House committee substitute makes the following changes to the 1st edition.

Section 1

Regarding the proposed changes to the creditable service provisions of the Retirement Systems for Teachers and State Employees and Local Governmental Employees set out in GS 135-4 and GS 128-26, modifies and postpones the dates applicable to amended and proposed sections by one or two years, as specified.

Now provides that for all service purchases required to have been made by December 31, 2021 (was, December 1, 2019), service purchase request forms received by that date will be accepted and processed.

Section 2

Eliminates the previous content in Section 2, amending GS 135-6(l) and GS 128-28(m) concerning the duties of the Actuary of TSERS and the Local Governmental Employees Retirement System, amending GS 150B-1 exempting the Retirement Systems Boards of Trustees from the rule making procedures of Article 2A of GS Chapter 150B when adopting actuarial tables, assumptions, and contribution-based benefit caps factors after presentation of recommendations from the actuary, and amending GS 135-6(n) and GS 128-28(o), requiring the Boards of Trustees to account for the results of the investigation and valuation and adopt any necessary mortality, service, or other tables, and any necessary contribution-based benefit cap factors for the System.

Eliminates the previous content of Section 5, amending GS 135-1 and GS 135-21, adding the defined term duly acknowledged. 

Makes conforming organizational changes to the remaining content of the act.

Section 4

Modifies the proposed changes to GS 135-8(f)(3) and GS 128-30(g)(3), regarding collection of contributions in TSERS and the Local Governmental Employees Retirement System. Previously added a new requirement for the effective date of an interception of State funds for a contribution-based benefit cap liability to be the later of December 1, 2019, or 12 months after the member's effective date of retirement. Now instead mandates that the date set by the respective Board of Trustees for payment of the contribution-based benefit cap liability must be 12 months after the members' effective date of retirement.

Section 6

Modifies the effective date of the proposed changes to GS 143-166.84(c), regarding eligibility under the Sheriffs' Supplemental Pension Fund (Fund), and the removal of the 2022 sunset on Section 5, SL 2017-128, which enacted GS 143-166.84(c). Now effective October 1, 2020, and applies to all elections to have sick leave applied to service under the Sheriffs' Supplemental Pension Fund on or after that date.

Adds the following new content.

Section 7

Amends GS 135-3(8)c1 concerning the report that is required on beneficiaries of the Retirement System for Teachers and State Employees who retired on an early or service retirement allowance and have been reemployed by an employer participating in the Retirement System and earn the specified triggering amounts. Adds that if the report is not received within the required 90 days, the Board of Trustees may, in addition to the already allowed penalty, (1) require the employer to reimburse the Retirement System for any retirement allowance paid to the beneficiary during the period when the allowance would have been suspended if the report had been timely and (2) require the employer to pay any amounts that the beneficiary would have been required to pay to the Retirement System if the report had been timely. Adds that if the employer must make the payments under these new provisions, then (1) the beneficiary is not obligated to reimburse the Retirement System for the specified related amounts, (2) the provisions of GS 135-9(b) relating to offsetting overpayments against payments made from the Retirement System to the member or beneficiary do not apply, (3) the Retirement System does not have a duty to pursue repayment of overpayments from the beneficiary, (4) the overpayments are not considered a debt of the beneficiary, and (5) the beneficiary's effective date of retirement is to be adjusted if required. Amends GS 128-24(5)c1 to make the same changes to the report required on beneficiaries of the Retirement System for Counties, Cities, and Towns who retired on an early or service retirement allowance and have been reemployed by an employer participating in the system and earn the specified triggering amounts.

Effective July 1, 2021, and applies to reports required to be made on or after that date.

Section 8

Amends GS 135-7 (concerning the Retirement System for Teachers and State Employees) and GS 128-29 (concerning the Retirement System for Counties, Cities, and Towns), by amending the provisions for the funding of the Legislative Enactment Implementation Arrangement (LEIA) to prohibit the Board of Trustees from directing any employer contributions into the LEIA after November 1, 2026 (was, November 1, 2021).

Section 9

Enacts new GS 147-75.1 allowing the Department of State Treasurer (Department) to obtain the criminal history of any of the following: (1) a current or prospective permanent or temporary employee of the Department, (2) a contractor with the Department, (3) an employee or agent of a contractor with the Department who is or will perform work for the Department, (4) a volunteer of the Department, (5) any other individual otherwise engaged by the Department  who will have access to confidential health or financial information or data maintained by the Department. Allows the Department to deny employment to or dismiss specified individuals who refuse to consent to the record check or to the use of identifying information. Allows the Department of State Treasurer to extend conditional offers of employment pending record check results.