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19 <br /> ATTACHMENT 4 <br /> Sec. 28-38. - Retirement. <br /> (a) Membership in the North Carolina Local Government Retirement System is mandatory for full-time <br /> permanent and part-time permanent employees. Employees become a member of the North Carolina Local <br /> Governmental Employees' Retirement System on the date of hire if the duties require the employee work <br /> at least 1,000 hours a year and the employee is under age 62 at the date of hire. <br /> (b) Vested Right. After five years of service, employees are eligible for monthly retirement benefits based <br /> on salary, age and years of service. <br /> (c) Service Retirement With 30 Years.After 30 or more years of creditable service, an employee is eligible <br /> for unreduced service retirement. An employee must not work nor be paid in advance for work dating the <br /> month following retirement. <br /> (d) Service Retirement At Age 65. At age 65 or thereafter an employee is eligible for unreduced service <br /> retirement, with at least five years of service. (Age 55 if the employee is a member of the Law Enforcement <br /> Officer's Retirement System) <br /> (e) Post Retirement Increases. After retirement, an employee may become eligible for increases that <br /> become a permanent part of retirement benefits. <br /> (f) Disability. Disability benefits are available after five years of service, should the employee become <br /> permanently disabled, mentally or physically, for the further performance of duty as certified by the Medical <br /> Board of the Retirement System, upon written application to the Board of Trustees, be retired on a disability <br /> retirement allowance.This allowance is calculated as a service retirement allowance based on the average <br /> final compensation prior to retirement and the years of service the employee would have had at age 65. <br /> (g) Death Benefit. Death benefit is paid the beneficiary if death occurs in active service after one year of <br /> service. The beneficiary would be paid a death benefit equal to the compensation earned and on which <br /> contributions were made in the previous calendar year, or the compensation earned and on which <br /> contributions were made in the 12 months preceding the month of death, whichever is greater, subject to a <br /> maximum of$20,000.00. If death occurs within 90 days after the last day of actual service,the death benefit <br /> would be payable; or, if the employee had applied for and was entitled to receive a disability retirement <br /> allowance, the death benefit 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 termination, last day of actual <br /> service is the last day actually worked; in all other cases, it is the date on which sick and annual leave <br /> expires. <br /> (h) Tax Sheltering of Retirement Contributions. Effective July 1, 1982, Orange County elected a method <br /> of tax sheltering of member contributions to the North Carolina Local Government Employees' Retirement <br /> System. This change became effective January 1, 1983 for the N.C. Law Enforcement Officer Retirement <br /> System. This is funded by the same six percent retirement contribution deducted from a member's gross <br /> salary. Using this arrangement, there is no additional cost to an employer. The Retirement System will <br /> continue to credit the amount of contribution to the employee's account in the Retirement System.Also, the <br /> Retirement System would 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 before and after the <br /> election would be refunded. Upon a refund, the System will report to the Internal Revenue Service an <br /> employee's contribution made after the election of the pick up as taxable income in the year of the refund. <br /> At retirement, an employee has to pay Federal income tax on all amounts received over and above the <br /> contributions made prior to the date of election to tax shelter the contributions. <br /> (i) Supplemental Retirement Savings Plan Employer Contribution. <br />