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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)
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