H1218: Salary-Related Contribs./Debt Service Funds. Latest Version

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2019

SESSION LAW 2020-41
HOUSE BILL 1218

AN ACT TO MAKE ADJUSTMENTS TO THE STATE EMPLOYER SALARY-RELATED
CONTRIBUTIONS AND APPROPRIATING FUNDS FOR THE STATE'S DEBT

SERVICE OBLIGATIONS.

The General Assembly of North Carolina enacts:

SECTION 1.(a) Section 3.15(c) of S.L. 2019-209 reads as rewritten:
"SECTION 3.15.(c) Effective July1, 2020, the State's employer contribution rates budgeted
for retirement and related benefits as a percentage of covered salaries for the 2020-2021 fiscal

year for teachers and State employees, State law enforcement officers (LEOs), the University
and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial
Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth below:
Teachers State ORPs CJRS LRS
and State LEOs
Employees
Retirement 14.36%14.78%14.36%14.78%6.84% 36.00%36.44% 29.00%27.30%

Disability 0.10%0.09% 0.10%0.09% 0.10%0.09% 0.00% 0.00%
Death 0.16% 0.16% 0.00% 0.00% 0.00%
Retiree Health 6.82%6.68% 6.82%6.68% 6.82%6.68% 6.82%6.68% 6.82%6.68%
NC 401(k) 0.00% 5.00% 0.00% 0.00% 0.00%

Total Contribution

Rate 21.44%21.71%26.44%26.71%13.76%13.61%42.82%43.12%35.82%33.98%
…."
SECTION 1.(b) If House Bill 1136, 2020 Regular Session, becomes law, then
subsection (a) of this section is repealed.
SECTION 1.(c) If House Bill 1136, 2020 Regular Session, becomes law, then
Section 3.15(c) of S.L. 2019-209, as amended by Section 2(a) of House Bill 1136, 2020 Regular
Session, reads as rewritten:

"SECTION 3.15.(c) Effective July1, 2020, the State's employer contribution rates budgeted
for retirement and related benefits as a percentage of covered salaries for the 2020-2021 fiscal
year for teachers and State employees, State law enforcement officers (LEOs), the University
and Community Colleges Optional Retirement Programs (ORPs), the Consolidated Judicial
Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth below:
Teachers State ORPs CJRS LRS
and State LEOs

Employees
Retirement 14.36%14.78%14.36%14.78%6.84% 36.00%36.44% 29.00%27.30%
Disability 0.10%0.09% 0.10%0.09% 0.10%0.09% 0.00% 0.00%
Death 0.13% 0.13% 0.00% 0.00% 0.00%
Retiree Health 6.82%6.68% 6.82%6.68% 6.82%6.68% 6.82%6.68% 6.82%6.68%
NC 401(k) 0.00% 5.00% 0.00% 0.00% 0.00%

*H1218-v-5*Total Contribution
Rate 21.41%21.68%26.41%26.68%13.76%13.61%42.82%43.12%35.82%33.98%
…."
SECTION 1.(d) Section 3.15(e) of S.L. 2019-209 reads as rewritten:
"SECTION 3.15.(e) Effective July 1, 2020, the maximum annual employer contributions,
payable monthly, by the State for each covered employee or retiree for the 2020-2021 fiscal year

to the State Health Plan for Teachers and State Employees are (i) for Medicare-eligible
employees and retirees, five thousand one hundred sixty-five dollars ($5,165) sixty-one dollars
($5,061) and (ii) for non–Medicare-eligible employees and retirees, six thousand six hundred
forty-seven dollars ($6,647).five hundred twelve dollars ($6,512)."
SECTION 2. No later than August 15, 2020, the Office of State Budget and
Management shall adjust the appropriations for State retirement and State Health Plan
contributions of all applicable agencies, departments, or institutions to reflect the changes

implemented in Section 1 of this act, representing a decrease in General Fund net appropriations
totaling five million forty-eight thousand seven hundred ten dollars ($5,048,710) in recurring
funds for the 2020-2021 fiscal year.
SECTION 3. From the funds made available pursuant to Section 1 and Section 2 of
this act, there is appropriated from the General Fund the sum of five million forty-eight thousand
seven hundred ten dollars ($5,048,710) in recurring funds for the 2020-2021 fiscal year for the

purpose of meeting the State's General Fund debt service obligations. It is the intent of the
General Assembly to restore employer contribution rates for Retiree Health and to the State
Health Plan to the amounts in S.L. 2019-209, as originally enacted on August 3, 2019, in the
event the federal government provides additional relief funds or additional flexibility on existing
relief funds that can be used to support the General Fund.
SECTION 4.(a) Departmental receipts, as defined in G.S. 143C-1-1, are
appropriated for the 2020-2021 fiscal year up to the amounts needed to implement the provisions

in this act for the 2020-2021 fiscal year.
SECTION 4.(b) The provisions of the State Budget Act, Chapter 143C of the
General Statutes, are reenacted and shall remain in full force and effect and are incorporated in
this act by reference.
SECTION 4.(c) Except where expressly repealed or amended by this act, the
provisions of any other legislation enacted during the 2019 Regular Session of the General
Assembly expressly appropriating funds to an agency, a department, or an institution covered

under this act shall remain in effect.

Page 2 Session Law 2020-41 House Bill 1218 SECTION 5. This act becomes effective July 1, 2020.
In the General Assembly read three times and ratified this the 17 day of June, 2020.

s/ Philip E. Berger
President Pro Tempore of the Senate

s/ Tim Moore

Speaker of the House of Representatives

s/ Roy Cooper
Governor

Approved 9:51 a.m. this 26 day of June, 2020

House Bill 1218 Session Law 2020-41 Page 3