Proposed Rules for Adoption

Notice is hereby given in accordance with G.S. 150B-19.1(c) that the Boards of Trustees for the Teachers’ and State Employees' Retirement System (TSERS) and the Local Governmental Employees' Retirement System (LGERS) proposes for adoption new rules establishing contribution-based benefit cap factors. The Notice of Text of the two proposed rules can be viewed at the following links:

Notice of Text 20 NCAC 02B .0405 (TSERS)
Notice of Text 20 NCAC 02C .0405 (LGERS)

The Boards of Trustees for the Teachers’ and State Employees' Retirement System (TSERS) and the Local Governmental Employees' Retirement System (LGERS), which manage the North Carolina Retirement Systems (NCRS) within the Department of State Treasurer, are proposing to adopt rules that would establish a contribution-based benefit cap factor based upon the recommendation of the actuary, to implement the Fiscal Integrity/Pension-Spiking Prevention Act, Session Law 2014-88.  Additional information and background about the purpose for adopting the new rules can be found in the Notices of Text above.


The Fiscal Note prepared by the Teachers’ and State Employees’ Retirement System Board of Trustees and the Local Governmental Employees’ Retirement System Board of Trustees and approved by the Office of State Budget Management may be found at https://files.nc.gov/ncosbm/documents/files/DST_2017-11-28.pdf.


Oral or written comments to the proposed rules or the fiscal note will be accepted until March 5, 2018, and can be submitted to:

Department of State Treasurer
ATTN:  Rulemaking Coordinator
3200 Atlantic Avenue
Raleigh, NC 27604
dst.ncac@nctreasurer.com
919-814-3851

A public hearing on the proposed rules was held Thursday January 25, 2018 2:00 p.m. – 4:00 p.m. at the offices of the Department of State Treasurer, 3200 Atlantic Avenue, Raleigh, NC 27604.  Department of State Treasurer staff accepted public comments on the proposed rules and on the fiscal note during this time.

A SPECIAL MEETING of the TSERS and LGERS Boards of Trustees was held Wednesday March 7, 2018 at 2:00 p.m. via conference call. The TSERS and LGERS Boards of Trustees will consider all public comments received to the proposed rules and fiscal note and consider adoption of the rules. 


Procedure for Objection and Subjecting a Proposed Rule to Legislative Review:  Any person who objects to the adoption of a permanent rule may submit written comments to dst.ncac@nctreasurer.com. If the objection is not resolved prior to the adoption of the rule, a person may also submit written objections to the Rules Review Commission. If the Rules Review Commission receives written and signed objections in accordance with G.S. 150B-21.3(b2) from 10 or more persons clearly requesting review by the legislature and the Rules Review Commission approves the rule, the rule will become effective as provided in G.S. 150B-21.3(b1).

The Rules Review Commission will receive written objections until 5:00 p.m. on the day following the day the Rules Review Commission approves the rule. The Rules Review Commission will receive those objections by mail, delivery service, hand delivery, or facsimile transmission.  If you have any further questions concerning the submission of objections to the Rules Review Commission, please contact a Rules Review Staff Attorney at 919-431-3000.

Federal Certification is not applicable to this set of proposed rules. 

 

Department of State Treasurer Decennial Review of Existing Rules


 

N.C. General Statute §150B-21.3A adopted in 2013, requires state agencies to review existing rules every 10 years. The Department of State Treasurer rules are encompassed in the subchapters of Title 20 of the North Carolina Administrative Code.  Agency rules that do not complete the required decennial review expire, unless an exemption applies.  The Department's rules are reviewed on a schedule established by the Rules Review Commission. The rules currently due for review are provided below.

N.C. General Statutes §150B-21.3A(c) requires the Department to review each rule and make an initial determination from one of these three classifications:

       Necessary with substantive public interest – the agency has received public comment on the rule within the past two years or the rule affects the property interest of the regulated public, and the agency knows or suspects that any person may object to the rule. 

 

        Necessary without substantive public interest – the agency determines that the rule is needed, and the rule has not had public comment in the last two years. This category includes rules that identify information that is readily available to the public, such as an address or telephone number.

 

        Unnecessary – the agency determines that the rule is obsolete, redundant or otherwise not needed.

 

The initial classifications of existing rules by an agency are subject to public review and comment for a period of sixty days.  N.C. General Statutes § 150B-21.3A(5) defines a “public comment” as “written comments objecting to the rule, in whole or in part, received by an agency from any member of the public, including an association or other organization representing the regulated community or other members of the public.”  Additionally, pursuant to G.S. 150B-21.3A(c)(2), in order for the Rules Review Commission to determine whether the public comment has merit, the public comment must address the specific substance of the rule and address any of the standards of Commission review, as set forth in G.S. 150B-21.9(a).   

Comments regarding the Department's initial determinations will be accepted by e-mail to dst.ncac@nctreasurer.com or by mail to:

DST NCAC Decennial Review

ATTN:  Rulemaking Coordinator

3200 Atlantic Avenue

Raleigh, NC 27604

 

THE COMMENT PERIOD HAS CLOSED for THE DEPARTMENT OF STATE TREASURER, Retirement Systems Division Teachers’ and State Employees’ Retirement System Board of Trustees' (TSERS) and Local Governmental Employees’ Retirement System Board of Trustees' (LGERS) initial classifications of existing rules undergoing Decennial Rules Review. The final Decennial Rules Review report is now available:

 

Teachers' and State Employees' Retirement System Board of Trustees and Local Governmental Employees' Retirement System Board of Trustees Decennial Rules Review Final Report​


 

The Rules Review Commission will consider the Final Decennial report during their August 16, 2018 meeting.

This report lists all Retirement Systems Division rules that are subject to Decennial Review with an initial designation of “necessary with substantive public interest,” “necessary without substantive public interest,” and “unnecessary.”  The full text of the Retirement Systems Division rules can accessed here.    

Importantly, certain Retirement Systems Division Rules are not subject to Decennial Rules Review.  Rules not subject to Decennial Rules Review are those deemed by the TSERS and LGERS Boards of Trustees under North Carolina General Statute § 150B-21.3A(e1) to “protect inchoate or accrued rights of members of the Retirement Systems administered by the State Treasurer.” Rules deemed to protect inchoate or accrued rights will not expire.

The following report lists those rules deemed by the TSERS and LGERS Boards of Trustees to Protect Inchoate or Accrued Rights; therefore, these rules are not subject to Decennial Rules Review, are not listed on the above Decennial Review Report and will not expire. 

 

Retirement Systems Division Rules Protecting Inchoate or Accrued Rights

 

PLEASE NOTE this Decennial Rules Review is merely a review of current rules for continuing necessity, and are not revisions to existing rules.  It is anticipated the Retirement Systems Division will be undergoing revisions to existing rules in the fall of 2018.  Any proposed revisions will be made available for public review and comment as required under the Administrative Procedure Act.

 

 

 

Department of State Treasurer Proposed Rules

 
This website includes the following information: 
  • The text of the proposed rule 
  • An explanation and reason for the proposed rule
  • Any required federal certification 
  • Instructions on how and where to submit oral or written comments on the rule 
  • Any fiscal note that has been prepared for the proposed rule