Legislative Report #07-08

Report 07-08
March 16, 2007

IMPORTANT RETIREMENT BILLS INTRODUCED

This proved to be a very busy week as House bills that were sent to the Bill Drafting Division by the March 6 deadline were formally introduced. The Senate had a March 15 deadline for the drafting of all public bills with introduction required by March 21.

Several important retirement benefit bills were introduced this week. These are summarized below.

House Bill 778: Enhance Retirement Benefits
(Primary Sponsors – Reps. Bell and J.Harrell)

This is a comprehensive bill addressing COLAs and other benefits for members of the state’s major retirement systems. The Cost-Of-Living Adjustments authorized by the bill are, as follows:

Local Governmental Employees Retirement System (LGERS) 2.2%
Teachers and State Employees Retirement System (TSERS) 2.5%
Consolidated Judicial Retirement System (CJRS) 2.5%
Legislative Retirement System (LRS) 2.5%

The bill provides for an increase in the TSERS retirement accrual rate from 1.82% to 1.83%. Also, this bill would raise the state’s employer contribution rate from the current 2.66% of payroll to 4.0% for 2007. The benefit enhancements proposed for TSERS members would require supplemental appropriations from the State General Fund of approximately $155 million. The bill has been referred to the Pensions and Retirement Committee.

EXPRESS YOUR SUPPORT !

We ask for you to contact your members of the General Assembly and urge them to support House Bill 778: Enhance Retirement Benefits. It is especially important to let your House members know that you support this bill. Contact information for the House and Senate can be found on the General Assembly Web Page (www.ncga.state.nc.us).

House Bill 779: Increase Contributory Death Benefit
(Primary Sponsors – Reps. Bell and J. Harrell)

The bill would increase the contributory death benefit for retirees from the current $9,000 to $10,000. The higher benefit would not require an increase in the monthly premiums paid by participating retirees. The bill has been sent to the Pensions and Retirement Committee.

Senate Bill 720: Open Enrollment/Contributory Death Benefit
(Primary Sponsor – Sen. Atwater)

This bill authorizes a 4-month open enrollment period (Oct. 1, 2007 – Jan. 31, 2008) to allow current retirees who did not elect contributory death benefit coverage at the time of retirement to enroll in the plan. Monthly premiums for coverage would be based on your age at the time coverage becomes effective. The bill has been referred to the Committee on Commerce and Small Business.