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HomeMy WebLinkAboutAgenda - 01-18-1994 - VIII-G Page 1 1 O R A N G E C 0 U N T Y BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 18, 1994 Action Agenda Item # VZLC-� SUBJECT: Conversion of Excess Vacation Leave to Sick Leave DEPARTMENT: Personnel PUBLIC HEARING: Yes X No ATTACHMENT(S) : INFORMATION CONTACT: Elaine Holmes, Personnel Director 1 - Draft Resolution Ext. 2551 TELEPHONE NUMBERS: 2 - Draft Personnel Ordinance Hillsborough - 732-8181 Revisions to Vacation and Durham - 688-7331 Sick Leave Sections Mebane - 227-2031 Chapel Hill - 967-9251/968-4501 PURPOSE: To consider revising the Orange County Personnel Ordinance to provide that Vacation Leave over 240 hours as of January 31 of each year is converted to Sick Leave. BACKGROUND: State Action The 1993 N.C. General Assembly adopted legislation changing State policy as to Vacation Leave accumulation for State employees and teachers. The policy change provides that Vacation Leave over 240 hours as of the year end is converted to Sick Leave rather than being cancelled. Such Sick Leave is available for use as Sick Leave and may be applied toward retirement service credit. NCACC Advice Since the State action, the North Carolina Association of County Commissioners (NCACC) has reviewed the matter including coordination with the N.C. Local Government Employees Retirement System. The NCACC has advised that counties have the authority to adopt a similar policy. Current Orange County Policy Currently the Orange County Personnel Ordinance provides that earned Vacation Leave may be accumulated without a maximum until January 31 of each year. On that date, any earned, unused Vacation Leave in excess of 240 hours is cancelled. Page 2 1 Proposed Orange County Policy Attachment 1 is a draft Resolution providing for the conversion of Vacation Leave over 240 hours as of January 31 each year to Sick Leave. (The NCACC advises the policy change should be in the form of the attached resolution which should be forwarded to the N.C. Local Government Employees Retirement System. ) Attachment 2 includes the draft revisions to the Vacation and Sick Leave sections of the Orange County Personnel Ordinance to implement the policy change. The effect of the policy change is that employees who would have lost this Vacation Leave now would have such Vacation Leave converted to Sick Leave. Such Sick Leave would be used as Sick Leave, as needed, and applied toward retirement service credit as authorized by the N.C. Local Government Employees Retirement System. The Retirement System provides that an eligible employee receives one month of retirement service credit for each 20 days of Sick Leave not to exceed 12 days of credit for each year of prior membership service. Financial Impact The proposed change has no direct financial impact on the County and Sick Leave is not reported as a liability on the County's financial statement. There are two indirect impacts: -If the employee became sick, the time could be used as Sick Leave like any other Sick Leave. -The time may be used to qualify for service retirement under the Retirement System and may be used in calculating creditable service under that system. There is no pre-funding by the County for such Sick Leave credit and no direct charge back to the County for such credit. The cost of retirement is shared on a system-wide basis through the employer and employee contributions. Employees Affected As to the numbers of employees affected by the change: 1 Page 3 -On January 31, 1993, 86 employees had Vacation Leave balances over 240 hours. A total of 1,696 hours was cancelled in accordance with the policy. The amounts cancelled ranged from six minutes to 206 hours. Over half of the employees had less than 10 hours. -As of November 30, 1993, 102 employees had Vacation Leave balances over 240 hours. It is anticipated that this number will be lower as of January 31 because of employees using the leave during the December - January period. Other Impacts Implementing the change will have several impacts: -In the circumstance where the employee is not able to schedule the leave for use as Vacation because of work requirements, the leave will not be lost to the employee. Instead it may be used for retirement service credit as authorized by the system or used as Sick Leave, if needed. -In other circumstances the employee may elect not to use all earned Vacation Leave because of the desire to have it become available as retirement service credit. -Because of the additional option of converting leave, employees and departments will have more flexibility in scheduling leave, particularly at the end of the year. RECOIMNDATION: The Manager recommends the Board: -Adopt the Attachment 1 Resolution and authorize the Chair to sign it. -Adopt the Attachment 2 Vacation Leave and Sick Leave policy revisions to the Personnel Ordinance effective January 31, 1994. Page 4 Attachment 1 Resolution Conversion Of Vacation Leave to Sick Leave WHEREAS, The Orange County Board of Commissioners expresses its intent to provide Sick Leave benefit policies for County employees consistent with a policy adopted by the 1993 General Assembly with regard to the conversion of State employees' and teachers' excess annual Vacation Leave to Sick Leave; and WHEREAS, The Orange County Board of Commissioners hereby adopts and implements the following annual Vacation Leave Conversion Policy: At the end of each benefit year on January 31 any County employees with accrued Vacation Leave in excess of 30 days or 240 hours will have this leave converted to Sick Leave. This converted Sick Leave will be used in the same manner as accrued Sick Leave and may be used for authorized Sick Leave purposes. And, like regular Sick Leave, any unused converted Sick Leave may be counted toward creditable service at retirement up to a maximum of 12 total Sick Leave days per year of service. NOW, THEREFORE, BE IT RESOLVED, that we, the Orange County Board of Commissioners, hereby adopt and implement the annual Vacation Leave Conversion Policy effective January 31, 1994, with a copy of this Resolution to be forwarded to the N. C. Local Government Employees Retirement System. Adopted this 18th day of January, 1994. Moses Carey, Jr. , Chair Page 5 Attachment 2 Draft Revisions to Article IV of the Orange County Personnel Ordinance 5.0 VACATION LEAVE 5.4 Accumulating Vacation Leave Delete: Earned Vacation Leave may be accumulated without a maximum until January 31 of each year. On that date, any accumulated Vacation Leave in excess of 240 hours is cancelled. The maximum amount of Vacation Leave that can be carried forward to February 1 is 240 hours. Add: Earned Vacation Leave may be accumulated without a maximum until January 31 of each year. On that date, any accumulated Vacation Leave in excess of 240 hours is converted to Sick Leave. The maximum amount of Vacation Leave that can be carried forward to February 1 is 240 hours. 6.0 SICK LEAVE Add: 6.3.5 In addition to Sick Leave earned, any accumulated Vacation Leave in excess of 240 hours as of January 31 of each year is converted to Sick Leave. This converted Sick Leave is used in the same manner as earned Sick Leave. As with other Sick Leave, any unused converted Sick Leave may be counted toward creditable service at retirement up to a maximum of 12 Sick Leave days per year of membership service, as authorized by the N.C. Local Government Employees Retirement System.