Department of State Treasurer Dogwood Conference Room, 1 st Floor 3200 Atlantic Avenue Raleigh, NC I. Call to Order Dale R. Folwell, CPA, Chair

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TEACHERS AND STATE EMPLOYEES RETIREMENT SYSTEM & LOCAL GOVERNMENTAL EMPLOYEES RETIREMENT SYSTEM BOARD OF TRUSTEES MEETING State Treasurer Thursday, January 25, 2018 9:30 a.m. Teleconference Information: (866) 434-5269, Access code: 6936334 LOCATION: Department of State Treasurer Dogwood Conference Room, 1 st Floor 3200 Atlantic Avenue Raleigh, NC 27604 Agenda Item Presenter GENERAL BUSINESS (9:30 a.m. 11:00 a.m.) I. Call to Order II. III. IV. Ethics Awareness and Identification of Conflicts or Potential Conflicts of Interest Teachers and State Employees Retirement System Minutes from the October 26, 2017, Meeting (Attachment: State Minutes) ACTION REQUIRED: Approval of Minutes (State) Special Meeting of the Teachers and State Employees Retirement System Minutes from the December 4, 2017 Meeting (Attachment: Special State Minutes) ACTION REQUIRED: Approval of Minutes (State) V. Local Governmental Employees Retirement System Minutes from the October 26, 2017, Meeting (Attachment: Local Minutes) ACTION REQUIRED: Approval of Minutes (Local) - 1 -

VI. VII. Special Meeting of the Local Governmental Employees Retirement System Minutes from the December 4, 2017 Meeting (Attachment: Special Local Minutes) ACTION REQUIRED: Approval of Minutes (Local) RSD Operations Update (Attachment: Operations Update) RSD Deputy Directors VIII. Update on the Investment Advisory Committee (IAC) Meetings Lentz Brewer and Greg Patterson, IAC Members IX. Legislative Enactment Implementation Arrangement (LEIA) (Attachment: LEIA) RSD X. Decennial Rules Review Final Report (Attachment: Decennial Rules Report) ACTION REQUIRED: Approval of Decennial Rules Review Final Report (State) Christina Strickland, RSD General Counsel XI. ACTION REQUIRED: Approval of Decennial Rules Review Final Report (Local) Increase in the Amount of Reemployment Earnings Before Suspension of Retirement Allowance (Attachment: Reemployment Earnings) ACTION REQUIRED: Approval of Increase STATE SYSTEM (11:00 a.m. Noon) XII. XIII. XIV. Actuarially Determined Employer Contribution (ADEC) Projections for State System (Attachment: SS 1) Presentations on the 2018 Fiscal Year Alternatives for the General Assembly for: Teachers and State Employees Retirement System Legislative Retirement System Consolidated Judicial Retirement System Disability Income Plan of North Carolina Budget Recommendations for National Guard Working Lunch/Closed Session (Tryon Conference Room) Pursuant to N.C.G.S. 143-318.11(a)(3) ACTION REQUIRED: Vote to close the meeting pursuant to N.C.G.S. 143-318.11(a)(3) to consult with legal counsel regarding pending litigation involving the Johnston, Wilkes, Union and Cabarrus Boards of Education (State Board) ACTION REQUIRED: Vote to reopen meeting Michael Ribble and David Driscoll, Conduent Jody Newsome, NC DOJ, Special Deputy Attorney General - 2 -

LOCAL SYSTEM (Noon 1:00 p.m.) XV. XVI. XVII. XVIII. Actuarially Determined Employer Contribution (ADEC) Projections for Local System (Attachment: LS 1) Presentations on the 2018 Fiscal Year Alternatives for the Local Governmental Employees Retirement System Board for: Local Governmental Employees Retirement System Firefighters and Rescue Squad Workers Pension Fund Register of Deeds Supplemental Pension Fund Court Cost Offset for Law Enforcement Officers (Attachment: LS 3) Application of qualified political subdivision of the State to become participating employer with the System (Attachment: LS 4) Town of Micro Valdese ABC Board ACTION REQUIRED Approval of New Local Employer Michael Ribble and David Driscoll, Conduent STATE AND LOCAL ESTABLISH RATES/DESIGNATE AN ACTUARY (1:00 p.m. 2:00 p.m.) XIX. Public comment please sign in. Dale R. Folwell, CPA XX. Setting of 2018 Employer Contribution Rates and making recommendations to the North Carolina General Assembly for: 1. TSERS Employer Contribution Rate (State) ACTION REQUIRED Decision on TSERS 2. LRS Employer Contribution Rate (State) ACTION REQUIRED Decision on LRS 3. CJRS Employer Contribution Rate (State) ACTION REQUIRED Decision on CJRS 4. DIPNC Employer Contribution Rate (State) - 3 -

XXI. ACTION REQUIRED Decision on DIPNC 5. National Guard Appropriation Recommendation (State) ACTION REQUIRED Decision on National Guard 6. LGERS Employer Contribution Rate (Local) ACTION REQUIRED Decision on LGERS 7. Firefighters and Rescue Squad Workers Pension Fund Appropriation Recommendation (Local) ACTION REQUIRED Decision on Fire and Rescue 8. Register of Deeds Supplemental Pension Fund Appropriation Recommendation (Local) ACTION REQUIRED Decision on Register of Deeds Pursuant to NCGS 135-6 (l) and 128-28(m), the TSERS Board and the LGERS Board shall designate an actuary who shall be the technical advisor of the Board ACTION REQUIRED Approve the designation of the Boards Actuary for TSERS ACTION REQUIRED Approve the designation of the Boards Actuary for LGERS BOARDS OF TRUSTEES COMMENTS STAFF COMMENTS APPENDIX 2017 NC Comprehensive Annual Financial Report Charter School Financial Review Board Members DATES OF FUTURE MEETINGS Thursday, April 26, 2018 at 9:30 a.m. EST Thursday, July 26, 2018 at 9:30 a.m. EST Thursday, October 25, 2018 at 9:30 a.m. EST ADJOURNMENT (2:00 p.m.) Agenda times are tentative, subject to change and are for Board use only. - 4 -

Questions relating to items on the Agenda should be addressed to the Department of State Treasurer, Retirement Systems Division by email at tsersboard@nctreasurer.com or lgersboard@nctreasurer.com. - 5 -