CEO reports staffing hires, budget requests and pending lease as ORS seeks reclassification and budget approvals

San Jose — Office of Retirement Services CEO Spencer Flynn delivered routine operational updates at the March board meeting, announcing staffing changes, pending budget requests to the city, continuing procurement work and an impending lease renewal. The board later authorized Flynn to execute a negotiated lease.

Staffing and hiring: Flynn announced Cecil Abiog was hired as a senior office specialist in the health care team (from a temp position). The accountant recruitment is in final interviews and expected to be filled in April. Flynn said headcount is not increasing overall but the department’s budget submission requests an internal reclassification: converting a senior investment officer to a deputy director of investments and adding an administrative officer (to centralize compliance and policy administration) while deleting a senior internal auditor post and outsourcing that function.

Budget process: Flynn said ORS staff have been answering detailed questions from the mayor’s budget office and city budget director as the city prepares a multi‑year approach to close projected general fund deficits. He described the change requests as part of the city’s personnel budget submissions; some classification concerns were raised by the budget office and staff continue discussions. Flynn said finalized budget recommendations will be presented to the board in April for approval before going into the city process.

Lease and procurement: Flynn reminded the board ORS’s current lease expires at month‑end. Staff negotiated a new lease at $2.75 per square foot — a significant per‑square‑foot reduction — with slightly larger square footage; the board authorized the CEO to execute the lease later in the meeting. He also summarized extensive procurement activity conducted for multiple legal services categories and noted the board’s joint ad hoc committees had been interviewing finalists.

Why it matters: Personnel classifications and recruiting affect ORS’s capacity for compliance, administration and investment oversight; the lease decision reduces office cost per square foot and moves staff to a slightly larger space. Outsourcing the internal auditor role will require budgeted funding and an RFP for external audit capability.

Speakers: Spencer Flynn (CEO); budget office participation referenced; trustees questioned budget classification and offered support for staffing requests.