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Administrative Alert Information for County Staff from the N. C. Association of County Commissioners URGENT MEMORANDUM!! Actuarial Studies for Separation Allowance Benefits To: Finance Officers and County Managers From: Debra 1.1olley, Director of Information Dale: Thursday, May 10, 1990 This menlo Is to let you know that two very Crucial deadlines are approaching for your counly lo have an actuarial study performed for yonr Separation Allowance for Law Enforcement Officers at a sig- nificant savings. Thc N.C. Association of Connty Commissioners, in cooperation wilh the N.C. League of Municipalities, has solicited proposals from several actuarial fire,s to perform the actuarial studies for the next throe years at a reduced rate. Five firms submitted proposals, with Buck Consuhants of Atlanta; Ga., submitting the most cost ef- fective proposal. The Association and the League staff will recommend to their Boards this mouth (ou May 10 and May 17) that lite t~vo organizations cuter into an agmcmeut wilb Buck Consnl [ants to perfoml actuarial studies for interested countics and cities over thc next three years at thc contracted rate. Although this contract has not received Board approval, we do not anticipate any problems and feel that it is critical to begia soliciting commitments from counties to participate and to begin col- lecting needed information on retirees currently receiving the separation allowance. Our proposed joint agreement is attached via the proposed contr.'mt witl/Buck and the attached let- ters from Buck to this Association. A summary of thc basic mans are: 1. The base fee l'or all counties will be $150 per local unit, plus $1.00 per covered employee anti retiree. 2. The base fcc would be adjusted up if less than 100 uuits of government participate or adjnsted down if mute'than 300 units participate, but would not vary significantly from current base fees. 3. Counties must return the atlachcd green form to provide data on asscls arid retirccs ~vho have col- lected the separation allowance no later than JUNE 15, 1990. Entities that fail to provkle this data by June 20 will have their fees DOUBLED. 4. Buck will use the same assumptions as arc used by thc Local Govcrnmcatal Employees' Retire- meat System. 5. Back will use the projected unit credit fuudiug method in determining the cost of fimding the benefit. A county may sclect another fimding method, but this will result in an additkmal fee of $200 per county. 6. The fees will remain constaut for at least Ihrcc ycai's. i -OVER~ 'i NORTH CAROLINA ASSOCIATION OF COUNTY CO~MISSIONERS ~ P.O. Box 1488 * Raleigh, N,C. 276~2 * Telephone (919) 832-2893 * FAX (919) 832-7021