Legislation Potentially Undoing Current Pension Spiking Lawsuit Gains Approval In House Committee
Legislation potentially undoing a court ruling last week holding that state pension authorities could not demand extra payments by school boards in Johnston, Wilkes, Union and Cabarrus counties to cover pension boosts of up to $495,000, gained approval in the House Pensions and Retirement Committee this morning. Senate Bill 117 would exempt the the Teachers and State Employees Retirement Systems from going through a rulemaking process when making changes or setting the anti-pension spiking contribution-based benefit cap.
This legislation providentially makes moot a lawsuit over a law requiring LEAs to repay a retiree's "pension spike" as the court held in its decision week that state pension authorities did not properly develop rules in response to the law. The legislation makes the exemption from rule-making retroactive to 2015, potentially removing the basis of the current lawsuit.
The bill could be heard by the House and sent back to the Senate for a concurrence vote as early as Monday.
North Carolina Association of School Administrators