NC H1084

Requires employers in the Teachers' and State Employees' Retirement System and Local Governmental Employees' Retirement System to pay the full cost of omitted membership service when the omission is discovered three or more years after occurring and the employer acknowledges the error in writing.

Establishes a three-tier payment structure for members omitted from retirement contributions: within 90 days requires payment of standard contributions only; between 90 days and three years requires contributions plus compounded interest; after three years requires full actuarial cost including assumed post-retirement allowance increases.

Allows employers to pay the full actuarial cost either as a lump sum or by increasing accrued liability contributions over the remainder of the accrued liability period, or if fully satisfied, by amortizing over a period not to exceed ten years.

Specifies that employer-paid costs are credited to the pension accumulation fund while member-paid costs are credited to the member's annuity savings account, and prohibits employers from discriminating against members in payment decisions.

Becomes effective July 1, 2022, and applies to erroneously omitted membership service discovered on or after that date.