House committee substitute makes the following changes to the 3rd edition.

Amends GS 58-86-55, concerning monthly pensions upon attaining the age of 55 years under the North Carolina Firefighters' and Rescue Squad Workers' Pension Fund, by adding a new subsection (d2) to provide the manner in which benefits are to be paid when a member is killed in the line of duty and the requirements under Article 12A of GS Chapter 143 are met, based on whether (1) the member had been receiving a monthly pension fund benefit prior to being killed in the line of duty, (2) the member had been receiving a monthly pension fund benefit prior to being killed in the line of duty and the spouse is not payable as described in subdivision (1), (3) the member had not begun receiving a monthly benefit prior to being killed in the line of duty, or (4) the member had not begun receiving a monthly benefit prior to being killed in the line of duty and the spouse is not payable as described in subdivision (3). Provides that a beneficiary under new subsection (d2) is not required to make the monthly payment of $10 as required by GS 58-86-35 and GS 58-86-40 after the member has been killed in the line of duty. Repeals new subsection (d2) effective July 1, 2018.

Deletes the effective date of July 1, 2018, for Section 1 of the act, and instead provides that Sections 1(a) and 1(d) become effective June 1, 2016, and apply to benefits paid when a member is killed in the line of duty on or after June 1, 2016, but before July 1, 2018. Provides that Section 1(e) is effective June 1, 2016. Provides that Sections 1(b) and 1(c) become effective July 1, 2018, and apply to benefits paid when a member is killed in the line of duty on or after that date. 

Amends GS 135-6(b), which sets out the membership and terms of the Board of Trustees of the Retirement System for Teachers and State Employees, to add the Director of the Office of State and Human Resources as an ex officio member. Reduces the number of members to be appointed by the Governor and confirmed by the Senate from nine to eight members, and removes the requirement that one of those eight members is to be a representative of higher education appointed by the Governor for a term of four years, commencing July 1, 1969, and quadrennially thereafter. Makes technical changes.

Amends GS 135-6(g), which sets out provisions pertaining to officers and other employees of the Retirement System for Teachers and State Employees, to establish that the State Treasurer is ex officio chair of the Board of Trustees and is to appoint a director (previously, required the Board to appoint a director by majority vote, who may but need not be one of its members). Deletes the provision making the salary of the director of the Retirement System subject to the provisions of GS Chapter 126 (North Carolina Human Resources Act).

Amends GS 136-6(o) (intends GS 135-6(o)), which requires the actuary to make an annual valuation of the assets and liabilities of the funds in the Retirement System created in GS Chapter 135, to require the annual valuation include a supplemental section that provides an analysis of assets on a market basis using the 30-year treasury rate as of December 31 of the year of the valuation as the discount rate.

Amends GS 128-28(h), which sets out provisions pertaining to officers and other employees of the Retirement System for Counties, Cities and Towns, to establish that the State Treasurer is ex officio chair of the Board of Trustees and is to appoint a director (previously, the Board of Trustees is to elect a chairman from its membership and, by a majority vote, appoint a director, who may, but need not be, one of its members).

Amends GS 128-28(p), which requires the actuary to make an annual valuation of the assets and liabilities of the funds in the Retirement System created in GS Chapter 128, to require the annual valuation include a supplemental section that provides an analysis of assets on a market basis using the 30-year treasury rate as of December 31 of the year of the valuation as the discount rate (identical to addition made by the act to GS 135-6(o) relating to the Retirement System for Teachers and State Employees).

Amends GS 115C-341.2 to require that a vendor selected to administer the North Carolina Public School Teachers’ and Professional Educators’ Investment Plan (403(b) plan) must be selected pursuant to the procurement procedures used by the Supplemental Retirement Board of Trustees under Article 5 of GS Chapter 135. Also clarifies that administration of the 403(b) plan shall be performed under Article 5 of GS Chapter 135. Makes other technical and conforming changes. Makes identical changes to GS 115D-25.4(b), which authorizes community college employees to participate in the 403(b) plan.

Amends GS 135-109, concerning reports of earnings under the Disability Income Plan of North Carolina, to establish that the Department of State Treasurer and Board of Trustees may require (previously, must require) each beneficiary to annually provide a statement of the beneficiary's income received as compensation for services, as described in the existing language. Establishes that the benefit payable to a beneficiary who does not or refused to provide the information requested within 120 days (previously, within 60 days) after the request may be suspended (previously, must not be paid a benefit) until the information so requested is provided, and should such refusal or failure to provide such information continue for 180 days (previously, 240 days) after such request, the right of a beneficiary to a benefit under Article 6 of GS Chapter 135 (Disability Income Plan of North Carolina) may be terminated.

Senate committee substitute makes the following changes to the 1st edition. Amends GS 58-86-2, adding and defining the term killed in the line of duty to the definitions section for use in the NC Firefighters' and Rescue Squad Workers' Pension Fund (Fund). Enacts GS 58-86-55(d1) to establish provisions and protocols for the paying of benefits for when a member is killed in the line of duty, depending on if the member had already begun receiving a monthly pension fund benefit and the availability and number of the beneficiaries. Specifies payment amounts and duration for those payments according to the deceased's age and other statistics. Adds language specifying that a beneficiary of someone who has been killed in the line of duty does not have to make monthly payments of $10 as otherwise required by law.

Amends GS 58-86-60, concerning payments in lump sums from the Fund for those that have died, adding language that clarifies that for those that have died, but were not killed in the line of duty, whether or not they had begun to receive a monthly pension, payment must go first to the persons designated by the member; if no beneficiary has been chosen, then to the surviving spouse; if not to the spouse then to the deceased member's legal representative. Deletes language which previously directed payment to be made to the surviving spouse, then to surviving children, then to any heirs as can be determined. Effective July 1, 2018, applying to benefits paid when a member is killed in the line of duty on or after that date.

Provides a statement that the General Assembly finds that the interests of clarity require statutory language to provide guidance to the Retirement Systems Divisions in determining and maintaining consistency as to what information is to be made available about the retirement accounts of State and local employees after the February 5, 2008, Attorney General’s advisory opinion entitled “Advisory Opinion: Confidentiality of Retirement Benefit Information; Session Law 2007-508.”

Enacts GS 135-6.1, concerning member retirement record files held by the Retirement System for Teachers and State Employees, to establish that member retirement files are not subject to inspection and examination as authorized by GS 132-6 (emergency response plans excluded from definition of public records) except as provided in GS 135-6(p); GS 128-28(q); and subsections (c), (d), and (e) of the statute.

Provides that the following information regarding members and individuals in receipt of a recurring monthly benefit, if held by the Retirement System, is public and subject to subsection (d) of the section: (1) name; (2) age; (3) date of membership in the applicable retirement system, first service earned date, date of first enrollment, date of first employment, and date of retirement; (4) the terms of any contract by which the member is employed whether written or oral, past and current, to the extent that the Retirement System has the written contract or a record of the oral contract in its possession; (5) current or most recently held position or title; (6) compensation and other relevant remuneration history and benefits paid; (7) date, general description, and type of each change and the corresponding employing agency; (8) the office or station to which the member is currently assigned, if any; (9) the record of benefit payments made by one of the Retirement Systems or Disability Benefits Programs administered by the Department of State Treasurer to a member or to the survivor, beneficiary, or alternate payee of a member; and (10) purchases of educational leave. 

Requires every person having custody of the retirement file information outlined in subsection (b) of the statute to permit the information to be inspected and examined and copies thereof made by any person during regular business hours, subject only to rules and policies for the safekeeping of member retirement files adopted by the Board of Trustees. Provides that any person who is denied access to any retirement file for the purpose of inspecting, examining, or copying the file has a right to compel compliance with the provisions of this statute by application to a court of competent jurisdiction for a writ of mandamus or other appropriate relief.

Allows the Retirement Systems Division of the Department of State Treasurer to disclose the name and mailing address of former State employees, former public school employees, or former community college employees to domiciled, nonprofit organizations representing 10,000 or more retired State government, local government, or public school employees.

Establishes that all information other than the information listed in subsection (c) of the statute contained in a retirement file is confidential and not open for inspection and examination except to three specified persons as follows. (1) The member, or the member’s authorized agent, may examine his or her own retirement file, except for any information concerning a medical disability, mental or physical, that a prudent physician would not divulge to a patient, providing that a member’s medical record may be disclosed to a licensed physician in writing by the member. (2) A member of the General Assembly who may inspect and examine records under the authority of GS 120-19. (3) A party by authority of a proper court order may inspect and examine a particular confidential portion of a member’s retirement file.

Establishes that any public official or employee who knowingly and willfully permits any person to have access to or custody or possession of any portion of a retirement file designated as confidential by the statute, unless the person is one specifically authorized by this statute to have access thereto for inspection and examination, is guilty of a Class 3 misdemeanor and upon conviction must only be fined in the discretion of the court, not to exceed $500.

Establishes that any person not specifically authorized by the statute to have access to a retirement file designated as confidential by the statute who knowingly and willfully examines, removes, or copies any portion of a confidential retirement file is guilty of a Class 3 misdemeanor and upon conviction is to be fined in the discretion of the court but not to exceed $500.

Enacts GS 128-33.1, concerning public records held by the Retirement System for Counties, Cities and Towns, to establish that member retirement files are not subject to inspection and examination as authorized by GS 132-6 (emergency response plans excluded from definition of public records) except as provided in GS 135-6(p); GS 128-28(q); and subsections (c), (d), and (e) of the statute. Enacts identical subsections (a) through (h) as enacted in GS 135-6.1.

Amends GS 126-22, concerning personnel files not subject to inspection under GS 132-6, by amending the definition of personnel file to remove any employment-related or personal information gathered by the Retirement Systems Division of the Department of State Treasurer from the definition. Amends subsection (c) to remove personnel files maintained by the Retirement Systems Division of the Department of State Treasurer from the exception to the law that personnel files of former State employees who have been separated for 10 or more years may be open to inspection and examination. Instead, provides that retirement files maintained by the Retirement Systems Division of the Department of State Treasurer are to be made public pursuant to GS 128-33.1 and GS 135-6.1, as enacted by this act. Eliminates subsection (d), providing that, notwithstanding any provision of the statute to the contrary, the Retirement Systems Division of the Department of State Treasurer may disclose the name and mailing address of former State employees to domiciled, nonprofit organizations representing 10,000 or more retired State government, local government, or public school employees.

Repeals GS 115C-321(b1), which provided that, notwithstanding any provision of the statute to the contrary, the Retirement Systems Division of the Department of State Treasurer may disclose the name and mailing address of former public school employees to domiciled, nonprofit organizations representing 10,000 or more retired State government, local government, or public school employees.

Repeals GS 115D-29(c), which provided that, notwithstanding any provision of the statute to the contrary, the Retirement Systems Division of the Department of State Treasurer may disclose the name and mailing address of former community college employees to domiciled, nonprofit organizations representing 2,000 or more active or retired State government, local government, or public school employees.

Repeals GS 153A-98(c3), which provided that, notwithstanding any provision of the statute to the contrary, the Retirement Systems Division of the Department of State Treasurer may disclose the name and mailing address of former local governmental employees to domiciled, nonprofit organizations representing 2,000 or more active or retired State government, local government, or public school employees.

Repeals GS 160A-168(c3), which provided that, notwithstanding any provision of the statute to the contrary, the Retirement Systems Division of the Department of State Treasurer may disclose the name and mailing address of former local governmental employees to domiciled, nonprofit organizations representing 2,000 or more active or retired State government, local government, or public school employees.

Amends GS 135-10.1 of the Retirement System for Teachers and State Employees to provide that, if a member fails to respond within 120 days after preliminary option figures and the Form 6-E or Form 7-E are transmitted to a member (was, mailed), or if a member fails to respond within 120 days after the effective date of retirement, whichever is later, the Form 6 and the Form 7 are null and void, the retirement system is not liable for any benefits due on account of the voided application, and a new application must be filed establishing a subsequent effective date of retirement.

Amends GS 128-32.1, concerning failure to respond under the Retirement System for Counties, Cities and Towns, by making the same change as that made to GS 135-10.1, as amended by this act.

Amends GS 147-79(a) to authorize letters of credit issued by a Federal Home Loan Bank to be used as an acceptable means for securing state funds deposited by the Treasurer in an official depository.

Directs the Board of Trustees of the Local Governmental Employees' Retirement System to develop a State Contribution Rate Stabilization Policy for the NC Firefighters' and Rescue Squad Workers' Pension Fund and to report to the Office of State Budget and Management and the Fiscal Research Division on or before March 1, 2017.

Provides for severability if any provision of the act is held invalid.