Agenda - 09-03-1991 - Laserfiche WebLink

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4 The Board asked the financial impact- of the change. There is no direct "financial impact and Sick Leave is not reported as a liability on the County' s financial statement. There are. two indirect impacts . One is that if the employee became sick the time could be used as Sick Leave like any other Sick Leave. The other is that the time may be used to qualify for a service retirement under the N. C. Local Government Employees Retirement System and may be used in calculating creditable service under that system. There is no pre-funding by the County for such Sick Leave credit and no direct charge back to the County for such credit. Ultimately the cost of retirement is shared on a system-wide basis through the employer and employee contributions . (The Retirement System advises that increasingly employers are accepting transfer of such leave because it is creditable for retirement purposes . ) The Board asked what other employers do as to Sick Leave transfer. In a February 1991 survey of 18 North Carolina governmental employers, 13 provided for transfer of Sick Leave. (Two of these are school systems who only accept transfer from school systems and state government. ) Of the 13 employers, 10 had no limit on transfer. These included Durham County and Wake County. Two of the 10 provided transfer with no limit for retirement purposes only. (We have been advised by the N. C. to Local Government Employees Retirement System that, be creditable for retirement purposes, the County must treat Sick Leave transferred as any other Sick Leave. ) Of the 13, three set a limit on transfer. The limits ranged from 7 days (unless an exception was granted) to 20 days. Recommendation: The Manager recommends the Board adopt the proposed revisions to the Vacation and Sick Leave Sections of the Personnel Ordinance effective October 1, 1991 .