HomeMy WebLinkAboutORD-2025-035-Approval of Amendments to the Orange County Code of Ordinances Section 28 – Personnel Regarding Law Enforcement Special Separation Allowance ORD-2025-035� � • q • pc � � I Z � I °� 5
Sec. 28-38 . Retirement .
(a ) Membership in the North Carolina Local Government Retirement System is mandatory forfull-time
permanent and part-time permanent employees. Employees become a member of the North Carolina Local
Governmental Employees' Retirement System on the date of hire if the duties require the employee work at
least 1,000 hours a year and the employee is under age 62 at the date of hire.
(b) Vested Right. After five years of service, employees are eligible for monthly retirement benefits based on
salary, age, and years of service.
(c) Service Retirement With 30 Years. After 30 or more years of creditable service, an employee is eligible for
unreduced service retirement. An employee must not work nor be paid in advance for work dating the
month following retirement.
(d) Service Retirement Atot Age 65. At age 65 or thereafter an employee is eligible for unreduced service
retirement, with at least five years of service. (Age 55 if the employee is a member of the Law Enforcement
Officer's Retirement System)
(e) Post Retirement Increases. After retirement, an employee may become eligible for increases that become a
permanent part of retirement benefits.
(f) Disability. Disability benefits are available after five years of service, should the employee become
permanently disabled, mentally or physically, for the further performance of duty as certified by the Medical
Board of the Retirement System, upon written application to the Board of Trustees, be retired on a disability
retirement allowance. This allowance is calculated as a service retirement allowance based on the average
final compensation prior to retirement and the years of service the employee would have had at age 65 .
(g) Death Benefit. Death benefit is paid the beneficiary if death occurs in active service after one year of service.
The beneficiary would be paid a death benefit equal to the compensation earned and on which contributions
were made in the previous calendar year, or the compensation earned and on which contributions were
made in the 12 months preceding the month of death, whichever is greater, subject to a maximum of
$20,000.00. If death occurs within 90 days after the last day of actual service, the death benefit would be
payable; or, if the employee had applied for and was entitled to receive a disability retirement allowance, the
death benefit would be payable provided the disability retirement allowance had not been discontinued or
revoked during the one-,.year period . In case of resignation or termination, last day of actual service is the
last dayaetua4y worked; in all other cases, it is the date on which sick and annual leave expires.
( h) Tax Sheltering of Retirement Contributions. Effective July 1, 1982, Orange County elected a method of tax
sheltering of member contributions to the North Carolina Local Government Employees' Retirement System.
This change became effective January 1, 1983, for the N .C. Law Enforcement Officer Retirement System. This
is funded by the same six percent retirement contribution deducted from a member's gross salary. Using this
arrangement, there is no additional cost to an employer. The Retirement System will continue to credit the
amount of contribution to the employee's account in the Retirement System. Also, the Retirement System
would continue to recognize an employee's full salary for purposes of compensation. Should an employee
terminate and request a refund, the total of contributions both before and after the election would be
refunded. Upon a refund, the System will report to the Internal Revenue Service an employee's contribution
made after the election of the pk*-i*ppickup as taxable income in the year of the refund. At retirement, an
employee has to pay Federal income tax on all amounts received over and above the contributions made
prior to the date of election to tax shelter the contributions.
(4) Supplemental Retirement Savings Plan Employer Contribution.
(1) Orange County makes a Supplemental Retirement contribution to an authorized 401(k) or 457 Plan for
each eligible employee as the Board of County Commissioners provides in its annual budget.
(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 28-38(j) for additional retirement benefits for Law Enforcement Officers.
(3) To participate, an eligible employee completes the appropriate enrollment form.
(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.
(j ) Additional Retirement Benefits for Law Enforcement Officers. In accordance with N .C. Gen. Stat. § 143466.70
additional retirement benefits are provided for Local Law Enforcement Officers .
(1) Local governments are required to provide contributions to the Special Retirement Income Program
(401K Plan) for local law enforcement officers as follows :
2% of salary amount in F.Y. 1987 - 1988
5% of salary amount in F.Y. 1988 - 1989 and thereafter
(2) Special Separation Allowance. Local governments are required to pay a special separation allowance to
sworn local law enforcement officers in accordance with N .C. Gen. Stat. § 143-166.42. Eligibility criteria
for the traditional and 30-year fixed benefit options require a sworn law offer to satisfy the following:
a . Traditional LESSA Benefit Option
1s aFe at least age SS andRetire under the Local Governmental Employees' Retirement
System (LGERS),
2 . At retirement, have fivea least 30 years of creditable service, or be at least age 55 with
at least 5 years of creditable service orior to retirement
3 . Have at least 5 years of continuous service as a law enforcement officer-, -of immediately - - - - - - Formatted: List 2
preceding retirement.
2 hay 4 . Retire prior to reaching age 62, and
5 . Have at least 39-yeafs50% of total creditable service ' egaFd 'ss of age be in a law
enforcement officer position .
b. 30-year Fixed Benefit Option
1 . Retire under the Local GoveF^ ^F ^ Fi« gmple• •eess 'Governmental Employees' Retirement
System with aleast 50 peKe ( LGERS) on or after July 1, 2025,
2 . By age 62, have 30 years of thatcreditable service-being,
3 . Have a least 5 vears of continuous service as a law enforcement officer immediately
preceding retirement, and
4 . Have at least 50% of total creditable service be in a law enforcement- position . ' - - - - - - Formatted: List 2
b c Election is irrevocable once made If no election is made the 30-Year Fixed Option applies by
default.
d . Creditable service means service for which a credit is allowed under LGERS.
e. Termination of Benefits. If the law enforcement officer meets one of the two criteria in
Subsection 28-380)(2) the officer is entitled to a special separation allowance from retirement
until :
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1. Traditional LESSA Benefit Option
a . The death of the officer;,
2 b . The last day of the month in which the officer attai +sreached age 62 years of
age;, or
The C . t .lam 9f . plo ♦ bya le geveFRFAeRt empleyeF In any eapacity; ho
an efficeF may be empleyed in a public safety position On a capacity n9t FequWRg
Eause payments te cease .
E c. Is reemployed in a position covered by LGERS, with exception if the officer is
employed by a county board of elections to work during early voting or on
election day.
2 . 30-year Fixed Benefit Option
a . The death of the officer,
b. Is reemployed in a position covered by LGERS, with exception if the officer is
employed by a county board of elections to work during early voting or on
election day.
C. Officer receives allowance for a period equal to the difference between age 62
and the age at which they completed 30 years of creditable service.
f. Calculation of Benefits . The Special Separation Allowance received by the officer shall be
calculated as provided by N .C. Gen. Stat. § 143-166 ,42 ,
dg. Separation Buyout for Law Enforcement Officers . Upon a qualifying retirement, with the Local
Government Employee Retirement System ( LGERS), a local law enforcement officer may receive a
buyout of the Special Separation Allowance subject to the following:
1 . The officer has at least 10 years of service to Orange County in any classification and at
least five years creditable service to Orange County as a law enforcement officer; and
2 . The officer does not otherwise qualify for the Special Separation Allowance as defined
within this Ordinance; and
3 . Either the Officer,
a . Has applied for and received disability retirement from the Local Government
Employees Retirement System, or
b. Upon submission of a written request by the Sheriff to the County Manager,
the County Manager will make det�aatiendecide based on the following:
i . The Sheriff's request is reasonable and agreeable by the officer; and
ii . There are unique circumstances for the request; and
iii . The officer is in good standing based on the officer's law enforcement
record; and
iii . Any other special considerations, including but not limited to the retiring
officer and the County deriving a greater benefit from the retiring officer
receiving the buyout than from their continued service as a law
enforcement officer.
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4. In the event a law enforcement officer is eligible for the Separation Buyout as described in
subsections 1-4 of this section the officer may receive a Separation Buyout as follows;_
Years of Creditable Service as a Law Enforcement Percentage of Separation Buyout Value as Calculated
Officer by Subsection c. above
5 but less than 10 years 50%
10 but less than 15 years 60%
15 but less than 20 years 70%
20 but less than 25 years 80%
25 but less than 30 years 90%
5 . The lump sum separation buyout shall be paid from funds available and shall not exceed
the total that would otherwise be paid had the officer been eligible for the Special
Separation Allowance as described herein.
e. The benefits payable under this section are not subject to any increases in salary or retirement
allowances that may be authorized by the Board of County Commissioners .
(3 ) Administrative rulings, opinions and procedures of the Retirement System shall be considered in the
administration of retirement benefits.
( k) Separate Benefit Fund for Law Enforcement Officers Only.
( 1 ) If an employee dies while an active member of the Separate Benefit Fund, a death benefit of $5,000.00
is paid to the designated beneficiary . To qualify the employee must be an active member of six months I
or the employee's death is accidental, regardless of length of service. To become an active member,
the employee must be under age 55, in active service and have completed and returned a written
application form.
( 2) Retired members of the Separate Benefit Fund beneficiaries will receive a death benefit of $3,000.00,
To be eligible for this benefit, the employee must have been an active member of the Separate Benefit
Fund with at least 20 years of creditable service or retired because of total and permanent disability
with at least ten years of creditable service or line-of-duty disability.
( 1 ) Accidental Death Benefit for Law Enforcement Officers Only. I
(1 ) The accidental death benefit automatically protects the employee' s survivors if the employee should
die in an on-the-job accident. The accident must occur while the employee is performing duties as an
officer.
( 2) In addition, the employee's surviving spouse, parent, or other relative will receive $ 1,000.00 for burial
expenses . Each of the employee's dependent children under 18 (or over; if incapable of earning a
living) will receive $ 200.00. The employee's surviving spouse will receive $500.00. If the employee has
no surviving spouse, the Retirement System may distribute the $500.00 to the employee's other
eligible family members . Under the accidental death benefit, the total amount of payments to the
employee's survivors cannot be greater than $2, 100.00.
(m ) A Line-of-Duty Death Benefit (For Law Enforcement Officers Only), Law Enforcement Officers may also be
entitled to additional benefits to include:
( 1 ) $ 25,000.00 administered jointly by the North Carolina Industrial Commission and the State Auditor.
(2 ) $50,000. 00 from the Federal Law Enforcement Assistance Administration .
(n ) Lump Sum Death Benefit (For Law Enforcement Officers) See Section 28-38(g) Death Benefit,
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(Ord . of 06-07-1976, eff. 08-01- 1976; Amend . of 01 -21-2010, Art. IV § 7 . 0, eff. 01-21-2010; Amend . of 10-05-2010,
eff. 01-01-2011 ; Amend . of 11-16-2010, eff. 01-01-2011; Amend . of 6-18-2013, eff. 7-1-2013; Amend . of 10-5-2021
eff. 10-5-2021)
' Formatted: History Note
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