North Carolina House Passes Bill to Allow Part-Time State Workers to Join 401(k) Plan
Are you a part-time worker for the state of North Carolina? If so, you may soon have the opportunity to participate in North Carolina’s 401(k) retirement savings plan. A bill recently passed the House of Representatives and is now pending in the Senate, which could open up new retirement savings options for part-time employees.
State treasurer Dale Folwell has been a strong advocate for this legislation, citing the need to make it easier for the state to recruit part-time workers. With a change in federal law allowing states to expand 401(k) participation to part-time employees, North Carolina is taking advantage of this opportunity to provide more retirement savings options for its workforce.
In addition to the 401(k) plan, there are two other bills in the works aimed at increasing the efficiency of the state’s pension system. House Bill 989, for example, reorganizes and standardizes the rules and procedures for employees who have worked at other government agencies to purchase credit for their work in the North Carolina pension plan. These changes not only simplify the process for employees but also reduce the costs of administering the pension plan.
By streamlining the rules and procedures for purchasing credits, the state hopes to eliminate confusion and make it easier for human resources departments to understand and administer the pension plan. This, in turn, can help the state recruit employees who have worked at other government agencies, further strengthening the workforce.
Despite these changes, North Carolina’s pension plan remains strong and well-funded. In fact, it has been recognized as one of the best-funded pension plans in the United States, receiving back-to-back designations as the most efficient pension plan in the country.
So, if you’re a part-time worker for the state of North Carolina, these legislative changes could have a positive impact on your retirement savings options. Stay tuned for updates on the progress of these bills and how they could benefit you in the future.
