A BILL TO BE ENTITLED
AN ACT to confirm that the north carolina state health plan for teachers and state employees is a governmental plan and therefore the state health plan should determine whether the coverage of an employee or employer would increase the risk of an adverse tax ruling for the plan; to update the language of the consolidated judicial retirement system and the north carolina national guard pension fund to be consistent with the 2017 changes made to the teachers' and state employees' retirement system and the local governmental employees' retirement system; to clarify that an employing agency may receive a credit for pension‑spiking penalties made for an employee that forfeits his or her retirement benefit subject to a felony forfeiture requirement; to define an inactive employer in the teachers' and state employees' retirement system and the local governmental employees' retirement system; to clarify that building inspection fee revenues are to be reported by source and expenditures are to be reported by object; to remove or update archaic statutes and to correct typographical errors in the laws governing the teachers' and state employees' retirement system; to clarify that administrative costs of the north carolina public school teachers' and professional educators' investment plan may be charged to members or deducted from member accounts; to clarify public record laws pertaining to the teachers' and state employees' retirement system and the local governmental employees' retirement system; and to confirm the irrevocability of local government participation in the state health plan.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  G.S. 135‑48.8(a) reads as rewritten:
"(a)	The State of North Carolina deems it to be in the public interest for individual North Carolina firefighters, rescue squad workers, and members of the National Guard, and certain of their dependents, who are not eligible for any other type of comprehensive health insurance or other comprehensive health benefits, and who have been without any form of health insurance or other comprehensive health benefit coverage for at least six consecutive months, to be given the opportunity to participate in the benefits provided by the State Health Plan for Teachers and State Employees. Coverage under the Plan shall be voluntary for eligible firefighters, rescue squad workers, and members of the National Guard who elect participation in the Plan for themselves and their eligible dependents."
SECTION 1.(b)  G.S. 135‑48.40(d)(13) reads as rewritten:
"(13)	The following persons, their eligible spouses, and eligible dependent children, provided that the person seeking coverage as a subscriber (i) is not eligible for another comprehensive health benefit plan and (ii) has been without coverage under a comprehensive health benefit plan for at least six consecutive months:
a.	Firefighters.
b.	Rescue squad workers.
c.	Persons receiving a pension from the North Carolina Firefighters' and Rescue Squad Workers' Pension Fund.
d.	Members of the North Carolina National Guard.
e.	Retirees of the North Carolina National Guard with 20 years of service.
For the purposes of this subdivision, Medicare benefits, Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) benefits, and other Uniformed Services benefits shall be considered comprehensive health benefit plans. The Plan may require certification of persons seeking coverage under this subdivision. Nothing in this section shall be construed to either (i) permit a person to enroll or (ii) require the Plan to enroll a person in the Plan when that enrollment may jeopardize the Plan's preferential tax exempt status as a governmental plan under the Internal Revenue Code."
SECTION 2.  G.S. 135‑66 reads as rewritten:
"§ 135‑66.  Administration; management of funds; method of financing.
(a)	The State Treasurer shall be the custodian of the assets of this Retirement System and shall invest them in accordance with the provisions of G.S. 147‑69.2 and G.S. 147‑69.3.
(b)	The assets of this Retirement System shall include employers' contributions held with the Pension Accumulation Fund established under G.S. 135‑8 and employees' contributions held in the Annuity Savings Fund similarly established under G.S. 135‑8.
(c)	The Board of Trustees shall have performed an annual actuarial valuation of the System and shall have the financial responsibility for maintaining the System on a generally accepted actuarial basis.
(d)	An actuarially determined employer contribution shall be calculated annually by the actuary using assumptions and a cost method approved by the Actuarial Standards Board of the American Academy of Actuaries and selected by the Board of Trustees.
(e)	Notwithstanding Chapter 150B of the General Statutes, the Board of Trustees may adopt a contribution policy that would recommend a contribution not less than the actuarially determined employer contribution.
(f)	The recommended employer contribution rate by the Board of Trustees each year shall not be less than the actuarially determined employer contribution."
SECTION 3.(a)  G.S. 127A‑40(f) reads as rewritten:
"(f)	The Board of Trustees of the Teachers' and State Employees' Retirement System shall administer the provisions of this section. The Secretary of Public Safety shall determine the eligibility of North Carolina National Guard members for the benefits provided in this section and shall certify those eligible to the Board of Trustees. In addition, the Department of Public Safety shall, on and after July 1, 1983, provide the Board of Trustees with an annual census population, by age and the number of years of creditable service, for all former members of the North Carolina National Guard in receipt of a pension as well as for all active members of the North Carolina National Guard who are not in receipt of a pension and who have seven and more years of creditable service. The Department of Public Safety shall also provide the Board of Trustees an annual census population of all former members of the North Carolina National Guard who are not in receipt of a pension and who have 15 and more years of creditable service. The Department of State Treasurer shall make pension payments to those persons certified from the North Carolina National Guard Pension Fund."
SECTION 3.(b)  Article 3 of Chapter 127 of the General Statutes is amended by adding a new section to read:
"§ 127A‑41.  North Carolina National Guard Pension Fund.
(a)	As used in this section, the term "Board of Trustees" means the Board of Trustees of the Teachers' and State Employees' Retirement System.
(b)	The North Carolina National Guard Pension Fund shall include general fund appropriations made to the Department of State Treasurer and held with the Pension Accumulation Fund of the Teachers' and State Employees' Retirement System.
(c)	The Board of Trustees shall have performed an annual actuarial valuation of the Fund and shall have the financial responsibility for maintaining the Fund on a generally accepted actuarial basis.
(d)	An actuarially determined employer contribution shall be calculated annually by the actuary using assumptions and a cost method approved by the Actuarial Standards Board of the American Academy of Actuaries and selected by the Board of Trustees.
(e)	Notwithstanding Chapter 150B of the General Statutes, the Board of Trustees may adopt a contribution policy that would recommend a contribution not less than the actuarially determined employer contribution.
(f)	The recommended employer contribution rate by the Board of Trustees each year shall not be less than the actuarially determined employer contribution.
(g)	The Department of Public Safety shall provide the Department of State Treasurer with any assistance required by the State Treasurer in carrying out the financial responsibilities of the State Treasurer or the Board of Trustees."
SECTION 4.(a)  G.S. 135‑8 is amended by adding a new subsection to read:
"(f1)	Felony Forfeiture Impact on Contribution‑Based Benefit Cap. – If an employer made contributions on account of a retiree subject to the contribution‑based benefit cap under G.S. 135‑8(f)(2)f. and that retiree later forfeits retirement benefits under G.S. 128‑38.4, 128‑38.3A, 135‑18.30, 135‑18.10A, 135‑75.1, or 135‑75.1A, then the Retirement Systems Division may provide a credit to the employer. This credit shall be calculated in an amount reflecting the impact of the forfeiture on the amount due under G.S. 135‑4(jj)."
SECTION 4.(b)  G.S. 128‑30 is amended by adding a new subsection to read:
"(g1)	Felony Forfeiture Impact on Contribution‑Based Benefit Cap. – If an employer made contributions on account of a retiree subject to the contribution‑based benefit cap under G.S. 135‑8(f)(2)f. and that retiree later forfeits retirement benefits under G.S. 128‑38.4, 128‑38.3A, 135‑18.30, 135‑18.10A, 135‑75.1, or 135‑75.1A, then the Retirement Systems Division may provide a credit to the employer. This credit shall be calculated in an amount reflecting the impact of the forfeiture on the amount due under G.S. 128‑26(y)."
SECTION 5.(a)  Article 1 of Chapter 135 of the General Statutes is amended by adding a new section to read:
"§ 135‑5.5.  Inactive employers.
(a)	An employer shall be considered an inactive employer if all of the following criteria are met:
(1)	The employer has no employees that qualify for membership in any System under this Chapter.
(2)	The employer has made no employer contributions for at least one month.
(3)	The employer makes a request in writing to the Retirement Systems Division of the Department of State Treasurer to be made inactive.
(4)	The Retirement Systems Division of the State Treasurer has reviewed the employer request to become inactive and has granted that request. The Retirement Systems Division shall provide written notification to the requesting employer of any decisions made under this section.
(b)	Not later than April 30 of each calendar year, the Retirement Systems Division of the Department of State Treasurer shall make a report to the Board on all employers who were determined to be inactive employers in that preceding calendar year."
SECTION 5.(b)  Article 3 of Chapter 128 of the General Statutes is amended by adding a new section to read:
"§ 128‑23.1.  Inactive employers.
(a)	An employer shall be considered an inactive employer if all of the following criteria are met:
(1)	The employer has no employees that qualify for membership in the Retirement System.
(2)	The employer has made no employer contributions for at least one month.
(3)	The employer makes a request in writing to the Retirement Systems Division of the Department of State Treasurer to be made inactive.
(4)	The Retirement Systems Division of the State Treasurer has reviewed the employer request to become inactive and has granted that request. The Retirement Systems Division shall provide written notification to the requesting employer of any decisions made under this section.
(b)	Not later than April 30 of each calendar year, the Retirement Systems Division of the Department of State Treasurer shall make a report to the Board on all employers who were determined to be inactive employers in that preceding calendar year."
SECTION 6.(a)  G.S. 159‑33.1 reads as rewritten:
"§ 159‑33.1.  Semiannual reports of financial information.
The finance officer of each unit and public authority shall submit to the secretary on January 1 and July 1 of each year, or other dates as the secretary may prescribe, a statement of financial information concerning the unit or public authority. The secretary may prescribe the information to be included in the statement and may prescribe the form of the statement; provided, however, the secretary shall prescribe that the finance officer of each city and county shall include in the statement the total revenues received from building inspections, by source, and the total expenditures paid from all revenues received, by object."
SECTION 6.(b)  This section is effective June 30, 2019.
SECTION 7.  G.S. 135‑18.1(a) reads as rewritten:
"(a)	Prior to retirement, any person who was a member of the North Carolina Governmental Employees' Retirement System and who becomes a member of this Retirement System shall be entitled to transfer to this Retirement System his or her credits for membership and prior service in the local system: Provided, the local system agrees to transfer to this Retirement System the amount of reserve held in the local system as a result of previous contributions of the employer on behalf of the transferring employee. For the purposes of this section, the term "local system" means the North Carolina Governmental Employees' Retirement System."
SECTION 8.(a)  G.S 135‑5.2 is repealed.
SECTION 8.(b)  G.S. 135‑13 is repealed.
SECTION 8.(c)  G.S. 135‑14 is repealed.
SECTION 8.(d)  G.S. 135‑14.1 is repealed.
SECTION 8.(e)  G.S. 135‑16 is repealed.
SECTION 8.(f)  G.S. 135‑18.3 is repealed.
SECTION 8.(g)  G.S. 135‑18.5 is repealed.
SECTION 9.  G.S. 135‑16.1 reads as rewritten:
"§ 135‑16.1.  Blind or visually impaired vendors.

	Persons licensed by the State and operating vending facilities under contract with the Department of Health and Human Services, Division of Services for the Blind and its successors, who are licensed on and after October 1, 1983, shall not be members of the Retirement System.

	"
SECTION 10.  G.S. 128‑23(b) reads as rewritten:
"(b)	Pursuant to the favorable vote of a majority of the employees of the county, the board of commissioners of any county may, by resolution legally adopted and approved by the Board of Trustees, elect to have its employees become eligible to participate in the Retirement System. Each county is authorized to make appropriations for these purposes and to fund them by levy of property taxes as authorized by Article 7 of Chapter 153A of the General Statutes and by the allocation of other revenues whose use is not otherwise restricted by law."
SECTION 11.  G.S. 115D‑25.4 is amended by adding a new subsection to read:
"(c)	The administrative costs of the North Carolina Public School Teachers' and Professional Educators' Investment Plan may be charged to members or deducted from members' accounts in accordance with nondiscriminatory procedures established by the Department of State Treasurer and Board of Trustees."
SECTION 12.(a)  G.S. 135‑6.1 is amended by adding a new subsection to read:
"(e1)	The Retirement Systems Division of the Department of State Treasurer may disclose to employers and former employers that made a contribution for an employee or former employee to the Retirement System any information that is not public under this Section regarding that employee necessary to conduct the business of the Retirement System. Employers and former employers in receipt of this information shall treat the information as confidential and this information shall not be a public record."
SECTION 12.(b)  G.S. 135‑8(f)(2)f. reads as rewritten:
"f.	Each employer shall transmit to the Retirement System on account of each member who retires on or after January 1, 2015, having earned his or her last month of membership service as an employee of that employer the lump sum payment, as calculated under G.S. 135 4(jj) for inclusion in the Pension Accumulation Fund, that would have been necessary in order for the retirement system to restore the member's retirement allowance to the pre cap amount. Employers are not required to make contributions on account of any retiree who became a member on or after January 1, 2015, and who earned at least five years of membership service in the Retirement System after January 1, 2015. The retirement allowance of a member with a final average compensation of more than one hundred thousand dollars ($100,000), as hereinafter indexed, shall not be subject to the contribution based benefit cap if the compensation was earned from multiple simultaneous employers, unless an employer's share of the average final compensation exceeds one hundred thousand dollars ($100,000). An employer is not required to make contributions on account of any retiree whose final average compensation exceeds one hundred thousand dollars ($100,000), as hereinafter indexed, based upon compensation earned from multiple simultaneous employers, unless that employer's share of the average final compensation exceeds one hundred thousand dollars ($100,000), as provided and indexed under G.S. 135 5(a3).
Under such rules as the Board of Trustees shall adopt, the Retirement System shall report monthly to each employer a list of those members for whom the employer made a contribution to the Retirement System in the preceding month that are most likely to require an additional employer contribution should they elect to retire in the following 12 months, if applicable. Reports received under this section shall not be public records. Employers or former employers in receipt of a report under this section shall treat the report, and the information contained within that report, as confidential and as though it were still held by the Retirement System under G.S. 135‑6.1."
SECTION 12.(c)  G.S. 135‑8(j) reads as rewritten:
"(j)	Pension Spiking Report. – Upon receipt of a report from the Retirement System generated pursuant to G.S. 135‑8(f)(2)f., containing a list of employees for whom the employer made a contribution to the North Carolina Teachers' and State Employees' Retirement System that is likely to require an additional employer contribution should the employee elect to retire in the following 12 months, the employer's chief financial officer shall transmit a copy of the report to the chief executive of the employer, as well as to the governing body of the employer, including any board which exercises financial oversight of the employer, if the employer has a governing body. Reports received under this section shall not be public records. Employers or former employers in receipt of a report under this section shall treat the report, and the information contained within that report, as confidential and as though it were still held by the Retirement System under G.S. 135‑6.1."
SECTION 12.(d)  G.S. 128‑33.1 is amended by adding a new subsection to read:
"(e1)	The Retirement Systems Division of the Department of State Treasurer may disclose to employers or former employers that made a contribution for an employee or former employee to the Retirement System any information not public under this Section regarding that employee necessary to conduct the business of the Retirement System. Employers and former employers in receipt of this information shall treat the information as confidential and this information shall not be a public record."
SECTION 12.(e)  G.S. 128‑30(g)(2)b. reads as rewritten:
"b.	Each employer shall transmit to the Retirement System on account of each member who retires on or after January 1, 2015, having earned his or her last month of membership service as an employee of that employer the lump sum payment, as calculated under G.S. 128‑26(y) for inclusion in the Pension Accumulation Fund, that would have been necessary in order for the retirement system to restore the member's retirement allowance to the pre‑cap amount. Employers are not required to make contributions on account of any retiree who became a member on or after January 1, 2015, and who earned at least five years of membership service in the Retirement System after January 1, 2015. The retirement allowance of a member with a final average compensation of more than one hundred thousand dollars ($100,000), as hereinafter indexed, shall not be subject to the contribution‑based benefit cap if the compensation was earned from multiple simultaneous employers, unless an employer's share of the average final compensation exceeds one hundred thousand dollars ($100,000). An employer is not required to make contributions on account of any retiree whose final average compensation exceeds one hundred thousand dollars ($100,000), as hereinafter indexed, based upon compensation earned from multiple simultaneous employers, unless that employer's share of the average final compensation exceeds one hundred thousand dollars ($100,000), as provided and indexed under G.S. 128‑27(a3).
Under such rules as the Board of Trustees shall adopt, the Retirement System shall report monthly to each employer a list of those members for whom the employer made a contribution to the Retirement System in the preceding month that are most likely to require an additional employer contribution should they elect to retire in the following 12 months, if applicable. Reports received under this section shall not be public records. Employers or former employers in receipt of a report under this section shall treat the report, and the information contained within that report, as confidential and as though it were still held by the Retirement System under G.S. 128‑33.1."
SECTION 12.(f)  G.S. 128‑30(j) reads as rewritten:
"(j)	Pension Spiking Report. – Upon receipt of a report from the Retirement System generated pursuant to G.S. 128‑30(g)(2)b., containing a list of employees for whom the employer made a contribution to the North Carolina Local Governmental Employees' Retirement System that is likely to require an additional employer contribution should the employee elect to retire in the following 12 months, the employer's chief financial officer shall transmit a copy of the report to the governing body of the employer, if the employer has a governing body. Reports received under this section shall not be public records. Employers and former employers in receipt of a report under this section shall treat the report, and the information contained within that report, as confidential and as though it were still held by the Retirement System under G.S. 128‑33.1."
SECTION 13.  G.S. 135‑48.47 reads as rewritten:
"§ 135‑48.47.  Participation in State Health Plan by local government employees and dependents.
…
(d)	Local governments participating in the Plan as of April 1, 2016, may elect to withdraw from participating in the Plan effective January 1, 2017. Notice of withdrawal must be given by the local government to the Plan no later than September 15, 2016.
(e)	Except as permitted under subsection (d) of this section, a local government unit's election to participate in the Plan is irrevocable."
SECTION 14.  G.S. 147‑69.7(b)(1)f. reads as rewritten:
"f.	With respect to the Retirement Systems defined in G.S. 147‑69.2(b)(8) and any other pension plans, the adequacy of funding for the Retirement Systems based on reasonable actuarial factors."
SECTION 15.  Except as otherwise provided, this act is effective when it becomes law.