AN ACT TO ENACT THE AGENCY PARTICIPATION PROCEDURES ACT OF 2015. Enacted July 23, 2015. Sections 5 through 7 are effective July 23, 2015. The remainder is effective January 1, 2016.
Summary date: Jul 27 2015 - View summary
Summary date: Jul 15 2015 - View summary
Senate committee substitute makes the following changes to the 3rd edition.
Amends GS 135-5.3 to clarify that the Board of Trustees must notify a charter school in writing no less than 90 days before revoking the school's provisional entry in the Teachers' and State Employees' Retirement System.
Adds a new section amending GS 135-4(jj) (applicable to the Retirement System for Teachers and State Employees) and GS 128-26(y) (applicable to the Retirement System for Counties, Cities and Towns), concerning the contribution-based benefit cap purchase provision, to allow an employer of a member who became a member before January 1, 2015, or who has not earned at least five years of membership service in the retirement system after that date to pay the lump sum amount on an installment payment plan. Sets out additional requirements for the payments.
Makes additional clarifying changes.
Changes the act's effective date to make Sections 5 (amending GS 128-21), 6 (amending GS 128-26(a)), and 7 (amending GS 135-4(jj) and GS 128-26(y)) of the act effective when the act becomes law (was, January 1, 2016).
House amendment makes the following changes to the 2nd edition:
Amends proposed GS 135-5.3(b3) to require the Board of Trustees to give provisional participating employers a 90-day written notice that the required employee or employer contributions have not been received before revoking the charter school's provisional entry.
House committee substitute makes the following changes to the 1st edition.
Changes the short title.
Deletes all of the provisions from the previous edition.
Amends GS 135-5.3, Optional participation for charter schools operated by private nonprofit corporations, deleting subsections (a) and (b), which provided a 30-day time limit for charter schools to elect to participate in the Teachers' and State Employees' Retirement System (System). Adds new provisions providing that the board of directors of an approved charter school, pursuant to GS 115C-218.5, can elect to become a participating employer in the Retirement System. Directs such a charter school to file an application with the Board of Trustees for participation. Provides that the charter school must agree to make the contributions required of participating members and other transactions as specified. Provides that charter schools electing to participate can do so on a provisional basis, requiring actuarial and financial review one year after provisional entry. Charter schools electing to participate after operating for a year must be approved by the Board of Trustees, with such decision being based on the results of actuarial and financial reviews. Sets out provisions governing such reviews. Sets out criteria that must be met for the Board of Trustees to grant final approval, including that the charter school has not been identified as inadequate. Deletes language which made the election to participate irrevocable. Makes clarifying and conforming changes.
Enacts GS 120-114(f), requiring the Fiscal Research Division to obtain an estimate of cost of the withdrawal liability for any agency or institution if any bill or resolution contemplates removing the agency as a participating employer in the System or the Local Governmental Employees' Retirement System. Makes conforming changes to the section catch line.
Enacts GS 135-8(i) and GS 128-30(i), Procedure and Payment to Cease Participation in either the System or the Local Governmental Employees' Retirement System, setting out the procedure and withdrawal payment calculations for agencies and institutions that desire to withdraw from their respective retirement system. Requires the employer to notify its employees and the Board of Trustees, in writing, of its intent to withdraw as well as requiring a lump-sum withdrawal payment to the Board of Trustees. The lump-sum amount is calculated as either a maximum of $1,000 or an amount calculated as specified reflecting accrued actuarial costs and value.
Enacts GS 115C-218.100(a1) providing that in the event of a voluntary or involuntary dissolution of a charter school, the funds reserved for closure proceedings must be first applied to pay wages to employees, then to funds owed to the Retirement System, and lastly to funds owed to the State Health Plan.
Amends GS 128-21(17), the definition for prior service concerning the Local Governmental Employees' Retirement System, providing that service rendered prior to the time the employer began participation does not count if the participation began on or after August 1, 2015.
Amends GS 128-26(a), to require specified employees to file detailed statements of all service rendered to their employer if participation in the retirement system began prior to November 1, 2015.
Effective January 1, 2016.
Summary date: Mar 18 2015 - View summary
Amends GS 135-5.3 concerning optional participation of charter school operated by private nonprofits in the Retirement System for Teachers and State Employees (System) deleting language which only allowed charter school to elect to participate within 30 days after GS 135-5.3 became law. Deletes other language that provided for only 30 days after parties signed the written charter pursuant to GS 115C-218.15 to elect to become a participating employer in the System. Adds new language providing that the board of directors of a charter school must elect whether to seek to become a participating employer in the System, pursuant to the provisions of GS Chapter 135, Article 1. Adds language that requires a charter school to undergo actuarial, financial, and legal review before being accepted as a participating employer. Requires the Board of Trustees of the System to accept the application from the charter school and the charter school to accept the withdrawal liability before the charter school can be considered a participating employer. Makes clarifying changes and deletes language that provided that the election to become a participating employer is irrevocable. Adds new language which allows the board of directors to elect to revoke its decisions to be a participating employer in the System. Sets out the process for electing such revocation, including making a lump sum payment of the withdrawal liability required in GS 135-8(i).
Amends GS 120-114 to require the Fiscal Research Division to obtain an advisory letter from the Attorney General regarding eligibility for participation or an estimate of cost of the withdrawal liability owed if there is a bill or resolution contemplating the addition or removal of a public agency as a participating employer in the System or the Local Government Employees' Retirement System. Makes conforming changes to the catchline.
Enacts new GS 135-8(i) and GS 128-30(i) requiring any employing unit that is allowed to cease participation in the System or the retirement system for counties, cities, and towns by the General Assembly, or as otherwise provided, to make a lump sum payment to the System equal to the actuarial present value of the additional liabilities imposed on the System as determined by the System's consulting actuary, plus an administrative fee determined by the Board of Trustees.
Effective July 1, 2015.