Bill Text: NC S687 | 2011-2012 | Regular Session | Amended
Bill Title: State Retirement Changes
Spectrum: Partisan Bill (Republican 3-0)
Status: (Introduced - Dead) 2011-04-20 - Ref To Com On Pensions & Retirement and Aging [S687 Detail]
Download: North_Carolina-2011-S687-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
S 1
SENATE BILL 687
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Short Title: State Retirement Changes. |
(Public) |
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Sponsors: |
Senators Apodaca, Brunstetter; and Brock. |
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Referred to: |
Pensions & Retirement and Aging. |
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April 20, 2011
A BILL TO BE ENTITLED
AN ACT to adjust the retirement age for members of the teachers' and state employees' retirement system who become members on or after august 1, 2011, to amend the definition of average final compensation for purposes of the teachers' and state employees' retirement system and the consolidated judicial retirement system, and to establish a special commission to study retirement and health benefits for teachers and state employees.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 135‑3(8) reads as rewritten:
"(8) The provisions of this subsection (8) shall apply to any member whose membership is terminated on or after July 1, 1963 and who becomes entitled to benefits hereunder in accordance with the provisions hereof.
a. Notwithstanding any other provision of this
Chapter, any member who became a member prior to August 1, 2011, and who
separates from service prior to the attainment of the age of 60 years for any
reason other than death or retirement for disability as provided in G.S. 135‑5(c),
after completing 15 or more years of creditable service, and who leaves his
total accumulated contributions in said System shall have the right to retire
on a deferred retirement allowance upon attaining the age of 60 years; provided
that such member may retire only upon electronic submission or written
application to the Board of Trustees setting forth at what time, not less than
one day nor more than 90 120 days subsequent to the execution and
filing thereof, he desires to be retired; and further provided that in the case
of a member who so separates from service on or after July 1, 1967, or whose
account is active on July 1, 1967, or has not withdrawn his contributions, the
aforestated requirement of 15 or more years of creditable service shall be
reduced to 12 or more years of creditable service; and further provided that in
the case of a member who so separates from service on or after July 1, 1971, or
whose account is active on July 1, 1971, the aforestated requirement of 12 or
more years of creditable service shall be reduced to five or more years of
creditable service. Such deferred retirement allowance shall be computed in
accordance with the service retirement provisions of this Article pertaining to
a member who is not a law enforcement officer or an eligible former law
enforcement officer. Notwithstanding the foregoing, any member whose services
as a teacher or employee are terminated for any reason other than retirement,
who becomes employed by a nonprofit, nonsectarian private school in North
Carolina below the college level within one year after such teacher or employee
has ceased to be a teacher or employee, may elect to leave his total
accumulated contributions in the Teachers' and State Employees' Retirement
System during the period he is in the employment of such employer; provided
that he files notice thereof in writing with the Board of Trustees of the
Retirement System within five years after separation from service as a public
school teacher or State employee; such member shall be deemed to have met the
requirements of the above provisions of this subdivision upon attainment of age
60 while in such employment provided that he is otherwise vested.
b. In lieu of the benefits provided in paragraph a of
this subdivision (8), any member who became a member prior to August 1, 2011,
and who separates from service prior to the attainment of the age of 60
years, for any reason other than death or retirement for disability as provided
in G.S. 135‑5(c), after completing 20 or more years of creditable
service, and who leaves his total accumulated contributions in said System, may
elect to retire on an early retirement allowance upon attaining the age of 50
years or at any time thereafter; provided that such member may so retire only upon
electronic submission or written application to the Board of Trustees setting
forth at what time, not less than one day nor more than 90 120 days
subsequent to the execution and filing thereof, he desires to be retired. Such
early retirement allowance so elected shall be equal to the deferred retirement
allowance otherwise payable at the attainment of the age of 60 years reduced by
the percentage thereof indicated below.
Age at Percentage
Retirement Reduction
59 7
58 14
57 20
56 25
55 30
54 35
53 39
52 43
51 46
50 50
b1. In lieu of the benefits provided in paragraphs a and
b of this subdivision, any member who became a member prior to August 1,
2011, and who is a law‑enforcement officer at the time of separation
from service prior to the attainment of the age of 50 years, for any reason
other than death or disability as provided in this Article, after completing 15
or more years of creditable service in this capacity immediately prior to
separation from service, and who leaves his total accumulated contributions in
this System may elect to retire on a deferred early retirement allowance upon
attaining the age of 50 years or at any time thereafter; provided, that the
member may commence retirement only upon electronic submission or written
application to the Board of Trustees setting forth at what time, as of the
first day of a calendar month, not less than one day nor more than 90 120
days subsequent to the execution and filing thereof, he desires to commence
retirement. The deferred early retirement allowance shall be computed in
accordance with the service retirement provisions of this Article pertaining to
law‑enforcement officers.
b2. In lieu of the benefits provided in paragraphs a and
b of this subdivision, any member who became a member prior to August 1,
2011, and who is a law‑enforcement officer at the time of separation
from service prior to the attainment of the age of 55 years, for any reason
other than death or disability as provided in this Article, after completing
five or more years of creditable service in this capacity immediately prior to
separation from service, and who leaves his total accumulated contributions in
this System may elect to retire on a deferred early retirement allowance upon
attaining the age of 55 years or at any time thereafter; provided, that the
member may commence retirement only upon electronic submission or written
application to the Board of Trustees setting forth at what time, as of the
first day of a calendar month not less than one day nor more than 90 120
days subsequent to the execution and filing thereof, he desires to commence
retirement. The deferred early retirement allowance shall be computed in
accordance with the service retirement provisions of this Article pertaining to
law‑enforcement officers.
b3. Vested deferred retirement allowance of members
retiring on or after July 1, 1994. – In lieu of the benefits provided in
paragraphs a. and b. of this subdivision, any member who became a member
prior to August 1, 2011, and who separates from service prior to attainment
of age 60 years, after completing 20 or more years of creditable service, and
who leaves his total accumulated contributions in said System, may elect to
retire on a deferred retirement allowance upon attaining the age of 50 years or
any time thereafter; provided that such member may so retire only upon
electronic submission or written application to the Board of Trustees setting
forth at what time, not less than one day nor more than 90 120 days
subsequent to the execution and filing thereof, he desires to be retired. Such
deferred retirement allowance shall be computed in accordance with the service
retirement provisions of this Article pertaining to a member who is not a law
enforcement officer or an eligible former law enforcement officer.
.…"
SECTION 2. G.S. 135‑5(a) reads as rewritten:
"(a) Service Retirement Benefits. –
(1) Any member who became a member prior to August 1, 2011, may retire upon electronic submission or written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month, not less than one day nor more than 120 days subsequent to the execution of and filing thereof, he desires to be retired: Provided, that the said member at the time so specified for his retirement shall have attained the age of 60 years and have at least five years of membership service or shall have completed 30 years of creditable service.
(1a) Any member who became a member on or after August 1, 2011, and who attains age 60 and has completed 30 years of creditable service or who attains age 70 and has completed 10 years of membership service may retire on an unreduced retirement benefit upon electronic submission or written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month, not less than one day nor more than 120 days subsequent to the execution of and filing thereof, the member desires to be retired. At the time specified for retirement, the member may retire on a reduced benefit upon attaining age 60 with 20 years of service or age 65 with 10 years of service.
(2) Repealed by Session Laws 1983 (Regular Session, 1984), c. 1019, s. 1.
(3) Any member who was in service October 8, 1981, who had attained 60 years of age, may retire upon electronic submission or written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month, not less than one day nor more than 120 days subsequent to the execution and filing thereof, he desires to be retired.
(4) Any member who is a law‑enforcement officer, and who attains age 50 and completes 15 or more years of creditable service in this capacity or who attains age 55 and completes five or more years of creditable service in this capacity, may retire upon electronic submission or written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month, not less than one day nor more than 120 days subsequent to the execution and filing thereof, he desires to be retired; Provided, also, any member who has met the conditions herein required but does not retire, and later becomes a teacher or an employee other than as a law‑enforcement officer shall continue to have the right to commence retirement.
(4a) Any member who has less than five years of membership service on July 31, 2011, who is a law enforcement officer and who attains age 55 and has completed 30 years of creditable service or who attains age 60 and completes 10 or more years of creditable service in this capacity may retire on an unreduced retirement benefit upon electronic submission or written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month, not less than one day nor more than 120 days subsequent to the execution and filing thereof, the member desires to be retired; provided, also, any member who has met the conditions herein required but does not retire and later becomes a teacher or an employee other than as a law enforcement officer shall continue to have the right to commence retirement.
(5) Any member who is eligible for and is being paid a benefit under the Disability Income Plan as provided in G.S. 135‑105 or G.S. 135‑106 shall be deemed a member in service and may not retire under the provisions of this section. Any member who has made electronic submission or written application for long‑term or extended short‑term benefits under the Disability Income Plan as provided in G.S. 135‑105 or G.S. 135‑106, and who has been rejected by the Plan's Medical Board for a long‑term or extended short‑term benefit shall have 90 days from the date of notification of the rejection to convert his application to an early or service retirement application, provided that the member meets the eligibility requirements, effective the first day of the month following the month in which short‑term disability benefits ended or the first day of the month following the month in which any salary continuation as may be provided in G.S. 135‑104 ended, whichever is later."
SECTION 3. G.S. 135‑5(a1) reads as rewritten:
"(a1) Early Service Retirement Benefits. – Any member who became a member prior to August 1, 2011, may retire and receive a reduced retirement allowance upon electronic submission or written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month, not less than one day nor more than 120 days subsequent to the execution of and filing thereof, he desires to be retired: Provided, that the said member at the time so specified for his retirement shall have attained the age of 50 years and have at least 20 years of creditable service."
SECTION 4. G.S. 135‑5 is amended by adding a new subsection to read:
"(a2) Early Service Retirement Benefits. – Any member who became a member on or after August 1, 2011, may retire and receive a reduced retirement allowance upon electronic submission or written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month, not less than one day nor more than 120 days subsequent to the execution of and filing thereof, the member desires to be retired: provided, that the said member at the time so specified for the member's retirement shall have attained the age of 60 years and have at least 20 years of creditable service."
SECTION 5. G.S. 135‑5(b19) reads as rewritten:
"(b19) Service Retirement Allowance of Members Who Became
a Member Prior to August 1, 2011, Retiring on or After July 1, 2002. –
Upon retirement from service in accordance with subdivision (a)(1), (a)(4),
or subsection (a) or (a1) above, of this section, on
or after July 1, 2002, a member shall receive the following service retirement
allowance:
(1) A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a. If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to one and eighty‑two hundredths percent (1.82%) of his average final compensation, multiplied by the number of years of his creditable service.
b. If the member's service retirement date occurs on or after his 50th birthday and before his 55th birthday with 15 or more years of creditable service as a law enforcement officer and prior to the completion of 30 years of creditable service, his retirement allowance shall be equal to the greater of:
1. The service retirement allowance payable under G.S. 135‑5(b19)(1)a. reduced by one‑third of one percent (1/3 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 55th birthday; or
2. The service retirement allowance as computed under G.S. 135‑5(b19)(1)a. reduced by five percent (5%) times the difference between 30 years and his creditable service at retirement.
(2) A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a. If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of membership service or after the completion of 30 years of creditable service or on or after his 60th birthday upon the completion of 25 years of creditable service, the allowance shall be equal to one and eighty‑two hundredths percent (1.82%) of his average final compensation, multiplied by the number of years of creditable service.
b. If the member's service retirement date occurs after his 60th birthday and before his 65th birthday and prior to his completion of 25 years or more of creditable service, his retirement allowance shall be computed as in G.S. 135‑5(b19)(2)a. but shall be reduced by one‑quarter of one percent (¼ of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following his 65th birthday.
c. If the member's early service retirement date occurs on or after his 50th birthday and before his 60th birthday and after completion of 20 years of creditable service but prior to the completion of 30 years of creditable service, his early service retirement allowance shall be equal to the greater of:
1. The service retirement allowance as computed under G.S. 135‑5(b19)(2)a. but reduced by the sum of five‑twelfths of one percent (5/12 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 60th birthday, plus one‑quarter of one percent (¼ of 1%) thereof for each month by which his 60th birthday precedes the first day of the month coincident with or next following his 65th birthday; or
2. The service retirement allowance as computed under G.S. 135‑5(b19)(2)a. reduced by five percent (5%) times the difference between 30 years and his creditable service at retirement; or
3. If the member's creditable service commenced prior to July 1, 1994, the service retirement allowance equal to the actuarial equivalent of the allowance payable at the age of 60 years as computed in G.S. 135‑5(b19)(2)b.
d. Notwithstanding the foregoing provisions, any member whose creditable service commenced prior to July 1, 1963, shall not receive less than the benefit provided by G.S. 135‑5(b)."
SECTION 6. G.S. 135‑5 is amended by adding a new subsection to read:
"(b20) Service Retirement Allowance of Members Who Became Members On or After August 1, 2011. – Upon retirement from service in accordance with subdivision (a)(1), (a)(4), or subsection (a2) of this section, a member shall receive the following service retirement allowance:
(1) A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a. If the member's service retirement date occurs on or after his 60th birthday, and completion of 10 years of creditable service as a law enforcement officer, or on or after his 55th birthday and after the completion of 30 years of creditable service, the allowance shall be equal to one and eighty‑two hundredths percent (1.82%) of his average final compensation, multiplied by the number of years of his creditable service.
b. If the member's service retirement date occurs on or after his 50th birthday and before his 55th birthday with 20 or more years of creditable service as a law enforcement officer and prior to the completion of 30 years of creditable service, his retirement allowance shall be equal the service retirement allowance payable under G.S. 135‑5(b19)(1)a. reduced by one‑third of one percent (1/3 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 60th birthday.
(2) A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a. If the member's service retirement date occurs on or after the member's 70th birthday upon the completion of 10 years of membership service or after the member's 60th birthday upon the completion of 30 years of creditable service, the allowance shall be equal to one and eighty‑two hundredths percent (1.82%) of the member's average final compensation, multiplied by the number of years of creditable service.
b. If the member's service retirement date occurs after the member's 65th birthday and before the member's 70th birthday and prior to the completion of 10 years or more of creditable service, the member's retirement allowance shall be computed as in G.S. 135‑5(b20)(2)a. but shall be reduced by three percent (3%) per year or prorated by the month for each year by which the member's retirement date precedes the first day of the month coincident with or next following the member's 70th birthday.
c. If the member's early service retirement date occurs on or after the member's 60th birthday and before the member's 70th birthday and after completion of 20 years of creditable service, the member's early service retirement allowance shall be computed as in G.S. 135‑5(b20)(2)a. but shall be the actuarial equivalent of the allowance payable at age 70."
SECTION 7. G.S. 135‑5(m) reads as rewritten:
"(m) Survivor's Alternate Benefit. – Upon the death of a member in service, who became a member prior to August 1, 2011, the principal beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option 2 of subsection (g) above computed by assuming that the member had retired on the first day of the month following the date of his death, provided that the following conditions apply:
(1) a. The member had attained such age and/or creditable service to be eligible to commence retirement with an early or service retirement allowance,
b. The member had obtained 20 years of creditable service in which case the retirement allowance shall be computed in accordance with G.S. 135‑5(b19)(1)b. or G.S. 135‑5(b19)(2)c., notwithstanding the requirement of obtaining age 50,
b1. The member was a law enforcement officer who had obtained 15 years of service as a law enforcement officer and was killed in the line of duty, in which case the retirement allowance shall be computed in accordance with G.S. 135‑5(b19)(1)b., notwithstanding the requirement of obtaining age 50, or
c. The member had not commenced to receive a retirement allowance as provided under this Chapter.
(2) The member had designated as the principal beneficiary to receive a return of his accumulated contributions one and only one person who was living at the time of his death.
(3) The member had not instructed the Board of Trustees in writing that he did not wish the provisions of this subsection to apply.
For the purpose of this benefit, a member is considered to be in service at the date of his death if his death occurs within 180 days from the last day of his actual service. The last day of actual service shall be determined as provided in subsection (l) of this section. Upon the death of a member in service, the surviving spouse may make all purchases for creditable service as provided for under this Chapter for which the member had made application in writing prior to the date of death, provided that the date of death occurred prior to or within 60 days after notification of the cost to make the purchase. The term "in service" as used in this subsection includes a member in receipt of a benefit under the Disability Income Plan as provided in Article 6 of this Chapter.
Notwithstanding the foregoing, a member who is in receipt of Workers' Compensation during the period for which the member would have otherwise been eligible to receive short‑term benefits, as provided in G.S. 135‑105, and who dies on or after 181 days from the last day of the member's actual service but on or before the date the benefits as provided in G.S. 135‑105 would have ended, shall be considered in service at the time of the member's death for the purpose of this benefit.
For the purpose of calculating this benefit any terminal payouts made after the date of death that meet the definition of compensation shall be credited to the month prior to the month of death. These terminal payouts do not include salary or wages paid for work performed during the month of death."
SECTION 8. G.S. 135‑5 is amended by adding a new subsection to read:
"(m2) Survivor's Alternate Benefit. – Upon the death of a member in service who became a member on or after August 1, 2011, the principal beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option 2 of subsection (g) of this section computed by assuming that the member had retired on the first day of the month following the date of the member's death, provided that the following conditions apply:
(1) a. The member had attained such age and/or creditable service to be eligible to commence retirement with an early or service retirement allowance.
b. The member had attained 20 years of creditable service, in which case the retirement allowance shall be computed in accordance with G.S. 135‑5(b20)(2)c., and is 60 years of age.
c. The member was a law enforcement officer who had attained 15 years of service as a law enforcement officer and was killed in the line of duty, in which case the retirement allowance shall be computed in accordance with G.S. 135‑5(b20)(1)b., notwithstanding the requirement of attaining age 55 with 20 years of service.
d. The member had not commenced to receive a retirement allowance as provided under this Chapter.
(2) At the time of the member's death, one and only one person is eligible to receive a return of the member's contributions.
(3) The member had not instructed the Board of Trustees in writing that the member did not wish the provisions of this subsection to apply.
For the purpose of this benefit, a member is considered to be in service at the date of the member's death if the member's death occurs within 180 days from the last day of his actual service. The last day of actual service shall be determined as provided in subdivision (1) of this subsection. Upon the death of a member in service, the surviving spouse may make all purchases for creditable service as provided for under this Chapter for which the member had made application in writing prior to the date of death, provided that the date of death occurred prior to or within 60 days after notification of the cost to make the purchase. The term "in service" as used in this subsection includes a member in receipt of a benefit under the Disability Income Plan as provided in Article 6 of this Chapter.
Notwithstanding the foregoing, a member who is in receipt of Workers' Compensation during the period for which the member would have otherwise been eligible to receive short‑term benefits, as provided in G.S. 135‑105, and who dies on or after 181 days from the last day of the member's actual service but on or before the date the benefits as provided in G.S. 135‑105 would have ended, shall be considered in service at the time of the member's death for the purpose of this benefit.
For the purpose of calculating this benefit, any terminal payouts made after the date of death that meet the definition of compensation shall be credited to the month prior to the month of death. These terminal payouts do not include salary or wages paid for work performed during the month of death."
SECTION 9. G.S. 135‑1(5) reads as rewritten:
"(5) "Average final compensation" shall
mean (i) for members who became members prior to August 1, 2011, the
average annual compensation of a member during the four consecutive calendar
years of membership service producing the highest such average; average,
and (ii) for persons who became members on or after August 1, 2011, the average
annual compensation of a member during the 120 consecutive calendar months of
membership service producing the highest such average; but shall not include
any compensation, as determined by the Board of Trustees, for the reimbursement
of expenses or payments for housing or any other allowances whether or not
classified as salary and wages. In the event a member is or has been in receipt
of a benefit under the provisions of G.S. 135‑105 or G.S. 135‑106,
the compensation used in the calculation of "average final compensation"
shall be the higher of compensation of the member under the provisions of this
Article or compensation used in calculating the payment of benefits under
Article 6 of this Chapter as adjusted for percentage increases in the post
disability benefit."
SECTION 10. G.S. 135‑53(2a) reads as rewritten:
"(2a) "Average final compensation" shall
mean (i) for members who became members prior to August 1, 2011, the
average annual compensation of a member during the 48 consecutive calendar
months of membership service producing the highest such average.average,
and (ii) for persons who became members on or after August 1, 2011, the average
annual compensation of a member during the 120 consecutive calendar months of
membership service producing the highest such average."
SECTION 11. G.S. 135‑58(a6) reads as rewritten:
"(a6) Any member who became a member prior to August 1, 2011, and who retires under the provisions of G.S. 135‑57(a) or G.S. 135‑57(c) on or after July 1, 2008, after the member has either attained the member's 65th birthday or has completed 24 years or more of creditable service, shall receive an annual retirement allowance, payable monthly, which shall commence on the effective date of the member's retirement and shall be continued on the first day of each month thereafter during the member's lifetime, the amount of which shall be computed as the sum of the amounts in subdivisions (1), (2), (3), (4), and (5) of this subsection, provided that in no event shall the annual allowance payable to any member be greater than an amount which, when added to the allowance, if any, to which the member is entitled under the Teachers' and State Employees' Retirement System, the Legislative Retirement System, or the Local Governmental Employees' Retirement System (prior in any case to any reduction for early retirement or for an optional mode of payment), would total three‑fourths of the member's final compensation:
(1) Four and two hundredths percent (4.02%) of the member's final compensation, multiplied by the number of years of creditable service rendered as a justice of the Supreme Court or judge of the Court of Appeals;
(2) Three and fifty‑two hundredths percent (3.52%) of the member's final compensation, multiplied by the number of years of creditable service rendered as a judge of the superior court or as Administrative Officer of the Courts;
(3) Three and two hundredths percent (3.02%) of the member's final compensation, multiplied by the number of years of creditable service rendered as a judge of the district court, district attorney, clerk of superior court, public defender, or the Director of Indigent Defense Services;
(4) A service retirement allowance computed in accordance with the service retirement provisions of Article 3 of Chapter 128 of the General Statutes using an average final compensation as defined in G.S. 135‑53(2a) and creditable service equal to the number of years of the member's creditable service that was transferred from the Local Governmental Employees' Retirement System to this System as provided in G.S. 135‑56; and
(5) A service retirement allowance computed in accordance with the service retirement provisions of Article 1 of this Chapter using an average final compensation as defined in G.S. 135‑53(2a) and creditable service, including any sick leave standing to the credit of the member, equal to the number of years of the member's creditable service that was transferred from the Teachers' and State Employees' Retirement System or the Legislative Retirement System to this System as provided in G.S. 135‑56."
SECTION 12. G.S. 135‑58 is amended by adding a new subsection to read:
"(a7) Retirement Allowance of Members Who Became Members On or After August 1, 2011. – Upon retirement from service, a member shall receive an unreduced retirement benefit after the member has either attained the member's 70th birthday with 10 or more years of membership service or has completed 25 years or more of creditable service and has attained the age of 60, or the member shall receive a reduced benefit after attaining the age of 65 with 10 or more years of membership service reduced by three percent (3%) per year or prorated by the month for each year by which the member's retirement date precedes the first day of the month coincident with or next following the member's 70th birthday. The member shall receive the annual retirement allowance, payable monthly, which shall commence on the effective date of the member's retirement and shall be continued on the first day of each month thereafter during the member's lifetime, the amount of which shall be computed as the sum of the amounts in subdivisions (1), (2), (3), (4), and (5) of this subsection, provided that in no event shall the annual allowance payable to any member be greater than an amount which, when added to the allowance, if any, to which the member is entitled under the Teachers' and State Employees' Retirement System, the Legislative Retirement System, or the Local Governmental Employees' Retirement System (prior in any case to any reduction for early retirement or for an optional mode of payment), would total three‑fourths of the member's final compensation:
(1) Four and two hundredths percent (4.02%) of the member's average final compensation, multiplied by the number of years of creditable service rendered as a justice of the Supreme Court or judge of the Court of Appeals;
(2) Three and fifty‑two hundredths percent (3.52%) of the member's average final compensation, multiplied by the number of years of creditable service rendered as a judge of the superior court or as Administrative Officer of the Courts;
(3) Three and two hundredths percent (3.02%) of the member's average final compensation, multiplied by the number of years of creditable service rendered as a judge of the district court, district attorney, clerk of superior court, public defender, or the Director of Indigent Defense Services;
(4) A service retirement allowance computed in accordance with the service retirement provisions of Article 3 of Chapter 128 of the General Statutes using an average final compensation as defined in G.S. 135‑53(2a) and creditable service equal to the number of years of the member's creditable service that was transferred from the Local Governmental Employees' Retirement System to this System as provided in G.S. 135‑56; and
(5) A service retirement allowance computed in accordance with the service retirement provisions of Article 1 of this Chapter using an average final compensation as defined in G.S. 135‑53(2a) and creditable service, including any sick leave standing to the credit of the member, equal to the number of years of the member's creditable service that was transferred from the Teachers' and State Employees' Retirement System or the Legislative Retirement System to this System as provided in G.S. 135‑56."
SECTION 13. G.S. 135‑57 reads as rewritten:
"§ 135‑57. Service retirement.
(a) Any member on or after January 1, 1974, who became a member prior to August 1, 2011, and who has attained his fiftieth birthday and five years of membership service may retire upon electronic submission or written application to the board of trustees setting forth at what time, as of the first day of a calendar month, not less than one day nor more than 120 days subsequent to the execution and filing thereof, he desires to be retired.
(b) Any member who is a justice or judge of the General Court of Justice shall be automatically retired as of the first day of the calendar month coinciding with or next following the later of January 1, 1974, or his attainment of his seventy‑second birthday; provided, however, that no judge who is a member on January 1, 1974, shall be forced to retire under the provisions of this subsection at an earlier date than the last day that he is permitted to remain in office under the provisions of G.S. 7A‑4.20.
(c) Any member who terminates service on or after January 1, 1974, having accumulated five or more years of creditable service and having become a member prior to August 1, 2011, may retire under the provisions of subsection (a) above, provided that he shall not have withdrawn his accumulated contributions prior to the effective date of his retirement, and the requirement of subsection (a) that the member be in service shall not apply.
(d) Any member who was in service October 8, 1981, who had attained 50 years of age, may retire upon electronic submission or written application to the board of trustees setting forth at what time, as of the first day of a calendar month, not less than one day nor more than 120 days subsequent to the execution and filing thereof, he desires to be retired."
SECTION 14.(a) There is established the Special Commission to Study Retirement and Health Benefits for Teachers and State Employees.
SECTION 14.(b) The Commission shall be composed of 14 members as follows:
(1) The State Treasurer or the State Treasurer's designee.
(2) The Executive Administrator of the State Health Plan for Teachers and State Employees.
(3) Four members appointed by the President Pro Tempore of the Senate.
(4) Four members appointed by the Speaker of the House of Representatives.
(5) Four members appointed by the Governor.
Vacancies on the Commission shall be filled by the appointing authority. The Commission shall choose from among its membership a chair and two vice‑chairs. A quorum of the Commission shall be nine members.
The Commission, while in the discharge of its official duties, may exercise all powers provided for under G.S. 120‑19 and G.S. 120‑19.1 through G.S. 120‑19.4, including the power to request all officers, agents, agencies, and departments of the State to provide any information, data, or documents within their possession, ascertainable from their records, or otherwise available to them, and the power to subpoena witnesses.
The Commission may meet at any time upon call of the chairs. The Commission may meet in the Legislative Building or the Legislative Office Building. The Commission may contract for professional, clerical, or consultant services as provided by G.S. 120‑32.02.
The Legislative Services Commission, through the Legislative Services Officer, shall assign professional staff to assist the Commission in its work. The House of Representatives' and Senate's Directors of Legislative Assistants shall assign clerical staff to the Commission, and the expenses relating to the clerical employees shall be borne by the Commission. Members of the Commission shall receive subsistence and travel expenses at the rates set forth in G.S. 120‑3.1, 138‑5, or 138‑6, as appropriate.
SECTION 14.(c) The initial meeting of the Commission shall be called by the State Treasurer or the State Treasurer's designee.
SECTION 14.(d) The Commission shall study retirement and health benefits for teachers and State employees. As a part of its study, the Commission may examine issues related to:
(1) Whether the changing demographics among State employees require changes to the current defined benefit plan and the health plan.
(2) Whether there is a need to establish a normal retirement age when retirement and health benefits are to begin.
(3) Whether the retirement plan should have a defined contribution component.
(4) Whether the current benefits plan serves the need to recruit and retain the best teachers and State employees.
(5) Any other issues the Commission deems relevant to improvement of the retirement systems and the State Health Plan.
(6) The relationship between the State Health Plan, the Teachers' and State Employees' Retirement System, and the Disability Income Plan.
SECTION 14.(e) The Commission shall make an interim report to the 2011 Regular Session of the General Assembly prior to its reconvening in 2012 and shall make a final report to the 2013 Regular Session of the General Assembly prior to its convening. The report shall include any proposed legislation. The Commission shall terminate upon filing its final report or upon the convening of the 2013 General Assembly, whichever is earlier.
SECTION 15. This act becomes effective August 1, 2011.
