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· ' STATE OF NORTH CAROLINA DEPARTMENT OF STATE TREASURER RETIREMENT AND HEALTH BENEFITS DIVISION April 18, 1980 MEMORANDUM TO: Chief Financial Officers Employer Reporting Units of the Law Enforcement Officers' Benefit and Retirement Fund FROM: E.T. Barnes SUBJECT: Law Enforcement Officers' Benefit and Retirement Fund Proposed Employer Contribution Rate for 1980-81 Budget Based upon th'e present level of benefits, the employer contribution rate for the Law Enforcement Officers' Benefit and Retirement Fund muss be increased. by .30% to a new rate of 4.10% effective July 1, 1980. This contribution rate, which is subject to our compliance with the provisions of the Administrative Procedures Act and final approval by the Board of Commissioners, is the result of the actuarial valuation of the Fund for the year ended December 31, 1978. The reasons for this .30% increase are as follows: 1. insufficient contributions to the Fund in past years; 2. a decrease in the value of court cost receipts expressed in a percentage of payroll as a result ofinflation; and, 3. an increase in liabilities caused by a~ underestimate of assumed rates of mortaility. State departments, agencies and institutions with law enforcement officers paid from the State's General or Highway Funds need take no action with regard to this notice and should wait for instructions from the Office of State Budget. State agencies with law enforcement officers paid in whole or in part from funds other than the General or Highway Funds should anticipate this rate increase in preparing their 1980-81 budgets. Local governments with law enforcement officers participating in the Fund should also anticipate this rate increase i~ preparing their 1980-81 budgets. This .30% employer contribution rate should be used for budget planning purposes and is a tentative increase subject, in part, to legislative appropriations. In addition, a further employer contribution rate increase or change might be required if the General Assembly enacts benefit increases and alternate funding (OVER)