Bill Summaries: S276 (2021)

  • Summary date: Mar 11 2021 - View summary

    Identical to H 168, filed 2/25/21.

    Part I

    Amends GS 159-30.1 to permit a local government, public authority, eligible entity, or local school administrative unit to establish and fund an irrevocable trust to pay contribution-based benefit cap liabilities to the Local Government Employees' Retirement System (LGERS), in addition to the existing authorization to pay post-employment benefits for which the entity is liable.

    Enacts GS 128-30(d)(4a) and GS 135-8(f)(5) to require adjusting the required employer contribution rate under LGERS and the Teachers' and State Employees' Retirement System (TSERS) to include an additional amount equal to a rate per centum that is estimated to extinguish the contribution-benefit base cap liability on an amortization schedule selected by the respective Board of Trustees that has been applied to unfunded liabilities in the most recent actuarial valuation; limited to the beginning of the fiscal year following 90 days after the assessment of a contribution-based benefit cap liability is not paid as a lump-sum payment. Applies to assessments imposed on or after July 1, 2021, to reduce an employer's contribution-based benefit cap liability. 

    Amends GS 128-30(g)(3) and GS 135-8(f)(3), concerning the withholding of State appropriations due to an employer for delinquent contributions to the Retirement Systems Division, to specify that payment is due for contribution-based benefit cap liability under LGERS and TSERS the later of 12 months after the member's effective date of retirement, or the first day of the month coincident with or next following six months after the date of the invoice (previously, 12 months after the member's effective date of retirement). Applies to contribution-based benefit cap liability payments due from an employer on or after July 1, 2021.

    Part II

    Further amends GS 128-30 and GS 135-8, concerning procedures for withdrawing from LGERS and TSERS, to require employing units which by sale, dissolution, or otherwise changing to a business or legal form not eligible for participation as an employer in the applicable Retirement System under federal law to follow the specified procedures for ceasing participation. Applies to a participation withdrawal by an employing unit on or after July 1, 2021.

    Part III

    Amends GS 128-21(2) and GS 135-1(2) to define actuarial equivalent, as the term is used in both LGERS and TSERS provisions, to mean a benefit of equal value when computed upon the basis of actuarial assumptions as adopted by the respective Board of Trustees (previously specified calculation based on mortality tables; TSERS definition also included regular interest). Applies to benefit calculations performed on or after July 1, 2021. 

    Part IV

    Amends GS 143-166.43 to require State departments, agencies, or institutions, and local government employers to have written, adopted policies that prohibit employees from choosing between accepting the lump sum separation buyout for law enforcement officers as a cash payment or transferring the lump sum separation buyout to TSERS or LGERS. Applies to lump sum separation buyouts offered to law enforcement officers on or after July 1, 2021.

    Part V

    Amends GS 135-91 to authorize the Department of State Treasurer and the Board of Trustees of the Supplemental Retirement Plan, the NC Deferred Compensation Plan, and the NC Public School Teachers' and Professional Educators' Investment Plan to adopt a new or amended rule at a public meeting to impose or change administrative fees under the respective Plan. Details notice and comment requirements of the draft rule, and posting requirements of adopted rules. Places caps on administrative fees based on Plan, ranging from 0.05% to 0.25%. Applies to administrative fees established or changed pursuant to rules adopted by the above provisions prospectively to any amounts owed on or after July 1, 2021.

    Part VI

    Amends GS 135-107 to require a participant of the Optional Retirement Program who owes an overpayment to the Disability Income Plan at the time the beneficiary would first qualify for an unreduced retirement benefit had the member elected to be a TSERS member, to pay the total overpayment amount due to the Disability Income Plan, with failure to pay within six months after the earliest age of retirement on an unreduced income allowance resulting in bar from enrollment in a new year of coverage under the NC State Health Plan for Teachers and State Employees until payment is made in full or the participant makes approved payment arrangements. Applies to overpayments owed on or after July 1, 2021.