AN ACT TO MODIFY THE ABILITY OF A MEMBER OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM TO PURCHASE CREDIT FOR EMPLOYMENT IN A CHARTER SCHOOL OPERATED BY A PRIVATE NONPROFIT CORPORATION AND TO REQUIRE COST ESTIMATES FOR STATUTORY CHANGES TO SERVICE PURCHASE PROVISIONS. Enacted June 30, 2016. Effective June 30, 2016.
Summary date: Jul 7 2016 - View summary
Summary date: Jun 20 2016 - View summary
Senate committee substitute makes the following changes to the 1st edition.
Adds a section amending GS 120-114 (concerning actuarial notes and Retirement System cost estimates) by adding that if a bill or resolution adds or changes service purchase provisions, the Fiscal Research Division must also get an estimate of the cost impact of those provisions using the 30-year US Treasury constant maturity and cost-of-living adjustment and salary increase assumptions consistent with that rate as of December of the year of the most recent actuarial valuation in addition to the cost of the provision using the valuation assumptions.
Changes the act's long title.
Summary date: Apr 25 2016 - View summary
Amends GS 135-4 (Retirement System for Teachers and State Employees) subsection (cc), which establishes provisions for credit for employment in a charter school operated by a private nonprofit corporation. Allows any member to purchase creditable service for any employment as an employee of a charter school operated by a private nonprofit corporation whose board of directors did not elect to participate in the Retirement System under GS 135-5.3 (Optional participation for charter schools operated by private nonprofit corporations) upon completion of five years of membership service (was, upon completion of five years of membership service after that charter school employment) by making a lump-sum payment into the Annuity Savings Fund. Establishes that creditable service purchased under GS 135-4 cannot exceed a total of five years.
Repeals GS 135-8(b)(5)(d) (Annuity Savings Fund, Employment in a charter school) that required prior approval by the Board of Trustees to purchase creditable service and required the member employed at a charter school to make monthly contributions into the Annuity Savings Fund in an amount equal to the employee contribution plus the employer normal and accrued liability contribution on the basis of the compensation the member was earning immediately prior to the interrupted service by employment in a charter school.