NC H763

Establishes "COLA-eligible members" category for teachers and state employees who did not earn membership service prior to July 1, 2021, or who withdrew prior service.

Sets lower benefit accrual rate of 1.5% for COLA-eligible members compared to 1.82% for non-COLA-eligible members in the service retirement allowance calculation.

Creates a separate pension distribution fund for COLA-eligible members with an annual valuation mechanism that automatically adjusts all benefits up or down to match fund assets, with no retiree benefit reduced below the amount due if no adjustments had been made.

Requires the Board of Trustees to develop a process by June 30, 2021, allowing teachers and state employees who became members before July 1, 2021, to elect to participate as COLA-eligible members.

Effective date is July 1, 2021, except for the process development requirement which takes effect upon enactment.