Move sought big pension for association’s top employee while possibly bringing federal scrutiny to the retirement system

 

(Raleigh, NC – June 20, 2011) -- In an unprecedented move, Eddie Caldwell the Executive Vice President of the NC Sheriff’s Association, tried to highjack a disability bill for law enforcement officers in order for him to receive a local government retirement.

Earlier this year, the North Carolina Police Benevolent Association worked with Rep. Shirley Randleman to introduce legislation to close a critical loophole for officers and deputies who are injured in their first year of duty and have to medically retire. Currently, under the Local Governmental Employees’ Retirement System for Local Law Enforcement Officers there is a disability provision for officers and deputies who become disabled as the direct result of incidents in the performance of official duties.  Officers and deputies are eligible for this benefit after one year of service.  Rep. Randleman was able to introduce legislation (HB 538- Remove Restrictions on LEO Disability Benefits) that would provide this benefit for officers and deputies from the time they start serving their communities.   The bill was filed on March 11th and referred to the Committee on State Personnel and received a favorable report on June 1st.  HB 538 passed the House unanimously on June 3rd, and was referred to the Senate Committee on Pensions, Retirement, and Aging.

On Tuesday, June 14, 2011, just hours before HB 538 was to be heard in the Senate Committee, the PBA learned that committee co-chairman Tom Apodaca planned to amend the bill by enrolling Eddie Caldwell and other NCSA employees into the state’s Local Government Employees Retirement System (LGERS).  This maneuver occurred without notice or consultation with the PBA or any other stakeholders, including the State Treasurer’s office.  The State Treasurer’s office had previously expressed their concerns when the NCSA had attempted to enter the system through legislation in a previous legislative session.   Senator Apodaca also didn’t allow public comment on the bill during the committee meeting and quickly adjourned the meeting after the committee vote. 

The concerns of the State Treasurer’s office on this issue can be found in a letter from Robert M. Curran (Special Deputy Attorney General for the NC Department of Justice) to Debra Bryan (Senior Deputy Director, Retirement Systems Division) that is dated June 16, 2011.   In summarizing the letter, Curran wrote, “In sum, I have found nothing which establishes that the Association is a “separate, juristic, political subdivision of the State” as required by N.C.G.S. 128-21(11).  Rather, it appears to be a nonprofit corporation, operating under the direction of an executive committee.  Accordingly, it is not eligible to participate as an employer in the Retirement System.”

HB 538 was placed on the supplemental calendar for June 14^th and passed the second reading. Senator Linda Garrou, however, questioned the part of the bill that brought the Sheriff’s Association into the retirement system.  The bill was withdrawn from the calendar without receiving a third reading. After displacing the bill from the June 15^th Senate calendars, Senator Martin Nesbitt offered an amendment to HB 538 to remove the Apadoca amendment and return the bill to its original language.   HB 538 passed on June 16th, 49 to 1, with Senator Ralph Hise being the only dissenting vote. During this same time, HB 656 (Photo ID for Certain Controlled Substances) which had passed the House, was gutted, and language allowing Sheriff’s Association employees into the local retirement system was inserted into this bill.   This bill was passed by the Senate on July 16, 2011, and sent back to the House. 

On June 17, 2011, HB 538 was calendared on the House floor and passed on a motion for concurrence “with the original bill language.”  HB 538 was engrossed and sent to the Governor for signing.  HB 656 was not heard by the House before they adjourned.  

The North Carolina Police Benevolent Association and the NC Sheriff’s Association have successfully worked together on several issues and count many deputies as PBA members.  The PBA has endorsed sheriffs and regularly interviews and endorses county commissioners on issues related to funding for sheriff’s departments.  According to Randy Byrd, NCPBA Division President, “While Mr. Caldwell and the Sheriff’s Association are arguably the biggest obstacle to professional standards of fairness and accountability of police conduct and administrative due process for municipal police officers, we have been able to find common ground on issues.”  Byrd, however, finds Mr. Caldwell’s latest actions deplorable and totally self serving. “Mr. Caldwell attempted to ride the backs of disabled officers and deputies for his own gain,” Byrd added. “This despicable maneuver is unacceptable to officers and deputies who put their lives on the line every day in North Carolina to protect our citizens.”

John Midgette, executive director of the North Carolina Police Benevolent Association, also has concerns about Mr. Caldwell’s attempts to insert himself into the local retirement system at potential risk to the entire system.  Midgette said, “Mr. Caldwell’s actions had the potential to bring IRS scrutiny and change the tax exempt status of the plan.  This could have affected retirement benefits for thousands of local officers and employees.  Unfortunately, this is simply a matter of greed, where Mr. Caldwell attempted to enter the system with a quarter-of-a-million dollar salary for a padded retirement.”  Midgette added, “To seek personal profit at the expense and possible destruction of a bill to protect permanently disabled police officers and their families defines a new low in disrespect for law enforcement officers, including our sheriffs’ own deputies. This is especially repugnant at a time when the PBA is working to preserve the retirement future of our members.”

*Curran’s letter to the Deputy Director of the Retirement system can be found here.