Title: House Bill 853*-Second Edition
Category: Introduced Bill 2005

General Assembly of North Carolina	Session 2005

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
H	2
HOUSE BILL 853*
Committee Substitute Favorable 6/22/06

Short Title:	Reciprocity/Optional Retirement System. | (Public)
Sponsors: |
Referred to: |
March 22, 2005

A BILL TO BE ENTITLED
AN ACT to provide for the purchase of creditable service for periods of service under the optional retirement program for state institutions of higher education.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 135‑5 is amended by adding a new subsection to read:
"(ooo)	Credit at Full Cost for Service With The University of North Carolina During Which a Member Participated in the Optional Retirement Program. – Notwithstanding any other provisions of this Chapter, a member, upon the completion of five years of membership service, may purchase creditable service for periods of employment with The University of North Carolina during which the member participated in the Optional Retirement Program as provided for in G.S. 135‑5.1, provided that the member is not receiving, and is not entitled to receive, any retirement benefits resulting from this employment. The member shall purchase this service by making a lump-sum amount payable to the Annuity Savings Fund equal to the full liability of the service credits calculated on the basis of the assumptions used for purposes of the actuarial valuation of the system's liabilities, and shall take into account the retirement allowance arising on account of the additional service credit commencing at the earliest age at which the member could retire on an unreduced retirement allowance, as determined by the Board of Trustees upon the advice of the consulting actuary, plus an administrative fee to be set by the Board of Trustees. Notwithstanding the foregoing provisions of this subsection that provide for the purchase of service credits, the terms "full cost", "full liability", and "full actuarial cost" include assumed annual postretirement allowance increases, as determined by the Board of Trustees, from the earliest age at which a member could retire on an unreduced service allowance."
SECTION 2.  This act becomes effective July 1, 2006.

Page 		House Bill 853*-Second Edition

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