AN ACT MAKING TECHNICAL CORRECTIONS AND OTHER CONFORMING AND CLARIFYING CHANGES TO THE LAWS GOVERNING THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM; THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM; THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM; THE NORTH CAROLINA TEACHERS' AND STATE EMPLOYEES' BENEFIT TRUST AND BENEFITS PROVIDED UNDER THAT TRUST; THE ACHIEVING A BETTER LIFE EXPERIENCE PROGRAM; AND THE FIREFIGHTERS' AND RESCUE SQUAD WORKERS' PENSION FUND. SL 2022-16. Enacted June 29, 2022. Effective July 1, 2022.
Bill Summaries: H1058 RET. & TREASURY TECH. CORRECTIONS ACT OF 2022.-AB
Summary date: Jun 30 2022 - View Summary
Summary date: Jun 1 2022 - View Summary
House committee substitute to the 1st edition makes the following changes.
No longer repeals GS 160A-17.2, which authorizes a county or municipality to pledge a security interest in an escrow account funded with loan proceeds, or a certificate of deposit, to secure repayment of the loan, only if the loan is an interest-free loan agreement entered into with the United States Department of Agriculture or an authorized intermediary acting on behalf of the United States Department of Agriculture, and approved by the Local Government Commission.
Amends Section 1 of SL 2016-108 by making a clarifying change to the effective date provisions for amendments to GS 58-86-2 and GS 58-86-55 making changes to the NC Firefighters' and Rescue Squad Workers' Pension Fund.
Amends the act's long title.
Summary date: May 26 2022 - View Summary
Amends GS 135-4(j2) concerning the purchase of creditable service by members of the Teachers' and State Employees' Retirement System (TSERS) for service as a member of the NCGA that is not otherwise creditable. Requires that the creditable service purchased cannot be credited (was, created) in the Legislative Retirement Fund or the Legislative Retirement System.
Amends GS 135-5.3, which permits charter school boards of directors to elect to become a participating employer in TSERS. Provides that the financial review required of applications for participation are based on financial statements and independent audit reports or functionally equivalent reports submitted to the board of trustees of the charter school (was, such statements and audit reports held by the Local Government Commission or functionally equivalent statements and audit reports submitted to the board).
Corrects a statutory cross-reference in GS 128-24(5)c1.3, concerning membership in the Local Governmental Employees' Retirement System (LGERS).
Amends GS 128-26(h2), mirroring the change in Part I. to GS 135-4(j2) concerning TSERS members, to require that service purchased as a member of the NCGA not otherwise creditable cannot be credited (was, created) in the Legislative Retirement Fund or the Legislative Retirement System.
Regarding required income statements LGERS members retired on a disability retirement allowance must annually submit to the Board of Trustees as a condition of receipt of the allowance pursuant to GS 128-27(e), updates members subject to the requirement to include allowances provided under GS 128-27(d4), which includes members retired on disability on or after July 1, 1982, in addition to GS 128-27(d) through (d3).
Further amends GS 128-27, now providing for the specified discretionary pension supplement to apply to LGERS beneficiaries on the retirement rolls as of September 1 of the calendar year of determination, rather than July 1.
Amends GS 135-60(a) regarding disability retirement benefits for members of the Consolidated Judicial Retirement System. Provides for the member's disability retirement allowance to be computed and paid as provided for in GS 135-58(a6), which applies to members retiring on or after July 1, 1999, but before July 1, 2001, which applies to members retiring on or after July 1, 2008, rather than GS 135-58(a2), which applies to members retiring on or after July 1, 1999, but before July 1, 2001.
Concerning the death benefits provided in GS 120-4.27 under the Legislative Retirement System, GS 128-27 under LGERS, GS 135-5 under TSERS, and GS 143-166.60 under the Separate Insurance Benefits Plan for law enforcement officers administered by TSERS and LGERS, no longer requires the respective board of trustees that elects to establish or affiliate with a separate trust fund for the provision of the death benefit to have the trust fund qualified under Section 501(c)(9) of the Internal Revenue Code.
Further amends GS 143-166.60 to eliminate the provision that requires the accident and sickness disability insurance benefits under the Separate Insurance Benefits Plan to be payable to a participant at any time after becoming a participant in the Plan.
Amends Article 6F, GS Chapter 147, governing the Achieving a Better Life Experience (ABLE) Program Trust. Adds to the defined terms authorized representative, defined as an individual or entity authorized to open or manage an ABLE account on behalf of an account owner under the provisions of the federal ABLE Act and federal regulations promulgated thereunder. Amends the term ABLE account to provide that an authorized representative (was, a parent, sibling, guardian, or agent under a power of attorney) can act on behalf of an account owner. Adds the same language to the term account owner.
Requires the ABLE Program Board to administer the ABLE Program Trust in compliance with the federal ABLE Act and federal regulations promulgated thereunder.
Authorizes an account owner or authorized representative to establish an ABLE account. Eliminates the provision allowing for contributors to establish an account with the owner or owner's parent, sibling, guardian, trustee, or agent's signature on the application form.
Requires the ABLE Program Board to ensure an authorized representative (was, parent, sibling, or guardian appointed as signatory) does not have or acquire any beneficial interest in the account and administers the account for the benefit of the designated beneficiary.
Specifies that administration of the ABLE Program does not create any obligation of the State Treasurer, the ABLE Program Board (previously not included), the State or any agency or instrumentality of the State to guarantee the benefit of any authorized representative (was, any parent), other interested party, or designated beneficiary the rate of return or any return for any contribution to the ABLE Program Trust and the payment of interest or other return on any contribution to the ABLE Trust Fund.
Repeals GS 160A-17.2, which authorizes a county or municipality to pledge a security interest in an escrow account funded with loan proceeds, or a certificate of deposit, to secure repayment of the loan, only if the loan is an interest-free loan agreement entered into with the United States Department of Agriculture or an authorized intermediary acting on behalf of the United States Department of Agriculture, and approved by the Local Government Commission.
Effective July 1, 2022.
Summary date: May 25 2022 - View Summary
To be summarized.