Part I.

Enacts new GS 135-4.5, creditable service purchases, and recodifies specified provisions from existing GS 135-4 pertaining to the purchase of creditable service under the Retirement System for Teachers and State Employees into the new statute. Deletes outdated provisions. Amends the provisions related to creditable service purchase now located in GS 135-4.5 as follows.

Allows any member in service with five or more years of membership service to purchase creditable service by paying a lump sum into the Annuity Savings Fund. Amends the amount to be paid so that it is now equal to the full liability increase of the Retirement System due to the additional service credits purchased plus an administrative fee set by the System’s Board of Trustees. Prohibits purchasing service credit if a benefit is allowable under another public retirement system as a result of the service. Allows the purchase of the following creditable service, with specified guidance and limitations: withdrawn service; federal, state, or local government service; part-time service; temporary service; probationary local government service; involuntary furlough; leave due to extended illness; parental leave and pregnancy or childbirth-related leave; charter school service; and UNC Optional Retirement Program service.

Amends the provisions governing the purchase of creditable service in the US Armed Forces by making the provisions for purchase by members who completed 10 years of membership service, applicable on or before December 31, 2038. Also amends the procedure for purchasing the service for members who completed five years of membership service, whose membership began on or before July 1, 1981, and who were eligible to purchase service credits under the provision for those who completed 10 years of service, but did not make the purchase within three years.

Amends the cost calculation used when members purchase creditable service for periods of employer approved leaves of absence while receiving benefits under the North Carolina Workers’ Compensation Act. Also adds to provisions that apply to such a purchase that an employer is not prevented from voluntarily paying all or a part of the employee portion of the total payment due for the service credit purchased. Prohibits an employer from discriminating against any eligible law enforcement officer in paying all or a part of that portion of the total payment due. Provides that to the extent the employee portion of the total payment due is paid by the employer, the employee portion paid by the employer must be credited to the Pension Accumulation Fund; to the extent the employee portion of the total payment due is paid by the member, the employee portion paid by the member must be credited to the member's accumulated contributions and interest in the Annuity Savings Fund. Requires a member to pay any part of the employee portion of the total payment due that is not paid by the employer.

Allows a member who had service as an employee or teacher, who was omitted from contributing membership though error to be allowed the omitted membership service if the specified requirements are met and the total payment required for that service is made. Requires that clear and convincing evidence of the error be given for approval and payment for the omitted membership service. Amends the process for making these payments.

Provides that a member who is reinstated to service as an employee or teacher retroactively to the date of prior involuntary termination with back pay and associated benefits is allowed membership service for that period of reinstated service if the specified requirements are met and the total payment required for that service is made. Requires that clear and convincing evidence of the reinstatement, payment of back pay, and restoration of associated benefits be given for approval and payment for the omitted membership service. Amends the process for calculating these payments.

Provides that a member who is reinstated to service as an employee or teacher retroactively to the date of prior involuntary termination with back pay and associated benefits is allowed membership service for that period of reinstated service if the specified requirements are met and the total payment required for that service is made. Requires that clear and convincing evidence of the reinstatement, payment of back pay, and restoration of associated benefits be given for approval and payment for the retroactive membership service. Amends the process for calculating these payments.

Amends the provision allowing payment or repayments for membership or creditable service to be made through rollover contributions to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees.

Amends the provision allowing payment or repayments for membership or creditable service to be made through a direct transfer to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees. Also expands upon the allowable sources for such a transfer.

Makes additional organizational, clarifying, conforming and technical changes.

Makes conforming changes to GS 135-1, and GS 135-4.

Amends GS 135-8, concerning the Annuity Savings Fund, by specifying that contributions from the compensation of members to provide for their annuities must be deposited into the Annuity Savings Fund. Provides that the specified creditable service for leaves of absence or interrupted service for educational purposes before July 1, 1981, may be purchased on or before December 31, 2038 (currently, there is no deadline). Makes additional technical and conforming changes.

Part II.

Enacts new GS 128-26.5, creditable service purchases, and recodifies specified provisions from existing GS 128-6 pertaining to the purchase of creditable service under the Local Governmental Employees’ Retirement System into the new statute. Deletes outdated provisions. Amends the provisions related to creditable service purchase now located in GS 128-26.5 as follows.

Allows any member in service with five or more years of membership service to purchase creditable service by paying a lump sum into the Annuity Savings Fund. Amends the amount to be paid so that it is now equal to the full liability increase of the Retirement System due to the additional service credits purchased plus an administrative fee set by the System’s Board of Trustees. Prohibits purchasing service credit if a benefit is allowable under another public retirement system as a result of the service. Allows the purchase of the following creditable service, with specified guidance and limitations: withdrawn service; federal, state, or local government service; part-time service; temporary service; probationary local government service; involuntary furlough; and employment not otherwise creditable.

Amends the provisions governing the purchase of creditable service in the US Armed Forces by making the provisions for purchase by members who completed 10 years of membership service, applicable on or before December 31, 2038. Also amends the procedure for purchasing the service for members who completed five years of membership service, whose membership began on or before July 1, 1981, and who were eligible to purchase service credits under the provision for those who completed 10 years of service, but did not make the purchase within three years.

Amends the cost calculation used when members purchase creditable service for periods of employer approved leaves of absence while receiving benefits under the North Carolina Workers’ Compensation Act. Provides that to the extent the employee portion of the total payment due is paid by the employer, the employee portion paid by the employer must be credited to the Pension Accumulation Fund; to the extent the employee portion of the total payment due is paid by the member, the employee portion paid by the member must be credited to the member's accumulated contributions and interest in the Annuity Savings Fund. Requires a member to pay any part of the employee portion of the total payment due that is not paid by the employer.

Allows a member who had service as an employee or teacher, who was omitted from contributing membership though error to be allowed the omitted membership service if the specified requirements are met and the total payment required for that service is made. Requires that clear and convincing evidence of the error be given for approval and payment for the omitted membership service. Amends the process for making these payments.

Provides that a member who is reinstated to service as an employee retroactively to the date of prior involuntary termination with back pay and associated benefits is allowed membership service for that period of reinstated service if the specified requirements are met and the total payment required for that service is made. Requires that clear and convincing evidence of the reinstatement, payment of back pay, and restoration of associated benefits be given for approval and payment for the retroactive membership service. Amends the process for calculating these payments.

Amends the provision allowing payment or repayments for membership or creditable service to be made through rollover contributions to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees.

Amends the provision allowing payment or repayments for membership or creditable service to be made through a direct transfer to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees. Also expands upon the allowable sources for such a transfer.

Makes additional organizational, clarifying, conforming and technical changes.

Makes conforming changes to GS 128-21 and GS 128-26.

Amends GS 128-30 concerning the Annuity Savings Fund, by specifying that contributions from the compensation of members to provide for their annuities must be deposited into the Annuity Savings Fund. Provides that the specified creditable service for leaves of absence or interrupted service for educational purposes before July 1, 1981, may be purchased on or before December 31, 2038 (currently, there is no deadline). Makes additional technical and conforming changes.

Part III.

Enacts new GS 135-56.5, creditable service purchases, and recodifies specified provisions from existing GS 135-56 pertaining to the purchase of creditable service under the Consolidate Judicial Retirement System into the new statute. Deletes outdated provisions. Amends the provisions related to creditable service purchase now located in GS 135-56.5 as follows.

Allows any member in service with five or more years of membership service to purchase creditable service by paying a lump sum into the Annuity Savings Fund. Amends the amount to be paid so that it is now equal to the full liability increase of the Retirement System due to the additional service credits purchased plus an administrative fee set by the System’s Board of Trustees. Prohibits purchasing service credit if a benefit is allowable under another public retirement system as a result of the service. Allows the purchase of the following creditable service, with specified guidance and limitations: withdrawn service; federal, state, or local government service; part-time service; temporary service; probationary local government service; involuntary furlough; leave due to extended illness; parental leave and pregnancy or childbirth-related leave, charter school service, UNC Optional Retirement Program service; and employment not otherwise creditable.

Sets out provisions governing when a member who (1) had service qualifying for membership as a judge, clerk of superior court, a Director of Indigent Defense Services, a district attorney, or a public defender, and (2) was omitted from contributing membership though error, may be allowed the omitted membership service.

Amends the provision allowing payment or repayments for membership or creditable service to be made through rollover contributions to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees.

Amends the provision allowing payment or repayments for membership or creditable service to be made through a direct transfer to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees. Also expands upon the allowable sources for such a transfer.

Makes additional organizational, clarifying, conforming and technical changes.

Makes conforming changes to GS 135-53, GS 135-56, and GS 135-58.

Part IV.

Enacts new GS 120-4.12B, creditable service purchases for service in Armed Forces, and recodifies specified provisions from existing GS 120-4.12 pertaining to the purchase of creditable service under the Legislative Retirement System into the new statute. Deletes outdated provisions. Amends the provisions related to creditable service purchase now located in GS 120-4.12B as follows.

Makes the existing provisions applicable to any member of the System who has eight or more years or creditable service as a member of the General Assembly and is purchasing prior service credit for service in the US Armed Forces on or before December 31, 2024; sets out new provisions that apply on or after January 1, 2025. Specifies that only periods of active service in the US Armed Forces are eligible for the purchase of creditable service under the statute.

Amends the definitions that apply to the Retirement System by adding and defining Board of Trustees (Board of Trustees of the Teachers’ and State Employees’ Retirement System, which is responsible for administering the Legislative Retirement System); creditable service (total of a member’s prior service plus membership service for which credit is allowed; credit service is not deemed membership service for the purpose of determining eligibility for benefits); and Retirement System (Legislative Retirement System of North Carolina). Makes additional technical and clarifying changes.

Amends GS 120-4.12(c1) by limiting the provision allowing a member of the Retirement System who was a member of the NCGA as of January 1985 to purchase prior service credit for the month of January 1985 based on 7% of the compensation received, to on or before December 31, 2024.

Amends GS 120-4.15 by limiting the existing provisions governing the repayment of contributions withdrawn for the System, from January 1, 2022, to before January 1, 2025, and sets out a new provision applicable on or after January 1, 2025.

Amends GS 120-4.16 by removing the provision requiring all repayments and purchase of service credit to be made within two years after the member first becomes eligible to make such repayments and purchases and setting out additional requirements when this timeframe is not met. Amends the provision allowing payment or repayments for membership or creditable service to be made through rollover contributions to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees.

Amends the provision allowing payment or repayments for membership or creditable service to be made through a direct transfer to the Annuity Savings Fund by specifying that the provision is subject to the requirements of the provision and any rule adopted, or policies established by the Board of Trustees. Also expands upon the allowable sources for such a transfer.

Part V.

Makes conforming changes by updating statutory references in: GS 135-5, GS 128-27, and GS 135-53.

Sets out instructions for the Revisor of Statutes on updating statutory cross-references.