Page 15 - FOP BlueNote 2017 May June Issue East FINAL

25 Year Retirement Bills… staff will be preparing a recommended special provision
Continued from P. 13 to implement the revised State LEO benefit.

The provision in the recommended Budget also says

Both bills are good bills – and the introduction of each that it “amends the special separation allowance benefit

is truly appreciated – but because of better benefits pro- for law enforcement officers” but it does not specify how

visions and the retention of the Special Separation Al- the benefit would be amended. According to the Gover-

lowance even upon retirement after 25 years, a formal nor’s staff this benefit change would also ensure the Spe-

motion was made and passed at the Spring Board Meet- cial Separation Allowance benefit for State law enforce-
ing held in Lexington, NC on March 18th that Senate Bill ment officers becomes effective earlier in a manner that

199 was the preferred bill. is commensurate with the earlier retirement date pro-

In another surprise turn, Governor Roy Cooper sub- posed.

mitted his 2017-2019 recommended State Budget two This proposal would not apply to local law enforce-

weeks ago. One of the items in the recommended ment officers who are members of the Local Govern-

Budget would provide funding to allow State law en- mental Employees’ Retirement System.

forcement officers who are members of the Teachers’ Whether the Governor’s action, coupled with these

and State Employees’ Retirement System to retire with two new bills, will prompt the General Assembly to in-

unreduced benefits after completing 25 years of service. clude a similar provision in the actual State Budget will

Currently, no bills or other documents provide the spe- not play out for some time, but I will be advocating for

cifics as to how eligibility for this 25 year retirement pro- such and continually monitoring this very important is-

posal would be determined. However, the Governor’s sue.

Retirement “Defined Contribution” Bill Introduced
By Jeff Gray – NC FOP Legislative Agent

Senate Bill 467, “North Carolina pension system proposed in SB 467 bill. Senate Bill 467 is bad for future
Retirement Reform,” was intro- provides for a 401(k) or a 457 Plan
duced in March. This bill is of great leaving the outcome of the employ- employees – which includes, of
importance to future State employ- ees’ retirement up to the “Wall
ees. The bill denies future State em- Street” or market place with no cer- course, State law enforcement offic-
ployees the opportunity to partici- tainty of their benefit in retirement.
pate in the current pension plan that ers – and bad for the state govern-
has been in place since 1941. The While this proposed bill does not
bill also denies future employees the impact any retiree or current em- ment.
opportunity to participate in the ployee, it is not a good bill because
State Health Plan benefit when they it greatly erodes the benefits of fu- Executive Editor’s Note:
retire. ture State employees. A guaranteed I have emailed letters to both
monthly pension and health insur- Durham Senators asking them to not
The bill states that employees ance provide security for retired support Senate Bill 467. This bill
hired on or after July 1, 2018 will State employees. For seven and a can be viewed at www.ncleg.net.
participate in a defined contribution half decades, this system has al- The sponsors listed on Senate Bill
pension plan. The employee will be lowed North Carolina to maintain a 467 are:
required to contribute 6% and the quality, experienced and stable Senator Andy Wells, District 42 –
State will match the contribution of workforce. State employees Alexander, Catawba
the employee. who begin work after July 1, 2018 Senator Bill Rabon, District 8 –
will not have these benefits that Bladen, Brunswick, New Hanover,
The current pension plan pro- have long been used to recruit and Pender
vides a defined benefit which guar- retain State employees. Senator Ronald J. Rabin, District 12
antees a retired State employee a – Harnett, Johnston, Lee
monthly pension based on years of Please contact your Senators Senator Andrew C. Brock, District
service and age of retirement. The and ask that they not support this 34 – Davie, Iredell, Rowan
Senator Norman W. Sanderson, Dis-
trict 2 – Carteret, Craven, Pamlico

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