HomeMy WebLinkAboutAgenda - 10-16-2012 - 5i 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: October 16, 2012
Action Agenda
Item No. 5-i
SUBJECT: Retiree Health Insurance Eligibility for County Commissioners
DEPARTMENT: Human Resources PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
1) NCGS § 153A-93 Retirement Nicole Clark, Human Resources
Benefits Director, (919) 245-2552
2) Board Policy Section IX, Board of John Roberts, County Attorney, (919)
Commissioners' Compensation 245-2318
3) Resolution Amending Board Policy
Section IX
PURPOSE: To consider a resolution which would make the Board of County Commissioners'
eligibility for retiree health insurance benefits commensurate with the eligibility requirements
for Orange County employees.
BACKGROUND: NCGS § 153A-93 allows counties to provide health insurance for all or any
class of former officers and employees of the county who have obtained at least ten years of
service with the county prior to separation from the county. Attachment 1 is NCGS § 153A-93.
On June 19, 2012, the Board of County Commissioners approved a revision to Article IV, § 28-
36 which requires employees hired on or after July 1, 2012 to complete 20 years of continuous
service as a permanent employee to be eligible for retiree health insurance.
At the October 2, 2012 regular meeting, the Board of County Commissioners voted to adopt
retiree health insurance eligibility requirements commensurate with Orange County employees
and asked that the Personnel Ordinance reflect such action. Board of County Commissioners
in office prior to October 2, 2012 would be grandfathered under the applicable eligibility
requirements.
Retiree health insurance eligibility for the Board and other provisions historically have been
documented in a Board Policy format. Effective July 1, 2003, Section IX of the Board Policy:
Board of Commissioners' Compensation states if the County Commissioner has served two or
more full terms in office (eight years or more), the County contribution is commensurate with
an employee who retires from Orange County with at least ten years of service as a
permanent employee. Attachment 2 is Section IX of the Board Policy reflecting those
provisions.
FINANCIAL IMPACT: The cost of the retiree health insurance would be the cost of the
County contribution as outlined in Article IV § 28-36.
RECOMMENDATION(S): The Manager recommends the Board approve the resolution
(Attachment 3) reflecting the Board's decision to make Commissioner eligibility for retiree
health insurance commensurate with the eligibility requirements for Orange County employees
effective October 2, 2012.
Attachment 1 2
§ 153A-93. Retirement benefits.
(a) The board of commissioners may provide for enrolling county officers and
employees in the Local Governmental Employees' Retirement System, the Law-Enforcement
Officers' Benefit and Relief Fund, the Firemen's Pension Fund, or a retirement plan certified to
be actuarially sound by a qualified actuary as defined in subsection (c) of this section and may
make payments into such a retirement system or plan on behalf of its employees.
(b) No county may make payments into a retirement system or plan established or
authorized by a local act unless the system or plan is certified to be actuarially sound by a
qualified actuary as defined in subsection(c)of this section.
(c) A qualified actuary means a member of the American Academy of Actuaries or an
individual certified as qualified by the Commissioner of Insurance.
(d) A county which is providing health insurance under G.S. 153A-92(d) may provide
health insurance for all or any class of former officers and employees of the county. Such
health insurance may be paid entirely by the county, partly by the county and former officer or
employee, or entirely by the former officer or employee, at the option of the county.
(dl) On and after October 1, 2009, a county which is providing health insurance under
G.S. 153A-92(d) may provide health insurance for all or any class of former officers and
employees of the county who have obtained at least 10 years of service with the county prior to
separation from the county and who are not receiving benefits under subsection (a) of this
section. Such health insurance may be paid entirely by the county, partly by the county and
former officer or employee, or entirely by the former officer or employee, at the option of the
county.
(d2) Notwithstanding subsection (d) of this section, any county that has elected to and is
covering its active employees only, or its active and retired employees, under the State Health
Plan, or elects such coverage under the Plan, may not provide health insurance through the
State Health Plan to all or any class of former officers and employees who are not receiving
benefits under subsection (a) of this section. The county may, however, provide health
insurance to such former officers and employees by any other means authorized by G.S.
153A-92(d). The health insurance premium may be paid entirely by the county, partly by the
county and former officer or employee, or entirely by the former officer or employee, at the
option of the county.
(e) The board of commissioners may provide a deferred compensation plan. Where the
board of commissioners provides a deferred compensation plan, the investment of fiends for the
plan shall be exempt from the provisions of G.S. 159-30 and G.S. 159-31. Counties may invest
deferred compensation plan funds in life insurance, fixed or variable annuities and retirement
income contracts, regulated investment trusts, or other forms of investments approved by the
Board of Trustees of the North Carolina Public Employee Deferred Compensation Plan. (1973,
c. 822, s. 1; 1981, c. 347, s. 1; 1991, c. 277, s. 1; 2009-564, ss. 1, 2)
G.S. 153A-93 Page 1
3
Attachment 2
Section IX. Board of Commissioners' Compensation
The Board of County Commissioners authorizes that:
• Salaries of County Commissioners will be adjusted by any cost of living
increase, any in-range salary increase and/or any other general increase
granted to permanent County employees. This includes adjusting
Commissioners' salaries effective July 1, 2003 by the equivalent of the 2.5
percent service based increase granted permanent employees in April 2003
with Phase 1 Classification and Pay Study implementation. It also includes
adjusting Commissioners' salaries by the percentage amount of any service
based increase for employees when authorized to be effective as part of
Phase 2 of the Classification and Pay Study.
• Annual compensation for County Commissioners will include the County
contribution for health insurance, dental insurance and life insurance that is
provided for permanent County employees, provided the Commissioners are
eligible for this coverage under the insurance contracts and other contracts
affecting these benefits.
• County Commissioners' compensation includes eligibility to continue to
participate in the County health insurance at term end as provided below:
■ If the County Commissioner has served less than two full terms in office
(less than eight years), the Commissioner may participate by paying the
full cost of such coverage. (If the Commissioner is age 65 or older,
Medicare becomes the primary insurer and group health insurance ends.)
■ If the County Commissioner has served two or more full terms in office
(eight years or more), the County makes the same contribution for health
insurance coverage that it makes for an employee who retires from
Orange County after 10 years service as a permanent employee. If the
Commissioner is age 65 or older, Medicare becomes the primary insurer
and group health insurance ends. The County makes the same
contribution for Medicare Supplement coverage that it makes for a retired
County employee with 10 years service.
• Annual compensation for Commissioners will include a County contribution
for each Commissioner to the Deferred Compensation (457) Supplemental
Retirement Plan that is the same as the County contribution for non-law
enforcement County employees to the State 401(k) plan.
• Travel expense allowances for Commissioners will be established at $150 per
month for the Board Chair and at $125 per month for the other four
Commissioners.
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RES-2012-091 Attachment 3
ORANGE COUNTY BOARD OF COMMISSIONERS
RESOLUTION AMENDING THE COUNTY CONTRIBUTION FOR COMMISSIONER
BENEFITS POLICY
WHEREAS,pursuant to NCGS §153A-93 counties are authorized to provide health insurance benefits
to all or any class of former officers or employees of the county; and
WHEREAS, in 2009 NCGS §153A-93 was amended to require such former officers or employees to
provide not less than ten years of service before they become eligible to receive such benefits upon
their separation from a county; and
WHEREAS, in 2003 the Orange County Board of Commissioners amended the County Contribution
for Commissioner Benefits Policy to provide former County Commissioners who have served less than
two full terms health insurance benefits at 100% of the County's cost and to provide former County
Commissioners who have served at least two full terms health insurance benefits at the same cost as a
former permanent employee with ten years' service to Orange County; and
WHEREAS, at the June 19, 2012 regular meeting of the Orange County Board of Commissioners the
Board amended the Orange County Code of Ordinances to, among other things, provide former
permanent employees access to health insurance provided the former employee had, at the time of
separation, at least 20 years' continuous service to Orange County for those under 65, ten years'
continuous service for those 65 or over or who are on a disability retirement, and to end enrollment in
the county's group benefit for those former permanent employees eligible for Medicare; and
WHEREAS, at the October 2, 2012 regular meeting of the Orange County Board of Commissioners
the Board unanimously voted to amend the County Contribution for Commissioner Benefits Policy to
authorize access to health insurance benefits for former commissioners upon the same terms and
conditions as such benefits are provided to former permanent employees of Orange County.
NOW, THEREFORE, BE IT RESOLVED, that the Orange County Board of Commissioners hereby
amends Section IX of the County Contribution for Commissioner Benefits Policy to authorize the
provision of health insurance benefits to former commissioners upon the same terms and conditions as
such benefits are provided to former permanent employees of Orange County by Chapter 28 of the
Orange County Code of Ordinances.
This the 16th day of October 2012.
Bernadette Pelissier, Chair
Orange County Board of Commissioners
Attest:
Clerk to the Board of Commissioners