The amount of unfunded pension liability in Orange County — at about 70 percent — mirrors the median liability tally of other jurisdictions in the state, according to a June 15 Grand Jury report
Going from a surplus in 2000 to a $4.5 billion liability in 2012, the county issued pension obligation bonds in the amount of $334 million in January of this year, the juror’s investigation discovered.
The report says unfunded pension liabilities in the county have been reduced by 11 percent since 2012. Governments now must disclose their unfunded pension liability as a line item on their balance sheet under new requirements set by the Government Accounting Standards Board.
The Orange County Employees’ Retirement System actuary issued a forecast, which projects unfunded pension liability rising 8 percent in the next four years, followed by declining levels. This contradiction needs to be resolved, the report says.
The report also notes a discrepancy in county employee pension and retirement choices and recommended more equitable benefits
Other reports released by the Grand Jury this year examine the care and treatment of mentally ill inmates in Orange County jails, drones, the sheriff’s temporary detention and holding areas, the foster care system, the status of the light rail system and the Orange County Office on Aging.
Grand Jury reports may be accessed at: ocgrandjury.org.
