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Childers Says 401(a) Annuity Plan Is Illegal And Commissioners Should Pay Money Back
July 23, 2021
During a commission meeting Thursday morning, Escambia County Clerk Pam Childers asserted that state has told her that the county’s 401(a) annuity plan is illegal.
“The state has determined it is illegal to have a 401(a) for elected officials,” Childers told commissioners. “They emailed me yesterday. All forms have been changed throughout the state of Florida, and I think that Madam Attorney probably needs to get with a few of you about these changes that have happened. And Commissioner Bender, if I could have a private conversation with you I would appreciate it.”
County Attorney Alison Rogers sent a public records request email to Childers asking for documentation.
“Please consider this a public records request for the opinion, memo, email or other similar record which you indicated during the Board meeting came from the State regarding the legality of elected officials participation in a 401a program,” Rogers wrote in the email.
Childers responded by email about a half-hour later, sending a link to a form on the website of the Florida Retirement System (FRS). She noted there is no longer an option that states “Withdraw from the FRS to participate in a local annuity plan.”
“There are limited reasons to opt out of FRS. FRS is compulsory if statutes do not allow an opt-out provision,” Childers wrote. “When Codey returns, he will share our follow up written communication. My communication was all verbal. There is no need to amend the statute because the statute is clearly written.” Codey is Codey Leigh, general counsel for the Escambia County Clerk of Court and Comptroller.
“We will need to talk through walking back those commissioners in the 401a to migrate back to FRS. The statute is clear how that happens,” Childers continued. “During a previous meeting, all commissioners agreed to give back the money if it was deemed illegal. I will prepare calculations for the amount that can legally be kept and that which should be returned to the county. The contribution rates are clearly written in the statutes, we can compound a reasonable rate of earnings.”
In a reply email, Rogers pointed out it was FRS that allowed Commissioners Robert Bender, Lumon May and Steven Barry to opt out of FRS and participate in the 401(a) program.
“We have three commissioners who the FRS specifically allowed to opt out of FRS in order to participate in a local annuity; one would assume if FRS has changed its mind on previously participating officials, then it should reach out to those it knowingly allowed to do this. I would have to assume participants would be grandfathered,” Rogers said in an email reply to Childers.
401(a) Annuity Program
It’s called a 401(a) annuity program, and under state statute was offered only to senior management service employees and commissioners that opt out of the Florida Retirement System (FRS). It’s available statewide, not just in Escambia County.
The plan does not cost Escambia County taxpayers anything extra when contributions are made in a timely fashion; the employee contributions are exactly the same whether or not the money goes into FRS or the annuity program. FRS has significant administrative overhead and fund liability that is funded from employee contributions. The 401(a) annuity plan participant costs are lower, so participants can earn significantly more retirement dollars.
Escambia County has offered a 401(a) annuity program to senior management employees and elected officials since 1997.
Comments
23 Responses to “Childers Says 401(a) Annuity Plan Is Illegal And Commissioners Should Pay Money Back”
She has bigger cojones than a lot of our elected politicians, and their appointees. Nice to hear somebody on a great job , going above and beyond their duties , and exercising her 1st amendment.
Curse her all you want. She controls the money.
Money is more powerful than any curse ever cast by man.
It is good that she takes her job seriously. I wish more did.
David for every Pam I’ve ever met
She’s coo coo
The words to pay back the money is “SHALL” or “WILL” not should. The Fla Governor should be involved in this “illegal” event and start firing plus prosecution. These county people knew what they were doing.
I think she might feel a little bit responsible for not catching it sooner! Ultimately, she holds the county’s checkbook – she said it! With that being said, I don’t think she had a clue and this one got by her, so she’s owning it and making corrections and fixing everything, calculating and plans on collecting so she doesn’t catch a charge!
Having worked for Ms. Childers, I can honestly say; she is a total nightmare to work for ….. I witnessed more than once behavior, in my opinion, nothing short of an adult temper tamper. Considering this situation, the citizens of Escambia had every right to hear this in a public forum. The Citizens need & should know what their Elected Officials are doing with public funds. Go Pam Go!!!!
Put the people away who started this illegal plan. Step up State Attorney and go get them.
49.18% contribution rate and no one thought maybe this was a little shady? You joe public can contribute just over 8% ( these are tax deferred funds) Mr ECBCC sour return funds they said.. not that Ms Childers has made her findings all of a sudden they defer to their lawyer?
Because most people who work aren’t retirement law experts we must rely on those who are paid to keep up with these rules. So the 401(a) plan became illegal after it was offered and those who were eligible and received the benefit were not notified that changes had been made in the system by HR or FRS. If it was paid into then why would they be penalized or prosecuted. If the person responsible for HR and retirement doesn’t stay on top of tje changes to retirement policy and laws then they should be be held accountable…and yes an e-mail or phone call to each individual may have been the more tactful way to inform them.
It is common knowledge she has a very high employee turnover rate within her office. She is horrible to work for and she is a pompous and arrogant everywhere she goes.
One commenter: Is she losing her mind? No, she isn’t losing her mind. Childers does a great job, and she will see through the entire handling of this annuity program.
Thank you Mrs. Childers for taking care of business in a legal way.
Sure a lot of showmanship from Mrs. Childers these days. She must be aiming for a commission seat or some other higher calling (state rep?). She used to sit quiet and be a clerk.
She accused Lumon May a month or so ago of saying “I’m f**king pissed, that bitch shouldn’t have said that.”
I’m tending to agree with Lumon.
She’s definitely having a moment, Citizen.
Hopefully she’ll recover her bearings sooner rather than later, and get back to the business of her constitutional office rather than trying to insert herself into the County’s budget process, retirement structures, and now labor negotiations. Ms. Childers is a very popular officer and therefore has a lot of latitude. Would that she start using it for the good, because it would be a whole lot better for the BOCC to have a partner in the necessary rebuilding, rather than having to work around her current ill-placed obstructionism.
The real story here is what a mess our local and state bureaucracies are. If they lose any money at all it will very little because all this does is force them to move it from one fund into another.
This didn’t even need to be brought up at a commissioners meeting. All she had to do was tell them that there’s been a change regarding your options under the Florida Retirement System.
Not surprised…a crook, I mean, commissioner suggested the change.
This should be a big red flag to get rid of the commissioners in favor of opting out of FRS for anything illegal. You might smell a rat but a CROOK smells worse. Good job, Pam!!!
I guessy the HR director and Mrs Gilley were retaliated against because they stood up for the people of Escambia CO. I Smell a Rat in all of this. There must be a Collard pot somewhere!
Big news a political taking tax dollars for there own gain SHOCKER!!! But they need that $ to buy votes
YOU GO GIRL!
I smell a rat.
Find them rats Mrs Childers.
If it is unlawful for the county to have an annuity plan, then those involved with offering it and possession should be charged accordingly. Has the state attorney been notified of this criminal activity? They have admitted to committing the crimes, weren’t they arrested?
I see large protests here soon. Is there a different law standard for elected officials or senior management? They need to be arrested NOW!
What ?????? A Politician give money back
Is she losing her mind?