NS ORD-2002-002 Personnel Ordinance Revision: Retirement System Sick Leave Cap Removal

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.ORANGE COUNTY BOARD OF COMMISSIONERS O ~ ~ -BOO z'ov~- ACTION AGENDA ITEM ABSTRACT Meeting Date: February 5, 2002 Action .Agenda Item No. -~ SUBJECT: Personnel Ordinance Revision - Retiremenf System Sick Leave Cap Removal DEPARTMENT: Personnel PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Draft Personnel Ordinance Revision Employee Benefits -Sick Leave (Article IV Section 6.3.5) INFORMATION CONTACT: Elaine Holmes, Personnel Director, Extension 2552 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider a revision to the Orange County Personnel Ordinance to reflect a legislative change in the Local Governmental Employees' Retirement System that removes the cap on the amount of sick leave for which retirement service may be granted at retirement. BACKGROUND: Permanent Orange County employees are members of the North Carolina Local Government Employees' Retirement System. The Retirement System provides that unused sick leave at retirement is counted in calculating the employee's years of retirement service in addition to actual years worked. The Retirement System allows one month of service credit for each 20 days of unused sick leave at retirement. For employees retiring prior to January 1, 2002, the Retirement System gave retirement service credit for sick leave to a maximum of 12 sick leave days per year of retirement system membership service. During the 2001 legislative session, the North Carolina General Assembly enacted legislation. to remove the cap on the number of sick leave days creditable at retirement. This applies to employees retiring on and after January 1, 2002. With the removal of the sick leave cap, the retirement system gives a retiring employee retirement service credit for all accumulated sick leave days so long as the sick leave is earned under a duly adopted policy. The attached Personnel Ordinance revision simply updates the County's Ordinance to reflect the decision made by the legislature to remove the cap on the amount of sick leave for which retirement service credit is granted. In terms of the employee and County impact of the legislative change, staff would note the following: • Most County employees have sick leave balances under the 96 hours of earned sick leave per year of service due to the need to use sick leave during their careers so the removal of the cap will not have an impact.