Agenda - 09-28-2017 - 7. Information Item - NCSBA 2017 Legislative Summary

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G.S. 135-4(jj). Section 4. Requires that if an LEA Finance Officer receives a notice that the LEA is likely to be assessed for exceeding the pension-spiking cap, he or she must give a copy of that report to the local board of education and notify the local board of county commissioners. G.S. 115C-436. Section 8. Creates a minimum employer contribution rate for TSERS system equal to the employee contribution rate. For fiscal years beginning subsequent to January 1, 2017. G.S. 135-8(d). HB 183: Retirement Admin. Changes Act of 2017- AB (S.L. 2017-129) Section 2. Revises how the employer contribution rate TSERS is calculated. Creates a new "actuarially determined employer contribution rate,"which will determine the portion of the contribution rate that comes from the pension plan. Defines the actuarially determined employer contribution rate as a rate calculated annually by an actuary using assumptions and a cost method approved by the Actuarial Standards Board of the American Academy of Actuaries and selected by the Board of Trustees. Provides an exemption from the rule-making process in setting these rates. G.S. 135-8(d). Section 3. Allows the TSERS death benefit beneficiary to be changed by electronic means. Effective January 1, 2018. G.S. 135-5(f). Section 7. Establishes that an LEA Finance Officer(and other local government finance officers) may contribute to a deferred compensation account of a teacher/State employee. G.S. 147-9.4. Section 9. Clarifies how creditable sick leave at retirement is to be determined for TSERS. A member's credit at retirement will be determined by dividing the total hours of sick leave at retirement by the hours per month the leave was awarded under the employer's official sick leave policy as applied to the member when the leave was accrued. G.S. 135-4(e). HB 299: State Health Plan Administrative Changes.-AB (S.L. 2017-135) Section 1. Clarifies that coverage under the SHP will be revoked on the last day of the month the individual is found to have made a false representation of a material fact regarding eligibility or enrollment, not just claims for reimbursement. G.S. 135-48.44(a)(6). Section 2. Clarifies the retiree/employer payment responsibilities for one-half contributory retiree coverage. Defines "Total Premium" (= employer contribution rate+ employee/retiree contribution). Establishes that,unless prohibited by law,individual retirees must pay the balance of whatever the employer has not contributed to this Total Premium, as defined. G.S. 135-48.40(c)(2). Section 3. Specifies that children born to covered employees will be covered from birth as long as the participants notify the Plan within 30 days of birth and pay premiums retroactive to the first day of the month in which the child was born (without having to provide any notification as to change of coverages). Effective October 1, 2017, and applies to children born to covered employees on or after that date. G.S. 135-48.42(a). 49