FORFEIT. RETMT/ANTI-SPIKING/SERV. PURCH/TC. (NEW).

View NCGA Bill Details2017-2018 Session
Senate Bill 117 (Public) Filed Tuesday, February 21, 2017
AN ACT TO PROHIBIT THE RECEIPT OF BENEFITS FROM THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM FOR JUDGES WHO HAVE BEEN IMPEACHED AND CONVICTED OR REMOVED FROM OFFICE; TO AMEND FELONY FORFEITURE STATUTES; TO CLARIFY ANTI-PENSION-SPIKING CONTRIBUTION-BASED BENEFIT CAP; AND TO PROVIDE AN EXEMPTION FROM RULE MAKING; TO MAKE OTHER TECHNICAL AND SUBSTANTIVE CHANGES TO LAW RELATING TO THE STATE TREASURER, TO THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, TO THE LOCAL GOVERNMENT EMPLOYEES' RETIREMENT SYSTEM LAWS, TO THE STATE HEALTH PLAN FOR TEACHERS AND STATE EMPLOYEES, AND RELATED STATUTES; AND TO MAKE A TECHNICAL CORRECTION TO THE STATUTES THAT INDICATE THE YEAR IN OR AFTER WHICH LAW ENFORCEMENT OFFICERS WHO ARE MEMBERS OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM OR THE LOCAL GOVERNMENT EMPLOYEES' RETIREMENT SYSTEM MAY RETIRE AFTER ACHIEVING TWENTY-FIVE YEARS OF CREDITABLE SERVICE SO THAT THE YEAR IN THE STATUTE AND THE YEAR THE SESSION LAW BECOMES EFFECTIVE ARE IN AGREEMENT.
Intro. by Pate, Tucker.

Status: Ref To Com On Rules and Operations of the Senate (Senate Action) (Dec 5 2018)

SOG comments (4):

Identical bill

Identical to H 160, filed 2/21/17.

Long Title Change

Senate committee substitute to the 1st edition made changes to the long title. The original title is as follows:

AN ACT PROHIBITING THE RECEIPT OF BENEFITS FROM THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM FOR JUDGES WHO HAVE BEEN IMPEACHED OR REMOVED FROM OFFICE.

Short and Long Title Changes

House committee substitute to the 3rd edition makes changes to the short and long titles. The original titles are as follows:

FORFEITURE OF RETIREMENT BENEFITS/JUDGES.

AN ACT PROHIBITING THE RECEIPT OF BENEFITS FROM THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM FOR JUDGES WHO HAVE BEEN IMPEACHED AND CONVICTED OR REMOVED FROM OFFICE.

Short and Long Title Changes

House committee substitute to the 4th edition made changes to the short and long title. The original titles are as follows:

FORFEIT. RETIREMENT BENEFITS/ANTI-PEN. SPIKING.

AN ACT TO PROHIBIT THE RECEIPT OF BENEFITS FROM THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM FOR JUDGES WHO HAVE BEEN IMPEACHED AND CONVICTED OR REMOVED FROM OFFICE, TO AMEND FELONY FORFEITURE STATUTES, TO CLARIFY ANTI-PENSION-SPIKING CONTRIBUTION-BASED BENEFIT CAP, AND TO PROVIDE AN EXEMPTION FROM RULE MAKING.

S 117

Bill Summaries:

  • Summary date: Dec 3 2018 - More information

    House committee substitute makes the following changes to the 4th edition.

    Changes the act's long and short titles.

    Part I

    Changes the statutory number for the proposed provisions regarding forfeiture of retirement benefits for conviction on impeachment of removal from office of justices and judges, now GS 135-75.1C.

    Amends GS 135-75.1B (enacted in SL 2018-52), to also prohibit any members whose retirement benefits have been forfeited under new GS 135-75.1C from subsequently purchasing or repurchasing either those forfeited benefits or any associated creditable membership service associated.

    Amends proposed GS 135-56(k), adjusting the date by which a justice or judge who is in service and has vested in the Judicial Retirement System is not entitled to any creditable service if convicted on impeachment or removed from office for acts committed after that date, to now be October 1, 2019 (was, December 1, 2017).

    Changes the effective date for the provisions of Part I to now be October 1, 2019 (was, December 1, 2017).

    Part III

    Makes technical changes to the proposed changes to GS 135-5(a3) and GS 128-27(a3), concerning the anti-pension-spiking contribution based benefit cap for retirement allowances provided by the Retirement Systems for Teachers and State Employees and Local Government, to reflect the changes enacted to those statutes in SL 2018-22.

    Makes clarifying and technical changes to the proposed changes to GS 135-6(l) and GS 128-28(m), concerning the duties of a designated actuary in each System. Further specifies that the described studies, assumptions and rates used by the actuary set out in the actuary's periodic reports, annual valuations of System assets, or other materials provided to the Board of Trustees, once accepted by the Board, are considered part of the Plan documentation governing the System and effective the first date of the month following adoption, unless a different date is specified in the adopting resolution and that effective date is after the adoption date.

    Changes the effective date provision for Part III. Provides that the provisions of this Part are effective January 1, 2019, and apply to calculations on or after that date, if HB 1055 of the 2017 Regular Session (Retirement Complexity Reduction Act of 2018) does not become law. Provides that if HB 1055 does become law, then the proposed changes to GS 135-6(l) and GS 128-28(m), concerning the duties of a designated actuary in each System, become effective on the date that Section 1 of HB 1055 becomes effective (effective when becomes law; contains identical proposed changes to those statutes) and apply to calculations on or after that date, and proposed changes to GS 135-5(a3) and GS 128-27(a3), concerning the anti-pension-spiking contribution based benefit caps in each System, become effective January 1, 2019, and apply to calculations on or after that date.

    Part IV

    Makes organizational changes and adds to the proposed rule making exemption for the Boards of the Teachers and State Employees and Local Government Retirement Systems, GS 150B-1(d)(29). Now includes in the exemption the Boards' adoption of asset smoothing methods, actuarial cost methods, and amortization policies after presentation of the actuary's recommendations.

    Makes clarifying and technical changes to the proposed changes to GS 135-6(n) and GS 128-28(o), expressly requiring the Board of Trustees of each System to adopt for each System necessary contribution-based benefit cap factors in addition to mortality and service tables required to be adopted upon recommendations from the actuary based on the five-year actuarial investigation and valuation.

    Changes the effective date for the provisions of Part IV. Provides that the provisions of this Part are effective January 1, 2019, and apply to actuarial tables, assumptions, and contribution-based cap factors changed on or after that date and actuarial investigations and calculations made on or after that date, if HB 1055 of the 2017 Regular Session (Retirement Complexity Reduction Act of 2018) does not become law. Provides that if HB 1055 does become law, then the proposed changes become effective on the date that Section 1 of HB 1055 becomes effective (effective when becomes law; contains identical proposed changes to the statutes) and apply to actuarial tables, assumptions, and contribution-based cap factors changed on or after that date and actuarial investigations and calculations made on or after that date.

    Part V

    Amends GS 135-4 and GS 135-1.1 (concerning the Retirement System for Teachers and State Employees), GS 128-26 (concerning the Retirement System for Counties, Cities, and Towns), GS 135-56 (concerning the Judicial Retirement System), GS 120-4.15 (concerning the Legislative Retirement System), pushing back the service purchase provision effective date to the specified dates, but only if HB 1055 of the 2017 Regular Session (Retirement Complexity Reduction Act of 2018; Section 5 of the act amends the same statutes as Part V of this act) becomes law.

    Amends Section 5.(k) of HB 1055 (2017), requiring the Retirement Systems Division of the Department of State Treasurer to accept and process all service purchase request forms, for all service purchases that are required to have been made by June 30, 2019 (currently, December 31, 2018), that are received by the Division on or before that date. 

    Adds that if HB 1055 of the 2017 Regular Session becomes law, the provisions of Part V become effective on the date Section 5 of HB 1055 becomes law.

    Part VI

    Amends GS 135-5 (concerning the Retirement System for Teachers and State Employees) and GS 128-27 (concerning Coverage of Governmental Employees under Title II of the Social Security Act), changing the optional retirement allowance elections by delaying the triggering date, as specified, but only if HB 1055 of the 2017 Regular Session (Retirement Complexity Reduction Act of 2018; Section 6 of the act amends the same statutes as Part VII of this act) becomes law.

    Adds that if HB 1055 of the 2017 Regular Session becomes law, the provisions of Part V become effective on the date Section 6 of HB 1055 becomes law.

    Part VII

    Amends Section 3(b) of SL 2018-84, providing for a five-year sunset of the changes to GS 135-5.3(f) in that act, which require a charter school ceasing participation in the retirement system for teachers and state employees to pay withdrawal liability in a lump sum or installment payment plan under which the Retirement System would have a lien on the real property of the charter school. Allows charter schools entering a withdrawal of liability payment plan prior to the sunset date a full three years to complete the payment plan with lien priority applicable during the entire period of the payment plan. (The act provides alternate but substantively identical provisions depending on whether HB 1055 of the 2017 Regular Session becomes law).

    Part VIII

    Amends GS 135-5 and GS 128-27, changing the date of retirement from service determinant from July 1, 2018, to July 1, 2019, for the retirement allowances of members of the Retirement Systems for Teachers and State Employees and Local Government. Effective July 1, 2019.


  • Summary date: Jun 15 2017 - More information

    House committee substitute makes the following changes to the 3rd edition.

    Changes the long and short titles.

    Places previous provisions in new Part I.

    Part II

    Repeals the following statutes pertaining to felony forfeiture of retirement benefits: GS 135-18.10A(b) (concerning forfeiture where a member of the Retirement System for Teachers and State Employee' conduct is directly related to the member's office or employment); GS 128-38.4A(b) (concerning forfeiture where a member of the Retirement System for Counties, Cities, and Towns' conduct is directly related to the member's office or employment); GS 135-75.1A(b) (concerning forfeiture where a member of the Judicial Retirement System's conduct is directly related to the member's office or employment); and GS 120-4.33A (concerning forfeiture where a member of the Legislative Retirement System's conduct is directly related to the member's office or employment).

    Part III

    Amends GS 135-5(a3) (concerning the Retirement System for Teachers and State Employees) and GS 128-27(a3) (concerning the Retirement System for Counties, Cities, and Towns) to change the calculation of the minimum average final compensation necessary for a retirement allowance subject to the contribution-based benefit cap in each System, providing for an increase on January 1 of each year by the percent change between the June (currently, December) Consumer Price Index in the year prior to retirement and the June Consumer Price Index in the fiscal year most recently added, calculated to the nearest tenth of a percent so long as the percent change is positive (currently, calculated from December to December, and does not specify fiscal year basis). Further, adds language to each statute to clarify that each Board of Trustees is not required to adopt the benefit cap factor under GS 135-5(a3) as a rule pursuant to the rule making provisions of Article 2A of GS Chapter 150B. Existing language in both GS 135-5(a3) and GS 128-27(a3) direct each Board of Trustees to adopt a benefit cap factor, as specified.

    Amends GS 135-6(1) and GS 128-28(m), concerning the duties of a designated actuary in each System, requiring that the experience studies and all other actuarial calculations required by each Chapter, and all the assumptions used by each System's actuary, be set out in the actuary's periodic reports, annual valuations of System assets, or other materials provided to the Board of Trustees (currently, provides that this information be set out in the periodic reports or other materials provided to the Boards, for the purposes of the annual valuation of System assets). Adds language to each statute establishing that once accepted by the respective Board, these materials are effective the first day of the month following adoption as part of the Plan documentation governing the respective System, unless a different date is included in the adopting resolution. 

    Provides language setting out the intent of new Part III is to clarify and not change existing law by making clear that the rule making provisions of Article 2A of GS Chapter 150B never required the benefit cap factor under GS 135-5(a3) to be adopted as a rule by the Board of Trustees.

    Part is effective retroactively to January 1, 2015.

    Part IV

    Amends GS 150B-1(d), adding to the express exemptions set forth from the rule making provisions of Article 2A. Exempts the Retirement System Boards of Trustees established under GS 128-28 and GS 135-6 when adopting actuarial tables, assumptions, and contribution benefit cap factors after presentation and recommendations from the actuary. Sets out specific actuarial tables and assumptions that this new exemption includes but is not limited to, including interest rate assumption, separation and retirement assumptions, and contribution-based benefit cap factors.

    Amends GS 135-6(n) and GS 128-28(o), expressly requiring the Board of Trustees of each System to adopt for each System contribution-based benefit cap factors in addition to mortality and service tables required to be adopted upon recommendations from the actuary based on the five-year actuarial investigation and valuation.

    Similar to new Part III, provides language setting out the intent of new Part IV is to clarify and not change existing law by making clear that the rule making provisions of Article 2A of GS Chapter 150B never required the benefit cap factor under GS 135-5(a3) to be adopted as a rule by the Board of Trustees.

    Part effective retroactively to January 1, 2015.

    Maintains the previous effective date of the act, December 1, 2017, applicable to offenses committed on or after that date.


  • Summary date: Apr 6 2017 - More information

    Senate committee substitute makes the following changes to the 2nd edition.

    Deletes all provisions and replaces them with the following.

    Enacts new GS 135-75.1B (Forfeiture of retirement benefits for conviction on impeachment or removal from office). Prohibits the Board of Trustees of the State Health Plan for Teachers and State Employees (Board of Trustees) from paying any retirement benefits or allowances, except for a return of member contributions plus interest, to any justice or judge who is convicted on impeachment for reasons other than physical and mental incapacity, or is removed from office under GS 7A-376(b). Authorizes a justice or judge whose conviction on impeachment or removal from office is vacated or set aside to seek a reversal of the benefit forfeiture by presenting evidence to the State Treasurer. Authorizes the State Treasurer to reverse benefit forfeitures as appropriate. Provides for repayment and rate of interest on repayment.

    Amends GS 135-56 to require justices or judges who have not vested in the Consolidated Judicial Retirement System on December 1, 2017, and are impeached or removed from office for acts committed after December 1, 2017, to forfeit all benefits under the system except for a return of member contributions plus interest. Justices or judges who have vested on December 1, 2017, are not entitled to creditable service after December 1, 2017.

    Makes a conforming change to GS 7A-376(b).

    Directs the General Assembly and the Supreme Court to notify the State Treasurer and the Board of Trustees of the conviction on impeachment or removal from office of a justice or judge.

    Effective December 1, 2017, and applies to offenses committed on or after that date.


  • Summary date: Mar 7 2017 - More information

    Senate committee substitute makes the following changes to the 1st edition.

    Clarifies that the proposed prohibition in GS 135-75.1B from the payment of any retirement benefits or allowances, except for a return of member contributions plus interest, to any judge applies only after impeachment and conviction (previous edition only stated impeachment) for reasons other than a physical or mental incapacity interfering with the performance of the judge's duties. 

    Additionally amends GS 7A-376(b) to make conforming changes to except the return of member contributions plus interest from the prohibition from the payment of any retirement compensation to a judge who is removed by the Supreme Court for willful misconduct in office, willful and persistent failure to perform the judge's duties, habitual intemperance, conviction of a crime involving moral turpitude, or conduct prejudicial to the administration of justice that brings the judicial office into disrepute.

    Makes conforming changes to the long title.


  • Summary date: Feb 21 2017 - More information

    Enacts new GS 135-75.1B to prohibit the payment of any retirement benefits or allowances, except for a return of member contributions plus interest, to any judge who is impeached for reasons other than a physical or mental incapacity interfering with the performance of the judge's duties. Also prohibits paying retirement benefits or allowances, except for a return of member contributions plus interest, to any judge removed from office under GS 7A‑376(b), which allows the Supreme Court to remove any judge for willful misconduct in office, willful and persistent failure to perform the judge's duties, habitual intemperance, conviction of a crime involving moral turpitude, or conduct prejudicial to the administration of justice that brings the judicial office into disrepute.


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