The boards overseeing the North Carolina public pension plans Friday rejected proposals to offer employees a choice between a pension and a 401-K plan.
But their decision, which is only a recommendation, will only kick the issue over to the new Republican legislature, where there is considerable support for moving to a 401-K type retirement system.
“I think you will see some time during this session discussion, if not action, on that issue and see if there is a way to move to a defined contribution plan,” Senate leader Phil Berger told reporters.
The boards of trustees of the Teachers' and State Employees' Retirement System and the Local Governmental Employees' Retirement System rejected the idea of offering a choice between a pension and a 401-K type plan.
State Treasurer Janet Cowell said the boards thought it was an issue that it was more appropriate for the legislature to deal with.
Speaking in opposition to the proposals were representatives of the State Employees Association of North Carolina and the N.C. Association of Educators.
The boards also rejected a proposal recommending a minimum unreduced retirement age of 55 for state and local employees and teachers.
Those votes came in response to a set of recommendations crated by the Future of Retirement Study Commission.
The trustees did vote to recommend automatic enrollment of future employees into supplmental savings plans that would encourage more personal savings.
