STATE RETIREMENT CHANGES.

View NCGA Bill Details2011-2012 Session
Senate Bill 687 (Public) Filed Tuesday, April 19, 2011
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.
Intro. by Apodaca, Brunstetter.

Status: Ref To Com On Pensions & Retirement and Aging (Senate Action) (Apr 20 2011)

Bill History:

S 687

Bill Summaries:

  • Summary date: Apr 19 2011 - More information

    Retirement Systems. Amends GS 135-3(8) to provide that any member who became a member before August 1, 2011, and who separates from service before age 60 for any reason, as specified, and after 15 years of service, will have the right to retire on a deferred retirement allowance at age 60, provided the member retires not less than one day nor more than 120 days (rather than 90 days) after the member executes and files application with the Board of Trustees. Makes conforming changes throughout the statute to specify membership before August 1, 2011, and to replace 90 days with 120 days.
    Enacts new subdivision (1a) to GS 135-5(a), allowing any member who became a member on or after August 1, 2011, who attains age 60 and has completed 30 years of service or attains age 70 with 10 years of membership service, to retire on an unreduced retirement benefit not less than one day nor more than 120 days after application to the Board of Trustees. Allows the member to retire at reduced benefit at age 60 with 20 years of service or age 65 with 10 years of service. Enacts new subdivision (4a), allowing any member with less than five years of membership service on July 31, 2011, who is a law enforcement officer and attains 55 years of age with 30 years of service or attains 60 with 10 or more years of service, to retire at unreduced benefit not less than one day nor more than 120 days after application to the Board of Trustees. Amends GS 135-5(a)(1), specifying that any member who became a member before August 1, 2011, may retire not less than one day nor more than 120 days after application to the Board of Trustees, if the member is at least 60 years old with at least five years of membership service or 30 years of service.
    Enacts new GS 135-5(a2), specifying the requirements for members who joined the Retirement System on or after August 1, 2011, to receive early service retirement benefits. Amends GS 135-5(a1), distinguishing early service retirement benefits provided to any member who became a member before August 1, 2011.
    Enacts new GS 135-5(b20), detailing the service retirement allowance for members who became members on or after August 1, 2011. Amends GS 135-5(b19), distinguishing members who joined the Retirement System before August 1, 2011.
    Enacts GS 135-5(m2), detailing the survivor’s alternate benefit provided upon the death of a member in service who joined the Retirement System on or after August 1, 2011. Amends GS 135-5(m), distinguishing the survivor’s alternate benefit for members who became members before August 1, 2011.
    Amends GS 135-1(5), clarifying that the definition for average final compensation means the average annual compensation of a member during the four consecutive calendar years producing the highest average for members joining the Retirement System before August 1, 2011, and the average annual compensation during the 120 consecutive calendar months producing the highest average for persons who became members on or after August 1, 2011. Makes a similar change to GS 135-53(2a), which defines average final compensation under the Consolidated Judicial Retirement Act.
    Enacts new subsection (a7) to GS 135-58, specifying the retirement allowance for members of the Consolidated Judicial Retirement System who became members on or after August 1, 2011. Amends GS 135-58(a6), distinguishing the retirement allowance for members who joined before August 1, 2011. Amends GS 135-57, allowing any member who became a member before August 1, 2011, who has attained 50 years of age with five years of membership service, to retire not less than one day nor more than 120 days after submitting application to the board of trustees. Makes a conforming change.
    Special Commission. Establishes the 14-member Special Commission to Study Retirement and Health Benefits for Teachers and State Employees (Commission). Details Commission membership, appointing authority, and administrative provisions. Directs the Commission to study retirement and health benefits for teachers and state employees, and to examine six specified issues. Instructs the Commission to make an interim report to the 2011 General Assembly and to make a final report to the 2013 General Assembly, with any proposed legislation. Provides for Commission termination.
    Effective August 1, 2011.


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