Bill Summary for H 927 (2011-2012)

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Bill: STATE PENSION PLAN SOLVENCY REFORM ACT.

Summary date: 

Jun 8 2011
S.L. 2011-232

Bill Information:

View NCGA Bill Details2011-2012 Session
House Bill 927 (Public) Filed Wednesday, May 4, 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 LIMIT THE AMOUNT OF SICK LEAVE THAT CAN BE CONVERTED TO RETIREMENT CREDIT, TO LIMIT COMPENSATION FOR PURPOSES OF CONTRIBUTIONS AND CALCULATION OF BENEFITS FOR MEMBERS WHO BECOME MEMBERS ON OR AFTER AUGUST 1, 2011, TO THE SALARY SET FOR THE GOVERNOR, TO PROVIDE THAT COMPENSATION TO BE USED IN CALCULATING AVERAGE FINAL COMPENSATION FOR MEMBERS WHO BECOME MEMBERS ON OR AFTER AUGUST 1, 2011, CAN INCREASE BY NO MORE THAN TEN PERCENT FROM ONE YEAR TO THE NEXT, TO AMEND THE PROVISIONS SPECIAL SEPARATION ALLOWANCE FOR LAW ENFORCEMENT OFFICERS HIRED ON OR AFTER AUGUST 1, 2011, AND TO MAKE IT A CLASS 1 MISDEMEANOR TO FRAUDULENTLY RECEIVE THE RETIREMENT BENEFIT OF A DECEASED RETIREE AT LEAST TWO MONTHS AFTER THE RETIREE'S DEATH.
Intro. by Folwell, McGee, Dixon, Starnes.

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Bill summary

House committee substitute makes the following changes to 1st edition. Enacts new b4. to GS 135-3(8) detailing circumstances a member, who became a member on or after August 1, 2011, may retire on an unreduced or early reduced service retirement allowance as detailed. Enacts new b5. to GS 135-3(8) detailing circumstances in which a member, who is a law enforcement officer, who became a member on or after August 1, 2011, may retire on an early reduced or unreduced service retirement allowance. Rewrites GS 135-5(a) to clarify that a member, meeting detailed requirements, who became a member on or after August 1, 2011, may retire upon electronic submission or written application, as detailed. Makes similar changes to provisions concerning members who are law-enforcement officers. Rewrites proposed GS 135-5(a2), concerning early service retirement benefits, to make it applicable solely to law enforcement officers 50 years old or older with at least 15 years of creditable service.
Amends GS 135-5(b20) to modify the age and amount of creditable service necessary to make the provision applicable to law enforcement officer members. Makes additional modifications to GS 135-5(620). Amends GS 135-5(b20)(1)b to make provision applicable to members with 15 or more years of credible service (previously 20 years). Provides method for service retirement allowance computation.
Deletes provisions in previous edition which amended GS 135-58 to create a new subsection (a7), concerning retirement allowance of members who became members on or after August 1, 2011. Deletes provisions in previous edition concerning conversion of sick leave to creditable service at retirement. Deletes provision in previous edition concerning compensation for certain members exceeding that of the Governor. Deletes provisions in the previous edition which amended the term average final compensation in various statutes.
Amends GS 135-57 to provide that a member, meeting detailed requirements, who became a member on or after August 1, 2011, may retire upon electronic submission or written application, as detailed. Amends proposed GS 143-166.41(a1) to modify the qualifications necessary for a law enforcement officer to qualify for an annual separation allowance equal to 0.85% of the annual equivalent of the base rate of compensation most recently applicable to him or her for each year of creditable service.
Specifies that the provisions in the act which concern improper receipt of decedent’s retirement allowance become effective December 1, 2011, and apply to acts committed on or after that date. The remainder of the act is effective August 1, 2011. Makes other technical, conforming, and clarifying changes. Changes title to AN ACT TO MAKE CHANGES TO THE STATUTES GOVERNING THE TEACHERS’ AND STATE EMPLOYEES’ RETIREMENT SYSTEM AND THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM TO ENSURE THE FUTURE SOLVENCY OF THOSE SYSTEMS, TO AMEND THE PROVISIONS OF THE SPECIAL SEPARATION ALLOWANCE FOR LAW ENFORCEMENT OFFICERS FOR LAW ENFORCEMENT OFFICERS HIRED ON OR AFTER AUGUST 1, 2011, AND TO MAKE IT A CLASS 1 MISDEMEANOR TO FRAUDULENTLY RECEIVE THE RETIREMENT BENEFIT OF A DECEASED RETIREE AT LEAST TWO MONTHS AFTER THE RETIREE’S DEATH.