GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2019

 

SESSION LAW 2020-41

HOUSE BILL 1218

 

 

AN ACT to make adjustments to the state employer salary‑related contributions and appropriating funds for the state's debt service obligations.

 

The General Assembly of North Carolina enacts:

 

SECTION 1.(a)  Section 3.15(c) of S.L. 2019‑209 reads as rewritten:

"SECTION 3.15.(c)  Effective July 1, 2020, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 2020‑2021 fiscal year for teachers and State employees, State law enforcement officers (LEOs), the University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth below:

Teachers         State                ORPs              CJRS              LRS

and State        LEOs

Employees

Retirement                   14.36%14.78% 14.36%14.78% 6.84%            36.00%36.44% 29.00%27.30%

Disability                       0.10%0.09%   0.10%0.09%   0.10%0.09%   0.00%              0.00%

Death                             0.16%              0.16%              0.00%              0.00%              0.00%

Retiree Health                6.82%6.68%   6.82%6.68%   6.82%6.68%   6.82%6.68%   6.82%6.68%

NC 401(k)                      0.00%              5.00%              0.00%              0.00%              0.00%

 

Total Contribution

Rate                             21.44%21.71%26.44%26.71%13.76%13.61%42.82%43.12%35.82%33.98%

…."

SECTION 1.(b)  If House Bill 1136, 2020 Regular Session, becomes law, then subsection (a) of this section is repealed.

SECTION 1.(c)  If House Bill 1136, 2020 Regular Session, becomes law, then Section 3.15(c) of S.L. 2019‑209, as amended by Section 2(a) of House Bill 1136, 2020 Regular Session, reads as rewritten:

"SECTION 3.15.(c)  Effective July 1, 2020, the State's employer contribution rates budgeted for retirement and related benefits as a percentage of covered salaries for the 2020‑2021 fiscal year for teachers and State employees, State law enforcement officers (LEOs), the University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth below:

Teachers         State                ORPs              CJRS              LRS

and State        LEOs

Employees

Retirement                   14.36%14.78% 14.36%14.78% 6.84%            36.00%36.44% 29.00%27.30%

Disability                       0.10%0.09%   0.10%0.09%   0.10%0.09%   0.00%              0.00%

Death                             0.13%              0.13%              0.00%              0.00%              0.00%

Retiree Health                6.82%6.68%   6.82%6.68%   6.82%6.68%   6.82%6.68%   6.82%6.68%

NC 401(k)                      0.00%              5.00%              0.00%              0.00%              0.00%

 

Total Contribution

Rate                             21.41%21.68%26.41%26.68%13.76%13.61%42.82%43.12%35.82%33.98%

…."

SECTION 1.(d)  Section 3.15(e) of S.L. 2019‑209 reads as rewritten:

"SECTION 3.15.(e)  Effective July 1, 2020, the maximum annual employer contributions, payable monthly, by the State for each covered employee or retiree for the 2020‑2021 fiscal year to the State Health Plan for Teachers and State Employees are (i) for Medicare‑eligible employees and retirees, five thousand one hundred sixty‑five dollars ($5,165) sixty‑one dollars ($5,061) and (ii) for non–Medicare‑eligible employees and retirees, six thousand six hundred forty‑seven dollars ($6,647).five hundred twelve dollars ($6,512)."

SECTION 2.  No later than August 15, 2020, the Office of State Budget and Management shall adjust the appropriations for State retirement and State Health Plan contributions of all applicable agencies, departments, or institutions to reflect the changes implemented in Section 1 of this act, representing a decrease in General Fund net appropriations totaling five million forty‑eight thousand seven hundred ten dollars ($5,048,710) in recurring funds for the 2020‑2021 fiscal year.

SECTION 3.  From the funds made available pursuant to Section 1 and Section 2 of this act, there is appropriated from the General Fund the sum of five million forty‑eight thousand seven hundred ten dollars ($5,048,710) in recurring funds for the 2020‑2021 fiscal year for the purpose of meeting the State's General Fund debt service obligations. It is the intent of the General Assembly to restore employer contribution rates for Retiree Health and to the State Health Plan to the amounts in S.L. 2019‑209, as originally enacted on August 3, 2019, in the event the federal government provides additional relief funds or additional flexibility on existing relief funds that can be used to support the General Fund.

SECTION 4.(a)  Departmental receipts, as defined in G.S. 143C‑1‑1, are appropriated for the 2020‑2021 fiscal year up to the amounts needed to implement the provisions in this act for the 2020‑2021 fiscal year.

SECTION 4.(b)  The provisions of the State Budget Act, Chapter 143C of the General Statutes, are reenacted and shall remain in full force and effect and are incorporated in this act by reference.

SECTION 4.(c)  Except where expressly repealed or amended by this act, the provisions of any other legislation enacted during the 2019 Regular Session of the General Assembly expressly appropriating funds to an agency, a department, or an institution covered under this act shall remain in effect.

SECTION 5.  This act becomes effective July 1, 2020.

In the General Assembly read three times and ratified this the 17th day of June, 2020.

 

 

                                                                    s/  Philip E. Berger

                                                                         President Pro Tempore of the Senate

 

 

                                                                    s/  Tim Moore

                                                                         Speaker of the House of Representatives

 

 

                                                                    s/  Roy Cooper

                                                                         Governor

 

 

Approved 9:51 a.m. this 26th day of June, 2020