Agenda - 10-20-2009 - 4f - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 20, 2009 Action Agenda Item No. 4 ---F SUBJECT: Resolution Providing for Active Service in the Retirement System During a Furlough Period DEPARTMENT: Human Resources PUBLIC HEARING: (Y/N) No ATTACHMENT(S): 1. Resolution 2. Senate Bill 658 INFORMATION CONTACT: Michael McGinnis, 245-2552 Annette Moore, 245-2317 PURPOSE: To consider approving a resolution providing that the furlough of an Orange County employee who is a member of the local governmental Employees' Retirement System shall not diminish the employee's status in the retirement system in accordance with Senate Bill 658, which was approved by the NC General Assembly on July 31, 2009. BACKGROUND: On June 16, 2009, the Board of County Commissioners approved the addition of Article IV, Section 20.4, Furlough Leave to the Orange County Personnel Ordinance, effective July 1, 2009. To carry out the provisions of this Section, the County Manager provided Furlough Rules and Regulations effective July 1, 2009. Following this action, the Voluntary Furlough Program was implemented effective July 1, 2009 through June 30, 2010. The Voluntary Furlough Program was developed and included in the Manager's Recommended Budget with the goal of reducing costs for the County while simultaneously offering employees a new option for taking leave. The cost savings for FY 2009-10 were estimated at $50,000. Department Directors are responsible for approving or denying requests for voluntary furlough. To date, 10 employees have been approved for voluntary furloughs totaling 576 hours for a total savings of approximately $12,000 (salary, federal and state income taxes and employer retirement contribution). Three employee requests have been denied based on the inability of the employee's Department to accommodate the request with current staffing and workload levels. The Board may make cone-time irrevocable election to opt in for the provision included in Senate Bill 658, which the North Carolina General Assembly accepted subsequent to the County's implementation of the Voluntary Furlough Program. The provision, which the State enacted for furloughed State employees in March 2009, enables a furloughed County employee who is a member of the Local Governmental Employees' Retirement System to be considered in active service during the furlough period.