AN ACT TO ENACT THE RETIREMENT ADMINISTRATIVE CHANGES ACT OF 2015.
Sets the terms of office of the current members of the Supplemental Retirement Board of Trustees (Board) to expire on June 30, 2016. Requires Board members, effective for terms beginning July 1, 2016, to be appointed according to GS 135-96. Amends GS 135-96 to require, effective July 1, 2016, that the (1) General Assembly's appointments to be Board be for initial terms of three years, expiring June 30, 2019; (2) three of the Governor's appointments be for initial terms of one year, expiring June 30, 2017; and (3) three of the Governor's appointments be for initial terms of two years, expiring June 30, 2018. Upon the expiration of these terms, all member terms are for three years. Prohibits members from serving longer than any of the following: (1) two consecutive three-year terms; (2) three consecutive terms of any length if one of the terms is for less than three years or the member serves a partial term due to filling a vacancy; or (3) eight consecutive years, regardless of term lengths.
Enacts new GS 111-47.3 allowing the Department of State Treasurer to operate or contract for the operation of food or vending services at the Department's offices. Requires the net proceeds of revenue generated by food and vending services that are provided at the Department of State Treasurer by the agency or a vendor to be credited to the Division of Services for the Blind of the Department of Health and Human Services.
Amends GS 147-69.2 to amend the guidelines for the investments that the State Treasurer is allowed to make for excess funds from the special funds listed in the statute, to also allow the investments to be made through registered investment companies; individual, common, or collective trust funds of banks and trust companies; group trusts and limited partnerships; or limited liability companies or other limited liability investment vehicles that invest primarily in investments authorized in the statute. Amends GS 147-77 to amend the exemptions from the requirements governing the deposit of state funds to require that the funds be deposited and reported whenever as much as $5,000 (was, $250) has been collected and received. Adds that each state agency that has custody of funds less than $5,000 must provide adequate safekeeping of the funds.
Amends GS 135-1 to amend the definition of retirement under GS Chapter 135 (Retirement System for Teachers and State Employees; Social Security; State Health Plan for Teachers and State Employees) to add that volunteering in positions normally designated as unpaid bona fide volunteer positions during the six months immediately following the effective date of retirement is not considered service.
Amends GS 135-8 (concerning the Retirement System for Teachers and State Employees) and GS 128-30 (concerning the Retirement System for Counties, Cities and Towns) to require the relevant Board of Trustees to direct employers to submit information monthly as is necessary for proper administration of the system, actuarial valuation, and reporting under accounting standards set by the Governmental accounting Standards Board. Provides that employer submission of the information constitutes a certification of its accuracy. Further amends these statutes to add that if the employer fails to submit payment of any required contributions or payments to the Retirement Systems Division (other than the 1% late payment penalty provided for elsewhere in the statute) within 90 days after the date set by the Board of Trustees, the Board must notify the State Treasurer of its intent to collect the delinquent contributions and other payments due to the Retirement Systems Division (Division) and request an interception of state appropriations due to the participating employer. After the default notification to the State Treasurer and the Office of State Budget and Management, the Office of State Budget and Management is required to withhold an amount equal to the sum of all delinquent contributions and other debts due to the Division from any state appropriation due to that employer and transmit that amount to the Retirement Systems Division. Amends GS 115C-438 to require the State Board of Education, after notification by the Board of Trustees of the Teachers' and State Employees' Retirement System to the State Treasurer and the Office of State Budget and Management as to the default of the local school administrative unit, to withhold from any state appropriation due to the local school administrative unit an amount equal to the sum of all delinquent contributions and payments due to the Retirement Systems Division and requires that that amount be transmitted to the Retirement Systems Division.
Amends GS 150B-21.3A, concerning the periodic review and expiration of existing rules, to add that rules deemed by the Boards of Trustees under GS 128-28 and GS 135-6 to protect inchoate or accrued rights of members of the Retirement Systems administered by the State Treasurer do not expire as provided under the statute. Requires the Rules Review Commission to report annually to the Joint Legislative Administrative Procedure Oversight Committee on rules that do not expire under this provision.
Amends GS 128-21 to add and define the terms regularly employed and temporary employment as used in the retirement system for counties, cities and towns.
Amends GS 135-91 to require the Supplemental Retirement Board of Trustees to authorize the State Treasurer to establish market‑oriented compensation plans for employees that have specialized skills or knowledge necessary for the proper administration of the Supplemental Retirement Plan, who will be exempt from the classification and compensation rules established by the Office of State Human Resources. Requires the design and administration of those compensation plans to be based on compensation studies conducted by a nationally recognized firm specializing in public fund investment compensation and requires the compensation and other associated benefits to be apportioned directly from the Plan. Amends GS 126-5 to add that except for specified statutes and specified Articles of GS Chapter 126, the provisions of GS Chapter 126 (North Carolina Human Resources Act) do not apply to employees of the Department of State Treasurer who have specialized skills or knowledge necessary to properly administer the Supplemental Retirement Plans and are compensated under GS 135-91(c) (giving the Department of State Treasurer and the Board of Trustees authority to adopt rules and regulations for the administration of the Plan).
Amends GS 135-5 (concerning the Retirement System for Teachers and State Employees) to add that a member who has contributions in the relevant system and who is not eligible for a retirement benefit as set forth in the specified statutory provision governing service retirement benefits must be paid his or her contributions in a lump sum by April 1 of the calendar year following the later of the calendar year in which the member (1) attains seventy and one half‑years of age or (2) has ceased to be a teacher or state employee except by death. Sets out the procedure for when a member fails to complete a refund application by the required date. Specifies that for the purposes of this provision, a member is not be considered to have ceased to be a teacher or state employee if the member is actively contributing to the Consolidated Judicial Retirement System, Local Governmental Employees' Retirement System, or Legislative Retirement System. Prohibits a lump sum refund from being paid if the member is actively contributing to one of those systems. Requires a member who has contributions in the relevant system and who is eligible for a retirement benefit as set forth in specified statutory provisions governing service retirement benefits to begin to receive a monthly benefit no later than April 1 of the calendar year following the later of the calendar year in which the member (1) attains seventy and one half‑years of age or (2) has ceased to be a teacher or state employee except by death. Sets out the procedure for when the member fails to complete the retirement process by the required beginning date. Sets out the statute governing the calculation and processes for a single life annuity. Provides that for the purposes of these provisions, a member is considered to have ceased to be a teacher or state employee if the member is actively contributing to the Consolidated Judicial Retirement System, Local Governmental Employees' Retirement System, or Legislative Retirement System. Prohibits a retirement benefit from being paid if the member is actively contributing to one of those systems. Sets out identical provisions for the Consolidated Judicial Retirement System in GS 135-74 and the Legislative Retirement System in GS 120-4.31.
Amends GS 135-5 and GS 128-27 to set the amount of the death benefit for the Retirement System for Teachers and State Employees and the Retirement System for Counties, Cities and Towns at $50,000 (was, the benefit was equal to the greater of one of two specified options, with a minimum benefit of $25,000 and a maximum benefit of $50,000). Makes conforming changes. Effective January 1, 2016.
Amends GS 135-5 and GS 128-24 to add that if a beneficiary of the Retirement System for Teachers and State Employees or the Retirement System for Counties, Cities and Towns who retired on an early or service retirement is reemployed by an employer participating in the Retirement System on a part‑time, temporary, interim, or on a fee-for-service basis during the six months immediately following the effective date of retirement, then the following option that has the lesser financial impact on the member is to be applied: (1) the member's retirement is deemed effective the month after the last month the member performed services for a participating employer, and the member must repay all retirement benefits paid up to the deemed effective date, provided the member thereafter has satisfied the six‑month separation or (2) the member must make a lump sum payment to the Retirement System equal to three times the amount of compensation earned during the six months immediately following the effective date of retirement.
Unless otherwise indicated, effective October 1, 2015.
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