Bill Summary for H 272 (2025-2026)
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| View NCGA Bill Details(link is external) | 2025-2026 Session |
AN ACT TO ALLOW LAW ENFORCEMENT, PROBATION/PAROLE, AND CORRECTIONAL OFFICERS WHO HOLD AN ADVANCED LAW ENFORCEMENT OR CORRECTIONS CERTIFICATE ISSUED BY THE NORTH CAROLINA CRIMINAL JUSTICE EDUCATION AND TRAINING STANDARDS COMMISSION OR THE ADVANCED LAW ENFORCEMENT CERTIFICATE ISSUED BY THE NORTH CAROLINA SHERIFFS' EDUCATION AND TRAINING STANDARDS COMMISSION TO PURCHASE, AT FULL COST, UP TO FOUR YEARS' CREDITABLE SERVICE IN THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM OR THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM.Intro. by Zenger, Chesser, Pyrtle, Miller.
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Bill summary
House committee substitute to the 2nd edition makes the following changes.
Modifies the assumptions underlying the calculation of a member’s lump sum payment to the Annuity Savings Fund to purchase up to four years of creditable service under new GS 135-4.5(h) (Retirement System for Teachers and State Employees [TSERS]) and new GS 128-26.5(h) (Local Government Employees Retirement System [LGERS]). Now requires that the assumed annual postretirement allowance increases set by each system’s Board of Trustees upon the advice of the consulting actuary assume an anti-selection risk and consummate surcharge. Changes the effective date of new GS 135-4.5(h) and GS 128-26.5(h) to January 1, 2027 (was, July 1, 2025).
Requires the State Treasurer (Treasurer) to seek a private letter ruling from the IRS to determine if the provisions of the act jeopardize TSERS’s and LGERS’s status by January 1 of the following calendar year of 120 days of the act becoming law, whichever is later.
Directs that if the Treasurer sought a private letter ruling on the impact of the act on LGERS/TSERS, and the Internal Revenue Service declines to make a private letter ruling or does not issue a response by 15 days prior to the effective date of this act, then the act is repealed. Also repeals the act on the last day of the month following the month of receipt of the specified determinations by the State Treasurer if any of the following occur: (1) the Internal Revenue Service fails to make a favorable determination that this act does not jeopardize the status of TSERS and/or (2) the Internal Revenue Service fails to make a favorable determination that this act does not jeopardize the status of LGERS. Provides for notice by the Treasurer to the Revisor of Statutes, its employees, and on its website in the event of the act’s repeal.
Authorizes the Treasurer to increase receipts from the retirement assets from LGERS/TSERS (as appropriate) or pay costs associated with administration directly from retirement assets to pay costs associated with the administration of the act.