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NORTH CAROLINA A~$OCIATION OF'COU'NTY cOMMISSIoNERs 406 WACHOVIA 0UILDING P.O. BOX 1488 RALEIGH, NORTH CAROLINA 27602 TELEPHONE 919/8~2-2893 ~EHORANDUH TO: Chairmen, Boards of County Commissioners FROH: C. Ronald A¥cock, Executive Director DATE: b!arch ?, 1978 RE: Proposed Changes in Local Governmental Employees' Retirement System Following is a summary of a_~ ro~ changes and ~ c~anges in.the Locai Gover~m~Emp~yees' Re~iremen~ System which are identical to the changes made in the State Employees' System by the 1977 General Assembly. These changes in the Local System will raise retirement benefits for local governmental employees to the same level as for state employees. Advocates suggept the changes s~ould be made as soon as possible for two reasons: tO keep the local System competitive ~ith~ the State system, allo~ing complete transferability between Systems; and, to attract nongovern~ mental employees into local government jobs. One.change has already been approved by the Board of Trustees of the Local Governmental Employees' Retirement System (meeting on January 2?, 1978). The Board granted a 4% cost-of~living zncrease effective July 1, 19~8, to retired local members who were on retirement rolls as of July 1, 1977. This 4% cost:of-living increase will be financed by additional funds which have been made available as a result of changing the assumption rate for interest earned to 6% (up from 5%) and new salary scales. No increase in ~ contribution is necessary to sup~r~~-~st-o±-lzving increase. N~te that the Board of Trustees is authorized by law to make this kind of change ~ithout the approval of the Legislature; the Board is not authorized to make any of the following proposed changes ~til they are specifically approved by the Legislature.