The NC Local Government Retirement System (LGERS) Board of Trustees met Thursday, and made the following decisions impacting municipal government – (1) Opted to utilize all four basis points which had been set aside to provide significant relief for jurisdictions who have overpaid their unfunded accrued liability (rejected all proposals providing lessened relief); (2) Due to excess funds, approved a contribution “holiday” valued at $11 million statewide, for employers contributing to the LGERS Death Benefit Plan, starting in the 2012-13 fiscal year. The length of the “holiday” is dependent on the duration of the unit’s contribution: <10 years = 1 year; 10-20 years = 2 years; >20 years = 3 years; (3) established the 2012-13 Annual Required Contribution for Law Enforcement Officers at 6.77% of payroll (taking into account death benefit “holiday"); and (4) initiated a conversation concerning proposed IRS Guidelines on governmental pension plans. The LGERS Board provided significant relief to cities, by opting to reduce employer contribution rate from 6.88% of payroll to 6.74% of payroll at its October 2011 meeting.
Also, by clicking here you can see the slides showing a future projection of LGERS contribution rates, under a number of assumptions.
Additionally, the Teacher and State Employees Retirement System(TSERS) Board of Trustees recommended the General Assembly use available actuarial gains in the TSERS to provide a 1.9% Cost of Living Adjustment for state retirees. Also, the combined boards further requested the General Assembly to initiate a study on the law enforcement officer special separation allowance. The boards are concerned that the final employer of a law enforcement officer ends up paying the full actuarial cost of the special separation allowance.