North Carolina 2021-2022 Session Status: In Committee 2 R cosponsors

SB 276 — Retirement Administrative Changes Act of 2021.-AB

Last action — Withdrawn From Com

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

This bill died with 2021-2022 Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

28 added · 29 removed

Plain-language change summary

In the latest version of Senate Bill 276, some technical language was clarified, particularly regarding employer responsibilities and the distribution of benefits. For instance, the bill specifies how administrative fees will be managed and outlines the process for handling defaults by employers in meeting their obligations. These changes are significant because they aim to enhance accountability and ensure smoother administration of employee benefits, ultimately protecting the interests of both workers and employers in North Carolina.

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FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA Mar 11, 2021 S.B.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2021 S 1 SENATE BILL 276 Short Title:
276 SESSION 2021 PRINCIPAL CLERK S D SENATE BILL DRS55023-MGp-11D Short Title:
A BILL TO BE ENTITLED AN ACT MAKING ADMINISTRATIVE CHANGES RELATED TO CONTRIBUTION-BASED BENEFIT CAP LIABILITIES UNDER THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM (LGERS) AND THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM (TSERS);
Rules and Operations of the Senate March 15, 2021 A BILL TO BE ENTITLED AN ACT MAKING ADMINISTRATIVE CHANGES RELATED TO CONTRIBUTION-BASED BENEFIT CAP LIABILITIES UNDER THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM (LGERS) AND THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM (TSERS);
– A local government, a public authority, an entity eligible to participate in the Local Government Employee's Employees' Retirement System, or a local school administrative unit may establish and fund an irrevocable trust for the purpose of paying (i) post-employment benefits for which the entity is liable.
– A local government, a public authority, an entity eligible to participate in the Local Government Employee's Employees' Retirement System, or a local school administrative unit may establish and fund an irrevocable trust for the purpose of paying (i) post-employment benefits for which the entityis liable.
The resolution or ordinance establishing the trust may be amended from time to time, but an amendment may not authorize the use of monies in the trust for a purpose not stated in the resolution or ordinance establishing the trust." *DRS55023-MGp-11D* General Assembly Of North Carolina Session 2021 2 AUTHORIZATION TO COLLECT ADDITIONAL CONTRIBUTIONS FROM EMPLOYING UNITS UNDER THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM AND THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM FOR PENSION SPIKING LIABILITIES SECTION 1.2.(a) G.S.
The resolution or ordinance establishing the trust may be amended from time to time, but an amendment may not authorize the use of monies in the trust for a purpose not stated in the resolution or ordinance establishing the trust." *S276-v-1* General Assembly Of North Carolina Session 2021 2 AUTHORIZATION TO COLLECT ADDITIONAL CONTRIBUTIONS FROM EMPLOYING UNITS UNDER THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM AND THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM FOR PENSION SPIKING LIABILITIES SECTION 1.2.(a) G.S.
The Board may waive one penalty per employer every five years if the Board finds that the employer has consistently demonstrated good-faith efforts to comply with the set deadline.
The Board may waive one penalty per employer every five years if the Board finds that the employer has consistently demonstrated good-faith efforts to complywith the set deadline.
If within 90 days after request therefor by the Board any employer shall not have provided the System with the records and otherinformationrequired hereunder orifthe full accrued amount of the contributions provided for under this section due from members employed by an employer or from an employer shall not have been received by the System from the chief fiscal officer of such employer within 30 days after the last due date as herein provided, then, notwithstanding anything herein or in the provisions of any other law to the contrary, upon notification by theBoardto theState Treasurer as to thedefault ofsuchemployeras herein provided, any distributions which might otherwise be made to such employer, or the municipality or county of which such employer is an integral part, from any funds of the State or any funds collected by the State shall be withheld Page 2 DRS55023-MGp-11D General Assembly Of North Carolina Session 2021 from such employer until notice from the Board to the State Treasurer that such employer is no longer in default.
If within 90 days after request therefor by the Board any employer shall not have provided the System with the records and otherinformationrequired hereunder orifthe full accrued amount of the contributions provided for under this section due from members employed by an employer or from an employer shall not have been received by the System from the chief fiscal officer of such employer within 30 days after the last due date as herein provided, then, notwithstanding anything herein or in the provisions of any other law to the contrary, upon notification bythe Boardto theState Treasurer as to thedefault ofsuch employeras herein provided, any distributions which might otherwise be made to such employer, or the municipalityor countyof which such employer is an integral part, from any funds of the State or any funds collected by the State shall be withheld Page 2 Senate Bill 276-First Edition General Assembly Of North Carolina Session 2021 from such employer until notice from the Board to the State Treasurer that such employer is no longer in default.
The Board may waive one penalty per employer every five years if the Board finds that the employer has consistently demonstrated good-faith efforts to comply with the set deadline.
The Board may waive one penalty per employer every five years if the Board finds that the employer has consistently demonstrated good-faith efforts to complywith the set deadline.
If within 90 days after request therefor by the Board any employer shall not have provided the System with the records and otherinformationrequired hereunder orifthe full accrued amount of the contributions provided for under this section due from members employed by an employer or from an employer other than the State shall not have been received by the System from the chief fiscal officer of such employer within 30 days after the last due date as herein provided, then, notwithstanding anything herein or in the provisions of any other law to the contrary,upon notificationbytheBoardto theStateTreasureras to thedefault of such employer as herein provided, any distributions which might otherwise be made to such employer from any funds of the State shall be withheld from such employer until notice from the Board to the State Treasurer that such employer is no longer in default.
If within 90 days after request therefor by the Board any employer shall not have provided the System with the records and otherinformationrequired hereunder orifthe full accrued amount of the contributions provided for under this section due from members employed by an employer or from an employer other than the State shall not have been received by the System from the chief fiscal officer of such employer within 30 days after the last due date as herein provided, then, notwithstanding anything herein or in the provisions of any other law to the contrary, upon notificationbythe Boardto theStateTreasureras to thedefault of such employer as herein provided, anydistributions which might otherwise be made to such employer from any funds of the State shall be withheld from such employer until notice from the Board to the State Treasurer that such employer is no longer in default.
DRS55023-MGp-11D Page 3 General Assembly Of North Carolina Session 2021 Except as provided in this subdivision, upon notification by the Board of Trustees to the State Treasurer and the Office of State Budget and Management as to the default of the employer, the Office of State Budget and Management shall withholdfrom anyStateappropriation dueto thatemployer an amount equal to the sum of all delinquent contributions and other debts due to the Retirement Systems Division and shall transmit that amount to the Retirement Systems Division.
Senate Bill 276-First Edition Page 3 General Assembly Of North Carolina Session 2021 Except as provided in this subdivision, upon notification by the Board of Trustees to the State Treasurer and the Office of State Budget and Management as to the default of the employer, the Office of State Budget and Management shall withholdfrom anyStateappropriation dueto that employer an amount equal to the sum of all delinquent contributions and other debts due to the Retirement Systems Division and shall transmit that amount to the Retirement Systems Division.
…." SECTION2.1.(c) Thissectionapplies to aparticipation withdrawal by an employing unit on or after the effective date of this act.
…." SECTION2.1.(c) Thissectionapplies to aparticipation withdrawal byan employing unit on or after the effective date of this act.
MANDATORY ADOPTION OF WRITTEN POLICIES FOR CERTAIN SPECIAL SEPARATION BUYOUTS FOR LAW ENFORCEMENT OFFICERS Page 4 DRS55023-MGp-11D General Assembly Of North Carolina Session 2021 SECTION 4.1.(a) G.S.
MANDATORY ADOPTION OF WRITTEN POLICIES FOR CERTAIN SPECIAL SEPARATION BUYOUTS FOR LAW ENFORCEMENT OFFICERS Page 4 Senate Bill 276-First Edition General Assembly Of North Carolina Session 2021 SECTION 4.1.(a) G.S.
(b) Prior to the transfer by a State department, agency, or institution, or any local governmentemployer,ofalumpsumseparationbuyoutdescribedin subsection(a)ofthissection to the Teachers' and State Employees' Retirement System (TSERS) pursuant to G.S.
(b) Prior to the transfer by a State department, agency, or institution, or any local governmentemployer,ofalumpsumseparationbuyoutdescribedinsubsection(a)ofthissection to the Teachers' and State Employees' Retirement System (TSERS) pursuant to G.S.
The Department of State Treasurer and the Board of Trustees may DRS55023-MGp-11D Page 5 General Assembly Of North Carolina Session 2021 not adopt a new or amended rule to impose or change an administrative fee under the Plan that exceeds the following amounts:
The Department of State Treasurer and the Board of Trustees may Senate Bill 276-First Edition Page 5 General Assembly Of North Carolina Session 2021 not adopt a new or amended rule to impose or change an administrative fee under the Plan that exceeds the following amounts:
The compensationandotherassociatedemployeebenefitsshall beapportioneddirectlyfromthePlan.
The compensationandotherassociatedemployeebenefitsshallbeapportioneddirectlyfromthePlan.
…." SECTION 5.1.(b) Any administrative fee established or changed by the Department of State Treasurer and the Board of Trustees pursuant to rules adopted under G.S.
…." SECTION 5.1.(b) Any administrative fee established or changed bythe Department of State Treasurer and the Board of Trustees pursuant to rules adopted under G.S.
(b) If a participant of the Optional Retirement Program owes an overpayment to the Disability Income Plan at the time the beneficiary would first qualify for an unreduced retirement benefit had themember electedto bea member of theTeachers' and StateEmployees'Retirement System, then the participant shall pay the total overpayment amount due to the Disability Income Plan.
(b) If a participant of the Optional Retirement Program owes an overpayment to the DisabilityIncome Plan at the time the beneficiary would first qualifyfor an unreduced retirement benefit had themember electedto bea member of theTeachers'and StateEmployees'Retirement System, then the participant shall paythe total overpayment amount due to the Disability Income Plan.
If the participant fails to pay the total amount of the overpayment due to the Disability Income Plan within six months after the earliest age at which the member could retire on an Page 6 DRS55023-MGp-11D General Assembly Of North Carolina Session 2021 unreduced retirement allowance, then the participant shall not be allowed to enroll in a new year of coverage under the North Carolina State Health Plan for Teachers and State Employees until one of the following occurs:
If the participant fails to pay the total amount of the overpayment due to the Disability Income Plan within six months after the earliest age at which the member could retire on an Page 6 Senate Bill 276-First Edition General Assembly Of North Carolina Session 2021 unreduced retirement allowance, then the participant shall not be allowed to enroll in a new year of coverage under the North Carolina State Health Plan for Teachers and State Employees until one of the following occurs:
DRS55023-MGp-11D Page 7
Senate Bill 276-First Edition Page 7
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How this bill changes current law

5 changes Share ↗

Compared against the N.C. General Statutes as published AI-generated reading aid — verify against the official bill.

The bill modifies existing laws regarding trusts for post-employment benefits and contributions to retirement systems, primarily by clarifying processes and allowing for additional assessments related to contribution-based benefit cap liabilities.

  • G.S. 159-30.1(a)

    liabilities for which the entity is liable or → liabilities for which the entity is liable.

    This change rephrases the wording for clarity.

  • G.S. 128-30(d)

    (4a) Notwithstanding Chapter 150B of the General Statutes, as of the beginning of the fiscal year following 90 days after the assessment of a contribution-based benefit cap liability that is not paid as a lump-sum payment, the required employer contribution rate for an employer shall be adjusted to include an additional contribution amount equal to a rate per centum that is estimated to extinguish the contribution-based benefit cap liability on an amortization schedule selected by the Board that has been applied to unfunded liabilities in the most recent actuarial valuation.

    This addition allows for the adjustment of employer contribution rates to accommodate unaddressed benefit cap liabilities.

  • G.S. 135-8(f)

    (5) Notwithstanding Chapter 150B of the General Statutes, as of the beginning of the fiscal year following 90 days after the assessment of a contribution-based benefit cap liability that is not paid as a lump-sum payment, the required employer contribution rate for an employer shall be adjusted to include an additional contribution amount equal to a rate per centum that is estimated to extinguish the contribution-based benefit cap liability on an amortization schedule selected by the Board that has been applied to unfunded liabilities in the most recent actuarial valuation.

    Similar to the previous amendment, this gives authority for adjusting contributions for benefit cap liabilities under a specified structure.

  • G.S. 128-30(g)(3)

    the date set by the Board of Trustees and provided that a one-time exception has not been agreed upon in advance due to exigent circumstances → the date set by the Board of Trustees

    This simplifies the conditions under which penalties apply for late contributions.

  • G.S. 135-8(f)(3)

    the date set by the Board of Trustees and provided that a one-time exception has not been agreed upon in advance due to exigent circumstances → the date set by the Board of Trustees

    Similar to the previous change, this removes unnecessary language regarding penalties for delinquent contributions.

Action History

  1. Withdrawn From Com

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

  3. Passed 1st Reading

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

  5. Filed

Sponsors

Sponsorship breakdown

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1 sponsors · 1 co-sponsors · 177 not signed on

Sponsors (1)

Co-sponsors (1)

Not signed on (177)

177 members have not signed on to this bill.

Show all 177 →

"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

Subjects

veterans labor
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Frequently asked questions

Who sponsors SB 276?
SB 276 is sponsored by W. Ted Alexander (Republican) and Jim Burgin (Republican).
What is the current status of SB 276?
This bill died with 2021-2022 Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 276?
Track SB 276 free on One Click Politics — get push/email alerts when it moves.

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