A BILL TO BE ENTITLED
AN ACT to make certain changes to preserve the integrity of AND CLARIFY THE POLICY OBJECTIVES OF THE GENERAL ASSEMBLY FOR the teachers' and state employees' retirement system, the local governmental employees' retirement SYSTEM, the consolidated judicial retirement system, and the legislative retirement system.
The General Assembly of North Carolina enacts:
SECTION 1.1.(a)  G.S. 135‑6(l) reads as rewritten:
"(l)	Duties of Actuary. – The Board of Trustees shall designate an actuary who shall be the technical adviser of the Board of Trustees on matters regarding the operation of the funds created by the provisions of this Chapter and shall perform such other duties as are required in connection therewith. The experience studies and all other actuarial calculations required by this Chapter, and all the assumptions used by the System's actuary, including mortality tables, interest rates, annuity factors, the contribution‑based benefit cap factor, and employer contribution rates, shall be set out in the actuary's periodic reports, annual valuations of System assets, or other materials provided to the Board of Trustees. Notwithstanding Article 2A of Chapter 150B of the General Statutes, these materials, once accepted by the Board, shall be considered part of the Plan documentation governing this Retirement System and shall be effective the first day of the month following adoption unless a different date is specified in the adopting resolution. The effective date shall not retroactively affect a contribution rate. The Board's minutes relative to all actuarial assumptions used by the System shall also be considered part of the Plan documentation governing this Retirement System, with the result of precluding any employer discretion in the determination of benefits payable hereunder, consistent with Section 401(a)(25) of the Internal Revenue Code."
SECTION 1.1.(b)  G.S. 128‑28(m) reads as rewritten:
"(m)	Duties of Actuary. – The Board of Trustees shall designate an actuary who shall be the technical adviser of the Board of Trustees on matters regarding the operation of the funds created by the provisions of this Chapter and shall perform such other duties as are required in connection therewith. The experience studies and all other actuarial calculations required by this Chapter, and all the assumptions used by the System's actuary, including mortality tables, interest rates, annuity factors, the contribution‑based benefit cap factor, and employer contribution rates, shall be set out in the actuary's periodic reports, annual valuations of System assets, or other materials provided to the Board of Trustees. Notwithstanding Article 2A of Chapter 150B of the General Statutes, these materials, once accepted by the Board, shall be considered part of the Plan documentation governing this Retirement System and shall be effective the first day of the month following adoption unless a different date is specified in the adopting resolution. The effective date shall not retroactively affect a contribution rate. The Board's minutes relative to all actuarial assumptions used by the System shall also be considered part of the Plan documentation governing this Retirement System, with the result of precluding any employer discretion in the determination of benefits payable hereunder, consistent with Section 401(a)(25) of the Internal Revenue Code."
SECTION 1.1.(c)  G.S. 150B‑1(d) reads as rewritten:
"(d)	Exemptions from Rule Making. – Article 2A of this Chapter does not apply to the following:
…
(30)	The Retirement System Boards of Trustees established under G.S. 128‑28 and G.S. 135‑6 when adopting actuarial tables, assumptions, and contribution‑based benefit cap factors after presentation of recommendations from the actuary. This exemption includes, but is not limited to, the following actuarial tables, assumptions, methods, and factors:
a.	Joint and survivor tables.
b.	Reserve transfer tables.
c.	Interest rate assumptions.
d.	Salary increase assumptions.
e.	Mortality assumptions.
f.	Separation and retirement assumptions.
g.	Asset smoothing methods.
h.	Actuarial cost methods.
i.	Contribution‑based benefit cap factors.
j.	Required contribution rates.
k.	Amortization policies."
SECTION 1.1.(d)  This section is effective when it becomes law, and subsection (c) applies to actuarial tables, assumptions, and contribution‑based benefit cap factors adopted or changed on or after that date.
SECTION 1.2.(a)  G.S. 135‑6(n) reads as rewritten:
"(n)	In 1943, and at least once in each five‑year period thereafter, the actuary shall make an actuarial investigation into the mortality, service and compensation experience of the members and beneficiaries of the Retirement System and shall make a valuation of the assets and liabilities of the funds of the System. Taking into account the result of the actuarial investigation and valuation, the Board of Trustees shall do all of the following:
(1)	Adopt any necessary mortality, service, or other tables, and any necessary contribution‑based benefit cap factors for the Retirement System.
(2)	Certify the rates of contributions payable by the State of North Carolina on account of new entrants at various ages.
In order to pay for the administration of this section, the Retirement Systems Division of the Department of State Treasurer may increase receipts from the retirement assets of the Retirement System or may pay the costs directly from the retirement assets."
SECTION 1.2.(b)  G.S. 135‑6(o) reads as rewritten:
"(o)	On the basis of the tables and interest assumption rate as adopted by the Board of Trustees, the actuary shall make an annual valuation of the assets and liabilities of the funds of the System created by this Chapter. The annual valuation shall include a supplementary section that provides an analysis of assets on a market basis using the 30‑year treasury rate as of December 31 of the year of the valuation as the discount rate. In order to pay for the administration of this section, the Retirement Systems Division of the Department of State Treasurer may increase receipts from the retirement assets of the Retirement System or may pay the costs directly from the retirement assets."
SECTION 1.2.(c)  G.S. 128‑28(o) reads as rewritten:
"(o)	In the year 1945, and at least once in each five‑year period thereafter, the actuary shall make an actuarial investigation into the mortality, service and compensation experience of the members and beneficiaries of the Retirement System and shall make a valuation of the assets and liabilities of the funds of the System. Taking into account the result of such investigation and valuation, the Board of Trustees shall do all of the following:
(1)	Adopt any necessary mortality, service, or other tables, and any necessary contribution‑based benefit cap factors for the Retirement System.
(2)	Certify the rates of contributions payable by the participating units on account of new entrants at various ages.
In order to pay for the administration of this section, the Retirement Systems Division of the Department of State Treasurer may increase receipts from the retirement assets of the Retirement System or may pay the costs directly from the retirement assets."
SECTION 1.2.(d)  G.S. 128‑28(p) reads as rewritten:
"(p)	On the basis of the tables and interest assumption rate as adopted by the Board of Trustees, the actuary shall make an annual valuation of the assets and liabilities of the funds of the System created by this Chapter. The annual valuation shall include a supplementary section that provides an analysis of assets on a market basis using the 30‑year treasury rate as of December 31 of the year of the valuation as the discount rate. In order to pay for the administration of this section, the Retirement Systems Division of the Department of State Treasurer may increase receipts from the retirement assets of the Retirement System or may pay the costs directly from the retirement assets."
SECTION 1.2.(e)  This section is effective when it becomes law and applies to actuarial investigations and calculations made on or after that date.
SECTION 2.1.(a)  G.S. 135‑18.10A(b) is repealed.
SECTION 2.1.(b)  G.S. 128‑38.4A(b) is repealed.
SECTION 2.1.(c)  G.S. 135‑75.1A(b) is repealed.
SECTION 2.1.(d)  G.S. 120‑4.33A(b) is repealed.
SECTION 3.1.(a)  G.S. 135‑4(gg) reads as rewritten:
"(gg)	If a member who is an elected government official and has not vested in this System on July 1, 2007, is convicted of an offense listed in G.S. 135‑18.10 for acts committed after July 1, 2007, then that member shall forfeit all benefits under this System, except for a return of member contributions plus interest. If a member who is an elected government official and has vested in this System on July 1, 2007, is convicted of an offense listed in G.S. 135‑18.10 for acts committed after July 1, 2007, then that member is not entitled to any creditable service that accrued after July 1, 2007, regardless of whether that creditable service was earned by virtue of membership in the System, accrued by conversion of sick leave at the point of the member's retirement, accrued by transfer of service from another retirement system, purchased by the member in accordance with this Chapter, or accrued by any other means. No member shall forfeit any benefit or creditable service earned from a position not as an elected government official. For purposes of this subsection, creditable service attributable to the conversion of sick leave accrues in this System on the date of retirement, service transferred to this System from another system accrues in this System on the effective date of the transfer, and purchased service accrues in this System on the date of the purchase."
SECTION 3.1.(b)  G.S. 135‑4(ii) reads as rewritten:
"(ii)	If a member who is in service and has not vested in this System on December 1, 2012, is convicted of an offense listed in G.S. 135‑18.10A for acts committed after December 1, 2012, then that member shall forfeit all benefits under this System, except for a return of member contributions plus interest. If a member who is in service and has vested in this System on December 1, 2012, is convicted of an offense listed in G.S. 135‑18.10A for acts committed after December 1, 2012, then that member is not entitled to any creditable service that accrued after December 1, 2012, regardless of whether that creditable service was earned by virtue of membership in the System, accrued by conversion of sick leave at the point of the member's retirement, accrued by transfer of service from another retirement system, purchased by the member in accordance with this Chapter, or accrued by any other means. For purposes of this subsection, creditable service attributable to the conversion of sick leave accrues in this System on the date of retirement, service transferred to this System from another system accrues in this System on the effective date of the transfer, and purchased service accrues in this System on the date of the purchase."
SECTION 3.1.(c)  G.S. 128‑26(w) reads as rewritten:
"(w)	If a member who is an elected government official and has not vested in this System on July 1, 2007, is convicted of an offense listed in G.S. 128‑38.4 for acts committed after July 1, 2007, then that member shall forfeit all benefits under this System, except for a return of member contributions plus interest. If a member who is an elected government official and has vested in this System on July 1, 2007, is convicted of an offense listed in G.S. 128‑38.4 for acts committed after July 1, 2007, then that member is not entitled to any creditable service that accrued after July 1, 2007, regardless of whether that creditable service was earned by virtue of membership in the System, accrued by conversion of sick leave at the point of the member's retirement, accrued by transfer of service from another retirement system, purchased by the member in accordance with this Article, or accrued by any other means. No member shall forfeit any benefit or creditable service earned from a position not as an elected government official. For purposes of this subsection, creditable service attributable to the conversion of sick leave accrues in this System on the date of retirement, service transferred to this System from another system accrues in this System on the effective date of the transfer, and purchased service accrues in this System on the date of the purchase."
SECTION 3.1.(d)  G.S. 128‑26(x) reads as rewritten:
"(x)	If a member who is in service and has not vested in this System on December 1, 2012, is convicted of an offense listed in G.S. 128‑38.4A for acts committed after December 1, 2012, then that member shall forfeit all benefits under this System, except for a return of member contributions plus interest. If a member who is in service and has vested in this System on December 1, 2012, is convicted of an offense listed in G.S. 128‑38.4A for acts committed after December 1, 2012, then that member is not entitled to any creditable service that accrued after December 1, 2012, regardless of whether that creditable service was earned by virtue of membership in the System, accrued by conversion of sick leave at the point of the member's retirement, accrued by transfer of service from another retirement system, purchased by the member in accordance with this Article, or accrued by any other means. For purposes of this subsection, creditable service attributable to the conversion of sick leave accrues in this System on the date of retirement, service transferred to this System from another system accrues in this System on the effective date of the transfer, and purchased service accrues in this System on the date of the purchase."
SECTION 3.1.(e)  G.S. 135‑56(g) reads as rewritten:
"(g)	If a member who has not vested in this System on July 1, 2007, is convicted of an offense listed in G.S. 135‑75.1 for acts committed after July 1, 2007, then that member shall forfeit all benefits under this System. If a member who has vested in this System on July 1, 2007, is convicted of an offense listed in G.S. 135‑75.1 for acts committed after July 1, 2007, then that member is not entitled to any creditable service that accrued after July 1, 2007, regardless of whether that creditable service was earned by virtue of membership in the System, accrued by conversion of sick leave at the point of the member's retirement, accrued by transfer of service from another retirement system, purchased by the member in accordance with this Chapter, or accrued by any other means. No member shall forfeit any benefit or creditable service earned from a position not as a justice, judge, district attorney, or clerk of superior court. For purposes of this subsection, creditable service attributable to the conversion of sick leave accrues in this System on the date of retirement, service transferred to this System from another system accrues in this System on the effective date of the transfer, and purchased service accrues in this System on the date of the purchase."
SECTION 3.1.(f)  G.S. 135‑56(j) reads as rewritten:
"(j)	If a member who is in service and has not vested in this System on December 1, 2012, is convicted of an offense listed in G.S. 135‑75.1A for acts committed after December 1, 2012, then that member shall forfeit all benefits under this System, except for a return of member contributions plus interest. If a member who is in service and has vested in this System on December 1, 2012, is convicted of an offense listed in G.S. 135‑75.1A for acts committed after December 1, 2012, then that member is not entitled to any creditable service that accrued after December 1, 2012, regardless of whether that creditable service was earned by virtue of membership in the System, accrued by conversion of sick leave at the point of the member's retirement, accrued by transfer of service from another retirement system, purchased by the member in accordance with this Chapter, or accrued by any other means. For purposes of this subsection, creditable service attributable to the conversion of sick leave accrues in this System on the date of retirement, service transferred to this System from another system accrues in this System on the effective date of the transfer, and purchased service accrues in this System on the date of the purchase."
SECTION 3.1.(g)  G.S. 120‑4.12(f) reads as rewritten:
"(f)	If a member who has not vested in this System on July 1, 2007, is convicted of an offense listed in G.S. 120‑4.33 for acts committed after July 1, 2007, then that member shall forfeit all benefits under this System. If a member who has vested in this System on July 1, 2007, is convicted of an offense listed in G.S. 120‑4.33 for acts committed after July 1, 2007, then that member is not entitled to any creditable service that accrued after July 1, 2007, regardless of whether that creditable service was earned by virtue of membership in the System, accrued by conversion of sick leave at the point of the member's retirement, accrued by transfer of service from another retirement system, purchased by the member in accordance with this Article, or accrued by any other means. No member shall forfeit any benefit or creditable service earned from a position not as a member of the General Assembly. For purposes of this subsection, creditable service attributable to the conversion of sick leave accrues in this System on the date of retirement, service transferred to this System from another system accrues in this System on the effective date of the transfer, and purchased service accrues in this System on the date of the purchase."
SECTION 3.1.(h)  G.S. 120‑4.12(g) reads as rewritten:
"(g)	If a member who is a present member of the General Assembly and who has not vested in this System on December 1, 2012, is convicted of an offense listed in G.S. 120‑4.33A for acts committed after December 1, 2012, then that member shall forfeit all benefits under this System, except for a return of member contributions plus interest. If a member who is a present member of the General Assembly and has vested in this System on December 1, 2012, is convicted of an offense listed in G.S. 120‑4.33A for acts committed after December 1, 2012, then that member is not entitled to any creditable service that accrued after December 1, 2012, regardless of whether that creditable service was earned by virtue of membership in the System, accrued by conversion of sick leave at the point of the member's retirement, accrued by transfer of service from another retirement system, purchased by the member in accordance with this Article, or accrued by any other means. For purposes of this subsection, creditable service attributable to the conversion of sick leave accrues in this System on the date of retirement, service transferred to this System from another system accrues in this System on the effective date of the transfer, and purchased service accrues in this System on the date of the purchase."
SECTION 3.2.(a)  G.S. 135‑18.10B reads as rewritten:
"§ 135‑18.10B.  Prohibition on purchase of forfeited service.
Any member whose retirement benefits have been forfeited under G.S. 135‑18.10 or G.S. 135‑18.10A is prohibited from subsequently purchasing or repurchasing either those forfeited benefits or any creditable membership service associated with those forfeited benefits and that service may not be used for the purposes of eligibility for benefits in any retirement system that provides reciprocal benefits."
SECTION 3.2.(b)  G.S. 128‑38.4B reads as rewritten:
"§ 128‑38.4B.  Prohibition on purchase of forfeited service.
Any member whose retirement benefits have been forfeited under G.S. 128‑38.4 or G.S. 128‑38.4A is prohibited from subsequently purchasing or repurchasing either those forfeited benefits or any creditable membership service associated with those forfeited benefits and that service may not be used for the purposes of eligibility for benefits in any retirement system that provides reciprocal benefits."
SECTION 3.2.(c)  G.S. 135‑75.1B reads as rewritten:
"§ 135‑75.1B.  Prohibition on purchase of forfeited service.
Any member whose retirement benefits have been forfeited under G.S. 135‑75.1 or G.S. 135‑75.1A is prohibited from subsequently purchasing or repurchasing either those forfeited benefits or any creditable membership service associated with those forfeited benefits and that service may not be used for the purposes of eligibility for benefits in any retirement system that provides reciprocal benefits."
SECTION 3.2.(d)  G.S. 120‑4.33B reads as rewritten:
"§ 120‑4.33B.  Prohibition on purchase of forfeited service.
Any member whose retirement benefits have been forfeited under G.S. 120‑4.3 or G.S. 120‑4.3A is prohibited from subsequently purchasing or repurchasing either those forfeited benefits or any creditable membership service associated with those forfeited benefits and that service may not be used for the purposes of eligibility for benefits in any retirement system that provides reciprocal benefits."
SECTION 4.  Except as otherwise provided, this act is effective when it becomes law.