Bill Summaries: H1042 INCREASE IN-SERVICE DEATH BENEFIT/LRS.

Tracking:
  • Summary date: Apr 28 2020 - More information

    Section 1

    Amends GS 120-4.27, concerning the death benefit for members of the Legislative Retirement System (LRS). Makes organizational, technical, and clarifying changes to the statute. Additionally, increases the death benefit payment to a designated beneficiary of a member who dies while in service after completing one year of creditable service from a lump-sum payment of an amount equal to the deceased member's highest annual salary, up to $15,000, to instead provide for a lump-sum payment of $50,000.

    Effective retroactively to January 1, 2020, and applies to eligible deaths occurring on or after that date.

    Section 2

    Amends Section 3.15(b) of SL 2019-209, which sets the State's employer contribution rates budgeted for retirement and related benefits for the 2019-20 fiscal year, effective July 1, 2019, for teachers and State employees, State law enforcement officers, the University and Community Colleges Optional Retirement Programs, the Consolidated Judicial Retirement System, and the Legislative Retirement System. Makes the schedule effective July 1, 2019, through December 31, 2019.

    Adds a new subsection to SL 2019-209 to set the State's employer contribution rates budgeted for retirement and related benefits for the 2019-20 fiscal year, effective January 1, 2020, for teachers and State employees, State law enforcement officers, the University and Community Colleges Optional Retirement Programs, the Consolidated Judicial Retirement System, and the Legislative Retirement System. The schedule sets contribution rates equal to those set forth in Section 3.15(b) of SL 2019-209, except increases the contribution rates for retirement and death benefits for LRS, as specified, from 32.93% total, to 33.52% total.

    Additionally, amends Section 3.15(c) of SL 2019-209, which sets the State's employer contribution rates budgeted for retirement and related benefits for the 2020-21 fiscal year, effective July 1, 2020, for teachers and State employees, State law enforcement officers, the University and Community Colleges Optional Retirement Programs, the Consolidated Judicial Retirement System, and the Legislative Retirement System. Increases the contribution rates for retirement and death benefits for LRS, as specified, from 35.82% total, to 36.41% total.

    Appropriates from the General Fund to the General Assembly $10,679 and $21,358 in recurring funds for the 2019-20 and 2020-21 fiscal years, respectively, for the purpose of paying salary-related contributions related to the LRS death benefit, as amended.


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