Title
Resolution Authorizing City of Greensboro to Establish an Irrevocable Local Government Law Enforcement Special Separation Allowance ("LEOSSA") Trust, Appoint Trustees and Contribute to the Ancillary Governmental Participant Investment Program ("Program") Established by the North Carolina Department of State Treasurer for the Purpose of Accumulating Funds to Pay Special Separation Allowance Benefits to Eligible Law Enforcement Officers as Permitted by North Carolina General Statutes ("NCGS") Section 147-69.2 or 147-69.5
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Department: Financial and Administrative Services
Council District: All
Public Hearing: N/A
Advertising Date: N/A
Contact 1 and Phone: Richard Lusk, Finance Director, 373-2077
Contact 2 and Phone: Marlene Druga, Deputy Finance Director, 373-2094
PURPOSE:
Effective January 1, 1987, the City is statutorily required to provide an annual separation allowance to eligible sworn law enforcement officers based on a defined formula and officers' number of years of creditable service. (NCGS 143-166.42) In order to accumulate sufficient funds to pay these benefits when due, the City desires to establish an irrevocable LEOSSA Trust, appoint Trustees and to make contributions to an Investment Program administered by the North Carolina Department of State Treasurer. A similar-type irrevocable Trust and investment arrangement was authorized and established by the City Council in 2011 for the sole purpose of accumulating funds to pay post-employment health benefits of all retirees until age 65.
BACKGROUND:
In FY 2017, the City is required to implement new accounting standards whereby the expense of providing LEOSSA benefits to eligible sworn law enforcement officers is recognized over the period that the officer is actively employed, rather than recognize all of the expense at the end of the employee's career when payments are ultimately due, as is the City's current pay-as-you go practice. An actuary will provide an estimate o...
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