North Carolina Retirement Systems, Raleigh, on Jan. 28 will consider whether to offer all current and future state employees a choice of participating in the $69.7 billion systems’ existing defined benefit plan or a new defined contribution plan, confirmed Heather Strickland, a system spokeswoman.
The type of DC plan hasn’t been determined.
Also to be considered are recommendations that future state employee hires be automatically enrolled in a supplemental DC plan and that the minimum full-benefit retirement age for all future hires except law enforcement officers be set at 55, Ms. Strickland said.
Under current state law, retirees can collect full benefits after 30 years of service, regardless of age.
The changes, proposed by a state commission created by the systems’ trustees, would require state legislative approval before they could go into effect, Ms. Strickland said.
The systems already offer 401(k) and 457 plans, and the new DC plan, if approved, could be managed and regulated in conjunction with the existing DC plans or the “state could develop and announce a request for proposals from financial service companies to serve as vendors in the new plan,” according to a report from the commission.