In 2023, the General Assembly made several changes that affect the Retirement Systems. Below is a brief explanation of some of the changes. A list of all legislation that impacts the Retirement Systems Division can be found here.
On October 3, 2023, House Bill 259 became law as Session Law 2023-134. Also known as the 2023 Appropriations Act, it establishes a state budget for the two-year period July 1, 2023, through June 30, 2025.
One-Time Supplemental Payment to State, Judicial and Legislative Retirees
(Section 39.27) A one-time supplement will be issued on or before November 30, 2023, to monthly payees who retired on or before October 1, 2023, and are living as of October 1, 2023. This payment is equal to 4% of the annual retirement allowance, where the annual retirement allowance is 12 times the monthly allowance that was payable for October 2023. This payment applies to the Teachers’ and State Employees’ Retirement System (TSERS), Consolidated Judicial Retirement System (CJRS), and Legislative Retirement System (LRS). It does not apply to the Local Governmental Employees’ Retirement System (LGERS).
Employer Contribution Rates
(Section 39.26) Effective July 1, 2023, the Employer Contribution Rates for TSERS, CJRS and LRS are adjusted. Please see the Employer Retirement Monitor for the new rate tables.
Part IIIA clarifies the Retirement Systems’ felony forfeiture statutes in both G.S. 128-21 (LGERS) and G.S. 135-1 (TSERS), effective for offenses committed on or after July 1, 2023, by defining “conduct directly related to employment” as any of the following:
- An offense in G.S. 115C-270.35(b) committed while employed in a public school.
- An offense which required the revocation of a member’s license or certification required for the member’s employment.
- Conduct directly related to the member’s employment as determined by the Board of Trustees.
Part 5 changes the process for finalizing monthly retirement payments and issuing the first benefit payment. Members who apply for retirement well in advance of their effective retirement date may have their first benefit payment direct deposited instead of being sent via paper check. After a member has received their first payment through direct deposit or their first paper check has been mailed, they will be unable to make changes to their payment option and monthly survivorship beneficiary.