GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

S	1 

SENATE BILL 1085

Short Title:  Local Retirement Incentives.	(Public)
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Sponsors: Senator Block.
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Referred to:  Pensions and Retirement.
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June 2, 1992

A BILL TO BE ENTITLED
AN ACT TO REQUIRE ANY LOCAL GOVERNMENT PARTICIPATING IN THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM AND ANY EMPLOYER IN THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM TO FUND THE PENSION COSTS ASSOCIATED WITH A RETIREMENT INCENTIVE PROGRAM.
The General Assembly of North Carolina enacts:
Section 1.  Article 3 of Chapter 128 of the General Statutes is amended by adding a new section to read:
"§ 128-30A.  Funding retirement incentives.
Any employer participating in the Retirement System that engages in a program designed to cause members to commence retirement earlier than expected, based on the tables adopted by the Board of Trustees under the provisions of G.S. 128-28(o), shall pay to the pension accumulation fund an amount such that the employer normal contribution rate shall not be increased by the effect of such a program.  The amount shall be determined by the Board of Trustees, upon the advice of its consulting actuary, and shall be paid by an employer either (i) in a lump sum; or (ii) as an accrued liability contribution over a period not to exceed five years."
Sec. 2.  Article 1 of Chapter 135 of the General Statutes is amended by adding a new section to read:
"§ 135-8A.  Funding retirement incentives.
Any employer that engages in a program designed to cause members to commence retirement earlier than expected, based on the tables adopted by the Board of Trustees under the provisions of G.S. 135-6(n), shall pay to the pension accumulation fund an amount such that the employer normal contribution rate shall not be increased by the effect of such a program.  The amount shall be determined by the Board of Trustees, upon the advice of its consulting actuary, and shall be paid by an employer in one lump sum."
Sec. 3.  This act is effective upon ratification.