House Bill 115 Summary

• Clarifies that vacation leave payouts are included in "average final compensation" for retirement benefits only if received during the four consecutive calendar years producing the highest average annual compensation for Teachers' and State Employees' Retirement System and Local Government Employees' Retirement System members.

• Modifies creditable service purchase rules to allow members to count compensation stipends from full-time degree programs while prohibiting other paid compensation during leaves of absence or interrupted service used for educational purposes.

• Requires the Retirement Systems Investment Committee to adopt a funding policy that includes information about the State's contribution policy and the basis for determining contributions in annual actuarial valuations.

• Authorizes the State Board to enter into agreements with other states or consortiums to provide North Carolina residents access to qualified ABLE programs (tax-advantaged savings accounts for individuals with disabilities) after conducting fiduciary analysis.

• Adds the Disability Income Plan of North Carolina to the list of plans covered under the state employees' health insurance provisions.