NC H651

Establishes the Unfunded Liability Solvency Reserve in the General Fund as an employee benefits trust to address unfunded liabilities in the Teachers' and State Employees' Retirement System and Retiree Health Benefit Fund.

Reserve receives funds through General Assembly appropriations and transfers from debt refinancing savings when the Savings Reserve balance meets or exceeds its recommended level.

Requires annual allocation of reserve funds between the Health Benefit Fund and Retirement System based on each program's proportion of total unfunded liability, converted to a percentage of General Fund payroll for covered members.

Mandates 15% of estimated growth in General Fund tax revenues be transferred to the reserve when the Savings Reserve is at recommended levels; allows partial transfers when below recommended levels.

Prohibits reserve funds from paying for benefit enhancements after July 1, 2017, and requires all appropriations from the reserve to occur within the next fiscal year; becomes effective October 1, 2018.