Bill Summary for H 177 (2021-2022)

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Summary date: 

Jun 21 2022

Bill Information:

View NCGA Bill Details2021
House Bill 177 (Public) Filed Thursday, February 25, 2021
AN ACT TO EXTEND THE PENSION-SPIKING LITIGATION PAUSE AND THE REPORT DEADLINE AND TO CLARIFY REQUIREMENTS FOR PARTICIPATION IN THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM FOR ELIGIBLE EMPLOYERS THAT DO NOT HAVE TAXING AUTHORITY.
Intro. by Lambeth, McNeill, Hurley.

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Bill summary

Senate committee substitute replaces the content of the 1st edition with the following.

Amends Section 3.2, SL 2021-72, extending the moratorium period within which local governments are prohibited from filing legal actions against the State regarding the anti-pension-spiking contribution-based benefit cap under GS 135-5(a3) and applicable statute of limitations are tolled, to now end the period on June 30, 2023, rather than June 30, 2022. Adds a new provision to prohibit the Teachers and State Employees' Retirement System (TSERS) from requesting, prior to September 1, 2023, an interception of State appropriations under GS 135-8(f)(3) for unpaid contributions attributable to retirements that occurred between July 1, 2021, and June 30, 2022.

Amends Section 4, SL 2021-72, extending the deadline by which the Department of State Treasurer and the School Boards Association's working group charged with reviewing the anti-pension-spiking contribution-based benefit cap can report its findings and recommendations to the specified NCGA committee, now providing for a report by December 15, 2022 (was, April 1, 2022).

Enacts GS 128-23(i), providing that an eligible employer that is not a taxing authority and is not a participating employer in the Local Governmental Employees' Retirement System (LGERS) on September 1, 2023, is not eligible to commence participation in LGERS without obtaining a surety as defined in rules adopted by the LGERS Board of Trustees (Board). Requires the Board's rules to address how such an employer will cover a withdrawal liability incurred for ceasing participation in the System. 

Directs the Board to adopt necessary implementing rules by August 1, 2023.

Effective June 30, 2022. 

Changes the act's titles.