Cary Chapter Seeks Opportunity to Share Insight with Town Manager on Separation Allowance Policy

 


Recently Passed Legislation Provides Direction for
Local Governments on Issue

On July 31, 2009, HB 816 was signed into law by Governor Beverly Perdue. This bill was introduced at the request of the PBA by Rep. Tricia Cotham. Rep. Nelson Dollar and Rep. Jennifer Weiss, representatives from Cary, also joined the bill as primary sponsors at the request of the PBA. The PBA worked with representatives of the North Carolina Sheriff’s Association, the North Carolina Association of Chiefs of Police, the Fraternal Order of Police, and the North Carolina League of Municipalities on the final bill language that became law.

HB 816 is legislation that clarifies the law regarding the special separation allowance provided to law enforcement officers under the local governmental employees’ retirement system. Over the years there have been conflicting opinions as to the intent of the original statute. This resulted in local governments interpreting the law differently and making rules related to their retirees. Therefore, determination of eligibility and payment of benefits varied from local government to local government.

In 2005, the Town of Cary attempted to implement a very restrictive policy that would have severely limited a retired officer’s options to work in retirement and still receive the separation allowance. The proposed policy prohibited officers from receiving the separation allowance if re-employed in any position at the Town of Cary; employed with any North Carolina city, county, or state government agency or other governmental agency in a position which required participation in the North Carolina Government Retirement System; or employed in a position which required law enforcement certification by the North Carolina Department of Justice at any governmental agency or organization that participated in the North Carolina government retirement system.

The Cary chapter voiced their concerns about the restrictive policy to various council members and a more reasonable policy was implemented. The policy was an improvement over the original proposed policy and allowed retired officers the opportunity to work part-time and still receive the separation allowance. The policy, however, didn’t allow retired officers the opportunity to work full-time for state government and receive the separation allowance. HB 816 now provides direction on this issue. Retired Town of Cary police officers, who otherwise meet the eligibility requirements, will now be able to work in any full-time capacity for state government and receive the separation allowance. In addition, HB 816 allows a local government employer to employ a retired officer in a public safety position that doesn’t require participation in the local retirement system.

On August 7, 2009, a letter was sent to Town Manager Ben Shivar explaining the new legislation along with providing background information on the issue. The letter also requested the opportunity to share draft language that would bring Town of Cary policy (HR06-005 Law Enforcement Officer’s Separation Allowance) into compliance with the new law.

On September 21, 2009, the Town Manager replied to the letter that had been sent to him. The letter didn't offer a resolution for bringing town policy into compliance with state law or the opportunity to meet with him and discuss the issue.

Letter to the Town Manager
(click to read letter)

Town Manager's Response
(click to read letter)


Current Town Policy Regarding Special Separation Allowance
(click to read policy)

HB 816 – Legislation Clarifying the Local Special Separation Allowance

(click to read legislation)