Senate and House conferees will continue working into the weekend to resolve differences between the their respective budget proposals. The Joint Conference Committee is attempting to reach agreement by next Tuesday. The aim is to adopt the amended budget for 2006-07 by the beginning of the new fiscal year on July 1.
The House Pensions and Retirement Committee met on Wednesday and approved several important bills. A summary of committee action follows.
House Bill 1237: Change Local Gov’t. Retirement Board
(sponsor-Rep. Tucker)
This bill adds four members to the Local Governmental Retirement Board of Trustees. These new members will be appointed by the Governor and include: a county manager, a city manager, an active non supervisory local government employee, and a retired non supervisory employee.
The bill already has been approved by the House and Senate. It was returned to committee for a recommendation on concurrence in amendment made in the Senate. The committee recommended that the House concur in the Senate amendments.
Senate Bill 1738: Long -Term Disability Amendments
(sponsor – Sen. Dalton)
The bill would allow individuals receiving long-term disability benefits to return to work on a trial basis without loss of disability benefits should the beneficiary be unable to continue employment. The trial period is set at 36 months.
The bill was approved by the committee and was sent to the House for approval.
House Bill 853: Reciprocity/ Optional Retirement System
(sponsor – Rep. Insko)
The bill would allow members of the Teachers’ and State Employees’ Retirement System (TSERS) to purchase service for periods in which they participated in the University System’s Optional Retirement Systems. To qualify, a members must not be drawing a benefit from the optional plan, must have at least 5 years of service with TSERS, and pay full actuarial cost for the service to be purchased.
The committee gave the bill a favorable report and sent it to the House for approval.
House Bill 1910: Retirees Returning to Work
(primary sponsors-Glazier, Yongue, Lucas, and Carney)
This bill changes the requirements for state retirees to return to work. Retirees age 60 with 25 years of service or age 65 with 5 years of service would be allowed to be re-employed by the same employer with no service separation period but subject to the 50% earning limitation. State retirees who do not meet the above age/years of service requirements could be re-employed after a break in service of at least 25 working days plus the any normal non-paid gap in service. (Example: for 10-month public school employees, this would be the 25 working days plus normal 2 month gap in paid employment.)
The bill exempts the UNC Phased retirement System from these requirements but directs the University system to limit Phased Retirement to employees who have reached normal retirement age 59.5 or 60 years old; to be set by the University). Also, the bill would not affect the ability of retired public school teachers to return to work after a 6-month separation from service without limitation on earnings.
The bill received a favorable report and was re-referred to the house Committee on Appropriations.
