Lance Terpenny

| Lerone Graham

lerone.graham@roanoke.com, 381-8621

Former Town Manager Lance Terpenny could receive more than $290,000 in severance benefits from Christiansburg over the next decade, according to details released Thursday.

Town council members asked for Terpenny's resignation in July, saying they "lack confidence in Mr. Terpenny's continued employment" in Christiansburg. His resignation ended a 21-year stint in the town, 14 of which Terpenny served as town manager and seven as assistant town manager.

Because of his years of service to the town, Terpenny will receive the same benefits given to all town employees -- including payout of accrued sick time, annual vacation leave and retirement benefits through the Virginia Retirement System.

Town spokeswoman Becky Wilburn released a breakdown of Terpenny's severance and said the terms are on par with his service.

"These are the benefits that are afforded to every town employee with the years that Lance had," she said.

The severance follows the Virginia Retirement Service's guidelines for an employee who underwent an adverse separation from the employer, Wilburn said.

The severance includes 12 months of salary, equating a gross payment of $128,750; and full payment for accrued vacation time, equaling $12,627.60.

Terpenny will also receive town-sponsored service merit at $210 a month until he turns 65, and $100 afterward until death. Wilburn said this figure is based on $10 for every year of service. The payment reduces at age 65 because retired employees are eligible for Medicare. Terpenny is 55 years old, so that would add an additional $2,500 annually in benefits for the next decade.

The merit-service payments are deposited into the equivalent of a health savings account and are intended to offset health care costs. This service is subject to council review annually during the budget process.

Wilburn said this program began in 2005 as a cost-effective alternative to funding retiree insurance premiums. It's made available to town employees with 20 years of service, she said.

Terpenny will also receive employee sick-leave divestiture for the next 10 years, starting next month. Payments will begin in the amount of $1,050.66 per month, beginning Sept. 1 and lasting until a final payment of $1,050.86 on Aug. 1, 2020. That adds up to an additional $126,000.

"The man basically never got sick for 21 years," Wilburn said.

Employees who have served at least five years to the town are eligible for sick-leave divestiture. They have the option of receiving 25 percent of their accumulated sick leave in an immediate lump sum, with a maximum payment of $5,000, or receiving payments for the next 10 years.

If a former employee chooses the 10-year option, they are not limited to 25 percent of their sick time or the $5,000 cap. These benefits are subject to federal and state taxes.

Terpenny still lives in the town and filled a vacant Floyd town manager position Aug. 2. He will earn a salary of $50,000 in that position.