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Home My WebLink AboutORD-2010-086 Amendment to the Orange County Personnel Ordinance Article IV, Section 9.4o~p- ao~o-og~ - 3 ~d-s-~d ~,~ Current Article IY, Section 9.4 Supplemental Retirement [401 (k) Plan) Employer's Contribution This Employer's Contribution to the 401(k) Plan, effective July 1, .2009, is suspended until June 30, 2011. Proposed: Amend Article IY, Section 9.4 Supplemental Retirement [401 (k) Plan) Employee's Contribution 9.4 Supplemental Retirement [4~Lan) Contribution Effective Ol/Ol/11 9.4.1 Effective January 1, 2011 Orange County makes a Supplemental Retirement [401(k) Plan] contribution of $27.50 per pay period for each eligible employee for the remainder of the fiscal year, and thereafter as the Board of County Commissioners provides in the annual budget. 9.4.2 For this purpose, eligible employees are County employees both full time and part time (regularly scheduled at least 20 hours each workweek) appointed to permanent positions who are members of the N. C. Local Government Employees' Retirement System and who are not sworn law enforcement officers. See Section 9.5 for additional retirement benefits for Law Enforcement Officers. 9.4.3 To participate an eligible employee completes the appropriate enrollment form. 9.4.4 Coverage is effective with the date of appointment to the permanent position and enrollment in the retirement system. Contributions are suspended for any pay period in which the employee is in leave without pay status for that pay period. At 'termination, the County's 401(k) contribution ends. ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 21, 2010 Action Agenda Item No. ~ - G SUBJECT: Amendment to the Orange County Personnel Ordinance Article IV, Section 9.4 Supplemental Retirement [401(k)] Employer's Contribution -Reinstatement of Contribution DEPARTMENT: Human Resources PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Attachment 1. Change to the Orange County Personnel Ordinance effective with the FY 2010-11 Budget: Article IV, Section 9.4 Supplemental Retirement [401(k) Plan] Employer's Contribution INFORMATION CONTACT: Michael McGinnis, Human Resources Director, 245-2552 Clarence Grier, Financial Services Director, 245-2453 Annette Moore, Staff Attorney, 245-2317 Diane Shepherd, Benefits Manager, 245-2558 PURPOSE: To consider and approve an .amendment to the. Orange County ;Personne( Ordinance Article IV, Section 9.4 Supplemental Retirement [401(k)] Employer's Contribution to reinstate the County's contribution. BACKGROUND: Prior to FY 2009-10, Orange County contributed a flat dollar amount of $715 per year, or $27.50 per pay period, to the 401(k) accounts for general employees, regardless of an employee's contribution. Law enforcement officers received the mandated 5% of salary contribution to their 401(k) accounts. In June 2009, the Board approved a resolution "Resolution Determining a Significant Financial Crisis Exists Which WII Result in a Decrease of Revenue to the County and Temporary Cost Saving Measures are Necessary to Balance the County's Budget for the FY 2009-2010." The Resolution authorized temporary changes in the Orange County Personnel Ordinance as a cost saving alternatives to consolidating, reorganizing or abolishing programs or departmental units which could have resulted in the loss of one or more non-vacant permanent or provisional positions. The cost saving alternatives were: suspension of the Supplemental Retirement [401(k) Plan] Employer Contribution provided in Article IV, Section 9.4 for non-law enforcement officer (LEO) employees; and the continuation of a Voluntary Furlough Plan, as provided in Article IV, Section 24.0. These measures were proposed to end June 30, 2010. However, on June 15, 2010, the Board of County Commissioners approved the extension of the resolution until June 30, 2011. 2 Due to recently implemented cost reduction measures, additional funds have become available which make it possible to re-instate the Employer Contribution of $27.50/pay period ($715/year per employee to the traditional (pre-tax) 401(k) Supplemental Retirement Plan for all eligible employees effective January 1, 2011. Staff recommends that the County reinstate the $27.50 per pay period ($715 per year) contribution for general employees. The Orange County contribution of 5% of salary for Law Enforcement Officers is not affected. FINANCIAL IMPACT: The cost of reinstating the $27.50 per pay period Employer contribution to the 401 (k) plan is estimated to be $270,000 for 760 general full time equivalents (FTEs) for the remainder of FY 2010-11 (January-June 2011). The annual cost is estimated to be $543,000. RECOMMENDATION(S): The Manager recommends the Board amend the Orange County Personnel Ordinance Article IV, Section 9.4 as provided in Attachment 1, which reinstates the County contribution to employee 401(k) accounts effective January 1, 2011. o~p - ao ~~ - oBC~ 3 Current Article IV, Section 9.4 Supplemental Retirement [401 (k) Plan) Employer's Contribution This Employer's Contribution to the 401(k) Plan, effective July 1, 2009, is suspended until June 30, 2010. Proposed: Amend Article IV, Section 9.4 Supplemental Retirement [401 (k) Plan) Employee's Contribution 9.4 Supplemental Retirement f401(k) Planl Contribution Effective O1/O1/11 9.4.1 Effective January 1, 2011 Orange County makes a Supplemental Retirement [401(k) Plan] contribution of $27.50 per pay period for each eligible employee for the remainder of the fiscal year, and thereafter as the Board of County Commissioners provides in the annual budget. 9.4.2 For this purpose, eligible employees are County employees both full time and part time (regularly scheduled at least 20 hours each workweek) appointed to permanent positions who are members of the N. C. Local Government Employees' Retirement System and who are not sworn law enforcement officers. See Section 9.5 for additional retirement benefits for Law Enforcement Officers. 9.4.3 To participate an eligible employee completes the appropriate enrollment form. 9.4.4 Coverage is effective with the date of appointment to the permanent position and enrollment in the retirement system. Contributions are suspended for any pay period in which the employee is in leave without pay status. for that pay period. At termination, the County's 401(k) contribution ends. b. Appointments -None c. Proposed Change in Copv Fees for the Register of Deeds Office The Board approved the new copy fee of $0.15 per page for all copies provided by the Register of Deeds Office. d. Home Care and Hospice Month The Board approved a proclamation designating November 2010 as "Home Care and Hospice Month" in Orange County and authorized the Chair to sign. e. Amendments to the Water and Sewer Management Planning and Boundary Agreement The Board adopted the resolution amending the Water and Sewer management, Planning, and Boundary Agreement text and map. f. Services Agreement Amendment for Surface Water Quality Monitoring Eno River The Board approved the services agreement amendment with Desper Geoscience Consulting & Education, LLC to add analysis for enterococci and authorized the Manager to sign the amendment. g Design Standards for Orange County Local Landmarks and Local Historic Districts and Amendments to the Historic Preservation Commission Ordinance and Rules of Procedure The Board adopted the Design Standards for Orange County Local Landmarks and Local Historic Districts, and approve amendments to An Ordinance Creating the Historic Preservation Commission of Orange County and the Orange County Historic Preservation Commission Rules of Procedure. h. N.C. Forest Service Contract for FY 2010-11 This item was removed and placed at the end of the consent agenda for separate consideration. i_ Second Reading: Amendment to the Orange Countv Personnel Ordinance Article IV Section 9.4 Supplemental Retirement f401fk11 Employer's Contribution The Board amended the Orange County Personnel Ordinance Article IV, Section 9.4 as provided in Attachment 1, which reinstates the County contribution to employee 401 (k) accounts effective January 1, 2011. L Change in BOCC Regular Meeting Schedule for 2010 The Board amended its regular meeting calendar for 2010 by adding a joint meeting between BOCC and Alamance county Commissioners to discuss the Orange/Alamance County line, on Monday, November 29, 2010 at 7:00 p.m. at the Mebane Arts Center, 633 Corregidor Road (off Third Street), in Mebane, N. C. (Orange County had offered to host this meeting but Alamance County suggested having this meeting in Mebane). k. Approval of the Preliminary Steps Necessary to Seek Qualified School Construction Bond Financing for the Chapel Hill - Carrboro Citv Schools and Orange Countv Schools This item was removed and placed at the end of the consent agenda for separate consideration. 5. Items Removed From Consent Agenda h. N.C. Forest Service Contract for FY 2010-11 The Board considered the annual agreement between Orange County and the North Carolina Department of Environment and Natural Recourses Division of Forest Resources for protection, development, reforestation, management and improvement of forestlands in Orange County, and authorizing the Chair to sign. O~P~ -poi a -o ~~ 7/,