Bill Summary for H 1074 (2011-2012)

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Summary date: 

May 23 2012

Bill Information:

View NCGA Bill Details2011-2012 Session
House Bill 1074 (Public) Filed Tuesday, May 22, 2012
TO MAKE CHANGES TO THE STATUTES GOVERNING THE TEACHERS’ AND STATE EMPLOYEES’ RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL EMPLOYEES RETIREMENT SYSTEM, AND THE DISABILITY INCOME PLAN OF NORTH CAROLINA TO ENHANCE THE OPERATION OF THE MEDICAL BOARD; TO ESTABLISH GUIDELINES FOR FRAUD INVESTIGATIONS THAT WILL ENHANCE THE DEPARTMENT OF STATE TREASURER’S CAPABILITY TO PREVENT AND DETECT FRAUD, WASTE, AND ABUSE; TO CREATE A REBUTTABLE PRESUMPTION OF FRAUD IN THE AVERAGE FINAL COMPENSATION CALCULATION; AND TO MAKE IT A CLASS 1 MISDEMEANOR TO FRAUDULENTLY RECEIVE THE RETIREMENT BENEFIT OF A DECEASED DISABILITY RETIREE AT LEAST TWO MONTHS AFTER THE RETIREE’S DEATH.
Intro. by Moffitt.

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Bill summary

Enacts new GS 128-38.6 to set out protections and remedies against retaliation for employees who provide information to the Retirement Systems Division about possible violations of retirement law.
Makes the following changes to the Local Governmental Employees’ Retirement System and makes corresponding changes to the Teachers’ and State Employees’ Retirement System. Enacts three new subsections in GS 128-28 to (1) detail the powers and access of the Retirement Systems Division (Division) and staff when conducting a fraud investigation; (2) require the Division to maintain fraud investigative reports for 10 years and provide for the management of relevant work papers; and (3) keep the identity of the person reporting fraud, waste, or abuse confidential. Adds a definition for fraud investigation to GS 128-21. Amends the definition for compensation in GS 128-21(7a) to create a rebuttable presumption that any salary or remuneration paid for the principal purpose of enhancing a member’s benefits under the plan is not compensation. Amends GS 128-28(l) to authorize the Board of Trustees to structure appointment requirements and term durations for medical board members.
Amends GS 135-18.11 to make a person guilty of a Class 1 misdemeanor if the person fraudulently receives a decedent’s monthly benefit under the Disability Income Plan at least two months after the retiree’s death.
Effective July 1, 2012.