NC S650

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 funding from: General Assembly appropriations, debt service savings when General Fund tax-supported debt service falls below 4% of revenues, and 25% of unreserved fund balance surplus each fiscal year.

Reserve funds can only be transferred to reduce unfunded liabilities in the Health Benefit Fund or Retirement System, with transfers required by the end of the next fiscal year after funds enter the reserve.

Transfers from the reserve are prohibited from replacing regular employer contributions and cannot fund benefit enhancements enacted after July 1, 2017.

If House Bill 7 becomes law, directs transfer of debt refinancing savings and 15% of estimated state tax revenue growth to the Unfunded Liability Solvency Reserve, contingent on the Savings Reserve meeting its recommended balance level.