The board overseeing the Local Governmental Employees’ Retirement System (LGERS) has mandated an increase in the pension contribution rates that will affect local governments starting July 1. During their quarterly meeting on Thursday, trustees voted to raise the rates to 14.35% of compensation for non-law enforcement officers, up from 13.60%, and to 16.10% for law enforcement officers, up from 15.10%, as reported by the North Carolina Treasurer's Office.
As per details from a same announcement, the upward adjustment in rates comes in the wake of not only the 2008-2009 financial crisis and its subsequent effects on investment returns, but also because of significant salary increases for local government employees during and since the 2000-2001 pandemic. An established Employer Contribution Rate Stabilization Policy (ECRSP) dictated this decision, which aims to ensure that contributions remain actuarially sound.
Furthermore, the LGERS board has welcomed the Thomasville Tourism Commission as a new participating employer in the pension plan. The meeting also saw the appointment of several individuals to the Firefighters’ and Rescue Squad Workers’ Pension Fund Advisory Panel, including Dean Coward and Gary Whitman among others, with Mike Williams reprising his role on the panel.
Another aspect of the meeting included the TSERS board reviewing participation statistics, where it was found that in the 2024-25 school year, 54 of 213 charter schools participated in their retirement system. Despite nine schools having withdrawn from the system since 2016, six have settled their dues in full, leaving a collective balance of $3 million owed by the remaining three, according with a press release.
Among other actions, the board received reports on supplemental retiree insurance taken advantage of by 143,737 individuals for dental, 123,660 for vision, and 30,954 for identity theft coverage. They also discussed legislative updates of potential future impact, such as the proposed State Investment Modernization Act that would alter how investment decisions are made, potentially averting further increases in pension contribution rates for governments.
