Bill Text: NC H1192 | 2013-2014 | Regular Session | Amended
Bill Title: Return to Five-Year Vesting
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-05-22 - Ref to the Com on State Personnel, if favorable, Appropriations [H1192 Detail]
Download: North_Carolina-2013-H1192-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
H 1
HOUSE BILL 1192
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Short Title: Return to Five‑Year Vesting. |
(Public) |
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Sponsors: |
Representatives Collins and S. Ross (Primary Sponsors). For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site. |
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Referred to: |
State Personnel, if favorable, Appropriations. |
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May 22, 2014
A BILL TO BE ENTITLED
AN ACT to return to a five‑year vesting period for members of the teachers' and state employees' retirement system and the consolidated judicial retirement system who became members on or after august 1, 2011, and to make a conforming change to the special separation allowance for law enforcement officers, as recommended by the legislative research commission's committee on treasurer investment targets and state employee retirement options.
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 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 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 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 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 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.
b4. Any member who became a member on or after August
1, 2011, and who is not a law enforcement officer and (i) separates from
service prior to the attainment of the age of 60 years, after completing 25 or
more years of creditable service, and who leaves the member's total accumulated
contributions in said System, may elect to retire on an unreduced service
retirement allowance upon attaining the age of 60 years or at any time
thereafter; or (ii) separates from service prior to the attainment of the age of
50 years, after completing 20 or more years of creditable service, and who
leaves the member's total accumulated contributions in said System, may elect
to retire on an early reduced retirement allowance upon attaining the age of 50
years or at any time thereafter; or (iii) separates from service prior to the
attainment of the age of 60 years, after completing 10 or more years but less
than 25 years of creditable service, and who leaves the member's total
accumulated contributions in said System, may elect to retire on an early
reduced retirement allowance upon attaining the age of 60 years or at any time
thereafter; or (iv) separates from service prior to the attainment of the age
of 65 years, after completing 10 or more years of creditable service, and who
leaves the member's total accumulated contributions in said System, may elect
to retire on an unreduced retirement allowance upon attaining the age of 65
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 120 days
subsequent to the execution and filing thereof, the member desires to be
retired.
b5. Any member who became a member on or after August
1, 2011, who is a law enforcement officer and (i) separates from service prior
to attainment of age 50 years, after completing 15 or more years of creditable
service in this capacity, and who leaves the member's total accumulated
contributions in said System, may elect to retire on an early reduced
retirement allowance upon attaining the age of 50 years or any time thereafter;
or (ii) separates from service prior to attainment of age 55 years, after
completing 10 or more years of creditable service in this capacity, and who
leaves the member's total accumulated contributions in said System, may elect
to retire on an unreduced retirement allowance upon attaining the age of 55
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 120 days subsequent to
the execution and filing thereof, the member desires to be retired.
...."
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, 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, 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 10 years of membership service
or shall have completed 30 years of creditable 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,
who became a member prior to August 1, 2011,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 is a law‑enforcement
officer, who became a member on or after August 1, 2011, and who attains age 50
and completes 15 or more years of creditable service in this capacity or who
attains age 55 and completes 10 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, 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(a2) is repealed.
SECTION 4. 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) of this section, on or after July 1, 2002, a member shall
receive the following service retirement allowance:
…."
SECTION 5. G.S. 135‑5(b20) is repealed.
SECTION 6. 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
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 all four of the following conditions apply:
…."
SECTION 7. G.S. 135‑5(m3) is repealed.
SECTION 8. 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.
(a1) Any member who became a member on or after
August 1, 2011, and who has attained the member's fiftieth birthday and 10
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, the member 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.
(c1) Any member having accumulated 10 or more years
of creditable service and having become a member on or after August 1, 2011,
may retire under the provisions of subsection (a1) above, provided that the
member shall not have withdrawn the member's accumulated contributions prior to
the effective date of the member's retirement, and the requirement of
subsection (a1) 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 9. G.S. 135‑106(b) reads as rewritten:
"(b) After the commencement of benefits under this section, the benefits payable under the terms of this section during the first 36 months of the long‑term disability period shall be equal to sixty‑five percent (65%) of 1/12th of the annual base rate of compensation last payable to the participant or beneficiary prior to the beginning of the short‑term disability period as may be adjusted for percentage increases as provided under G.S. 135‑108, plus sixty‑five percent (65%) of 1/12th of the annual longevity payment to which the participant or beneficiary would be eligible, to a maximum of three thousand nine hundred dollars ($3,900) per month reduced by any primary Social Security disability benefits to which the beneficiary may be entitled, effective as of the first of the month following the month of initial entitlement, and by monthly payments for Workers' Compensation to which the participant or beneficiary may be entitled. When primary Social Security disability benefits are increased by cost‑of‑living adjustments, the increased reduction shall be applied in the first month following the month in which the member becomes entitled to the increased Social Security benefit. The monthly benefit shall be further reduced by the amount of any monthly payments from the federal Department of Veterans Affairs, any other federal agency or any payments made under the provisions of G.S. 127A‑108, to which the participant or beneficiary may be entitled on account of the same disability. Provided, in any event, the benefit payable shall be no less than ten dollars ($10.00) a month. However, a disabled participant may elect to receive any salary continuation as provided in G.S. 135‑104 in lieu of long‑term disability benefits; provided such election shall not extend the first 36 consecutive calendar months of the long‑term disability period. An election to receive any salary continuation for any part of any given day shall be in lieu of any long‑term benefit payable for that day, provided further, any lump‑sum payout for vacation leave shall be treated as if the beneficiary or participant had exhausted the leave and shall be in lieu of any long‑term benefit otherwise payable. Provided that, in any event, a beneficiary's benefit shall be reduced during the first 36 months of the long‑term disability period by an amount, as determined by the Board of Trustees, equal to a primary Social Security retirement benefit to which the beneficiary might be entitled.
After 36 months of long‑term disability, no further benefits are payable under the terms of this section unless the member has been approved and is in receipt of primary Social Security disability benefits. In that case the benefits payable shall be equal to sixty‑five percent (65%) of 1/12th of the annual base rate of compensation last payable to the participant or beneficiary prior to the beginning of the short‑term disability period as may be adjusted for percentage increases as provided under G.S. 135‑108, plus sixty‑five percent (65%) of 1/12th of the annual longevity payment to which the participant or beneficiary would be eligible, to a maximum of three thousand nine hundred dollars ($3,900) per month reduced by the primary Social Security disability benefits to which the beneficiary may be entitled, effective as of the first of the month following the month of initial entitlement, and by monthly payments for Workers' Compensation to which the participant or beneficiary may be entitled. When primary Social Security disability benefits are increased by cost‑of‑living adjustments, the increased reduction shall be applied in the first month following the month in which the member becomes entitled to the increased Social Security benefit. The monthly benefit shall be further reduced by the amount of any monthly payments from the federal Department of Veterans Affairs, for payments from any other federal agency, or for any payments made under the provisions of G.S. 127A‑108, to which the participant or beneficiary may be entitled on account of the same disability. Provided, in any event, the benefit payable shall be no less than ten dollars ($10.00) a month.
Notwithstanding the foregoing, but subject to an
additional integration with the five‑year and 10‑year retirement
vesting provisions as set forth in this paragraph, the long‑term
disability benefit is payable so long as the beneficiary is disabled and is in
receipt of a primary Social Security disability benefit until the earliest date
at which the beneficiary who became a member prior to August 1, 2011, is
eligible for an unreduced service retirement allowance from the Retirement
System, at which time the beneficiary would receive a retirement allowance
calculated on the basis of the beneficiary's average final compensation at the
time of disability as adjusted to reflect compensation increases subsequent to
the time of disability and the creditable service accumulated by the
beneficiary, including creditable service while in receipt of benefits under
the Plan. In the case of any long‑term disability beneficiary who
became a member on and after August 1, 2011, and ordinarily would not be
eligible for a retirement benefit without 10 years of membership service, for
purposes of this conversion from long‑term disability to service
retirement, and for that purpose only, noncontributory creditable service
granted while in receipt of disability benefits under this Article shall be
deemed to be membership service, through the completion of 10 years of combined
membership and noncontributory service on short‑term and long‑term
disability benefits in total. In the event the beneficiary has not been
approved and is not in receipt of a primary Social Security disability benefit,
the long‑term disability benefit shall cease after the first 36 months of
the long‑term disability period. When such a long‑term disability
recipient begins receiving this unreduced service retirement allowance from the
System, that recipient shall not be subject to the six‑month waiting
period set forth in G.S. 135‑1(20). However, a beneficiary shall be
entitled to a restoration of the long‑term disability benefit in the
event the Social Security Administration grants a retroactive approval for
primary Social Security disability benefits with a benefit effective date
within the first 36 months of the long‑term disability period. In such
event, the long‑term disability benefit shall be restored retroactively
to the date of cessation."
SECTION 10. G.S. 143‑166.41 reads as rewritten:
"§ 143‑166.41. Special separation allowance.
(a) Notwithstanding any other provision of law, every
sworn law‑enforcement officer as defined by G.S. 135‑1(11c) or
G.S. 143‑166.30(a)(4) employed by a State department, agency, or
institution prior to August 1, 2011, and who qualifies under this
section shall receive, beginning in the month in which he retires on a basic
service retirement under the provisions of G.S. 135‑5(a), an annual
separation allowance equal to eighty‑five hundredths percent (0.85%) of
the annual equivalent of the base rate of compensation most recently applicable
to him for each year of creditable service. The allowance shall be paid in
equal installments on the payroll frequency used by the employer. To qualify
for the allowance the officer shall:
(1) Have (i) completed 30 or more years of creditable service or, (ii) have attained 55 years of age and completed five or more years of creditable service; and
(2) Not have attained 62 years of age; and
(3) Have completed at least five years of continuous service as a law enforcement officer as herein defined immediately preceding a service retirement. Any break in the continuous service required by this subsection because of disability retirement or disability salary continuation benefits shall not adversely affect an officer's qualification to receive the allowance, provided the officer returns to service within 45 days after the disability benefits cease and is otherwise qualified to receive the allowance.
(a1) Notwithstanding any other provision of law,
every sworn law‑enforcement officer as defined by G.S. 135‑1(11c)
or G.S. 143‑166.30(a)(4) employed by a State department, agency, or
institution on or after August 1, 2011, and who qualifies under this section
shall receive, beginning in the month in which the member retires on a basic
service retirement under the provisions of G.S. 135‑5(a), an annual
separation allowance equal to eighty‑five hundredths percent (0.85%) of
the annual equivalent of the base rate of compensation most recently applicable
to him for each year of creditable service. The allowance shall be paid in
equal installments on the payroll frequency used by the employer. To qualify
for the allowance, the officer shall:
(1) Have (i) completed 30 or more years of
creditable service or (ii) attained 55 years of age and completed 10 or more
years of creditable service; and
(2) Not have attained 62 years of age; and
(3) Have completed at least 10 years of
continuous service as a law enforcement officer as herein defined immediately
preceding a service retirement. Any break in the continuous service required by
this subsection because of disability retirement or disability salary
continuation benefits shall not adversely affect an officer's qualification to
receive the allowance, provided the officer returns to service within 45 days
after the disability benefits cease and is otherwise qualified to receive the
allowance.
...."
SECTION 11. This act is effective when it becomes law.
