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Just Released: Second Opinion Document Says County’s 401(a) Annuity Plan Is Legal
August 13, 2021
Escambia County has released a second legal opinion document that states the county’s 401(a) annuity plan is in fact legal for elected officials and senior management.
The board obtained an outside legal opinion from Michael Mattimore of Allen Norton & Blue, which Commissioner Jeff Bergosh described as a “very expensive, high end government firm out of Tallahassee”.
On August 5, the Escambia County Commission voted to release the legal opinion, but one document was withheld due to the potential of future litigation. Thursday, that document was released to NorthEscambia.com. Like the first, it states the 401(a) plan is permissible.
In late July, Escambia County Clerk Pam Childers asserted that state has told her that the county’s 401(a) annuity plan is illegal.
“It is my opinion that the Local 401(a) Annuity Program is legal,” Mattimore wrote of that plan. To read the complete July 21 opinion (pdf), click or tap here.
The July 21 correspondence was a clarification of the first email from Mattimore. To read that first opinion, which was just released, click or tap here (July 2 opinion).
Commissioners Stephen Barry, Robert Bender and Lumon May all opted for the plan.
Barry said there was additional documentation in Internal Revenue Service code and from Westlaw, an online legal research service and proprietary database for lawyers and legal professionals, that references the legality plan type. The commissioner’s vote also allowed the release of that information.
“It’s been alleged that it is illegal because it is not a local annuity. That’s not true,” Barry added.
“To think that I did something illegal be completing a piece of paperwork that HR gave me when I started this position,” Bender said at an August 2 meeting. “I didn’t have vote in it. I didn’t do anything with it. They (HR) said here are your three options, and I chose one.”
“The plan goes back to 1997, 25 years give or take, and we’ve had 25 audits that have never pointed to any issues to the plan,” Barry remarked.
“We should certainly not only get an opinion, but we should get a court order,” May previously said. “It should be brought forth because it deserves to be decided whether by commission or omission is this legal, is it ethical, or is it right. I do believe that it is.”
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
11 Responses to “Just Released: Second Opinion Document Says County’s 401(a) Annuity Plan Is Legal”
Pensacola State College has used this high end very expensive law firm (Norton and Blue) for ages and senior management at the college was always eligible for better returns retirement plans. Thats the way it is: the rich get richer – might as well suck it up
Wow they are going to do every thing in their power to get that money including spending even more taxpayer money do they have no shame? A better example of entitlement I have never scene.
What would you expect from another bought and paid for opinion by the BOCC? I’m surprised they didn’t break their necks trying to get this published the moment the ink was dry back on July 21st. LOL! Now for the not laughing matter: ABB – Anybody But Barry next election.
Legal does not necessarily equate to Moral.
NEED ONE AND ONLY ONE RETIREMENT SYSTEM FOR ALL EMPLOYEES
District 5 needs new leadership, this guy is only concerned with what he gets out of it.
Mr Barry is Wasting all of his time on this nonsense. NO VOTE FOR YOU
I am glad to see Mr. Barry has cleared his name, after being attacked with FALSE allegations by pam. Pam should apologize but we know she want. Thank you Mr. Barry for all you have done for the north end of Escambia county. One person trying to take care of the north Half of the county is a major job and I know you can not do this alone but know one wants to help. They all want to complain. I have seen what you have done and are trying to do. Thank you sir I will vote for you sir…
And how many paid opinion do we have to pay for the make us think that 48% tax deferred retirement contributions is ok?
How easy you spend money when it’s the tax payers.
Time to clean house and Kick the bums out!
Sorry, it is not true, we do pay for this program through State taxes, property taxes and every other tax the State puts on us. IF the Commission had any decency they would take the program out and save us poor fools some little tax dollars. The Commission back in 1997 put this in and this Commission in 2021 can take it out.
Underhill and his lackey started saying it was illegal and sent a few opinions to PNJ and they published it and drew cartoons.
I’m glad Barry is clearing his name, yet a proposed settlement above and beyond didn’t go over well. Underhill doesn’t like that he got stuck with paying his own legal fees. The PNJ really needs to consider the source.
Bergosh is clearing up some of the same type of propaganda being spun there and on facebook by Underhill and his cohorts.
We need to move on to other more important issues than all the trouble being stirred up between the Board members.
Yes it’s legal