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14 <br /> Orange County Personnel Ordinance Issue Date:August 5, 2011 <br /> 9.1 Disability <br /> Disability benefits are available after five (5) years of service, should the <br /> employee become permanently disabled, mentally or physically, for the further <br /> performance of duty as certified by the Medical board of the Retirement System, <br /> upon written application to the Board of Trustees, be retired on a disability <br /> retirement allowance. This allowance is calculated as a service retirement <br /> allowance based on the average final compensation prior to retirement and the <br /> years of service the employee would have had at age 65. <br /> 9.2 Death Benefit <br /> Death benefit is paid the beneficiary if death occurs in active service after one year <br /> of service. The beneficiary would be paid a death benefit equal to the <br /> compensation earned and on which contributions were made in the previous <br /> calendar year, or the compensation earned and on which contributions were made <br /> in the 12 months preceding the month of death, whichever is greater, subject to a <br /> maximum of $20,000. If death occurs within 90 days after the last day of actual <br /> service, the death benefit would be payable; or, if the employee had applied for <br /> and was entitled to receive a disability retirement allowance, the death benefit <br /> would be payable provided the disability retirement allowance had not been <br /> discontinued or revoked during the one year period. In case of resignation or <br /> termination, last day of actual service is the last day actually worked; in all other <br /> cases, it is the date on which sick and annual leave expires. <br /> 9.3 Tax Sheltering of Retirement Contributions <br /> Effective July 1, 1982, Orange County elected a method of tax sheltering of <br /> member contributions to the North Carolina Local Government Employees <br /> Retirement System. This change became effective January 1, 1983 for the N.C. <br /> Law Enforcement Officer Retirement System. This is funded by the same six <br /> percent (6%) retirement contribution deducted from a member's gross salary. <br /> Using this arrangement, there is no additional cost to an employer. The <br /> Retirement System will continue to credit the amount of contribution to the <br /> employee's account in the Retirement System. Also, the Retirement System would <br /> continue to recognize an employee's full salary for purposes of compensation. <br /> Should an employee terminate and request a refund, the total of contributions both <br /> before and after the election would be refunded. Upon a refund, the System will <br /> report to the Internal Revenue Service an employee's contribution made after the <br /> election of the pick up as taxable income in the year of the refund. At retirement, <br /> an employee has to pay Federal income tax on all amounts received over and <br /> above the contributions made prior to the date of election to tax shelter the <br /> contributions. <br /> 9.4 Supplemental Retirement Savings Plan Employer Contribution <br /> Article IV-Page 13 <br />