AN ACT TO MAKE TECHNICAL CHANGES TO THE STATUTES GOVERNING THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, THE LEGISLATIVE RETIREMENT SYSTEM,
THE SUPPLEMENTAL RETIREMENT INCOME PLAN, THE ACHIEVING A BETTER LIFE EXPERIENCE (ABLE) PROGRAM TRUST, THE NORTH CAROLINA NATIONAL GUARD PENSION FUND, THE NORTH CAROLINA PUBLIC SCHOOL TEACHERS' AND PROFESSIONAL EDUCATORS' INVESTMENT PLAN, AND THE NORTH CAROLINA STATE HEALTH PLAN FOR TEACHERS AND STATE EMPLOYEES; TO REQUIRE STRESS TESTING FOR THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, AS RECOMMENDED BY THE PEW FOUNDATION; TO MAKE AMENDMENTS RELATED TO THE PENSION SOLVENCY FUND; TO MAKE CHANGES TO THE UNCLAIMED PROPERTY STATUTES; TO MAKE CERTAIN CHANGES TO PRESERVE THE INTEGRITY OF AND CLARIFY THE POLICY OBJECTIVES OF THE GENERAL ASSEMBLY FOR THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM; AND TO AMEND THE SEPARATE INSURANCE BENEFITS PLAN OFFERINGS.
Amends GS 135-6(l) (concerning the Retirement System for Teachers and State Employees, TSERS) and GS 128-28(m) (concerning the Retirement System for Counties, Cities, and Towns, LGERS) with identical changes, requiring that the contribution-based benefit cap factor be included in the actuary of the retirement systems' periodic reports to the Board of Trustees. Clarifies that the actuary is to include experience studies, all other actuarial calculations, and all assumptions used by the actuary in the annual valuations of System assets provided to the Board of Trustees. Provides that the materials provided by the actuary to the Board of Trustees will become effective the first day of the month following adoption unless a different date is specified in the adopting resolution. Prohibits the effective date from retroactively affecting a contribution rate. Makes other clarifying changes.
Amends GS 150B-1(d), adding subsection (30), exempting from the Rules of GS Chapter 150B, Article 2A, the Retirement System Board of Trustees established under GS 128-28 and GS 135-6 when adopting actuarial tables, assumptions, and contribution-based benefit cap factors after presentation of recommendations from the actuary. This exemption includes, but is not limited to, 11 specified actuarial tables, assumptions, methods, and factors. Applies to actuarial tables, assumptions, and contribution-based benefit cap factors adopted or changed on or after the date the act becomes law.
Amends GS 135-6(n) and (o), and GS 128-28(o) and (p), with identical changes, requiring the Board of Trustees to adopt any necessary contribution-based benefit cap factors for the Retirement System, at least once in every five-year period, taking into account actuarial investigation results. Authorizes the Retirement Systems Division to increase receipts from retirement assets or pay the costs directly from the retirement assets in order to pay for the statutes' administration. Makes other clarifying changes.
The above changes are effective when they become law and apply to actuarial investigations and calculations mode on or after that date.
Repeals the following statutory subsections, which concern forfeiture of benefits under the specified retirement system for felony convictions found to be directly related to the member's office or employment: GS 135-18.10A(b) (concerning TSERS); GS 128-38.4A(b) (concerning LGERS); GS 135-75.1A(b) (concerning the Consolidated Judicial Retirement System, JRS); and GS 120-4.33A(b) (concerning the Legislative Retirement System (LRS).
Amends the following statutory subsections to specify that the forfeiture of creditable service provided in each existing law applies, regardless of whether creditable service was earned by virtue of membership in the System, accrued by conversion of sick leave at the point of the member's retirement, accrued by transfer of service from another retirement system, purchased by the member, or accrued by any other means: GS 135-4(gg) (concerning elected government officials vested in TSERS on July 1, 2007); GS 135-4(ii) (concerning members vested in TSERS on December 1, 2012); GS 128-26(w) (concerning elected government officials vested in LGERS on July 1, 2007); GS 128-26(x) (concerning members vested in LGERS on December 1, 2012); GS 135-56(g) (concerning members vested in JRS on July 1, 2007); GS 135-56(j) (concerning members vested in JRS on December 1, 2012); GS 120-4.12(f) (concerning members vested in LRS on July 1, 2007); and GS 120-4.12(g) (concerning members vested in LRS on December 1, 2012). Clarifies that creditable service attributable to the conversion of sick leave accrues in the respective System on the date of retirement, service transferred to the respective System from another system accrues in the System on the effective date of the transfer, and purchased services accrues in the respective System on the date of the purchase.
Amends the following statutes, which prohibits members whose retirement benefits have been forfeited under State law from subsequently purchasing or repurchasing either those benefits or any creditable service associated with those benefits, to further add that service cannot be used for purposes of eligibility for benefits in any retirement system that provides reciprocal benefits: GS 135-18.10B (concerning TSERS); GS 128-38.4B (concerning LGERS); GS 135-75.1 (concerning JRS); and GS 120-4.33B (concerning LRS).