part-time, Temporary and Seasonal Employees. (187)
RECOMMENDATION: 1) Adopt a resolution authorizing the establishment of the Part-time, Temporary, and Seasonal 457(b) deferred compensation plan; and 2) Authorize the City Manager or designee to execute an agreement with the International City Management Association Retirement Corporation (“ICMA-RC”) for administration of the plan.
Legislative Body: CC Contact: J. Tabin Cosio Phone: 385-7475
 

Next Oxnard Council meeting:

Name Date Agenda Video
City Council Meeting October 27, 2015 – 04:30 PM View Agenda

 

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George Miller is Publisher of Citizensjournal.us and a “retired” operations management consultant, active in civic affairs, living in Oxnard.

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4 Responses to Oxnard corrects illegal retirement plan (mal)practices

  1. Dan Pinedo October 25, 2015 at 10:38 pm

    Ok, so setting up a 457 deferred compensation retirement plan takes care of the present 355 part time – temporary and seasonal employees.

    What the public also needs to know is how much is due to former employees, what the time frame for non compensation is, and who was responsible for letting this happen.

    If the former HR director was responsible and no criminal charges can be files, at least for the historical record so that those who come after can learn from the mistakes, assign accountability.

    One of the council members need to ask the question for the benefit of the public and the record.

    Formers employees affected need to be contacted and informed about what is due to them and encouraged to file a claim.

    Reply
  2. Tom October 25, 2015 at 11:00 am

    The annual costs may be $94,000, but how much is required to correct for past non-payments and is the city responsible for both employer and employee contributions not made in the past?

    Reply
  3. Steven Nash October 23, 2015 at 4:03 pm

    My head’s a little muddled from allergies but if I remember my algebra and solving for x, we have $94,000 / 355 employees = $264.7 per employee. Taking this number, $264.7 and dividing it by the 3.75% of gross employee wages and saying this is equal to x divided by 100% of GEW, we get a formula something like this; $264.7 / 3.75% = x / 100% or $26,400 = 3.75x or x = $7040 annual GEW. I could be totally wrong here but in any case, $7040 annual wage per qualified employee seems awfully low as does the $94K cost to the City.

    Anyone out there who’s better at grade school math?

    Reply
    • Citizen Reporter October 23, 2015 at 4:32 pm

      Steve: Maybe we need to make an information request, Cosio did say $94,000, right? It seems like the back payments could be longer than the just three years he told me later, too. Let’s ask.- G. Miller

      Reply

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