This bill amends current law to make local government business administrators eligible for membership in the Public Employees Retirement System (PERS) and provides a mechanism for their transfer from the Defined Contribution Retirement Program (DCRP) to PERS. Specifically, it defines a business administrator as the executive and administrative officer of any political subdivision or agency within the state, including various titles such as municipal or county manager. The bill mandates that business administrators currently participating in the DCRP must be enrolled in PERS within 90 days of the bill's effective date, provided they meet the eligibility requirements. The PERS is required to notify eligible employees of this enrollment within 15 days of the bill's enactment.

Additionally, the bill ensures that service credit accrued in the DCRP will be recognized in PERS for determining eligibility for employer-paid health care benefits in retirement. It also stipulates that the membership tier for these employees will be based on their participation date in the DCRP or their original enrollment date in PERS, whichever is earlier. The actuary for PERS will assess the unfunded accrued liability resulting from this transfer, which will be amortized over 20 years. The bill includes provisions for the direct transfer of the business administrator's account value from the DCRP to PERS, ensuring compliance with federal tax regulations. The act is set to take effect immediately upon passage.

Statutes affected:
Introduced: 43:15C-2