Sec. 14-58. - Eligibility.

Employees of the town shall be eligible for various benefits, as specified in this article or policies developed by the manager. (When used in this article, references to the terms "family or families," "spouse" or "dependent" also include the domestic partners of town employees and the dependents of domestic partners, as defined in Chapter 1 of the Town Code. For purpose of this section, domestic partners must provide documents demonstrating established financial and legal ties, such as a joint mortgage, health care power of attorney, beneficiary of will or insurance policies, or other similar financial and/or legal relationships.)

(Ord. No. O-75-53, § 1, 9-16-75; Ord. No. O-78-40, § 4, 6-12-78; Ord. No. 95-1-23/O-1, § 1; Ord. No. 95-6-5/O-1, § 1; Ord. No. 2006-06-26/O-4, § 1)

Sec. 14-59. - Group medical insurance.

(a)

Full-time regular employees. The town will provide full-time employees group medical insurance including family coverage and pay the total cost of the base plan for the individual employees. Employees and the town will share equally in the additional cost of the base plan for dependent coverage if employees desire to purchase such coverage for family members.

(b)

Part-time regular employees. Part-time employees may, if they so desire, purchase group medical insurance through the town, either for themselves of for themselves and their families.

(1)

Where assigned part-time hours are equivalent to fifty (50) to seventy-four (74) per cent of a full-time position, (but not less than twenty hours per average workweek) the town will pay half the cost of individual coverage and a proportional amount of the additional cost for dependent coverage.

(2)

Where part-time hours are equivalent to seventy-five (75) per cent or more of a full-time position, the town will pay seventy-five (75) per cent of the cost of individual coverage and a proportional amount of the additional cost for dependent coverage.

Provided, however, that where a part-time employee has worked an average work week of not less than thirty-seven and one-half (37.5) hours for two (2) quarters, consecutive or non-consecutive, in a twelve-month period, the employee will be eligible to receive medical insurance coverage on the same basis as a full-time employee. Medical insurance coverage shall continue at the full-time employee rate for at least twelve (12) months from the date of the initial change in coverage eligibility. After twelve (12) months, each employee's average work week will be reviewed to determine continued eligibility for full-time medical coverage. An employee would remain eligible for coverage as long as he/she continues to work an average workweek of not less than thirty-seven and one-half (37.5) hours in each succeeding quarter. The same principles will apply where a part-time employee has worked an average work week of not less than thirty (30) and not more than thirty-seven and one-half (37.5) hours for two (2) quarters, consecutive or non-consecutive, in a twelve-month period; that employee would receive coverage for seventy-five (75) per cent of the individual medical insurance premium and proportional coverage for the dependent health insurance premium.

(c)

Notification. Information concerning the cost and benefits of the group medical insurance program shall be available to all employees through the human resources department. No changes will be made in the cost, benefits, or coverage of the program without prior notification to all covered employees.

(d)

Members of the town council are eligible to participate in the group medical insurance program on the same basis as full-time employees. Eligibility for participation in this coverage shall cease with the expiration of the term of office.

(Ord. No. O-75-53, § 1, 9-16-75; Ord. No. O-78-40, § 5, 6-12-78; Ord. No. 95-1-23/O-1, § 1; Ord. No. 98-1-12/O-3, § I, 1-12-98; Ord. No. 99-6-14/O-6, § I; Ord. No. 2001-11-26/O-5, § 2; Ord. No. 2006-06-26/O-4, § 1)

Sec. 14-59.1. - Health care benefits for retiring employees.

(a)

Employees hired prior to July 1, 2010 who retire from town employment without a break in service between town employment and retirement and begin receiving benefits under the local government employees' retirement system may continue medical insurance coverage for themselves under the town's group policy. The town will pay the premium for the coverage (whether on group coverage or Medicare supplement) based on the number of years of town service of the retired employee:

Such employees may elect to purchase medical insurance coverage for their dependents, and shall pay the full cost of this dependent coverage. In the event of the death of a retired employee who was receiving medical insurance coverage, the spouse or dependent may elect to continue group coverage following the expiration of their COBRA benefits by continuing to pay the full cost of this coverage. A retiring employee eligible for this benefit who will reside outside the geographic area covered by the town's insurance plan may elect to receive a sum equal to that paid by the town for use in obtaining other coverage.

(b)

Employees hired after June 30, 2010 will participate in a defined contribution post employment benefits plan funded with pre-tax contributions from the employee and a flat rate contribution from the town. Employee contributions will be one (1) percent of pre-tax pay deducted each pay period. The town's contribution will be a flat rate payment of thirty-five dollars ($35.00) per bi-weekly payroll. The town's contribution will be set each year as part of the annual budget adoption process. Accumulated funds in employee accounts may be used for reimbursement of qualified medical expenses. Employee contributions will accrue to the employee upon termination of employment, whereas town contributions will be vested based on years of employment as follows:

(Ord. No. O-83-32, § 1, 6-27-83; Ord. No. 86-6-9/O-8, § 1; Ord. No. 95-1-23/O-1, § 1; Ord. No. 2006-06-26/O-4, § 1; Ord. No. 2009-10-28/O-11, § 1)

Sec. 14-59.2. - Voluntary supplemental insurance.

The town will provide employees the opportunity to participate in specified supplemental insurance programs on a voluntary basis at the employee's expense. This will include a dental insurance program, in which regular employees and council members are eligible to participate.

The town complies with all applicable provisions of the Federal Consolidated Omnibus Budget Reconciliation Act ("COBRA") concerning coverage for former employees and dependents.

(Ord. No. 2006-02-27/O-3, § 1; Ord. No. 2006-06-26/O-4, § 1)

Sec. 14-60. - Group life insurance.

The town will pay the cost of group life insurance for each individual full- and part-time regular employee based on salary. Employees may elect to insure other members of their family or to purchase additional coverage under this plan at their expense.

(Ord. No. O-75-53, § 1, 9-16-75; Ord. No. O-83-32, § 2, 6-27-83; Ord. No. 2006-06-26/O-4, § 1)

Sec. 14-60.1. - Group disability insurance.

The town will pay the cost of disability insurance for each individual full- and part-time regular employee based on salary.

(Ord. No. O-83-32, § 3, 6-27-83; Ord. No. 2006-06-26/O-4, § 1)

Sec. 14-61. - North Carolina Local Governmental Employees' Retirement System.

An employee hired as a full-time or part-time employee in a regular position of twenty (20) or more hours per week or one thousand twenty (1,020) hours per year shall join the North Carolina Local Governmental Employees' Retirement System upon employment.

(Ord. No. O-75-53, § 1, 9-16-75; Ord. No. O-78-5, 1-23-78; Ord. No. O-83-5, § 1(3), 2-14-83; Ord. No. 86-6-23/O-1; Ord. No. 95-1-23/O-1, § 1; Ord. No. 98-11-9/O-1, § I, 11-9-98; Ord. No. 2006-06-26/O-4, § 1)

Sec. 14-62. - Reserved.

Editor's note—

Ord. No. 95-1-23/O-1, adopted Jan. 1, 1995, repealed former § 14-62, which pertained to the North Carolina Law Enforcement Officers' Benefit and Retirement Fund and derived from Ord. No. O-75-53, § 1, adopted Sept. 16, 1975, and Ord. No. O-80-45, § 2, adopted June 23, 1980.

Sec. 14-63. - Workers' compensation.

All employees of the town are covered by North Carolina Worker's Compensation and are required to report all injuries arising out of and in the course of employment to their immediate supervisor at the time of the injury in order that appropriate action may be taken at once. Departments will comply with the requirements of the North Carolina Workers' Compensation law under policies developed and distributed by the town manager.

(Ord. No. O-75-53, § 1, 9-16-75; Ord. No. 95-1-23/O-1, § 1; Ord. No. 2001-11-26/O-5, § 2; Ord. No. 2006-06-26/O-4, § 1)

Sec. 14-64. - Reserved.

Editor's note—

Ord. No. 2009-06-22/O-7, § 1, adotped June 22, 2009, repealed § 14-64. Former § 14-64 pertained to workers' compensation leave and derived from Ord. No. O-75-53, § 1, adopted Sept. 16, 1975; Ord. No. O-78-40, § 3, adopted June 12, 1978; Ord. No. 86-23/O-1; and Ord. No. 2006-06-26/O-4, § 1.

Sec. 14-64.1. - Deferred compensation.

The town may offer a program of deferred compensation qualifying as such under the Internal Revenue Code as an optional benefit to town employees.

(Ord. No. O-82-71, § 1, 9-27-82; Ord. No. 86-6-23/O-1; Ord. No. 2006-06-26/O-4, § 1)

Sec. 14-64.2. - Longevity pay.

A program of longevity pay may be provided to recognize the length of service of town employees; payment shall be in accordance with the pay plan.

(Ord. No. O-84-38, § 2, 5-29-84; Ord. No. 2006-06-26/O-4, § 1)