[{"_1":2,"_86":-5,"_87":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,74],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":56,"_73":56},"mediaId",6289043,"mediaKeyId","2533189-eb0d6610f8a29e8084c5af55c8e44e52","parentId",2533189,"title","Actuary: separation-allowance plan for fire, ECC and five departments could cost Raleigh about $227 million over 20 years","audioSeconds",3485,"startMs",3077000,"endMs",6562000,"viewUrl","/Search/View?dp=1&key=2533189-eb0d6610f8a29e8084c5af55c8e44e52&start=3077&end=6562","thumbnailUrl","https://assets.pipeline.soar.com/2533189-eb0d6610f8a29e8084c5af55c8e44e52/thumbnail_3077000.jpg","articleUrl","/articles/6289043/Raleigh/Wake-County/North-Carolina/Actuary-separation-allowance-plan-for-fire-ECC-and-five-departments-could-cost-Raleigh-about-227-million-over-20-years","mediaUrl","https://secure.pipeline.soar.com/6289043-4754af237d2ed5ab64457fc0ae9a7f38/orig.mp4?Expires=1771203900&Signature=ZpGdHfhvx2uOQByLjksOBbzrogBlolZbTmq887DA90QjFuANaIXGMWX0EJd1iaaJNyHoUQGlaCtdo3OejONEMrj79TBH94Y33y9OGRXwkg38KDzlqu7P76hwyn~Sq2u1vrlDJoiLZHHBJXL37T6CP-rSWM1~PlSsDz~GvCtk9MacXJsDPuaDSZXXHRJE3jhyOWnitTdtI4Z9TZaAOtIB0vlZAHdbjOFmv8U4R7ZX0zAUJiKFNoZzrqmdnHr6zf6xzmZ9ZGn0p~qagic53o8EbuyMVU9WrvHvklwJFrlcVi2SEsfuBYg0SQdJ5WHtZthM8Kn~X9gpmePIVjQ0V2YFAQ__&Key-Pair-Id=KUT5TJCACFTXG","author","","date","2025-03-10T11:18:21Z","article","Allison Bradshaw of the Finance Department and Greg Stump, chief actuary with Boomershine Consulting Group (BCG), presented an actuarial analysis of a possible separation allowance for fire, emergency communications (ECC) and five operations departments, outlining projected costs, funding approaches and implementation risks.

BCG modeled two packages: one for fire and ECC and a second combined group that included parks and recreation, transportation, Raleigh Water and engineering. For the fire/ECC group, BCG estimated a first-year total city contribution (normal cost plus an amortization payment for the plan’s initial unfunded liability) of roughly $5.0 million, equal to approximately 9.6% of that group’s payroll; the ongoing normal cost the consultant estimated at about 4.2% of that payroll. For the five operating departments, the consultant estimated a first-year city contribution of about $4.7 million, with a long-run normal cost near 1.8% of payroll.

Stump noted the analysis assumes a new plan would start with zero assets and that the initial shortfall must be amortized; BCG used a 20-year amortization in its principal scenario. The consultant’s key actuarial assumptions included a 5.5% investment return (discount rate) and a 5% salary-increase assumption. Under those assumptions, BCG projected combined city contributions across the modeled groups of about $227 million over 20 years, with the fund projected to reach roughly $92 million in assets at the end of that period. The report estimated the plan’s initial total pension liability for financial reporting at about $61 million (the unfunded amount given zero assets).

Stump and staff stressed that the projections are sensitive to experience: investment returns, actual salary increases, turnover and early retirements will all change contribution needs. Stump said the normal-cost component is fairly stable as a percent of payroll, while the amortization portion can change substantially year to year with investment gains or losses.

Council members asked several procedural and policy questions: whether eligibility could be restricted to Raleigh service only, how increasing staffing would affect amortization and whether payouts could be delayed while a trust grows. Ryan Bergman of the city manager’s office said the city could design local eligibility rules (for example, counting only Raleigh service) but that legal review is needed to avoid discriminatory practices. BCG said the city could delay drawing from a new trust for a period (the consultant suggested roughly a decade in an example) while making trust deposits; any retiree who met eligibility would still be entitled to the benefit under the modeled plan, but payments from trust assets could be timed per council policy decisions.

Council members and staff requested follow-up analyses: BCG agreed to run the model with separate results for fire alone and for other individual departments, and staff said they would provide historical actuals for law-enforcement separation-allowance funding and reporting. Fire Chief Herbert Griffin described recruitment and retention pressures: recent academy classes showed candidates leaving during or immediately after training, and chief leadership said a separation allowance is a recruiting and retention tool but not the only one. The work session produced no formal council decision; staff will return with department-level modeling, legal guidance on eligibility options, and financial implications for the FY26 budget process.

Less critical details from the presentation: BCG used data as of Oct. 1, 2024; eligibility modeled consistent with the state Local Government program (full benefit at age 60 with 25 years of service, or 30 years at any age); the modeled benefit formula was 0.85% times years of service times final pay, paid to age 62.","mediaType","Video","parentTitle","Raleigh City Council Budget Work Session - March 10, 2025","oneSentenceSummary","An actuarial analysis presented to Raleigh City Council estimated first-year contributions and a 20‑year funding pathway if the city adopts a separation allowance for fire, emergency communications and five operating departments; staff and council requested department-level modeling and further legal review of eligibility rules.","taxTitle","Raleigh, Wake County, North Carolina","taxId",4736,"location","headline","shortSummary",{"_33":75,"_35":36,"_37":38,"_39":76,"_41":77,"_43":78,"_45":79,"_47":80,"_49":81,"_51":82,"_53":83,"_55":56,"_57":58,"_59":84,"_61":62,"_63":64,"_65":85,"_67":68,"_69":70,"_71":68,"_72":56,"_73":56},6289047,"Raleigh staff say pay ranges lag market; classification overhaul and benefit proposals planned for FY26",2411,663000,3074000,"/Search/View?dp=1&key=2533189-eb0d6610f8a29e8084c5af55c8e44e52&start=663&end=3074","https://assets.pipeline.soar.com/2533189-eb0d6610f8a29e8084c5af55c8e44e52/thumbnail_663000.jpg","/articles/6289047/Raleigh/Wake-County/North-Carolina/Raleigh-staff-say-pay-ranges-lag-market-classification-overhaul-and-benefit-proposals-planned-for-FY26","https://secure.pipeline.soar.com/6289047-8c2345afebdd50d070aa724f40967d70/orig.mp4?Expires=1771203900&Signature=YfsFA2JCL-IfxsRyEtnAn0-PQDNIshN-oru2g~aQf7P0jvZ5Yl14F0SZzYhMvAtOvHfHfjKD7pbvUJCCrwwbFE6ga2FaV4R5dm-KTTd~rCBCpptOMQQ-8Ee8PJKUvSi3MwlDzARsRqk16QFPDOuLBaGhFO2yiQMIIcM-Z0L3REWjPlXl-rEH4q5ThGkfvNrbP~S6qBQ~qMcM-dSMX9ilTujyRDlIiyX4dLJ1BmIqSTHW4NRASDr4u5TG9WvDvzVJ9Ido1HQIbIej1LRYckEQAU5NyqWeS5cVqbO3-35sLbW6q58jl4E3MO7n1fiejKUtG4BfATWaOxdB0c0Wxjftng__&Key-Pair-Id=KUT5TJCACFTXG","Charnell Jones, director of Human Resources for the City of Raleigh, and consultants from Segal told the City Council at a work session that the city’s pay ranges are, on average, below market and that staff will return with implementation options during the FY26 budget process.

The council heard that a comprehensive classification and compensation study, launched in 2024 and conducted with Segal, found Raleigh’s published pay range midpoints averaged about 91% of the blended market midpoint. Segal recommended expanding the city’s classification list from roughly 350 to about 485 job classifications and establishing 37 job families to better reflect employee duties and career progression. Patrick Bracknell, senior vice president with Segal, said the consultant selected 101 benchmark jobs and surveyed up to 12 peer employers to create the market comparison.

Jones said the city will phase implementation and present cost scenarios to council during the April–May budget process. She noted that FY25 investments already included roughly $26.6 million in workforce investments — about $11.1 million for public safety market adjustments and $12 million for other market adjustments and annual increases — and that bringing ranges fully into market would require additional funding. City staff estimated that a 1% across-the-board increase for all employees is roughly $3.75 million, 5% is $18.75 million and 15% is $56.25 million. Based on Segal’s findings, Jones said the estimated budgetary range to address shortened midpoints was roughly $33.8 million to $52.5 million depending on the implementation approach.

On benefits, Jones said medical benefits remain the city’s largest expense at about $58.7 million for active employees and that the city is self-funded with a stop-loss attachment (the transcript references $375,000). Jones said the city’s broker, USI, projects the city trending below typical national forecast rates; staff reported no premiums increases will be proposed for employees in FY26 for medical, dental or vision plans. Staff also proposed one plan change: an expansion and increase to the city’s tuition-reimbursement program to include workshops and certifications, noting that the change will require review by the Civil Service Commission before final policy approval.

Council members asked for more detail about the vacancy-rate improvements Jones cited (the vacancy rate showed a decline from about 14.9% in March 2022 to 10.7% as of the most recent snapshot) and for a historical breakdown of vacancies. Jones provided a head-count snapshot of roughly 456 full-time and 36 permanent part-time vacancies and agreed to provide the council the earlier-year vacancy counts requested.

Segal and staff described implementation trade-offs including whether to raise employees to new pay-range minimums, apply market adjustments, or provide annual pay increases. Segal said the city’s existing pay-range widths average about 70% (minimum to maximum) compared with a market-average width of about 57%, which affects internal progression and pay-compression considerations. Staff said they will finalize proposed salary structures, identify Fair Labor Standards Act (FLSA) exempt/nonexempt reclassifications where appropriate, draft updated job descriptions for the proposed classifications, and return with cost scenarios for council consideration.

The city indicated it will bring final classification-and-compensation recommendations and an implementation approach to the council as part of the FY26 budget process; no formal council action was taken at the work session.

Less critical details: staff said they will launch a benefits survey in the summer and issue an RFP for a new broker; they also listed past FY25 benefit enhancements including a part-time benefit package, a continuous service incentive, parking incentives for downtown employees and the addition of the North Carolina 529 savings plan as an employee offering.","City human resources and consultant Segal presented a classification and compensation study showing Raleigh's pay ranges below market averages and proposed implementation steps for FY26, while staff proposed no employee premium increases and an expanded tuition reimbursement policy.","actionData","errors"]

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Actuary: separation-allowance plan for fire, ECC and five departments could cost Raleigh about $227 million over 20 years

Raleigh staff say pay ranges lag market; classification overhaul and benefit proposals planned for FY26