AN ACT TO ENACT THE AGENCY PARTICIPATION PROCEDURES ACT OF 2015.
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.
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