Senate committee substitute to the 1st edition makes the following changes.
Adds to proposed GS 135-6(n1) to require that before undertaking each quinquennial actuarial experience review, the Board of Trustees of the Teachers' and State Employees' Retirement System must report to the NCGA and the Governor an estimate of the range of likely employer contributions over 20 years based on analysis that simulates the volatility of annual investment returns above and below the expected rate, applying methodology determined by the actuary, in addition to the previously proposed 12 items the Board must report concerning the Retirement System.
Modifies the proposed changes to GS 135-48.5, which requires that any unencumbered balance in excess of prepaid premiums or charges in the Public Employee Health Benefit Fund at the end of each fiscal year be used in three specified ways in the specified order. Now provides, as the second use, that an amount determined by the State Treasurer, subject to approval by the Board of Trustees, not to exceed 25% rather than 50% of any unencumbered balance remaining after providing for incurred but unpresented claims, may be transferred to the Retiree Health Benefit Fund.
Summary date: May 2 2019 - View summary
Summary date: Apr 3 2019 - View summary
Amends GS 135-6 to require at least once in each five-year period that the actuary completes an actuarial experience review of (was, make an actuarial investigation into) the mortality, service, and compensation experience of the members and beneficiaries of the Retirement System for Teachers and State Employees. Adds that before undertaking each quinquennial actuarial experience review, the Board of Trustees must report to the NCGA and the Governor on 12 items concerning the Retirement System, including projections of assets, liabilities, pension debt, service costs, employee contributions, employer contributions, net amortization, benefit payments, payroll, and funded ratio for the Retirement System for each of the next 30 years based upon the then-current actuarial assumptions, including the assumed rate of return; the market value of the assets controlled by the Board of Trustees and an explanation of how the actuarial value assigned to those assets differs from the market value of those assets; and an assessment of how the changes of assumptions adopted by the Board of Trustees in the experience review affect any of the other results in the report. Allows the Retirement System Division to increase receipts from the retirement assets of the corresponding retirement system or allows the payment of costs directly from the retirement assets for payment for the administration of the required actuarial experience review, required report, and annual valuation of the assets and liabilities of the System funds.
Amends GS 143C-4-10 to expand upon the funds received by the Unfunded Liability Solvency Reserve to also include any funds, in an amount directed by the State Treasurer to be transferred, that meet the following: (1) the funds are the result of rebates received by the Department of State Treasurer from a company administering supplemental voluntary insurance benefits authorized under specified provisions; (2) the funds are not owed to a company administering, or individuals participating in, supplemental voluntary insurance benefits; and (3) as determined by the Board of Trustees of the Retirement System, the funds are not to be needed to pay future administrative costs of the supplemental voluntary insurance benefits.
Amends GS 135-48.5 which requires that any unencumbered balance in excess of prepaid premiums or charges in the Public Employee Health Benefit Fund at the end of each fiscal year be used in three specified ways in the specified order. Adds, as the second use, that an amount determined by the State Treasurer, subject to approval by the Board of Trustees, not to exceed 50% of any unencumbered balance remaining after providing for incurred but unpresented claims may be transferred to the Retiree Health Benefit Fund. Amends the final allowed use, which is to improve the plan, to make it as provided by the State Treasurer, subject to approval by the Board of Trustees, instead of as provided by the General Assembly. Makes additional clarifying changes.
Amends GS 143C-4-10 by prohibiting transferring any portion of the Retiree Health Benefit Fund to the General Fund and providing that any appropriation made to the Fund does not revert.
Effective July 1, 2019.
Amends GS 135-48.8 to specify that it is in the public interest for individual firefighters, rescue squad workers, National Guard members, and certain dependents to be able to participate in the State Health Plan for Teachers and State Employees. Removes references to being ineligible for group health benefits to instead refer to being ineligible for health benefit coverage. Amends GS 135-48.40(d)(13) concerning specified classes of persons who are eligible, along with spouses and dependents, for coverage who have not been eligible for another health benefit plan and have been without coverage for at least six consecutive months by adding that it does not allow a person to enroll or require the State Health Plan for Teachers and State Employees to enroll a person when that enrollment may jeopardize the Plan's preferential tax exempt status as a governmental plan under the Internal Revenue Code. Removes references to comprehensive group health benefit plan and instead refers to comprehensive health benefit plan.
Amends GS 135-66 concerning the Consolidated Judicial Retirement System by adding that the assets of the System include employees' contributions held with the Pension Accumulation Fund and employees' contributions held in the Annuity Savings Fund. Requires the Board of Trustees to have performed an annual actuarial valuation of the System and have the responsibility for maintaining the System on a generally accepted actuarial basis. Adds requirements for calculating an actuarially determined employer contribution. Provides that the Board of Trustees may adopt a contribution policy that would recommend a contribution no less than the actuarially determined employer contribution. Requires that the recommended employer contribution rate by the Board of Trustees each year be no less than the actuarially determined employer contribution.
Enacts new GS 127A-14, providing as follows. Specifies that the NC National Guard Pension Fund includes general fund appropriations made to the Department of State Treasurer and held with the Pension Accumulation Fund of the Teachers' and State Employees' Retirement System. Requires an actuarially determined employer contribution to be calculated annually by the actuary using assumptions and a cost method approved by the specified entity and selected by the Board of Trustees of the Teachers' and State Employees' Retirement System. Allows the Board of Trustees to adopt a contribution policy that would recommend a contribution of no less than the actuarially determined employer contribution. Requires that the recommended employer contribution rate by the Board of Trustees each year be no less than the actuarially determined employer contribution. Adds in provisions previously located in GS 127A-40 concerning an annual actuarial valuation and financial responsibility for maintaining the Fund as well as provision of assistance from the Department of Public Safety. Makes conforming deletions in GS 127A-40.
Amends GS 135-8, concerning the Retirement System for Teachers and State Employees, and GS 128-30, concerning the Retirement System for Counties, Cities and Towns, by adding that if an employer made contributions on account of a retiree subject to the contribution-based benefit cap and that retiree later forfeits retirement benefits under the specified statutes concerning forfeiture due to committing a felony then the Retirement Systems Division may provide a credit to the employer, to be calculated as specified.
Enacts new GS 135-5.5, applicable to the Retirement System for Teachers and State Employees, and GS 128-23.1, applicable to the Retirement System for Counties, Cities and Towns, by providing that an employer is considered inactive if all of the four specified criteria is met, including that the employer has no employees that qualify for membership. Requires an annual report by the Retirement Systems Division to the Board on all employers who were determined to be inactive in the preceding calendar year.
Amends GS 159-33.1 to require that the financial statement from units or public authorities include total revenues received from building inspections, by source (was, by type), and the total expenditures paid from all revenues received by object (was, by type). Makes other technical changes. Effective June 30, 2019.
Amends GS 135-18.1 by removing outdated language and specifying that the term local system refers to the North Carolina Governmental Employees' Retirement System.
Repeals the following statutes: GS 135-5.2 (concerning retirement of persons employed by Chapel Hill Telephone Company or University Service Plants); GS 135-13 (specifying certain laws not repealed; suspension of payments and compulsory retirement); GS 135-14 (concerning pensions of certain former teachers and State employees); GS 135-14.1 (concerning retirement of certain school superintendents and assistant superintendents); GS 135-16 (employees transferred to North Carolina State Employment Service by act of Congress); GS 135-18.3 (conditions under which amendments void); and GS 135-18.5 (provision for emergency expenses of integration of System).
Amends GS 135-16.1 by deleting outdated provisions.
Amends GS 128-23 to provide that each county is authorized to make appropriations for retirement system purposes and to fund them by levy of property taxes as authorized by GS Chapter 153A, Article 7 (was, pursuant to GS 153-65).
Amends GS 115D-25.4 by adding that the administrative costs of the NC Public School Teachers' and Professional Educators' Investment Plan may be charged to members or deducted from members' accounts in accordance with nondiscriminatory procedures established by the Department of State Treasurer and Board of Trustees.
Amends GS 135-6.1 and GS 128-33.1 by adding that the Retirement Systems Division may disclose to employers and former employers that made a contribution for an employee or former employee to the Retirement System any nonpublic information regarding that employee necessary to conduct the business of the System. Recipients of the information are required to treat it as confidential.
Amends GS 135-8 and GS 128-30 by adding that the monthly report on members for whom the employer made a contribution to the Retirement System in the preceding month that are most likely to require an additional employer contribution should they retire in the following 12 months, is not public record and those receiving the report are to treat it as confidential. Further amends the statutes by adding the same concerning the pension spiking report.
Amends GS 135-48.47 by adding that except as permitted under (d) of the statute, a local government unit's election to participate in the State Health Plan is irrevocable.
Amends GS 147-69.7 by updating a statutory cross-reference.
Summary date: Apr 2 2019 - View summary
To be summarized.