Senate Bill 668 Summary

• Authorizes employer contribution rate adjustments for contribution-based benefit cap (CBBC) liabilities beginning 90 days after assessment, using amortization schedules applied to unfunded liabilities, effective July 1, 2022.

• Modifies responsibility for CBBC payments when a member's final employer differs from the employer used for average final compensation calculations, directing payments to employers who reported compensation during the calculation period rather than only the final employer.

• Adjusts the formula for calculating reduced retirements subject to CBBC by using membership service years instead of creditable service years and excluding optional allowance adjustments.

• Implements a one-year litigation pause (through June 30, 2022) prohibiting local boards of education from filing legal actions against the State regarding CBBC, with tolled statutes of limitations during this period.

• Establishes a working group convened by the Department of State Treasurer and N.C. School Boards Association to review the CBBC and report findings by April 1, 2022, and requires local school units to notify the Local Government Commission 15 days before issuing financing arrangement requests.