A BILL TO BE ENTITLED
AN ACT to establish the legislative study commission on A MANDATORY COST‑OF‑LIVING INCREASE FOR RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  There is established the Legislative Study Commission on a Mandatory Cost‑of‑Living Increase for Retirees of the Teachers' and State Employees' Retirement System. The Study Commission shall study the cost and feasibility of an automatic annual retirement allowance increase that equals the prior year ratio of the unadjusted 12‑month (December to December) Consumer Price Index for All Urban Consumers. The Study Commission shall consider the benefit to retirees, the cost and actuarial soundness of a mandatory increase, and shall determine whether a mandatory increase adheres to sound retirement and pension policy. In conducting the study, the Commission shall obtain an actuarial analysis and appropriate input from the Retirement Systems Division of the Department of State Treasurer. 
SECTION 1.(b)  The Study Commission shall consist of 10 members appointed as follows:
(1)	Five members appointed by the President Pro Tempore of the Senate. All five shall be members of the Senate at the time of appointment. One member shall have served within the last two years as a chair, cochair, or vice‑chair of the Senate Committee on Pensions and Retirement and Aging.
(2)	Five members appointed by the Speaker of the House of Representatives. All five shall be members of the House of Representatives at the time of appointment. One member shall have served within the last two years as a chair, cochair, or vice‑chair of the House of Representatives Committee on Pensions and Retirement.
SECTION 1.(c)  The President Pro Tempore of the Senate and the Speaker of the House of Representatives shall each designate a cochair of the Study Commission from their appointees.
SECTION 1.(d)  With the prior approval of the Legislative Services Commission, the Legislative Services Officer shall assign professional staff to assist in the work of the Legislative Study Commission on a Mandatory Cost‑of‑Living Increase for Retirees of the Teachers' and State Employees' Retirement System. With the prior approval of the Legislative Services Commission, the Study Commission may hold its meeting in the State Legislative Building or the Legislative Office Building.
SECTION 1.(e)  The Study Commission shall submit a final written report of its findings and recommendations on or before the convening of the 2006 Regular Session of the 2005 General Assembly. All reports shall be filed with the President Pro Tempore of the Senate, the Speaker of the House of Representatives, and the Legislative Librarian. Upon filing its final report, the Study Commission shall terminate.
SECTION 1.(f)  Members of the Study Commission shall be paid per diem, subsistence, and travel allowances at the rate established in G.S. 120‑3.1.
SECTION 1.(g)  All State departments and agencies shall cooperate with the Study Commission and, upon request, shall furnish to the Study Commission and its staff any information in their possession or available to them.
SECTION 2.  From funds appropriated to the General Assembly for the 2005‑2007 fiscal biennium, the Legislative Services Commission shall allocate funds for the expenses of the Legislative Study Commission on a Mandatory Cost‑of‑Living Increase for Retirees of the Teachers' and State Employees' Retirement System.
SECTION 3.  This act is effective when it becomes law.