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October 27, 2003 Page 277 North Carolina Local Governmental Employees' Retirement System with at least ten years of service with Cabarrus County. He expressed concern about the ten-year requirement and the County's responsibility to pay the insurance cost for those persons who .work in other counties for' a number of years before coming to Cabarrus County. Mr. Cummings reviewed the 1997 amendment to the Personnel Ordinance that permitted an employee to voluntarily change the amount of earned vacation time in return for the health insurance for retirees. Employees hired after July 1, 1997 automatically earn vacation at the reduced amount and are eligible for the County-paid health insurance after ten years of service. After discussion concerning the P~rsonnel Ordinance and the vesting of rights, it was generally agreed that all current employees should be "grandfathered" under the existing requirements for retirees to qualify for County paid health insurance. UPON MO?ION of Commissioner Privette, seconded by Vice Chairman Suggs and unanimously carried, the Board amended the Cabarrus County Personnel Ordinance to increase the number of years of service with Cabarrus County from ten to 25 years in order for retirees to qualify for County paid health and life insurance coverage. The amendment to the Ordinance is effective November 1, 2003, and reads as follows. Article VI. Leaves of Absence Section 6. Vacation Leave - Manner of Accumulation '1 County paid health and life insurance coverage will be provided to employees qualifying for retirement as a member of the North Carolina Local Governmental Employees' Retirement System with at least ~ 25 of their creditable years being in the service of Cabarrus County. These benefits will be paid at the same level as for active employees and will be provided to retired employees until they become eligible for Medicare (or reach the age where they would have had such benefits if they had been qualified for Social Security). (Note: This amendment applies to those employees coming to work on or after November 1, 2003. Current employees are grandfathered under the ten-year requirement.) UPON MO?ION of Commissioner Privette, seconded by Commissioner Carruth and unanimously carried, the Board amended the Cabarrus County Personnel Ordinance whereby the County will pay one-half the cost of health and life insurance for those persons retiring with less than 25 years of service with Cabarrus County. The amendment to the Ordinance is effective November 1, 2003 and reads as follows: Article VI. Leaves of Absence Section 6. Vacation Leave - Manner of Accumulation Employees qualifying for retirement in the North Carolina Local Governmental Employees' Retirement System but with less than ~ 25 years of service with Cabarrus County shall receive one-half of the benefit provided to retiring employees with at least tcn 25 years of service with Cabarrus County. (Note: This amendment applies to those employees coming to work on or after November 1, 2003. Current employees are grandfathered under the ten-year requirement.) UPON ~OTION of Commissioner Carruth, seconded by Commissioner Privette and unanimously carried, the Board amended Appendix G of the Cabarrus County Personnel Ordinance to include the following Merit Increase Administration Guide as published by the Human Resources Director. Further, the Board placed a cap of ten percent on the amount of increase that an employee can receive during a fiscal year. These actions will be implemented through concurrent changes in Article III of the Personnel Ordinance. Personnel Ordinance - Appendix G Merit Increase Administration Guide Performance Evaluation Score Point Merit Pay Increase From T_qo Spread Levels ~