A BILL TO BE ENTITLED
AN ACT providing a cost‑of‑living adjustment for retirees of the teachers' and state employees' retirement system, the consolidated judicial retirement system, and the legislative retirement system; and appropriating funds to enact theSE COST‑OF‑LIVING ADJUSTMENTS FOR STATE RETIREES.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 135‑5 is amended by adding a new subsection to read:
"(xxx)	From and after July 1, 2021, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2020, shall be increased by two percent (2%) of the allowance payable on June 1, 2021, in accordance with G.S. 135‑5(o). Furthermore, from and after July 1, 2021, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 2020, but before June 30, 2021, shall be increased by a prorated amount of two percent (2%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2020, and June 30, 2021."
SECTION 2.  G.S. 135‑65 is amended by adding a new subsection to read:
"(ii)	From and after July 1, 2021, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2020, shall be increased by two percent (2%) of the allowance payable on June 1, 2021. Furthermore, from and after July 1, 2021, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 2020, but before June 30, 2021, shall be increased by a prorated amount of two percent (2%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2020, and June 30, 2021."
SECTION 3.  G.S. 120‑4.22A is amended by adding a new subsection to read:
"(cc)	In accordance with subsection (a) of this section, from and after July 1, 2021, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before January 1, 2021, shall be increased by two percent (2%) of the allowance payable on June 1, 2021. Furthermore, from and after July 1, 2021, the retirement allowance to or on account of beneficiaries whose retirement commenced after January 1, 2021, but before June 30, 2021, shall be increased by a prorated amount of two percent (2%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between January 1, 2021, and June 30, 2021."
SECTION 4.  There is appropriated from the General Fund to the Reserve for Retiree Cost‑of‑Living Adjustments the sum of ninety‑six million dollars ($96,000,000) for the 2021‑2022 fiscal year and the sum of ninety‑six million dollars ($96,000,000) for the 2022‑2023 fiscal year to implement the cost‑of‑living adjustments authorized by Sections 1 through 3 of this act.
SECTION 5.  This act becomes effective July 1, 2021.