Page 66 - Employee Handbook 1-2015 rev9

The provisions of this section shall apply to and shall include the administrator of the city
of Winston-Salem Board of Alcoholic Beverage Control.

Employees who are transferred from employment by the City of Winston-Salem to
employment by Forsyth County or by some other governmental agency as a result of the transfer
of a particular governmental function or service from the city to the county or to such other
governmental agency shall receive pro rata longevity payment for the year in which such transfer
occurs, computed on the same basis and paid in the same manner as hereinabove provided for
employees who retire.

During the annual budgetary process, or at other times as appropriate, the City Council
may undertake a review of the longevity pay plan during which time the City Council shall
determine the availability of funds and the possibility of future changes.

DD. Social Security

All employees of the City are covered by Social Security with the exception of certain
law enforcement personnel. Social Security tax (FICA) is automatically deducted from your
pay. The City of Winston-Salem matches the employee's contribution to Social Security.
Corrections to your Social Security account can be made only within certain periods. It is wise
to check the amounts credited to your Social Security account every three years. To check on
your account, request an "Estimate of Benefit Earnings Statement" from the Social Security
Administration.

EE. Retirement/Pension Plans

Each new full-time employee or part-time employee averaging 1,000 or more hours of
work each year automatically becomes a member of the North Carolina Local Government
Employees’ Retirement System (LGERS) and makes a MANDATORY contribution of 6
percent of their annual salary to the system on a pre-tax basis. This provision enables employees
to have federal and state income taxes on their contributions deferred until after retirement.

Sworn law enforcement personnel sworn on or before December 31, 2013 become
members of the Winston-Salem Police Officers' Retirement System (WSPORS). Sworn law
enforcement personnel sworn on January 1, 2014 or later become members of the Winston-
Salem Police Officers Defined Contribution system (WSPO-DC). The City of Winston-Salem
contributes to the retirement fund. The City's contributions are based on actuarial calculations so
that employee benefits can be provided on a sound basis.

The provisions and benefits of the City's retirement plans are summarized below:

 VESTED RIGHT - After five years of creditable service, an employee qualifies for
monthly retirement benefits, available at age 60. (age 55 for Police Officers)
 SERVICE RETIREMENT WITH 30 YEARS - After 30 or more years of
creditable service, regardless of age, an employee is eligible for full retirement
benefits.

City of Winston-Salem Employee Handbook November 2014 Revision 57