Bill Summary for H 359 (2013-2014)
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| View NCGA Bill Details | 2013-2014 Session |
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.Intro. by Moffitt.
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Bill summary
Senate committee substitute makes the following changes to the 2nd edition.
Amends GS 135-5(m2) to allow a member of the Teachers' and State Employees' Retirement System (TSERS) who became a member of the Supplemental Retirement Income Plan (SRIP) before retiring and who remains a memberto make a one-time election to transfer eligible balances, not including any Roth after-tax contributions and earnings, from specified plans to SRIP, subject to applicable SRIP requirements, and then through SRIP to TSERS. Provides a list of the specified plans.
Provides that an individual who transfers an eligible retirement plan under subsection (m2) to TSERS is taxed for state income tax purposes on the special retirement allowanceas if that special retirement allowance was paid directly by the eligible plan or the plan through which the transfer was made, whichever is most favorable to the member.
Prohibits an eligible plan from assessing a fee specifically related to a transfer of accumulated contributions, but does not prohibit other fees assessable under the plan. Requires each plan, contract, account, or annuity to fully disclose to any member participating in a transferany surrender chargesor other fees contemporaneously with the initiation of the transfer by the member.
Makes organizational changes to this section.
Amends new GS 135-151(c) to provide that the supplemental benefit paid under the Qualified Excess Benefit Arrangement (QEBA) is taxable under NC law in the same manner as the benefit paid under TSERS. Amends new GS 128-38.10 (providing for QEBA under the Local Governmental Employees' Retirement System [LGERS]) to make identical provision regarding the taxability of the supplemental benefit paid under QEBA. Effective January 1, 2014.
Amends GS 135-3(8)d to provide that a beneficiary who retired on an early or service retirement allowance and then returns to service as a teacher or employee and earns at least three years membership servicemust have creditable service earned while receiving disability benefits under GS Chapter 135, Article 6, counted as membership service for purposes of computing the member's retirement allowance. Effective January 1, 2012, and applies to persons retiring on or after that date.
Amends GS 135-4(ff) pertaining to retroactive membership in TSERS. Provides that a member reinstated to service retroactively to the date of prior involuntary termination, with back pay, may be allowed membership service after submitting clear and convincing proof of the reinstatement, payment of the back pay, and restoration of associated benefits. Provides criteria for when the reinstatement is by courtorder and criteria when reinstatement is by settlement agreement. Makes identical amendments to GS 128-26(v) pertaining to retroactive membership service in LGERS.
Adds a severability clause to this act. Amends the title of the act to reflect changes to the content.
Except as otherwise indicated, this act becomes effective July 1, 2013 (was January 1, 2014).