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Home My WebLink AboutORD-2010-090 Amendment to Personnel Ordinance, Article IV, Section 9.4 Supplemental RetirementORD- ao10- DqD Article IV, Section 9.4 Supplemental Retirement {491�(') Savings Plan Employer's Contribution 9.4 Supplemental Retirement [401(k) Pan Savings Plan Employer Contribution 9.4.1 Effective January 1, 2011 Orange County makes a Supplemental Retirement [401(k) A contribution to an authorized 401(k) or 457 Plan of $27.50 per pay period for each eligible employee for the remainder of the fiscal year, and thereafter as Board of County Commissioners provides in its 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 Employees are eligible for G coverage is effective vAth 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 supplemental retirement 4040 contribution ends. 09,D- a010- c:)Go 2 Adaehm -en-- -I- Article IV, Section 9.4 Supplemental Retirement {4!."(' =,k) Savings Plan Employer's Contribution 9.4 Supplemental Retirement [401(k) Plan Savings Plan Employer Contribution 9.4.1 Effective January 1, 2011 Orange County makes a Supplemental Retirement [401(k) Plan] contribution to an authorized 401(k) or 457 Plan of $27.50 per pay period for each eligible employee for the remainder of the fiscal year, and thereafter as Board of County Commissioners provides in its 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 Employees are eligible for G 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 supplemental retirement 40 contribution ends. ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 4, 2010 Action Agenda Item No. 4- —'1 SUBJECT: Amendment to the Orange County Personnel Ordinance Article IV, Section 9.4 Supplemental Retirement [401(k)] Employer's Contribution to Include 457 Plans as an Additional Contribution Option DEPARTMENT: Human Resources ATTACHMENT(S): Attachment 1. Amendment to the Orange County Personnel Ordinance: Article IV, Section 9.4. Supplemental Retirement [401(k) Plan] Employer's Contribution PUBLIC HEARING: (Y /N) No INFORMATION CONTACT: Michael McGinnis, Human Resources Director, 245 -2552 Annette Moore, Staff Attorney, 245 -2317 Diane Shepherd, Benefits Manager, 245 -2558 PURPOSE: To consider and approve an amendment to the Orange County Personnel Ordinance Article IV, Section 9.4 Supplemental Retirement [401(k)] Employer's Contribution to allow the Orange County employer contribution to go to either an authorized 401(k) Supplemental Retirement Plan or 457 Deferred Compensation Plan. BACKGROUND: The current Personnel Ordinance, Article IV, Section 9.4.1 provides that effective January 1, 2011 Orange County will contribute $27.50 per pay period ( "employer contribution ") to an eligible employee's supplemental retirement [401(k) Plan] account. This 401(k) Plan is currently administered by Prudential as part of the North Carolina Supplemental Retirement Plan. On December 7, 2009, the Board adopted a "Resolution by the Orange County Board of Commissioners Authorizing County Participation in a 457 Deferred Compensation Plan" with the ICMA Retirement Corporation ( "ICMA -RC ") Deferred Compensation Plan and Trust for both the County Manager and Orange County employees. Employees have requested that they be allowed to allocate the employer's contribution to their 457 Plans instead of the 401(k) Plan. This amendment to the Personnel Ordinance would allow employees the opportunity to elect during an open enrollment period to direct the employer's contribution to either an authorized 401(k) or 457 supplemental retirement savings plan. FINANCIAL IMPACT: There is no financial impact because there is no change in the amount contributed for each employee. RECOMMENDATION(S): The Manager recommends the Board amend the Orange County Personnel Ordinance Article IV, Section 9.4 to allow eligible employees to elect to direct the County's contribution to an authorized supplemental retirement savings plan to either a 401(k) or 457 Plan effective January 1, 2011. Article IV o 16 --0 9a Employee Benefits 9.0 Retirement 9.4 elemental Retirement Savings Plan Employer Contribution 9.4.1 Effective January 1, 2011 Orange County makes a Supplemental Retirement contribution to an authorized 401(k) or 457 Plan of $27.50 per pay period for each eligible employee for the remainder of the fiscal year, and thereafter as Board of County Commissioners provides in its 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 Employees are eligible for coverage effective 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 supplemental retirement contribution ends. h. Second Reading: Amendment to the Orange County Personnel Ordinance Article IV Section 9.4 Supplemental Retirement r401(k)1 EmMover's Contribution to Include 457 Plans as an Additional Contribution Option The Board approved on second reading an amendment to the Orange County Personnel Ordinance Article IV, Section 9.4 Supplemental Retirement [401(k)] Employer's Contribution to allow the Orange County employer contribution to go to either an authorized 401 (k) Supplemental Retirement Plan or 457 Deferred Compensation Plan effective January 1, 2011. I. Terradotta.com Lease: 501 W. Franklin Street — Suites 105 and 106 The Board approved the lease renewals and authorized the Chair to sign the lease documents as presented for Terradotta.com for the term December 3, 2010 through December 2, 2011 at the following lease rates: - Suite 105 - $10,400 per year - Suite 106 - $6,060 per year L Fiscal Year 2010 -11 Budget Amendment #4 The Board approved budget ordinance amendments for fiscal year 2010 -11 for Housing and Community Development, Solid Waste Enterprise Fund, Sheriff Department, and Department on Aging. k. To Adopt Final Bond Resolution Authorizing the Issue of Limited Obligation Refunding Bonds in the Maximum Amount of $101.6 million and to Issue Additional $2 Million to Finance Computer Hardware /Software and Communications Equipment This item was removed and placed at the end of the consent agenda for separate consideration. VOTE ON CONSENT AGENDA: UNANIMOUS 5. Items Removed From Consent Agenda k. To Adopt Final Bond Resolution Authorizing the Issue of Limited Obligation Refunding Bonds in the Maximum Amount of $101.6 million and to Issue Additional $2 Million to Finance Computer Hardware /Software and Communications Equipment The Board considered a final bond resolution authorizing the issue of Limited Obligation Refunding bonds in the maximum amount of $101.6 million, and to issue an additional $2 million in financing for computer hardware /software and communications equipment. Commissioner Gordon said that since the County Commissioners received this item late, she wanted to make sure that this is the same thing they discussed at a previous meeting. Clarence Grier said that it is the same thing, except for one term change. Instead of "general obligation bonds," it is "limited obligation bonds," which is the same thing as alternative financing. A motion was made by Commissioner Pelissier, seconded by Commissioner Jacobs to adopt the Resolution for Sale of Refunding Bonds, which is incorporated by reference, and additional financing for computer hardware /software and communications equipment. VOTE: UNANIMOUS 6. Public Hearings -NONE 7. Regular Agenda a. Orange County Schools Board of Education Resolution Regarding the County's Capital Fundina Policy and the Use of Lottery Funds ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 16, 2010 Action Agenda Item No. - h SUBJECT: Second Reading: Amendment to the Orange County Personnel Ordinance Article IV, Section 9.4 Supplemental Retirement [401(k)] Employer's Contribution to Include 457 Plans as an Additional Contribution Option DEPARTMENT: Human Resources ATTACHMENT(S): Attachment 1. Amendment to the Orange County Personnel Ordinance: Article IV, Section 9.4 Supplemental Retirement [401(k) Plan] Employer's Contribution PUBLIC HEARING: (YIN) No INFORMATION CONTACT: Michael McGinnis, Human Resources Director, 245 -2552 Annette Moore, Staff Attorney, 245 -2317 Diane Shepherd, Benefits Manager, 245 -2558 PURPOSE: To approve on second reading an amendment to the Orange County Personnel Ordinance Article IV, Section 9.4 Supplemental Retirement [401(k)] Employer's Contribution to allow the Orange County employer contribution to go to either an authorized 401(k) Supplemental Retirement Plan or 457 Deferred Compensation Plan. BACKGROUND: The current Personnel Ordinance, Article IV, Section 9.4.1 provides that effective January 1, 2011 Orange County will contribute $27.50 per pay period ( "employer contribution ") to an eligible employee's supplemental retirement [401(k) Plan] account. This 401(k) Plan is currently administered by Prudential as part of the North Carolina Supplemental Retirement Plan. On December 7, 2009, the Board adopted a "Resolution by the Orange County Board of Commissioners Authorizing County Participation in a 457 Deferred Compensation Plan" with the ICMA Retirement Corporation ( "ICMA -RC ") Deferred Compensation Plan and Trust for both the County Manager and Orange County employees. Employees have requested that they be allowed to allocate the employer's contribution to their 457 Plans instead of the 401(k) Plan. This amendment to the Personnel Ordinance would allow employees the opportunity to elect during an open enrollment period to direct the employer's contribution to either an authorized 401(k) or 457 supplemental retirement savings plan. The Board approved this amendment on first reading at its November 4, 2010 regular meeting. Since approval was not by the full Board, approval on second reading is required as outlined in the North Carolina General Statutes. FINANCIAL IMPACT: There is no financial impact because there is no change in the amount contributed for each employee. 2 RECOMMENDATION(S): The Manager recommends the Board approve on second reading the amendment to the Orange County Personnel Ordinance Article IV, Section 9.4 to allow eligible employees to elect to direct the County's contribution to an authorized supplemental retirement savings plan to either a 401(k) or 457 Plan effective January 1, 2011.