Replace temps' pension plan, grand jury tells Riverside County supervisors

A pension plan for Riverside County government temporary employees should be scrapped and replaced with Social Security, according to a report to be presented to the Board of Supervisors today.

In a five-page evaluation of the county's 401(a) defined-benefit plan offered to workers in the Temporary Assignment Program — known as TAP — the Riverside County Grand Jury identified practices it called detrimental to the temporary employees.

The grand jury, composed of 19 residents selected to serve a yearlong term during which they scrutinize and report on government operations, detailed how the 401(a) plan came about following the county's decision to initiate TAP in the late 1990s to rein in expenditures going to private-sector temporary employment agencies.

TAP expanded from 200 employees in 1999 to nearly 2,000 employees less than a decade later, according to the report.

During this period, the Laborers International Union of North America, representing forensic technicians, nursing assistants, building maintenance workers and others in county government, complained that TAP employees were earning wages on par with permanent employees.

In a conciliatory gesture, the county lowered TAP employees' wages 5.5 percent below what permanent employees are paid for comparable work. However, to make up the loss to temps, the county adopted the 401(a) pension program, which works like Social Security and is implemented in lieu of Social Security, according to the grand jury.

However, only 3.75 percent of a TAP worker's earnings are withheld, compared to 6.2 percent under Social Security. The employer matches the withholding, which in the case of the 401(a) plan means paying out 3.75 percent in matching funds, according to the grand jury.

The report indicated that by implementing the 401(a) program, the county lowered its tax liabilities and seemingly offset TAP workers' losses from reduced pay.

However, problems arise when temporary workers leave TAP after contributing a few thousand dollars or less to their 401(a) plans. The grand jury said predetermined criteria built into the pension program often reduce temp workers' lump sum pay-outs to a small percentage of their contributions.

Public comments on the grand jury report are expected during today's board meeting.

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