Bill Text: NC H358 | 2013-2014 | Regular Session | Chaptered
Bill Title: Retirement Technical Corrections.-AB
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Passed) 2013-07-18 - Ch. SL 2013-288 [H358 Detail]
Download: North_Carolina-2013-H358-Chaptered.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
SESSION LAW 2013-288
HOUSE BILL 358
AN ACT to make technical and conforming changes to the statutes affecting the state retirement systems.
The General Assembly of North Carolina enacts:
SECTION 1.(a) G.S. 143‑166.30(d) reads as rewritten:
"(d) Supplemental Retirement Income Plan for State Law‑Enforcement Officers. – As of January 1, 1985, there shall be created a Supplemental Retirement Income Plan, hereinafter called the "Plan," established for the benefit of all law‑enforcement officers employed by the State, who shall be participants. The Board of Trustees of the State Retirement System shall administer the Plan and shall, under the terms and conditions otherwise appearing herein, provide Plan benefits either (i) by establishing a separate trust fund in conformance with Section 401(a), Section 401(k) or other sections of the Internal Revenue Code of 1954 as amended or, (ii) by causing the Plan to affiliate with some master trust fund providing the same benefits for participants. The Plan shall be separate and apart from any retirement systems.
In addition to the contributions
transferred from the Law‑Enforcement Officers' Retirement System and the
contributions otherwise provided for in this Article, participants may make
voluntary contributions to the Plan to be credited to the designated individual
accounts of participants; provided, in no instance shall the total
contributions by a participant exceed ten percent (10%) of a participant's
compensation within any calendar year.participants.
All contributions to the Plan shall be credited to the individual accounts of participants, and except as provided in subsection (g1) of this section, shall be fully and immediately vested in the name of the participant, and shall be invested according to each participant's election, as provided by the Board of Trustees, including but not limited to time deposits, and both fixed and variable investments. The Plan may provide for loans to participants, at reasonable rates of interest to be charged, from participants' individual accounts, and may provide for withdrawal of contributions on account of hardship.
The benefit to a participant in the Plan shall be either a lump‑sum distribution or a distribution in periodic installments of the participant's account payable under retirement, disability, or termination of employment. Upon the death of a participant there shall be paid the same lump‑sum distribution or periodic installments to the surviving spouse of the participant or otherwise to the participant's estate; provided, should a participant instruct the Board of Trustees in writing that he does not wish these benefits to be paid to his spouse or estate, then the benefits shall be paid to the person or persons as the participant may name for this purpose.
Upon retirement, a participant in the Plan may elect to transfer any portion of his eligible accumulated contributions, not including any Roth after‑tax contributions and the earnings thereon, to the Teachers' and State Employees' Retirement System and receive, in addition to his basic service, early or disability retirement allowance a special retirement allowance which shall be based on his eligible accumulated account balance at the date of the transfer of the assets."
SECTION 1.(b) G.S. 143‑166.50(e) reads as rewritten:
"(e) Supplemental
Retirement Income Plan for Local Governmental Law‑Enforcement Officers. –
As of January 1, 1986, all law‑enforcement officers employed by a local
government employer, are participating members of the Supplemental Retirement
Income Plan as provided by Article 5 of Chapter 135 of the General Statutes. In
addition to the contributions transferred from the Law‑Enforcement
Officers' Retirement System, participants may make voluntary contributions to
the Supplemental Retirement Income Plan to be credited to the designated individual
accounts of participants; provided, in no instance shall the total
contributions by a participant exceed ten percent (10%) of a participant's
compensation within any calendar year.participants. From July 1,
1987, until July 1, 1988, local government employers of law enforcement
officers shall contribute an amount equal to at least two percent (2%) of
participating local officers' monthly compensation to the Supplemental
Retirement Income Plan to be credited to the designated individual accounts of
participating local officers; and on and after July 1, 1988, local government
employers of law enforcement officers shall contribute an amount equal to five
percent (5%) of participating local officers' monthly compensation to the
Supplemental Retirement Income Plan to be credited to the designated individual
accounts of participating local officers.
Additional contributions shall also be made to the individual accounts of all participants in the Plan, except for Sheriffs, on a per capita equal‑share basis from the sum of one dollar and twenty‑five cents ($1.25) for each cost of court collected under G.S. 7A‑304.
Upon retirement, a participant in the Plan may elect to transfer any portion of his eligible accumulated contributions, not including any Roth after‑tax contributions and the earnings thereon, to the Local Governmental Employees' Retirement System and receive, in addition to his basic service, early or disability retirement allowance a special retirement allowance which shall be based on his eligible accumulated account balance at the date of the transfer of the assets."
SECTION 2.(a) G.S. 128‑26(a) reads as rewritten:
"(a) Each person who becomes a member during the first year of his or her employer's participation, and who was an employee of the same employer at any time during the year immediately preceding the date of participation, shall file a detailed statement of all service rendered by him or her to that employer prior to the date of participation for which he or she claims credit.
A participating employer may allow prior service credit to any of its employees on account of: their earlier service to the aforesaid employer; or, their earlier service to any other employer as the term employer is defined in G.S. 128‑21(11); or, their earlier service to any state, territory, or other governmental subdivision of the United States other than this State.
A participating employer may allow prior service credit to any of its employees on account of service, as defined in G.S. 135‑1(23), to the State of North Carolina to the extent of such service prior to the establishment of the Teachers' and State Employees' Retirement System on July 1, 1941; provided that employees allowed such prior service credit pay in a total lump sum an amount calculated on the basis of compensation the employee earned when the employee first entered membership and the employee contribution rate at that time together with interest thereon from year of first membership to year of payment shall be one half of the calculated cost.
(a1) With respect to a member retiring on or after July 1, 1967, the governing board of a participating unit may allow credit for any period of military service in the Armed Forces of the United States if the person returned to the service of the person's employer within two years after having been honorably discharged, or becoming entitled to be discharged, released, or separated from such the Armed Forces of the United States; provided that, notwithstanding the above provisions, any member having credit for not less than 10 years of otherwise creditable service may be allowed credit for such military services which are not creditable in any other governmental retirement system; provided further, that a member will receive credit for military service under the provisions of this paragraph only if the member submits satisfactory evidence of the military service claimed and the participating unit of which the member is an employee agrees to grant credit for such military service prior to January 1, 1972.
A member retiring on or after July
1, 1971, who is not granted credit for military service under the provisions of
the preceding paragraph will be allowed credit for any period of qualifying
service in the Armed Forces of the United States up to the date the
member was first eligible to be separated or released therefrom; States,
as defined for purposes of reemployment rights under federal law, provided
that the member was an employee as defined in G.S. 128‑21(10) at the
time the member entered military service, and either of (i) the
returning member is in service, with the employer by whom the member was
employed when the member entered military service, for a period of not less
than 10 years after the member is separated or released from that military service
under other than dishonorable conditions or (ii) the following conditions is
met:are met, in the conjunctive:
(1) The member
returns to service, with the employer by whom the member was employed when the
member entered military service, within a period of two years after the member
is first eligible to be separated or released from such military service under
other than dishonorable conditions.
(2) The member is
in service, with the employer by whom the member was employed when the member
entered military service, for a period of not less than 10 years after the
member is separated or released from the Armed Forces of the United States
under other than dishonorable conditions.
(1) The member did not, prior to leaving for military service, provide clear written notice of an intent not to return to work after military service.
(2) The member was discharged from uniformed service and returned from the leave of absence for uniformed service to membership service in this system within the time limit mandated by federal law for reporting back to work.
(3) The period of uniformed service, for which additional service credit is sought, has been verified by suitable documentation and is not eligible for receipt of benefits under any other retirement system or pension plan.
(4) All service credit forfeited by a refund pursuant to the provisions of G.S. 128‑27(f) has been purchased.
The uniformed service credit allowed under this subsection shall be limited to a maximum of five years unless otherwise specifically exempted from that durational limitation by federal law. The salary or compensation of such an employee during the period of qualifying military service shall be deemed to be that salary or compensation the employee would have received but for the period of service had the employee remained continuously employed, if the determination of that salary or compensation is reasonably certain. If the determination of the salary or compensation is not reasonably certain, then it shall be deemed to be that employee's average rate of compensation during the 12‑month period immediately preceding the period of service.
Pursuant to 38 U.S.C. § 4318(b)(1), when a member who has been on military leave returns to work consistent with the provisions of this subsection concerning return to service within two years after the member's earliest eligibility for separation or release from military service, then the member's employer must remit to the System all the employer contributions for the full period of that member's military service."
SECTION 3.(a) G.S. 135‑1(14) reads as rewritten:
"(14) "Membership
service" shall mean service as a teacher or State employee rendered while
a member of the Retirement System.System or membership service in a
North Carolina Retirement System that has been transferred into this system."
SECTION 3.(b) G.S. 128‑21(14) reads as rewritten:
"(14) "Membership
service" shall mean service as an employee rendered while a member of the
Retirement System.System or membership service in a North Carolina
Retirement System that has been transferred into this system."
SECTION 4.(a) G.S. 135‑1(20) reads as rewritten:
"(20) "Retirement"
under this Chapter means the commencement of monthly
retirement benefits along with termination of employment and the complete
separation from active service with no intent or agreement, express or implied,
to return to service. A retirement allowance under the provisions of this
Chapter may only be granted upon retirement of a member. In order for a member's
retirement to become effective in any month, the member must render no
service, perform no work for an employer, including part‑time,
temporary, substitute, or contractor service, work, at any time
during the six months immediately following the effective date of retirement.
For purposes of this subdivision, service working as a member of
a school board or as an unpaid bona fide volunteer in a local school
administrative unit shall not be considered service. A member who is a full‑time
faculty member of The University of North Carolina may effect a retirement
allowance under this Chapter, notwithstanding the six‑month requirement
above, provided the member immediately enters the University's Phased
Retirement Program for Tenured Faculty as that program existed on May 25, 2011."
SECTION 4.(b) G.S. 128‑21(19) reads as rewritten:
"(19) "Retirement"
under this Article shall mean withdrawal the
commencement of monthly retirement benefits, along with the termination of
employment and the complete separation from active service with a
retirement allowance granted under the provisions of this Article. no
intent or agreement, expressed or implied, to return to service. A
retirement allowance under the provisions of this Chapter Article
may only be granted upon retirement of a member. In order for a member's
retirement to become effective in any month, the member must render no
service, perform no work for a participating employer, including part
time, part‑time, temporary, substitute, or contractor service,
work, at any time during the same month immediately following
the effective date first day of retirement."
SECTION 4.(c) G.S. 135‑53(16) reads as rewritten:
"(16) "Retirement"
under this Chapter shall mean the withdrawal commencement of
monthly retirement benefits, along with the termination of employment and the
complete separation from active service with a retirement allowance
granted under the provisions of this Chapter. no intent or agreement,
expressed or implied, to return to service. A retirement allowance under the
provisions of this Chapter may only be granted upon retirement of a member.
In order for a member's retirement to become effective in any month, the member
must render no service perform no work, including part‑time,
temporary, substitute, or contractor work, at any time during that
month.the same month immediately following the effective first day of
retirement."
SECTION 5. G.S. 135‑5.1(b) reads as rewritten:
"(b) Participation in the Optional Retirement Program shall be governed as follows:
…
(2) Eligible employees initially appointed on or after July 1, 1985, shall at the same time of entering upon eligible employment elect (i) to join the Retirement System in accordance with the provisions of law applicable thereto or (ii) to participate in the Optional Retirement Program. This election shall be in writing and filed with the Retirement System and with the employing institution and shall be effective as of the date of entry into eligible service. For purposes of this provision, the Optional Retirement Program shall be permitted to file individual election forms with the Retirement System using electronic transmission.
…."
SECTION 6. G.S. 135‑105(d) reads as rewritten:
"(d) The provisions of this section shall be administered by the employer and further, the benefits during the first six months of the short‑term disability period shall be the full responsibility of and paid by the employer; Provided, further, that upon the completion of the initial six months of the short‑term disability period, the employer will continue to be responsible for the short‑term benefits to the participant, however, such employer shall notify the Plan, at the conclusion of the short‑term disability period or upon termination of short‑term disability benefits, if earlier, of the amount of short‑term benefits and State Health Insurance premiums paid by the employer and the Plan shall reimburse the employer the amounts so paid."
SECTION 7. G.S. 135‑106(d) reads as rewritten:
"(d) Notwithstanding the
foregoing, a participant or beneficiary who has applied for and been approved
by the Medical Board for long‑term disability benefits may make an
irrevocable election, within 90 days from the date of notification of such
approval, and prior to receipt of any long‑term disability benefit
payments, to forfeit all pending and accrued rights to the long‑term
disability benefit including any ancillary benefits and retire on an early
service retirement allowance allowance, effective with the first day
of the month following the end of the short‑term period, or receive a
return of accumulated contributions from the Retirement System."
SECTION 8. G.S. 135‑111 reads as rewritten:
"§ 135‑111. Applicability of other pension laws.
Subject to the provisions of this
Article, the provisions of G.S. 135‑9, entitled "Exemption from
taxes, garnishment, attachment, etc."; G.S. 135‑10, entitled "Protection
against fraud"; G.S. 135‑10.1, entitled "Failure to
Respond"; G.S. 135‑18.11, entitled "Improper receipt of
decedent's retirement allowance or disability benefit"; and G.S. 135‑17,
entitled "Facility of payment" shall be applicable to this Article
and to benefits paid pursuant to the provisions of this Article."
SECTION 9.(a) Article 6 of Chapter 135 of the General Statutes is amended by adding a new section to read:
"§ 135‑111.1. Improper receipt of decedent's Disability Income Plan allowance.
A person is guilty of a Class 1 misdemeanor if the person, with the intent to defraud, receives money as a result of cashing, depositing, or receiving a direct deposit of a decedent's Disability Income Plan allowance and the person (i) knows that he or she is not entitled to the decedent's Disability Income Plan allowance, (ii) receives the benefit at least two months after the date of the beneficiary's death, and (iii) does not attempt to inform this Retirement System of the beneficiary's death."
SECTION 9.(b) G.S. 135‑18.11 reads as rewritten:
"§
135‑18.11. Improper receipt of decedent's retirement allowance.allowance
or disability benefit.
A person is guilty of a Class 1
misdemeanor if the person, with the intent to defraud, receives money as a
result of cashing, depositing, or receiving a direct deposit of a decedent's
retirement allowance or a decedent's monthly benefit under the Disability
Income Plan of North Carolina and the person (i) knows that he or she is
not entitled to the decedent's retirement allowance, allowance or the
monthly disability benefit, (ii) receives the benefit at least two months
after the date of the retiree's or beneficiary's death, and (iii) does
not attempt to inform this Retirement System of the retiree's or beneficiary's
death."
SECTION 9.(c) G.S. 128‑38.5 reads as rewritten:
"§ 128‑38.5. Improper receipt of decedent's retirement allowance.
A person is guilty of a Class 1 misdemeanor if the person, with the intent to defraud, receives money as a result of cashing, depositing, or receiving a direct deposit of a decedent's retirement allowance and the person (i) knows that he or she is not entitled to the decedent's retirement allowance, (ii) receives the benefit at least two months after the date of the retiree's or beneficiary's death, and (iii) does not attempt to inform this Retirement System of the retiree's or beneficiary's death."
SECTION 9.(d) G.S. 135‑75.2 reads as rewritten:
"§ 135‑75.2. Improper receipt of decedent's retirement allowance.
A person is guilty of a Class 1 misdemeanor if the person, with the intent to defraud, receives money as a result of cashing, depositing, or receiving a direct deposit of a decedent's retirement allowance and the person (i) knows that he or she is not entitled to the decedent's retirement allowance, (ii) receives the benefit at least two months after the date of the retiree's or beneficiary's death, and (iii) does not attempt to inform this Retirement System of the retiree's or beneficiary's death."
SECTION 9.(e) G.S. 120‑4.34 reads as rewritten:
"§ 120‑4.34. Improper receipt of decedent's retirement allowance.
A person is guilty of a Class 1 misdemeanor if the person, with the intent to defraud, receives money as a result of cashing, depositing, or receiving a direct deposit of a decedent's retirement allowance and the person (i) knows that he or she is not entitled to the decedent's retirement allowance, (ii) receives the benefit at least two months after the date of the retiree's or beneficiary's death, and (iii) does not attempt to inform this Retirement System of the retiree's or beneficiary's death."
SECTION 10. G.S. 143‑166.2(d) reads as rewritten:
"(d) The term "law‑enforcement
officer", "officer", or "fireman" shall mean a sheriff
and all law‑enforcement officers employed full‑time, permanent part‑time,
or temporarily by a sheriff, the State of North Carolina or any county or
municipality thereof, whether paid or unpaid; and all full‑time custodial
employees and probation and parole officers of the Division of Adult Correction
of the Department of Public Safety; and all full time institutional and full‑time,
permanent part‑time, and temporary detention employees of the Division of
Juvenile Justice of the Department of Public Safety and full‑time,
permanent part‑time, and temporary detention officers employed by any
sheriff, county or municipality, whether paid or unpaid. The term "firemen"
shall mean both "eligible firemen" as defined in G.S. 58‑86‑25
Article 86 of Chapter 58 of the General Statutes, notwithstanding any
age requirements set out in that Article, and all full‑time,
permanent part‑time and temporary employees of the Division of Forest
Resources, Department of Agriculture and Consumer Services, during the time
they are actively engaged in fire‑fighting activities; and shall mean all
full‑time employees of the North Carolina Department of Insurance during
the time they are actively engaged in fire‑fighting activities, during
the time they are training fire fighters or rescue squad workers, and during
the time they are engaged in activities as members of the State Emergency
Response Team, when the Team has been activated; and shall mean all otherwise
eligible persons who, while actively engaged as firefighters or rescue squad
workers, are acting in the capacity of a fire or rescue instructor outside
their own department or squad. The term "rescue squad worker" shall
mean a person who is dedicated to the purpose of alleviating human suffering
and assisting anyone who is in difficulty or who is injured or becomes suddenly
ill by providing the proper and efficient care or emergency medical services.
In addition, this person must belong to an organized rescue squad which is
eligible for membership in the North Carolina Association of Rescue Squads, and
Emergency Medical Services, Inc., and the person must have attended a
minimum of 36 hours of training and meetings in the last calendar year.
Each rescue squad belonging to the North Carolina Association of Rescue Squads,
and Emergency Medical Services, Inc., must file a roster of those
members meeting the above requirements with the State Treasurer on or about January
1 January 31 of each year, and this roster must be certified to by
the secretary of said association. In addition, the term "rescue squad
worker" shall mean a member of an ambulance service certified by the
Department of Health and Human Services pursuant to Article 7 of Chapter 131E
of the General Statutes. The Department of Health and Human Services shall
furnish a list of ambulance service members to the State Treasurer on or about January
1 January 31 of each year. The term "Civil Air Patrol members"
shall mean those senior members of the North Carolina Wing‑Civil Air
Patrol 18 years of age or older and currently certified pursuant to G.S. 143B‑1031.
The term "fireman" shall also mean county fire marshals when engaged
in the performance of their county duties. The term "rescue squad worker"
shall also mean county emergency services coordinators when engaged in the
performance of their county duties."
SECTION 11. G.S. 128‑26(x) reads as rewritten:
"(x) If a member who is
in service and has not vested in this System on December 1, 2012, is convicted
of an offense listed in G.S. 126‑38.5 128‑38.4A
for acts committed after December 1, 2012, then that member shall forfeit all
benefits under this System, except for a return of member contributions plus
interest. If a member who is in service and has vested in this System on
December 1, 2012, is convicted of an offense listed in G.S. 126‑38.5
128‑38.4A for acts committed after December 1, 2012, then that
member is not entitled to any creditable service that accrued after December 1,
2012."
SECTION 12. Section 9 of this act becomes effective December 1, 2013, and applies to acts committed on or after that date. The remainder of this act becomes effective July 1, 2013.
In the General Assembly read three times and ratified this the 9th day of July, 2013.
s/ Daniel J. Forest
President of the Senate
s/ Thom Tillis
Speaker of the House of Representatives
s/ Pat McCrory
Governor
Approved 6:15 p.m. this 18th day of July, 2013
