A BILL TO BE ENTITLED AN ACT TO MAKE CHANGES TO ADMINISTRATION OF THE STATE RETIREMENT SYSTEMS THAT WILL EXTEND THE TRANSFER BENEFIT OPTION TO PARTICIPANTS IN THE 403(B) SUPPLEMENTAL RETIREMENT PLAN, CLARIFY THE TIMING OF THE SOCIAL SECURITY OFFSET FOR LONG‑TERM DISABILITY BENEFITS, ESTABLISH A 415(M) BENEFITS PRESERVATION ARRANGEMENT AS ALLOWED UNDER FEDERAL LAW, AND PROVIDE THAT DOMESTIC RELATIONS ORDERS DIVIDING INTERESTS UNDER THE RETIREMENT SYSTEM MUST BE SUBMITTED ON APPROVED FORMS, AND TO CORRECT AN OVERSIGHT IN THE DISABILITY INCOME PLAN, AND TO AMEND THE PROVISIONS FOR ALLOWANCE OF RETROACTIVE MEMBERSHIP SERVICE IN THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM AND THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM.
House committee substitute makes the following changes to the 1st edition.
Changes long title.
Amends GS 135-106(b), making clarifying changes to provisions dealing with long-term disability, providing that the amounts payable are to be reduced by Social Security disability benefits to which the beneficiary may be entitled, effective as of the first of the month following the month of initial entitlement.
Amends title of GS Chapter 135, Article 7, changing it to Qualified Excess Benefit Arrangement.
Amends GS 135-150, Definitions, deleting a reference to GS 128-28 in the definition of Board of Trustees. Amends the definition of Retirement Systems to only refer to the Teachers' and State Employees' Retirement System; deletes references to the NC Local Government Employees' Retirement System, the Consolidated Judicial Retirement System, and the Legislative Retirement System.
Amends GS 135-151, Qualified Excess Benefit Arrangement, making clarifying and conforming changes. Enacts new GS 135-151(j), establishing a sunset provision for participation in QEBA, which provides that no member of the Teachers' and State Employees' Retirement System retiring on or after January 1, 2015, will be eligible to participate in the QEBA.
Enacts new GS 128-38.10, Qualified Excess Benefit Arrangement, which amends the Retirement System for counties, cities, and towns to address QEBA. Establishes QEBA, effective January 1, 2014, and places it under the management of the Board of Trustees, with the sole purpose of providing part of the retirement allowance or benefit that would otherwise be payable by the NC Local Government Employees' Retirement System, except for the limitations under section 415(b) of the Internal Revenue Code (IRC). Sets out other provisions and regulations for the QEBA that apply to the NC Local Government Employees' Retirement System, which are identical to the provisions for the QEBA for the Teachers' and State Employees' Retirement System, including the above added sunset provision.
Amends GS 135-9, Exemption from garnishment, attachment, etc., and GS 128-31, Exemptions from execution, providing that an Application for System approval of a domestic relations order dividing a person's interest under the Retirement System must be accompanied by an order consistent with the system-design template order provided on the System's website.
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