(15)    Law Enforcement Officers’ Separation Allowance (HR06-005)
Committee unanimously recommends approval of a policy that will provide guidance on the payment of the special separation allowance to retired law enforcement officers.

STAFF REPORT

Operations Committee, February 1, 2005

Law Enforcement Officers’ Separation Allowance (HR06-05)
Consideration of options to create a formal policy that will provide guidance on the payment of the special separation allowance to retired law enforcement officers
Speaker:  Valiria Willis

From:  Valiria Willis, Director of Human Resources
Prepared by:  Valiria Willis, Director of Human Resources
Approved by:  William B. Coleman, Jr., Town Manager
Approved by:  Benjamin T. Shivar, Assistant Town Manager

Since 1987, the law has required all government entities in North Carolina to pay a separation allowance (in addition to all other retirement benefits) to all qualified law enforcement officers upon their retirement.  This was created for the purpose of providing supplemental income and a “bridge” from full-time employment to Social Security eligibility and/or access to other retirement income.  This benefit was heavily lobbied to the legislature as a benefit needed to allow active law enforcement officers who have reached retirement eligibility the opportunity to leave the daily stress associated with this type of work and still be financially secure.

Pursuant to GS 143-166.41 and 143-166.42, the governing body for each unit of local government is responsible for making determinations of eligibility for continued payment of the separation allowance if the retired officer becomes employed while receiving the separation allowance.   When the legislation was first enacted, the statute addressed only law enforcement officers working for the State and their eligibility for the separation allowance.  When it was realized that local law enforcement officers would also be eligible, a technical correction was added effective January 1, 1987 that gave the local governing body the authority to determine eligibility for payment of the separation allowance.  Based on the recent Court of Appeals decision in Campbell vs. The City of Laurinburg, the intent of the General Assembly in enacting N.C. Gen. Stat. 143-166.42 giving the local governing body this authority was affirmed and emphasized the need for a formal policy.

Our current practice is a very stringent guideline.  Officers are not allowed to take any type of position at any N.C. state or local government agency. 

The proposal provides more flexibility and allows some employment opportunities in local and state government.  It allows Town of Cary officials the authority to rehire retired officers in temporary/contracted reserve officer or related capacities when it’s in the best interest of public safety. These positions would be ones which do not require participation in the local government retirement system.  It also allows the retired officer the opportunity to work in a position for another N.C. governmental agency, including as a sworn officer, as long as the position does not require participation in the N.C. retirement system.

POLICY STATEMENT 149

LAW ENFORCEMENT SEPARATION ALLOWANCE BENEFITS

POLICY PURPOSE – To provide guidance regarding payment of the special separation allowance for law enforcement officers when an eligible officer retires from the Town of Cary .

COVERAGE – The special separation allowance is available to qualified retiring law enforcement officers according to the conditions set forth in NC General Statute143-166.41 and 143-166.42.

ELIGIBILITY - To qualify for payment of the special separation allowance, a retiring sworn law enforcement officer must have (a) 30 or more years of creditable service with the North Carolina Local Law Enforcement Officers Retirement System or (b) have attained 55 years of age with at least 5 years of creditable service and:

• At least 5 years of continuous service as a sworn law enforcement officer immediately preceding retirement; and
• Served at least 50% of the creditable service as a sworn law enforcement officer; and
• Is under the age of 62

The separation allowance recipient loses eligibility and payments will cease if the retired officer is:

(a) re-employed 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; or

(b) employed at any N.C. governmental organization in a position which requires the retiree to participate in the N.C. retirement system.  (For purposes of this policy this would include governmental bodies such as airport and water and sewer authorities.)

If the retired officer regains eligibility, the retired officer may request reinstatement of the separation allowance as long as the retired officer continues to be eligible according to the conditions set forth in this policy.

This policy is effective for all current retirees and law enforcement officers who retire following the date this policy is adopted.

Fiscal Impact:  Funding for law enforcement separation allowance payments are currently budgeted and this policy would not alter that amount.

Staff Recommendation:  Approval of the proposed policy which will incorporate a more flexible eligibility requirement.

ACTION: Mayor Pro Tem Smith moved to approve the consent agenda in its entirety; Mrs. Robison provided the second. Mr. Roseland voted “no.” All others voted “aye.” The motion carried by majority vote. (Mrs. Robinson was absent during this vote.)

(Policy 149 is also on file in the town clerk’s office.)

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