North Carolina 2017-2018 Session Status: Enacted Bipartisan · 1 R · 1 D cosponsors

HB 985 — Retirement Technical Corrections Act of 2018.-AB

Last action — Signed by Gov. 6/25/2018

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced May 22, 2018. Enacted.

Prognosis

Likely to advance 98% · high confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 6 sponsors

    2 primary, 4 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (1 R · 1 D) — cross-party backing.

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

402 added · 402 removed

Plain-language change summary

The recent amendment to House Bill 985 made a slight change in the phrasing related to the adjustment of retirement allowances. It clarifies that the Board of Trustees is responsible for establishing a contribution-based benefit cap based on actuarial recommendations. This change is important because it aims to prevent "pension spiking," where individuals might manipulate their salaries or service time to receive significantly higher pensions. By implementing stricter guidelines, the bill seeks to ensure a fairer and more sustainable retirement system for public employees.

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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 H 2 HOUSE BILL 985 Committee Substitute Favorable 5/31/18 Short Title:
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2017 H 1 HOUSE BILL 985 Short Title:
Representatives Dulin, Ross, and McNeill (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
May 23, 2018 A BILL TO BE ENTITLED AN ACT TO MAKE TECHNICAL CORRECTIONS AND OTHER CONFORMING AND CLARIFYING CHANGES TO THE LAWS GOVERNING THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE LOCAL GOVERNMENT EMPLOYEES' RETIREMENT SYSTEM, AND THE STATE HEALTH PLAN FOR TEACHERS AND STATE EMPLOYEES AND TO OTHER RELATED STATUTES.
Pensions and Retirement May 23, 2018 A BILL TO BE ENTITLED AN ACT TO MAKE TECHNICAL CORRECTIONS AND OTHER CONFORMING AND CLARIFYING CHANGES TO THE LAWS GOVERNING THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE LOCAL GOVERNMENT EMPLOYEES' RETIREMENT SYSTEM, AND THE STATE HEALTH PLAN FOR TEACHERS AND STATE EMPLOYEES AND TO OTHER RELATED STATUTES.
"(a3) Anti-Pension-Spiking Contribution-Based Benefit Cap.
*H985-v-1* General Assembly Of North Carolina Session 2017 "(a3) Anti-Pension-Spiking Contribution-Based Benefit Cap.
– Notwithstanding any other provision of this section, every service retirement allowance provided under this section for *H985-v-2* General Assembly Of North Carolina Session 2017 members who retire on or after January 1, 2015, is subject to adjustment pursuant to a contribution-based benefit cap under this subsection.
– Notwithstanding any other provision of this section, every service retirement allowance provided under this section for members who retire on or after January 1, 2015, is subject to adjustment pursuant to a contribution-based benefit cap under this subsection.
(1) Determine an amount equal to the member's accumulated contributions as required under G.S.
Page 2 House Bill 985-First Edition General Assembly Of North Carolina Session 2017 (1) Determine an amount equal to the member's accumulated contributions as required under G.S.
128-30(b)(1) for all years during which the member earned membership serviceservice, other than service earned through armed Page 2 House Bill 985-Second Edition General Assembly Of North Carolina Session 2017 service credit under G.S.
128-30(b)(1) for all years during which the member earned membership serviceservice, other than service earned through armed service credit under G.S.
120-4.14(2) is repealed.
120-4.14 is repealed.
"(e) The Retirement Systems Division of the Department of State Treasurer may disclose the name and mailing address of former State and local government employees, former public school employees, or former community college employees to domiciled, nonprofit organizations representing 10,000 or more retired State government, local government, or public school employees." SECTION 8.(b) G.S.
"(e) The Retirement Systems Division of the Department of State Treasurer may disclose the name and mailing address of former State and local government employees, former public school employees, or former community college employees to domiciled, nonprofit House Bill 985-First Edition Page 3 General Assembly Of North Carolina Session 2017 organizations representing 10,000 or more retired State government, local government, or public school employees." SECTION 8.(b) G.S.
House Bill 985-Second Edition Page 3 General Assembly Of North Carolina Session 2017 "(e) The Retirement Systems Division of the Department of State Treasurer may disclose the name and mailing address of former State and local government employees, former public school employees, or former community college employees to domiciled, nonprofit organizations representing 10,000 or more retired State government, local government, or public school employees." SECTION 8.(c) This section is effective July 22, 2016.
"(e) The Retirement Systems Division of the Department of State Treasurer may disclose the name and mailing address of former State and local government employees, former public school employees, or former community college employees to domiciled, nonprofit organizations representing 10,000 or more retired State government, local government, or public school employees." SECTION 8.(c) This section is effective July 22, 2016.
In order for a member's retirement to become effective in any month, the member must perform no work for an employer, including part-time, temporary, substitute, or contractor work, at any time during the six months immediately following the effective date of retirement.
In order for a member's retirement to become effective in any month, the member must perform no work for an employer, including Page 4 House Bill 985-First Edition General Assembly Of North Carolina Session 2017 part-time, temporary, substitute, or contractor work, at any time during the six months immediately following the effective date of retirement.
For purposes of this subdivision, working as a member of a school board, board of trustees Page 4 House Bill 985-Second Edition General Assembly Of North Carolina Session 2017 of a communitycollege, board of trustees of anyconstituent institution of The University of North Carolina, as an unpaid bona fide volunteer in a local school administrative unit, or as an unpaid bona fide volunteer guardian ad litem intheguardianadlitem program shall not beconsidered serviceorwork, and volunteering in positions normally designated as unpaid bona fide volunteer positions during the six months immediatelyfollowing the effective dateofretirementshallnotbeconsideredservice.
For purposes of this subdivision, working as a member of a school board, board of trustees of a communitycollege, board of trustees of anyconstituent institution of The University of North Carolina, as an unpaid bona fide volunteer in a local school administrative unit, or as an unpaid bona fide volunteer guardian ad litem intheguardianadlitemprogram shall not beconsideredserviceorwork, and volunteering in positions normally designated as unpaid bona fide volunteer positions during the six months immediatelyfollowing the effective dateofretirementshallnotbeconsideredservice.
(iv) an individual retirement account or annuity described in section 408(a) or section 408(b) of the Internal Revenue Code that is eligible to be rolled over and would otherwise be includible in gross income;
(iv) an individual retirement account or annuity described in section 408(a) or section 408(b) of the Internal Revenue Code that is eligible to be rolled over and would otherwise be House Bill 985-First Edition Page 5 General Assembly Of North Carolina Session 2017 includible in gross income;
Notwithstanding anything to the contrary, a member may not transfer such amounts as will causethemember's retirement allowanceundertheSystem to exceed theamount allowableunder House Bill 985-Second Edition Page 5 General Assembly Of North Carolina Session 2017 G.S.
Notwithstanding anything to the contrary, a member may not transfer such amounts as will causethemember's retirement allowanceundertheSystem to exceedtheamount allowableunder G.S.
(2) A member may elect to receive the special retirement allowance for life but is guaranteed that the sum of the special allowance payments will equal the total of the transferred amount.
(2) A member may elect to receive the special retirement allowance for life but is guaranteed that the sum of the special allowance payments will equal the total Page 6 House Bill 985-First Edition General Assembly Of North Carolina Session 2017 of the transferred amount.
Under this payment option, if the member dies before receiving the total transferred amount, the special retirement allowance will continue to be paid to the member's designated beneficiary for the life of thebeneficiary,ifOption2,3or6isselected.IfOption2,3or6isnotselected, Page 6 House Bill 985-Second Edition General Assembly Of North Carolina Session 2017 the member's designated beneficiary or the member's estate shall be paid any remaining balance of the transferred amount.
Under this payment option, if the member dies before receiving the total transferred amount, the special retirement allowance will continue to be paid to the member's designated beneficiary for the life of thebeneficiary,ifOption2,3or6isselected.IfOption2,3or6isnotselected, the member's designated beneficiary or the member's estate shall be paid any remaining balance of the transferred amount.
The Board of Trustees shall modify the mortality and such other tables every five years, as shall be deemed necessary, based upon the five-year experience studyas required byG.S.
The Board of Trustees shall modify House Bill 985-First Edition Page 7 General Assembly Of North Carolina Session 2017 the mortality and such other tables every five years, as shall be deemed necessary, based upon the five-year experience studyas required byG.S.
Provided, however, a member who transfers the member's eligible accumulated contributions from an eligible retirement plan pursuant to this subsection to this Retirement System shall be taxed for North Carolina State House Bill 985-Second Edition Page 7 General Assembly Of North Carolina Session 2017 Income Tax purposes on the special retirement allowance the same as if that special retirement allowance had been paid directly by the eligible plan or the plan through which the transfer was made, whichever is most favorable to the member.
Provided, however, a member who transfers the member's eligible accumulated contributions from an eligible retirement plan pursuant to this subsection to this Retirement System shall be taxed for North Carolina State Income Tax purposes on the special retirement allowance the same as if that special retirement allowance had been paid directly by the eligible plan or the plan through which the transfer was made, whichever is most favorable to the member.
TheBoardofTrustees shall also, from time to time, in its discretion, adopt rules and regulations to prevent injustices and inequalities which might otherwise arise in the administration of this Chapter.Article." SECTION 13.
TheBoardofTrustees Page 8 House Bill 985-First Edition General Assembly Of North Carolina Session 2017 shall also, from time to time, in its discretion, adopt rules and regulations to prevent injustices and inequalities which might otherwise arise in the administration of this Chapter.Article." SECTION 13.
128-30(g)(2)b., containing a list of employees for Page 8 House Bill 985-Second Edition General Assembly Of North Carolina Session 2017 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 applicable." SECTION 14.
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 applicable." SECTION 14.
House Bill 985-Second Edition Page 9
House Bill 985-First Edition Page 9
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Action History

  1. Signed by Gov. 6/25/2018

  2. Ch. SL 2018-85

  3. Pres. To Gov. 6/15/2018

  4. Ratified

  5. Reptd Fav

  6. Re-ref Com On Rules and Operations of the Senate

  7. Reptd Fav

  8. Placed on Today's Calendar

  9. Passed 2nd Reading

  10. Passed 3rd Reading

  11. Ordered Enrolled

  12. Withdrawn From Com

  13. Re-ref to Pensions and Retirement and Aging. If fav, re-ref to Rules and Operations of the Senate

  14. Passed 2nd Reading

  15. Passed 3rd Reading

  16. Special Message Sent To Senate

  17. Special Message Received From House

  18. Passed 1st Reading

  19. Ref To Com On Rules and Operations of the Senate

  20. Placed On Cal For 06/05/2018

  21. Reptd Fav Com Substitute

  22. Cal Pursuant Rule 36(b)

  23. Passed 1st Reading

  24. Ref To Com On Pensions and Retirement

  25. Filed

Sponsors

  • Yarborough · Cosponsor
  • McNeill · Cosponsor
  • Insko · Cosponsor
  • Dulin · Primary
  • Stephen M. Ross · Primary
  • Joe John · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

2 sponsors · 4 co-sponsors · 173 not signed on

Sponsors (2)

Co-sponsors (4)

  • Yarborough
  • McNeill
  • Insko
  • Joe John Democratic

Not signed on (173)

173 members have not signed on to this bill.

Show all 173 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Second Reading

Passed 47 Yea · 0 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 31002
Republican 9001
Democratic 7000
Total 47003
% of votes cast 94%0%0%6%
How each member voted (50)
Member Party Vote
McKissick — Yea
Randleman — Yea
Wade — Yea
Ballard — Yea
Barefoot — Yea
Barrett — Yea
Fitch — Yea
Foushee — Yea
D.Davis — Yea
J.Jackson — Yea
Smith — Yea
VanDuyn — Yea
Brown — Yea
J.Davis — Yea
B.Jackson — Yea
Newton — Yea
Tucker — Yea
Barringer — Not Voting
Bishop — Yea
Curtis — Yea
Dunn — Yea
Edwards — Yea
Gunn — Yea
Harrington — Yea
Horner — Yea
Krawiec — Yea
Meredith — Yea
Pate — Not Voting
Rabin — Yea
Tarte — Yea
Tillman — Yea
Wells — Yea
Woodard — Yea
Amanda P. Cook Democratic Yea
Dan Blue Democratic Yea
Gladys A. Robinson Democratic Yea
Jay J. Chaudhuri Democratic Yea
Joyce Waddell Democratic Yea
Paul A. Lowe, Jr. Democratic Yea
Tracy Clark Democratic Yea
Bill Rabon Republican Yea
Carl Ford Republican Not Voting
Danny Earl Britt, Jr. Republican Yea
Michael V. Lee Republican Yea
Norman W. Sanderson Republican Yea
Phil Berger Republican Yea
Ralph Hise Republican Yea
Tom McInnis Republican Yea
W. Ted Alexander Republican Yea
Warren Daniel Republican Yea

Official roll call →

Second Reading

Passed 115 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 74002
Republican 26002
Democratic 14001
U 1000
Total 115005
% of votes cast 96%0%0%4%
How each member voted (120)
Member Party Vote
Lucas — Yea
McElraft — Yea
Michaux — Yea
Muller — Yea
Presnell — Yea
Szoka — Yea
Terry — Yea
Yarborough — Yea
Zachary — Yea
Autry — Yea
Boswell — Yea
Burr — Yea
Conrad — Yea
Dobson — Yea
Dulin — Yea
Faircloth — Yea
Fisher — Yea
Floyd — Yea
Fraley — Yea
Garrison — Yea
Gill — Yea
Henson — Yea
G.Adcock — Yea
L.Bell — Yea
DuaneHall — Yea
C.Graham — Yea
G.Graham — Yea
Jackson — Yea
G.Martin — Yea
R.Moore — Yea
W.Richardson — Yea
B.Turner — Yea
J.Bell — Yea
BertJones — Yea
Brawley — Yea
BrendenJones — Yea
Beasley — Yea
Black — Yea
Boles — Yea
Bradford — Yea
Bumgardner — Yea
Cleveland — Yea
Earle — Yea
Farmer-Butterfield — Yea
Goodman — Yea
Hanes — Yea
Holley — Yea
Hunter — Yea
Insko — Yea
Wray — Yea
DestinHall — Yea
K.Hall — Yea
Johnson — Yea
Malone — Yea
S.Martin — Yea
T.Moore(Speaker) — Yea
Stone — Yea
R.Turner — Yea
B.Richardson — Not Voting
Collins — Yea
Dollar — Yea
Elmore — Yea
Grange — Yea
Hardister — Yea
Horn — Yea
Hurley — Yea
Jordan — Yea
Lewis — Yea
McGrady — Yea
McNeill — Yea
Murphy — Yea
Rogers — Yea
Saine — Yea
Speciale — Not Voting
Steinburg — Yea
Williams — Yea
Amos L. Quick, III Democratic Yea
Becky Carney Democratic Yea
Cecil Brockman Democratic Yea
Cynthia Ball Democratic Yea
Dante Pittman Democratic Not Voting
Deb Butler Democratic Yea
Eric Ager Democratic Yea
Garland E. Pierce Democratic Yea
Graig Meyer Democratic Yea
Joe John Democratic Yea
Marcia Morey Democratic Yea
Mary Belk Democratic Yea
Pricey Harrison Democratic Yea
Robert T. Reives, II Democratic Yea
Shelly Willingham Democratic Yea
Carl Ford Republican Yea
Dean Arp Republican Yea
Dennis Riddell Republican Yea
Donna McDowell White Republican Yea
Donny Lambeth Republican Yea
Frank Iler Republican Yea
Harry Warren Republican Yea
Hugh Blackwell Republican Yea
Jay Adams Republican Yea
Jimmy Dixon Republican Yea
John A. Torbett Republican Yea
John M. Blust Republican Not Voting
John Sauls Republican Yea
Julia C. Howard Republican Yea
Kelly E. Hastings Republican Yea
Kevin Corbin Republican Yea
Larry C. Strickland Republican Yea
Larry W. Potts Republican Yea
Mark Brody Republican Yea
Mike Clampitt Republican Yea
Mitchell S. Setzer Republican Yea
Phil Shepard Republican Yea
Sam Watford Republican Not Voting
Sarah Stevens Republican Yea
Stephen M. Ross Republican Yea
Ted Davis, Jr. Republican Yea
W. Ted Alexander Republican Yea
William D. Brisson Republican Yea
Carla D. Cunningham U Yea

Official roll call →

Subjects

labor health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 985?
HB 985 is sponsored by Yarborough, McNeill, Insko, Dulin, Stephen M. Ross (Republican), and Joe John (Democratic).
What is the current status of HB 985?
This bill has been enacted into law. Introduced May 22, 2018. Enacted.
Where can I track HB 985?
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