GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 2325

Short Title:  Member Retirement Contribution Pick-up.  	(Public)
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Sponsors: Representatives Hall; and Warner.
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Referred to:  Pensions and Retirement.
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June 6, 1990

A BILL TO BE ENTITLED
AN ACT TO PHASE OUT MEMBER CONTRIBUTIONS REQUIRED BY THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM.
The General Assembly of North Carolina enacts:
Section 1.  Effective upon convening of the 1991 Regular Session of the General Assembly, G.S. 120-4.19 reads as rewritten:
"§ 120-4.19. Contributions by the members.
Effective upon convening of the 1985 Regular Session of the General Assembly, each member shall contribute by payroll deduction for each pay period for which he receives compensation seven percent (7%) of his compensation for the period.  Notwithstanding the foregoing provisions of this section, effective upon the convening of the 1991 Regular Session of the General Assembly, members are not required to make the contributions previously required by this section."
Sec. 2.  G.S. 135-68(a) reads as rewritten:
"(a)	Each member shall contribute by payroll deduction for each pay period for which he receives compensation six percent (6%) of his compensation for such period.  Notwithstanding the foregoing provisions of this section, effective on and after July 1, 1990, members are not required to make the contributions previously required by this section."
Sec. 3.  G.S. 135-8(b)(1) reads as rewritten:
"(1)	Prior to the first day of July, 1947, each employer shall cause to be deducted from the salary of each member on each and every payroll of such employer for each and every payroll period four per centum (4%) of his actual compensation; and the employer also shall deduct four per centum (4%) of any compensation received by any member for teaching in public schools, or in any of the institutions, agencies or departments of the State, from salaries other than the appropriations from the State of North Carolina. On and after such date the rate so deducted shall be five per centum (5%) of actual compensation except that, with respect to each member who is eligible for coverage under the Social Security Act in accordance with the agreement entered into during 1955 in accordance with the provisions of Article 2 of Chapter 135 of Volume 3B of the General Statutes, as amended, and with respect to members covered under G.S. 135-27, with such coverage retroactive to January 1, 1955, such deduction shall, commencing with the first day of the period of service with respect to which such agreement is effective, be at the rate of three per centum (3%) of the part of his actual compensation not in excess of the amount taxable to him under the Federal Insurance Contributions Act as from time to time in effect plus five per centum (5%) of the part of his earnable compensation not so taxable; provided that in the case of any member so eligible and receiving compensation from two or more employers such deductions may be adjusted under such rules as the Board of Trustees may establish so as to be as nearly equivalent as practicable to the deductions which would have been made had the member received all of such compensation from one employer. Notwithstanding the foregoing, the Board of Trustees may in its discretion cause such portion as it may determine of deductions made between January 1, 1955, and December 1, 1955, to be transferred into the contribution fund established under G.S. 135-24; such amounts so transferred shall in that event be deemed to be taxes contributed by employees as required under Article 2, Chapter 135 of Volume 3B of the General Statutes as amended, and shall be in lieu of contributions otherwise payable in the same amount as so required.
		Notwithstanding the foregoing, effective July 1, 1963, with respect to the period of service commencing on July 1, 1963, and ending December 31, 1965, the rates of such deduction shall be four per centum (4%) of the portion of compensation not in excess of forty-eight hundred dollars ($4,800) and six per centum (6%) of the portion of compensation in excess of forty-eight hundred dollars ($4,800); and with respect to the period of service commencing January 1, 1966, and ending June 30, 1967, the rate of such deductions shall be four per centum (4%) of the portion of compensation not in excess of fifty-six hundred dollars ($5,600) and six per centum (6%) of the portion of compensation in excess of fifty-six hundred dollars ($5,600); and with respect to the period of service commencing July 1, 1967, and ending June 30, 1975, the rate of such deductions shall be five per centum (5%) of the portion of compensation not in excess of fifty-six hundred dollars ($5,600) and six per centum (6%) of the portion of compensation in excess of fifty-six hundred dollars ($5,600). Such rates shall apply uniformly to all members of the Retirement System, without regard to their coverage under the Social Security Act.
		Notwithstanding the foregoing, effective July 1, 1975, with respect to the period of service commencing on July 1, 1975, the rate of such deductions shall be six per centum (6%) of the compensation received by any member. Such rates shall apply uniformly to all members of the Retirement System, without regard to their coverage under the Social Security Act.
		Notwithstanding the foregoing provisions of this subdivision, members, with the exception of teachers as covered by the provisions of Chapter 115C of the General Statutes in the employ of city or county boards of education, are not required to make the contributions previously required by this section.  Effective on and after July 1, 1992, members are not required to make the contributions previously required by this subdivision."
Sec. 4. (a)	Sections 23(b), 29(b), 30(c), 34(b), 35(b), 37, 38(a2), 38(c1), and 38(d1) of Chapter 752 of the 1989, Session Laws are repealed.
(b)	Section 24 of Chapter 752, Session Laws of 1989, reads as rewritten:
"Sec. 24.  The annual salaries for members of the Council of State, payable monthly, for the following fiscal biennium are:
Council of State	1989-91	
Lieutenant Governor	$ 70,992	
Attorney General	 70,992	
Secretary of State	 70,992	
State Treasurer	 70,992	
State Auditor	 70,992	
Superintendent of Public Instruction	 70,992	
Agriculture Commissioner	 70,992	
Insurance Commissioner	 70,992	
Labor Commissioner	 70,992	."
(c) Section 25 of Chapter 752, Session Laws of 1989 reads as rewritten:
"Sec. 25.  In accordance with G.S. 143B-9, the maximum annual salaries, payable monthly, for the nonelected heads of the principal State departments for the following fiscal biennium are:
Nonelected Department Heads	1989-91	
Secretary of Administration	$ 70,992	
Secretary of Economic
and Community Development	 70,992	
Secretary of Correction	 70,992	
Secretary of Crime Control and
Public Safety	 70,992	
Secretary of Cultural Resources	 70,992	
Secretary of Human Resources	 70,992	
Secretary of 
Environment, Health, and
Natural Resources	 70,992	
Secretary of Revenue	 70,992	
Secretary of Transportation	 70,992	."
(d)	 G.S. 120-37(c) reads as rewritten:
"(c)	The principal clerks shall be full-time officers. Each principal clerk shall be entitled to other benefits available to permanent legislative employees and shall be paid an annual salary of forty-three thousand five hundred forty-eight dollars ($43,548) on and after July 1, 1989, payable monthly. The Legislative Services Commission shall review the salary of the principal clerks prior to submission of the proposed operating budget of the General Assembly to the Governor and Advisory Budget Commission and shall make appropriate recommendations for changes in those salaries. Any changes enacted by the General Assembly shall be by amendment to this paragraph."
(e)  G.S. 120-37(b) reads as rewritten:
"(b)	The sergeant-at-arms and the reading clerk in each house shall be paid a salary of one hundred ninety-seven dollars ($197.00) per week on and after July 1, 1989, plus subsistence at the same daily rate provided for members of the General Assembly, plus mileage at the rate provided for members of the General Assembly for one round trip only from their homes to Raleigh and return. The sergeants-at-arms shall serve during sessions of the General Assembly and at such time prior to the convening of, and subsequent to adjournment or recess of, sessions as may be authorized by the Legislative Services Commission. The reading clerks shall serve during sessions only."
(f)  Section 30(a) of Chapter 752, Session Laws of 1989, reads as rewritten:
"(a)	The annual salaries, payable monthly, for specified judicial branch officials for the following fiscal biennium are:
Judicial Branch Officials	1989-91	
Chief Justice, Supreme Court	$ 86,232	
Associate Justice, Supreme Court	 84,456	
Chief Judge, Court of Appeals	 81,756	
Judge, Court of Appeals	 79,968	
Judge, Senior Regular Resident
Superior Court	 73,332	
Judge, Superior Court	 70,992	
Chief Judge, District Court	 62,628	
Judge, District Court	 60,240	
District Attorney	 66,060	
Assistant District Attorney - an
average of  	 42,732	
Administrative Officer of the Courts	 73,332	
Assistant Administrative Officer
of the Courts	 59,772	
Public Defender	 66,060	
Assistant Public Defender - an
average of   	 42,732	.
If an acting senior regular resident superior court judge is appointed under the provisions of G.S. 7A-41, he shall receive the salary for Judge, Senior Regular Resident, Superior Court, until his temporary appointment is vacated, and the judge he replaces shall receive the salary indicated for Judge, Superior Court.
The district attorney or public defender of a judicial district, with the approval of the Administrative Officer of the Courts, shall set the salaries of assistant district attorneys or assistant public defenders, respectively, in that district such that the average salaries of assistant district attorneys or assistant public defenders in that district do not exceed forty-two thousand seven hundred thirty-two dollars ($42,732) effective July 1, 1989, and the minimum salary of any assistant district attorney or assistant public defender is at least twenty-one thousand five hundred seventy-six dollars ($21,576) effective July 1, 1989effective July 1, 1990."
(g)  G.S. 7A-101(a) reads as rewritten:
"(a)The clerk of superior court is a full-time employee of the State and shall receive an annual salary, payable in equal monthly installments, based on the population of the county, as determined by the population projections of the Office of State Budget and Management for the year preceding the first year of each biennial budget, according to the following schedule:
Population        	Annual Salary
		Less than 30,000	$ 38,472	
30,000 to 99,999	44,256	
100,000 to 199,999	50,016	
200,000 and above	57,072	

When a county changes from one population group to another, the salary of the clerk shall be changed to the salary appropriate for the new population group on July 1 of the first year of each biennial budget, except that the salary of an incumbent clerk shall not be decreased by any change in population group during his continuance in office."
(h)  G.S. 7A-102(c) reads as rewritten:
"(c)	Notwithstanding the provisions of subsection (a), the Administrative Officer of the Courts shall establish an incremental salary plan for assistant clerks and for deputy clerks based on a series of salary steps corresponding to the steps contained in the Salary Plan for State Employees adopted by the Office of State Personnel, subject to a minimum and a maximum annual salary as set forth below. On and after July 1, 1985, each assistant clerk and each deputy clerk shall be eligible for an annual step increase in his salary plan based on satisfactory job performance as determined by each clerk. Notwithstanding the foregoing, if an assistant or deputy clerk's years of service in the office of superior court clerk would warrant an annual salary greater than the salary first established under this section, that assistant or deputy clerk shall be eligible on and after July 1, 1984, for an annual step increase in his salary plan. Furthermore, on and after July 1, 1985, that assistant or deputy clerk shall be eligible for an increase of two steps in his salary plan, and shall remain eligible for a two-step increase each year as recommended by each clerk until that assistant or deputy clerk's annual salary corresponds to his number of years of service. A full-time assistant clerk or a full-time deputy clerk shall be paid an annual salary subject to the following minimum and maximum rates:
Assistant Clerks	Annual Salary
		Minimum	$ 19,536	
Maximum	 32,772	

Deputy Clerks	Annual Salary
		Minimum	$  15,312	
Maximum	  25,128	"
(i)  G.S. 7A-171.1(a)(1) reads as rewritten:
"(1)	A full-time magistrate, so designated by the Administrative Officer of the Courts, shall be paid the annual salary indicated in the table below according to the number of years he has served as a magistrate. The salary steps shall take effect on the anniversary of the date the magistrate was originally appointed:
Table of Salaries of Full-Time Magistrates
Number of Prior Years of Service	Annual Salary
		Less than 1	$  15,600	
1 or more but less than 3	  16,416	
3 or more but less than 5	  18,084	
5 or more but less than 7	  19,920	
7 or more but less than 9	  21,972	
9 or more but less than 11	  24,204	
11 or more	  26,628	

		A ‘Full-time magistrate' is a magistrate who is assigned to work an average of not less than 40 hours a week during his term of office.
		Notwithstanding any other provision of this subdivision, a full-time magistrate, who was serving as a magistrate on December 31, 1978, and who was receiving an annual salary in excess of that which would ordinarily be allowed under the provisions of this subdivision, shall not have the salary, which he was receiving reduced during any subsequent term as a full-time magistrate. That magistrate's salary shall be fixed at the salary level from the table above which is nearest and higher than the latest annual salary he was receiving on December 31, 1978, and, thereafter, shall advance in accordance with the schedule in the table above."
(j) Section 39(a) of Chapter 752, Session Laws of 1989, reads as rewritten:
"(a)	The annual salaries, payable monthly, for the following fiscal biennium for the following executive branch officials are:
Executive Branch Officials	Annual Salary
1989-9091	
Chairman, Alcoholic Beverage Control
Commission	$ 68,304	
State Controller	110,772	 
Commissioner of Motor Vehicles	 68,304	
Commissioner of Banks	 68,304	
Chairman, Employment Security Commission	 68,304	
State Personnel Director	 70,992	
Chairman, Parole Commission	 62,328	
Members of the Parole Commission	 57,504	
Chairman, Industrial Commission	 61,320	
Members of the Industrial Commission	 59,808	
Executive Director, Agency for Public
Telecommunications	57,504	
General Manager, Ports Railway
Commission	 51,876	
Director, Museum of Art	 70,008	
Director, State Ports Authority	 79,392	
Executive Director, Wildlife Resources
Commission	 58,884	
Executive Director, North Carolina
Housing Finance Agency	 84,648	
Executive Director, North Carolina
Technological Development Authority	 45,156	
Executive Director, North Carolina
Agricultural Finance Authority	 66,468	
Director, Office of Administrative 
Hearings	 60,240	6."
(k) Section 42(c) of Chapter 752 of the 1989 Session Laws, as amended by Section 3.7 of Chapter 792 of the 1989 Session Laws, reads as rewritten:
"(c)	The State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 1990-91 fiscal year are (i) eleven and seventy-four hundredths percent (11.74%) - Public School Teachers; (ii) seventeen and fourteen hundredths percent (17.14%) - Other Teachers and State Employees; (iii) twenty-two and fourteen hundredths percent (22.14%) - State Law Enforcement Officers; (iv) thirteen and seventy-seven hundredths percent (13.77%) - University Employees' Optional Retirement Program; (v) thirty-six and seventy-six hundredths percent (36.76%) - Consolidated Judicial Retirement System; and (vi) forty-seven and twenty-five hundredths percent (47.25%) - Legislative Retirement System.  Each of the foregoing contribution rates includes one and sixty-five hundredths percent (1.65%) for hospital and medical benefits.  The rate for State Law Enforcement Officers includes five percent (5%) for the Supplemental Retirement Income Plan.  The rates for Public School Teachers, Other Teachers and State Employees, State Law Enforcement Officers, and for the University Employees' Optional Retirement Program includes fifty-two hundredths percent (0.52%) for the Disability Income Plan.  As used in this subsection, the term ‘Public School Teachers' means those employees employed by city or county boards of education in accordance with Article 20 of Chapter 115C of the General Statutes."
Sec. 5.  This act shall become effective July 1, 1990, unless otherwise specified, and applies to salaries earned on and after that date.