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

Changes the long and short titles.

Places previous provisions in new Part I.

Part II

Repeals the following statutes pertaining to felony forfeiture of retirement benefits: GS 135-18.10A(b) (concerning forfeiture where a member of the Retirement System for Teachers and State Employee' conduct is directly related to the member's office or employment); GS 128-38.4A(b) (concerning forfeiture where a member of the Retirement System for Counties, Cities, and Towns' conduct is directly related to the member's office or employment); GS 135-75.1A(b) (concerning forfeiture where a member of the Judicial Retirement System's conduct is directly related to the member's office or employment); and GS 120-4.33A (concerning forfeiture where a member of the Legislative Retirement System's conduct is directly related to the member's office or employment).

Part III

Amends GS 135-5(a3) (concerning the Retirement System for Teachers and State Employees) and GS 128-27(a3) (concerning the Retirement System for Counties, Cities, and Towns) to change the calculation of the minimum average final compensation necessary for a retirement allowance subject to the contribution-based benefit cap in each System, providing for an increase on January 1 of each year by the percent change between the June (currently, December) Consumer Price Index in the year prior to retirement and the June Consumer Price Index in the fiscal year most recently added, calculated to the nearest tenth of a percent so long as the percent change is positive (currently, calculated from December to December, and does not specify fiscal year basis). Further, adds language to each statute to clarify that each Board of Trustees is not required to adopt the benefit cap factor under GS 135-5(a3) as a rule pursuant to the rule making provisions of Article 2A of GS Chapter 150B. Existing language in both GS 135-5(a3) and GS 128-27(a3) direct each Board of Trustees to adopt a benefit cap factor, as specified.

Amends GS 135-6(1) and GS 128-28(m), concerning the duties of a designated actuary in each System, requiring that the experience studies and all other actuarial calculations required by each Chapter, and all the assumptions used by each System's actuary, be set out in the actuary's periodic reports, annual valuations of System assets, or other materials provided to the Board of Trustees (currently, provides that this information be set out in the periodic reports or other materials provided to the Boards, for the purposes of the annual valuation of System assets). Adds language to each statute establishing that once accepted by the respective Board, these materials are effective the first day of the month following adoption as part of the Plan documentation governing the respective System, unless a different date is included in the adopting resolution. 

Provides language setting out the intent of new Part III is to clarify and not change existing law by making clear that the rule making provisions of Article 2A of GS Chapter 150B never required the benefit cap factor under GS 135-5(a3) to be adopted as a rule by the Board of Trustees.

Part is effective retroactively to January 1, 2015.

Part IV

Amends GS 150B-1(d), adding to the express exemptions set forth from the rule making provisions of Article 2A. Exempts the Retirement System Boards of Trustees established under GS 128-28 and GS 135-6 when adopting actuarial tables, assumptions, and contribution benefit cap factors after presentation and recommendations from the actuary. Sets out specific actuarial tables and assumptions that this new exemption includes but is not limited to, including interest rate assumption, separation and retirement assumptions, and contribution-based benefit cap factors.

Amends GS 135-6(n) and GS 128-28(o), expressly requiring the Board of Trustees of each System to adopt for each System contribution-based benefit cap factors in addition to mortality and service tables required to be adopted upon recommendations from the actuary based on the five-year actuarial investigation and valuation.

Similar to new Part III, provides language setting out the intent of new Part IV is to clarify and not change existing law by making clear that the rule making provisions of Article 2A of GS Chapter 150B never required the benefit cap factor under GS 135-5(a3) to be adopted as a rule by the Board of Trustees.

Part effective retroactively to January 1, 2015.

Maintains the previous effective date of the act, December 1, 2017, applicable to offenses committed on or after that date.