Bill Summary for H 1056 (2021-2022)
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AN ACT PROVIDING AN EXCEPTION TO THE IRREVOCABLE ELECTION TO TRANSFER ACCUMULATED CONTRIBUTIONS FROM SUPPLEMENTAL RETIREMENT PLANS TO THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM OR THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM; THE TREATMENT OF INACTIVE EMPLOYERS AND DEADLINES FOR REACTIVATION UNDER THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM AND THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM; ESTABLISHMENT OF A DEFAULT OPTION FOR EMPLOYING UNITS THAT FAIL TO SELECT AN OPTION FOR THE TRANSFER OF REMAINING ASSETS UPON THE DISCONTINUATION OF DEPARTMENT OF STATE TREASURER-SPONSORED 403(B) PLANS; CLARIFICATION OF THE OPERATIONALIZATION OF THE NON-ASSIGNABILITY OF PUBLIC SAFETY EMPLOYEES' LINE OF DUTY DEATH BENEFITS; ELIGIBILITY FOR LONG-TERM DISABILITY BENEFITS UNDER THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM; SIGNATURE REQUIREMENTS FOR PROPERTY FINDER AGREEMENTS; AND CLARIFICATION OF LOCAL GOVERNMENT COMMISSION APPROVAL OF CERTAIN BORROWING CONTRACTS.Intro. by McNeill, C. Smith.
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Enacts GS 135-106(b1), establishing formulas for participants and beneficiaries of the the Disability Income Plan to reduce the amount of the long-term disability benefit of those receiving workers' compensation benefits, with distinct calculations provided based on entitlement to a weekly workers' compensation payment, a lump sum workers' compensation payment equal to a stated weekly or monthly amount for a given number of weeks or months, or a lump sum workers' compensation payment that is not in reference to a stated weekly or monthly amount. Allows the member to contact the Retirement Systems Division to cease the reduction upon verification that the reductions have totaled the entirety of a lump sum workers' compensation payment. Applies to participants or beneficiaries who become entitled to receive workers' compensation benefits on or after July 1, 2022.
Amends GS 135-5(m1) and (m2) concerning the Teachers and State Employees' Retirement System (TSERS), and GS 128-27(m1) and (m2) concerning the Local Governmental Employees' Retirement System (LGERS), regarding elections by a member pursuant to those provisions to transfer any portion of the member's eligible accumulated contributions from the Supplemental Retirement Income Plan to TSERS or LGERS, respectively, and receive an additional special retirement allowance based on their eligible accumulated account balance at the date of the transfer of the assets to the System. Provides that, for transfers made on or after July 1, 2022, no special allowance can be paid to the member if the respective System's Board of Trustees determines that the member was ineligible for the election or the election was impermissible under state or federal law. Requires that the member return to the respective System any amount already paid as a special retirement allowance, and the System return the amount to the sources of the transfer, or if not possible to return, the member can designate another eligible account under the transferor plan or receive a lump sum distribution paid directly to the member if otherwise eligible for a distribution under the plan at such time.
Amends GS 135-5.5 concerning TSERS, and GS 128-23.1 concerning LGERS, which governs inactive employers under the Retirement Systems. Deems an employer who fails to report any qualifying employees for six consecutive months an inactive employer. Requires the Retirement Systems Division to annually notify all employers who were reported to the System's Board of Trustees as inactive employers. Allows for inactive employers to apply to extend its inactive period for up to one year by submitting to their respective System clear and convincing evidence satisfactory to that System of the employer's intention to hire an employee in a position qualifying for membership service, within the timeline specified. Gives a timeline by which the respective Board of Trustees must make a determination on whether to extend an inactive status. Requires ceasing participation and withdrawal from TSERS or LGERS on October 1 for employer notified as inactive that has not resumed reporting eligible employees or has not had its inactive status extended. Makes technical changes. Effective December 31, 2022.
Amends GS 115C-341.2 and GS 115D-25.4 to require local school boards and community college boards of trustees that continue to sponsor their 403(b) plan following the Department of State Treasurer (Department) and Supplemental Retirement Board(SRB)'s election to discontinue offering the Public School Teachers' and Professional Educators' Investment Plan (Investment Plan), to designate another investment provider in their plan to receive any assets remaining upon the discontinuation of the Investment Plan. Authorizes the Department and SRB to transfer remaining assets on behalf of a board that fails to make such a designation to an individual retirement account selected in a vendor solicitation pursuant to state law.
Amends the payment provisions of the Public Safety Employees' Death Benefits Act, GS 143-166.3, to prohibit the State Treasurer from paying or distributing a death benefit awarded under the statute to any person other than the beneficiary or the beneficiary's parent or legal guardian, unless otherwise allowed by specified law.
Amends GS 135-106, which provide for long-term disability benefits under the Disability Income Plan, to provide that the provisions of the statute that were in effect on July 31, 2007, apply to any beneficiary or participant with at least five years of membership service as of July 31, 2007.
Adds a new requirement to property finder agreements under GS 116B-78 of the Unclaimed Property Act to require the agreement have a notarized signature of a licensed private investigator authorized to bind the property finder.
Amends GS 159-151 to authorize the Local Government Commission to deny the application for approval of a proposed contract of any local school administrative unit or community college that fails to comply with GS 143-64.17A(a1), which requires an administrative unit or community college to give 15 days' notice to the LGC of their intent to issue a request for proposal for a guaranteed energy savings contract that would involve a financing agreement under GS 160A-20.
Includes a severability clause.
Effective July 1, 2022, unless otherwise provided.