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July 30, 2014 

Treasurer Cowell Praises Signing of Retirement Legislation into Law

RALEGH—North Carolina State Treasurer Janet Cowell joined Governor Pat McCrory this morning as he signed legislation into law that returns the teacher and state employee retirement vesting period to five years. House Bill 1195 also cracks down on the practice of pension spiking and allows the recoup of contribution with interest for all state and local employees who leave their job within five years.

“Returning to a 5-year vesting period is a critical step in North Carolina becoming more competitive in recruitment and retention relative to other public and private employers,” said Treasurer Cowell. “Furthermore, this law allows thousands more teachers and state employees to participate in one of the best performing retirement systems in the country.”

The law also allows the Department of State Treasurer to crack down on pension spiking, the practice of retirement system employers raising individuals’ pensions through large late-career pay raises. An outside review on fraud, waste and abuse showed that this problem is limited, but that the Department needed additional tools to control this unfair practice.  

View high-resolution photo of bill signing​

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The North Carolina Retirement Systems, the formal name for the pension fund, is the eleventh largest public pension fund in the country. It provides retirement benefits and savings for more than 900,000 North Carolinians, including teachers, state employees, firefighters, police officers and other public workers. For more information, visit www.nctreasurer.com​.