NC H626

Requires the Teachers' and State Employees' Retirement System Board of Trustees to provide the General Assembly and Governor a comprehensive stress-testing report prior to each five-year actuarial review, including 30-year projections under current assumptions and alternative scenarios with investment returns 2-4 percentage points below assumptions.

Mandates the report include scenario analysis assuming a 20% one-year investment loss followed by 20 years of below-plan returns, with employer contributions capped at 15% of projected general revenue and held constant under stress scenarios.

Requires disclosure of investment return assumptions, amortization periods, actuarial asset valuations compared to market values, and alternative liability calculations using discount rates 2-4 percentage points above and below the assumed return rate.

Allows the Pension Solvency Fund to receive rebates from supplemental voluntary insurance benefit administrators that are not needed for future administrative costs, as determined by the Board of Trustees.

Modifies health benefit fund balance provisions to prioritize reserves for incurred but unpresented claims, allows 50% of excess balances to transfer to retiree health benefits, and prevents fund balances from reverting to the General Fund.

Extends charter school Teachers' and State Employees' Retirement System withdrawal liability lien priority over nongovernmental liens through June 14, 2023, with full three-year completion period for payment plans initiated before that date.

Becomes effective July 1, 2019.