Amends various provisions of the state retirement systems as follows. Amends GS 128-24 (membership of Local Governmental Employees’ Retirement System) to require employees to notify the Board of Trustees of their participation in the system within 30 days (rather than 90 days).
Amends GS 128-28(m) to add that the actuarial calculations and the Board of Trustees’ minutes are part of the Plan Documentation governing the Local Governmental Employees’ Retirement System, in order to preclude employer discretion in the determination of benefits. Makes a corresponding change to GS 135-6(l) (Teachers’ and State Employees’ Retirement System (TSERS)).
Amends GS 128-26(e) (concerning creditable service) to add that unused sick leave may not be credited to a member at retirement if the member’s last day of service is more than one year before the member’s effective date of retirement. Makes corresponding changes to GS 135-4 (TSERS), prohibiting the credit if the last day is more than five years before the effective date.
Amends GS 120-4.31 (Legislative Retirement System compliance with the Internal Revenue Code (Code)) to add that the Plan must not base contributions or benefits on annual compensation above the limits allowed by the Code. Specifies that the Plan does not have mandatory distributions, and makes other clarifying changes. Modifies the definition for eligible retirement plan, and defines direct rollover. Makes corresponding changes to GS 128-38.2 (Local Governmental Employees), GS 135-18.7 (TSERS), and GS 135-74 (Judicial Retirement Act).
Amends GS 120-4.28 to allow the payment of retirement allowance in a lump sum to the contingent beneficiary if the designated beneficiary dies before receiving all allowances. Clarifies the definition of teacher in GS 135-1(25).
Amends GS 120-4.9 to provide that TSERS is a governmental plan, and that specified nondiscrimination rules in the Code do not apply. Requires all member employee and employer contributions to be made to funds held in trust to distribute trust principal and income to retired members and their beneficiaries, and to pay other determinable benefits. Requires the retirement system to have a consolidated Plan document, as detailed. Makes corresponding changes to GS 128-22 (Local Governmental Employees), GS 135-2 (TSERS), and GS 135-54 (Judicial Retirement Act).
Makes clarifying changes to GS 128-28(f) (voting rights for Local Governmental Employees’ system) and GS 135-6(e) (voting rights for TSERS).
Makes additional technical and clarifying changes.
Effective July 1, 2012.