Separation Allowance Policy Revisions Bring Town Policy into Compliance with State Law

 


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

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Revised policy

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