Bill Text: NC S701 | 2011-2012 | Regular Session | Amended
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-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2011
S 2
SENATE BILL 701
Pensions & Retirement and Aging Committee Substitute Adopted 6/8/11
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Short Title: TSERS/LGERS Return of Contributions. |
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Referred to: |
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April 20, 2011
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 the member shall upon
submission of an application be paid, not earlier than 60 days from the date of
termination of service, his the member's contributions and 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,the accumulated regular interest thereon, provided that he the
member has not in the meantime returned to service. Upon payment of such
sum his the individual's membership in the System shall cease
and, if he the individual 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 the member 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
the member's accumulated contributions at the time of his the
member's 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 the member's accumulated
contributions unless he the member 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 the member shall upon submission
of an application be paid, not earlier than 60 days from the date of
termination of service, his the member's 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, provided that he the member has
not in the meantime returned to service. Upon payment of such sum his the
individual's membership in the System shall cease and, if he the
individual 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 the member
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 the member's accumulated
contributions at the time of his the member's 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 the
member's accumulated contributions unless he the member 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.
