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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. His
letter didn't offer a resolution for bringing town
policy into compliance with state law or offer the
opportunity to meet with him as an Association and
discuss the issue.
On November 5, 2009, a revised policy to bring Town
policy into compliance with state law was presented in a
staff report to the Operations committee. The staff
report was approved by Town Manager Ben Shivar. Excerpts
from the staff report are as follows:
Policy 149 currently states that the payment of the
separation allowance ceases if the retired officer is
“reemployed in any position at the Town of Cary, except
in the interest of public safety where the retiree is
working in a contract or temporary reserve officer basis
or related capacity and the position does not require
participation in the N.C. retirement system.” The
legislation enacted in July 2009 requires that our
policy be revised to state that the payment of the
separation allowance ceases as of “the first day of
reemployment by a local government employer in any
capacity,” except “if the retired officer is reemployed
by a local government employer in a public safety
position in a capacity not requiring participation in
the LGERS.”
Policy 149 also currently states that
the payment of the separation allowance ceases if the
retired officer is “employed at any N.C. governmental
organization in a position which requires the retiree to
participate in the N.C. retirement system.” This
expressly prohibits the retired officer from working in
a position that requires participation in any of the
N.C. retirement system funds of which there are three
others beside local government. The new legislation
allows the retired officer the opportunity to work in a
position that requires participation in any of the other
funds besides local government, and continue to be
eligible to receive the separation allowance.
The revised policy recommendations were approved as a
consent agenda item to be voted on by the Town council.
On November 12, 2009, the revised policy was passed by
the Town Council.
Staff
Report
(Click to View)
Revised policy
(Click to View)
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