S467 - North Carolina Retirement Reform

• Establishes automatic enrollment in the North Carolina 401(k) or 457 Plans (rather than traditional defined benefit systems) for state employees, teachers, General Assembly members, and local government employees hired on or after July 1, 2018, with automatic contribution adjustments and default investment options.

• Creates the North Carolina Retirement Income System allowing participants to transfer accumulated contributions from defined contribution plans into an annuity that provides lifetime income with inflation adjustments.

• Closes the Teachers' and State Employees' Retirement System, Consolidated Judicial Retirement System, Legislative Retirement System, and Local Governmental Employees' Retirement System to new members after June 30, 2018, while allowing existing members to optionally transfer to the new defined contribution system.

• Eliminates retiree medical (State Health Plan) eligibility for new hires, limiting coverage to employees who earned retirement service prior to July 1, 2018.

• Appropriates $100 million for fiscal year 2017-2018 and $200 million for fiscal year 2018-2019 to reduce the Teachers' and State Employees' Retirement System unfunded liability.