House Bill 1056 Summary

• Allows law enforcement officers and other members to transfer accumulated contributions from supplemental retirement plans to the Teachers' and State Employees' Retirement System or Local Governmental Employees' Retirement System, with the Board of Trustees authorized to reverse transfers made on or after July 1, 2022, if the member was ineligible or the election was impermissible under federal or state law.

• Establishes procedures for designating employers as inactive when they have no qualifying employees, make no contributions for at least one month, and request inactive status; inactive employers who fail to resume reporting employees or extend their status by October 1 of each year must cease participation in the retirement system.

• Creates a default option allowing the Department of State Treasurer and Supplemental Retirement Board of Trustees to transfer remaining 403(b) plan assets to an individual retirement account when participating school boards or community colleges fail to designate another investment provider upon discontinuation of the North Carolina Public School Teachers' and Professional Educators' Investment Plan.

• Clarifies that public safety employees' line of duty death benefits are non-assignable and shall only be paid to the beneficiary, their parent, or legal guardian, except as allowed by specific statutory provisions.

• Requires property finder agreements to be signed by a licensed private investigator authorized to bind the property finder, with signature notarized; modifies Local Government Commission approval standards for borrowing contracts by local school administrative units and community colleges.