HomeMy WebLinkAboutRES-2009-073 Undiminished Ret Benefits to furloughed emp who are members of Local Gov Emp Ret Syst~°.9s'io -moo -09
~£S - aooG- 0~3 3 ~'~
ORANGE COUNTY BOARD OF COMMISSIONERS
A RESOLUTION TO ELECT TO PROVIDE FURLOUGHED EMPLOYEES WHO ARE
MEMBERS OF THE LOCAL GOVERNMENTAL EMPLOYEES RETIREMENT SYSTEM
UNDIlVIINISHED RETIItEMENT BENEFITS
WHEREAS, on June 16, 2009 the Orange County Board of Commissioners approved an amendment
to the Orange County Personnel Ordinance, Article IV, Section 24.0, providing for Furlough Leave,
whereby an employee takes either voluntary or involuntary unpaid leave; and
WHEREAS, in the Personnel Ordinance the Orange County Board of Commissioners safeguarded
employee benefits who take a furlough by providing that the employee retains seniority, the County
continues paying employer paid benefits and the employee continues to earn and retain all leave at the
same rate as if they had not taken a furlough; and
WHEREAS, the Local Governmental Employees' Retirement System (LGERS), which Orange
County employees are members thereof, is governed by state law and individual local government
employers cannot make any changes to the formula governing their contributions to LGERS; and
WHEREAS, because Orange County could not make any changes to the formula without a change in
the law, the County could not safeguard its employee contributions made to the Local Governmental
Employees Retirement System which in effect diminished an employee on furlough's retirement
benefits; and
WHEREAS, on July 31, 2009 Session Law 2009-378 (Senate Bi11658) was enacted, which provides
that if a member of the Local Governmental Employees' Retirement System took a fiulough on or after
January 1, 2009 and before July 1, 2010, it would not diminish the employee's status in the retirement
system where the local government employer has made cone-time irrevocable election; and
WHEREAS, Session Law 2009-378 also provides that once an election is made, a public employee
who is member of the Local Government Employees' Retirement System shall be considered in active
service during any period of furlough and shall be entitled to all of the same benefits to which the
employee was entitled on the workday immediately preceding the furlough; and
WHEREAS, Session Law 2009-378 further provides that once the election is made a public employee
would suffer no diminution of retirement average final compensation based on being on furlough, and
the retirement average final compensation shall be calculated based on the undiminished
compensation; and
WHEREAS, Session Law 2009-378 further provides upon election the employer shall pay both
employee and employer contribution to the Retirement Systems Division on behalf of the furloughed
employee as though the employee were in active service; and
WHEREAS, any employer who elects to cover its furloughed employees in accordance with Session
Law 2009-378 shall include earnings lost due to furloughs taken after January 1, 2009 and before July
1, 2009 in the reported compensation and contributions for either July or August 2009; and
WHEREAS, any contributions lost due to furloughs must be reported to the Retirement System
Division within 90 days of the beginning of the period in which the compensation and contributions
will be included.
NOW, THEREFORE, BE IT RESOLVED by the ~ Orange County Board of Commissioners in
accordance with Session Law 2009-378 the following:
1. To make a one time irrevocable election that will allow an Orange County employee on
a furlough who is a member of the Local Governmental Employees' Retirement System
administered by the Retirement Systems Division of the Department of State Treasurer
to be considered in active service during any period of furlough and entitled to all of the
same benefits to which the employee was entitled on the work day immediately
preceding the furlough;
2. That upon this election an Orange County employee who is a member of the Local
Governmental Employees' Retirement System will be considered in active service
during any period of fixrlough and shall be entitled to all of the same benefits to which
the employee was entitled on the workday immediately preceding the furlough;
3. That upon this election an Orange County employee who is member of the Local
Governmental Employees' Retirement System would suffer no diminution of retirement
average final compensation based on being on furlough, and the retirement average
final compensation shall be calculated based on the undiminished compensation;
4. To pay both employee and employer contribution to the Retirement Systems Division
on behalf of the furloughed employee who is member of the Local Governmental
Employees' Retirement System as though the employee were in active service.
5. To direct staff to include earnings lost due to furloughs taken after January 1, 2009, and
before July 1, 2009, for employees who are members of the Local Governmental
Employees' Retirement System, in the reported compensation and contributions for
either July or August 2009.
6. To further direct staff to report any contributions lost due to furloughs of employees
who are member of the Local Governmental Employees' Retirement System to the
Retirement System Division within 90 days of the beginning of the period in which the
compensation and contributions will be included.
This the ~ day of October, 2009.
ATTEST:
Donna Baker, Clerk to the
Valerie P. Foushee, Chair
Orange County Board of Commissioners
Board of County Commissioners