Bill Text: NC S701 | 2011-2012 | Regular Session | Introduced
Bill Title: TSERS/LGERS Return of Contributions
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-06-09 - Ref To Com On State Personnel [S701 Detail]
Download: North_Carolina-2011-S701-Introduced.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
S D
SENATE DRS55218-LL-140 (03/24)
|
Short Title: TSERS/LGERS Return of Contributions. |
(Public) |
|
|
Sponsors: |
Senator Meredith. |
|
|
Referred to: |
|
|
A BILL TO BE ENTITLED
AN ACT to ALLOW members of the teachers' and state employees' retirement system and the LOcal Governmental Employees' Retirement System to receive, UPON LEAVING THE SYSTEM FOR REASONS OTHER THAN DEATH OR RETIREMENT, BOTH their contributions TO THE SYSTEM And THE accumulated REGULAR INTEREST on those contributions.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 135‑5(f) reads as rewritten:
"(f) Return of Accumulated Contributions. – Should
a member cease to be a teacher or State employee except by death or retirement
under the provisions of this Chapter, he shall upon submission of an
application be paid, not earlier than 60 days from the date of termination of
service, his contributions, and if he has attained at least five years of
membership service or if termination of his membership service is involuntary
as certified by the employer, contributions and the accumulated
regular interest thereon, payable at the six‑month USD LIBOR (London
Interbank Offered Rate) in effect on January 1 of the year in which the member
signs the application for refund, provided that he has not in the meantime
returned to service. service, and provided further that any member
vested in the System as of January 1, 2012, shall receive four percent (4%)
interest if the LIBOR rate is lower than four percent (4%). Upon payment of
such sum his membership in the System shall cease and, if he thereafter again
becomes a member, no credit shall be allowed for any service previously
rendered except as provided in G.S. 135‑4, and such payment shall be
in full and complete discharge of any rights in or to any benefits otherwise
payable hereunder. Upon receipt of proof satisfactory to the Board of Trustees
of the death, prior to retirement, of a member or former member there shall be
paid to such person or persons as he shall have nominated by electronic
submission prior to completing 10 years of service in a form approved by the
Board of Trustees or by written designation duly acknowledged and filed with the
Board of Trustees, if such person or persons are living at the time of the
member's death, otherwise to the member's legal representatives, the amount of
his accumulated contributions at the time of his death, unless the beneficiary
elects to receive the alternate benefit under the provisions of (m) below. An
extension service employee who made contributions to the Local Governmental
Employees' Retirement System and the Teachers' and State Employees' Retirement
System as a result of dual employment may not be paid his accumulated
contributions unless he is eligible to be paid his accumulated contributions in
both systems for the same period of service.
Pursuant to the provisions of G.S. 135‑56.2, a member who is also a member of the Consolidated Judicial Retirement System may irrevocably elect to transfer any accumulated contributions to the Consolidated Judicial Retirement System or to the Supplemental Retirement Income Plan and forfeit any rights in or to any benefits otherwise payable hereunder.
A member who is a participant or beneficiary of the Disability Income Plan of North Carolina as is provided in Article 6 of this Chapter shall not be paid a return of accumulated contributions, notwithstanding the member's status as an employee or teacher. Notwithstanding any other provision of law to the contrary, a member who is a beneficiary of the Disability Income Plan of North Carolina as provided in Article 6 of this Chapter and who is receiving disability benefits under the transition provisions as provided in G.S. 135‑112, shall not be prohibited from receiving a return of accumulated contributions as provided in this subsection."
SECTION 2. G.S. 128‑27(f) reads as rewritten:
"(f) Return of Accumulated Contributions. – Should
a member cease to be an employee except by death or retirement under the
provisions of this Chapter, he shall upon submission of an application be paid,
not earlier than 60 days from the date of termination of service, his
contributions and, if he has attained at least five years of membership
service or if termination of his membership service is involuntary as certified
by the employer,and the accumulated regular interest thereon, payable
at the six‑month USD LIBOR (London Interbank Offered Rate) in effect on
January 1 of the year in which the member signs the application for refund,
provided that he has not in the meantime returned to service. service,
and provided further that any member vested in the System as of January 1,
2012, shall receive four percent (4%) interest if the LIBOR rate is lower than four
percent (4%). Upon payment of such sum his membership in the System shall
cease and, if he thereafter again becomes a member, no credit shall be allowed
for any service previously rendered except as provided in G.S. 128‑26;
and such payment shall be in full and complete discharge of any rights in or to
any benefits otherwise payable hereunder. Upon receipt of proof satisfactory to
the Board of Trustees of the death, prior to retirement, of a member or former
member there shall be paid to such person or persons as he shall have nominated
by electronic submission prior to completing 10 years of service in a form
approved by the Board of Trustees or by written designation duly acknowledged
and filed with the Board of Trustees, if such person or persons are living at
the time of the member's death, otherwise to the member's legal
representatives, the amount of his accumulated contributions at the time of his
death, unless the beneficiary elects to receive the alternate benefit under the
provisions of (m) below. An extension service employee who made contributions
to the Local Governmental Employees' Retirement System and the Teachers' and
State Employees' Retirement System as a result of dual employment may not be
paid his accumulated contributions unless he is eligible to be paid his
accumulated contributions in both systems for the same period of service.
Pursuant to the provisions of G.S. 135‑56.2, a member who is also a member of the Consolidated Judicial Retirement System may irrevocably elect to transfer any accumulated contributions to the Consolidated Judicial Retirement System or to the Supplemental Retirement Income Plan and forfeit any rights in or to any benefits otherwise payable hereunder."
SECTION 3. This act becomes effective January 1, 2012.
