ADMIN. CHANGES RET. SYSTEM/TREASURER - 2018.-AB

View NCGA Bill Details2017-2018 Session
House Bill 977 (Public) Filed Tuesday, May 22, 2018
AN ACT TO MAKE CLARIFYING AND ADMINISTRATIVE CHANGES TO LAWS RELATING TO THE STATE TREASURER, TO THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, TO THE LOCAL GOVERNMENT EMPLOYEES' RETIREMENT SYSTEM LAWS, TO THE STATE HEALTH PLAN FOR TEACHERS AND STATE EMPLOYEES, AND TO RELATED STATUTES.
Intro. by Ross, McNeill, Dulin.

Status: Ch. SL 2018-84 (House Action) (Jun 25 2018)
H 977/S.L. 2018-84

Bill Summaries:

  • Summary date: Jun 26 2018 - More information

    AN ACT TO MAKE CLARIFYING AND ADMINISTRATIVE CHANGES TO LAWS RELATING TO THE STATE TREASURER, TO THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, TO THE LOCAL GOVERNMENT EMPLOYEES' RETIREMENT SYSTEM LAWS, TO THE STATE HEALTH PLAN FOR TEACHERS AND STATE EMPLOYEES, AND TO RELATED STATUTES. Enacted June 25, 2018. Effective June 25, 2018, except as otherwise provided.


  • Summary date: May 31 2018 - More information

    House committee substitute makes the following changes to 1st edition. Expands section 11 to amend GS 135-48.54, removing separate provision allowing charter schools approved in 1997-98 to join the State retirement plan. Adjusts timing requirement for charter schools to join the State Health Plan (Plan) from 30 days to two years after the school's written charter was signed. Adds new subsection (b1), requiring a charter school wishing to participate in the Plan to provide notice of intent to do so six months in advance. However, failure to provide this notice alone will not prohibit a charter school from joining the Plan. 

    Notwithstanding the time requirements detailed above, any charter school that has been chartered in accordance with GS Chapter 115C, Article 14A, that has not voluntarily elected to participate in the Plan as of the effective date of this act may elect to participate in the Plan within two years of the effective date of this act. The six-month notice requirement detailed above will still apply. 

    Except as otherwise provided, this act is effective when it becomes law. 


  • Summary date: May 22 2018 - More information

    Section 1

    Amends GS 135-5.4 (optional retirement program for state-funded community colleges) to make the Optional Retirement Program available for employees only if they enroll on or before June 30, 2018. Previously the statute did not have a deadline for enrollment.

    Section 2

    Amends provisions for forfeiture of retirement benefits for certain felonies committed while serving as an elected government official in GS 135-18.10 (retirement system for teachers and state employees) and GS 128-38.4 (retirement system for counties, cities, and towns). Adds the following felony violations to list of violations which would cause an elected official to forfeit their retirement benefits: GS 14-90, embezzlement of property received by virtue of office or employment; GS 14-91, embezzlement of State property by public officers or employees; GS 14-92, embezzlement of funds by public officers and trustees; GS 14-99, embezzlement of taxes by officers; GS 14-454.1(a), accessing government computers; GS 14-455(a1), damaging computer resources; GS 14-456.1, denial of government computer services to an authorized user. Makes additional clarifying and organizational changes.

    Amends GS 161-50.4, adding new subsection (c), and GS 161-50.5, adding new subsection (d1), to deny a county register of deeds their monthly pension if they forfeit their retirement benefits by committing a felony under GS 128-38.4 or 128.38.4A.

    Section 3

    Amends GS 135-5.3(f) (optional participation in retirement system for teachers and state employees for charter schools operated by private nonprofit corporations), adding certain conditions for a charter school which elects to cease participation in the retirement system. If the withdrawal liability of a charter school is greater than $2 million, the Board of Trustees may allow a charter school to pay the required withdrawal liability on an installment plan. 50% of the withdrawal liability must be paid within 90 days of the complete withdrawal date, and the remaining 50% must be paid in 36 or less equal monthly payments. If a charter school pays the withdrawal liability using a payment plan, the Retirement System will have a lien against the real property of the charter school at the time that the installment agreement is entered into, in the amount of the total withdrawal liability owed. The lien will attach to the real property upon the approval of the installment payment plan by the Board of Trustees and will be perfected upon filing in the office of the clerk of superior court in each county in which the real property is located. The lien will have superior priority to all nongovernmental liens and rights. The Retirement System may enforce the lien by judicial foreclosure as provided in GS Chapter 1, Article 29A.

    Section 4

    Amends GS 147-86.57(3) and GS 147.86.42(5a) (definitions in the Iran Divestment Act) to make a clarifying change, removing the term indirect from the definition of beneficial ownerships which are not considered investments as defined by this section.

    Section 5

    Amends GS 143B-426.24, adding new subsection (h2), allowing the administrative costs of the North Carolina Public Employee Deferred Compensation Plan to be charged to members or deducted from members’ accounts.

    Amends GS 115C-341.2, adding new subsection (c), allowing the administrative costs of the North Carolina Public School Teacher’s and Professional Educators’ Investment Plan to be charged to members or deducted from members’ accounts.

    Section 6

    Amends GS 159-3, adding new subsection (g), and GS 159D-38, adding new subsection (f), granting individual immunity from civil liability for monetary damages, except to the extent covered by insurance, for individuals serving on the Local Government Commission and for individuals serving on the board of directors for the capital facilities finance agency, for any act or failure to act arising out of that service. Five exceptions apply to this immunity: (1) the individual was not acting within the scope of that individual’s official duties; (2) the individual was not acting in good faith; (3) the individual committed gross negligence or willful or wanton misconduct that resulted in the damages or injury; (4) the individual derived an improper personal financial benefit from the transaction; (5) the individual incurred the liability from the operation of a motor vehicle.

    Section 7

    Amends GS Chapter 135, Article 3B (State health plan for teachers and state employees) by adding new section GS 135-48.4, requiring that federal law will control in the event of a conflict between the provisions of this Article and applicable federal law.

    Section 8

    Amends GS 135-48.23 (executive administrator for the state health plan for teachers and state employees), removing requirement for a deputy executive administrator. Previously the law required the State Treasurer to appoint a deputy executive administrator.

    Amends GS 126-5(cl)(23) with conforming changes.

    Section 9

    Amends GS 135-48.20 (board of trustees for the state health plan for teachers and state employees), adding a fifth category to the list of individuals who must be appointed, namely a physician who is licensed to practice medicine in North Carolina. Also requires appointment of an individual with experience in actuarial science or health economics instead of requiring experts in each area. Makes other clarifying changes.

    Section 10

    Amends GS 90-414.8 (North Carolina health information exchange advisory board) to add a twelfth member to the advisory board. The twelfth member will be the Executive Administrator of the State Health Plan for Teachers and State Employees, or a designee. This member is an ex officio, voting member. Makes other clarifying changes.   


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