RETIREMENT TECHNICAL CORRECTIONS ACT OF 2016.-AB

View NCGA Bill Details2015-2016 Session
House Bill 1011 (Public) Filed Thursday, April 28, 2016
AN ACT TO ENACT THE RETIREMENT TECHNICAL CORRECTIONS ACT OF 2016.
Intro. by Ross, McNeill, Hardister.

Status: Ch. SL 2016-56 (House Action) (Jun 30 2016)

SOG comments (1):

Identical Bill

Identical to S 886 filed on 5/19/15.

Bill History:

H 1011/S.L. 2016-56

Bill Summaries:

  • Summary date: Jun 30 2016 - More information

    AN ACT TO ENACT THE RETIREMENT TECHNICAL CORRECTIONS ACT OF 2016. Enacted June 30, 2016. Sections 3 and 6 are effective January 1, 2017. The remainder is effective June 30, 2016.


  • Summary date: May 24 2016 - More information

    House committee substitute makes the following changes to the 1st edition.

    Makes a clarifying change to GS 135-8(b)(5).

    Amends GS 135-8(f)(3), concerning the Retirement System for Teachers and State Employees, by clarifying that before the Board of Trustees can assess a penalty on an employer in the event the employee or employer contributions required under the statute are not received by the date set by the Board, it must be true that a one-time exception, as provided in GS 135-5(m2), as amended, has not been agreed upon in advance due to exigent circumstances.

    Amends GS 128-30(g)(3), concerning the Retirement System for Counties, Cities and Towns, to make the same change as that made to GS 135-8(f)(3), as described above.


  • Summary date: Apr 28 2016 - More information

    Amends GS 58-86-45 concerning additional retroactive membership ing the North Carolina Firefighters' and Rescue Squad Workers' Pension Fund (Pension Fund) by establishing that any firefighter or rescue squad worker who is 35 years of age (currently, no minimum age language) and who is a current or former member of a fire department or rescue squad chartered by the state can purchase credit for any periods of service to any chartered fire department or rescue squad not otherwise creditable by making a lump sum payment to the Annuity Savings Fund in the amount calculated pursuant to GS 58-86-45(a1).  Amends subsection (c) to provide that a member of the Pension Fund who is not yet 35 years old can receive credit for prior service by making a lump sum payment of $10 for each month since the worker first became eligible, plus interest at an annual rate set by the board.  Also establishes that the provision for the payment of a lump sum for service not otherwise creditable is to apply to all purchases of service credits for months in which timely payments were not previously made pursuant to GS 58-86-35 or GS 58-86-40 for any firefighter or rescue squad worker who is not yet 35 years of age or older and who is a current or former member of a fire department or rescue squad chartered by the state of North Carolina.

    Repeals GS 128-25 concerning provisions for members of local pension systems to elect to become members of the North Carolina Governmental Employees' Retirement System.

    Amends GS 128-26(a1) to establish that, with respect to a member retiring on or after July 1, 1967, the governing board of a participating city, town, or county in the Retirement System (System), established pursuant to Article 3 of GS Chapter 128, can allow credit for any period of military service in the Armed Forces of the United States if the person returned to the service of the person's employer within two years after having been not dishonorably discharged (was, after having been honorably discharged) or becoming entitled to be discharged, released, or separated from such the Armed Forces of the United States.  Also establishes that, pursuant to 38 USC § 4318(b)(1), when a member who has been on military leave returns to work consistent with the provisions concerning return to service within two years after the member's earliest eligibility for separation or release from military service, then the member's employer must remit to the System all the employer and employee contributions (was, only the employer contributions) for the full period of that member's military service.  Effective January 1, 2017.

    Amends GS 135-5(g), concerning the option of a member of the Retirement System for Teachers and State Employees to receive the member's retirement benefits in a retirement allowance, and GS 128-27(g), concerning the option of a member of the Retirement System for a county, city, or town to receive the member's retirement benefits in a retirement allowance. Establishes that, upon the death of a member of either retirement system after the effective date of a retirement for which the member has been approved but prior to the receipt by the Board of Trustees (of the applicable retirement system) of an election of benefits, the member's designated beneficiary, if there is only one eligible beneficiary to receive the return of accumulated contributions, may elect to receive the benefit, but if more than one beneficiary is eligible to receive the return of accumulated contributions, or if no beneficiary has been designated (currently, no language to provide for when no beneficiary has been designated), the administrator or executor of the member's estate will select an option and name the beneficiary or beneficiaries.

    Amends GS 135-5(m2), concerning the special retirement allowance option for a member of the Retirement System for Teachers and State Employees, and GS 128-27(m2), concerning the special retirement allowance for a member of the Retirement System for a county, city, or town. Establishes that at any time coincident with or following retirement, a member of either retirement system may make a one-time, irrevocable election (currently, a one-time election) to transfer any portion of the member's eligible accumulated contributions, not including any Roth after-tax contributions and the earnings thereon, from the Supplemental Retirement Income Plan of North Carolina or the North Carolina Public Employee Deferred Compensation Plan to this Retirement System and receive, in addition to the member's basic service, early, or disability retirement allowance, a special retirement allowance based upon the member's transferred balance.  Also establishes that a member of either retirement system who became a member of the Supplemental Retirement Income Plan prior to retirement and who remains a member of the Supplemental Retirement Income Plan may make a one-time, irrevocable election (currently, a one-time election) to transfer eligible balances, not including any Roth after-tax contributions and the earnings thereon, from any of the specified plans to the Supplemental Retirement Income Plan, subject to the applicable requirements of the Supplemental Retirement Income Plan, and then through the Supplemental Retirement Income Plan to this Retirement System.

    Amends GS 135-8(b)(5) to clarify that the Board of Trustees of the Retirement System for Teachers and State Employees can approve the purchase of creditable service by any member for leaves of absence or for interrupted service to an employer only for the purpose of (currently, the sole purpose of) acquiring knowledge, talents, or abilities and to increase the efficiency of service to the employer, subject to the provisions of GS 135-8(b) concerning the Annuity Savings Fund.  Amends GS 128-30(b)(4) to clarify that the Board of Trustees of the retirement system of a county, city, or town can approve the purchase of creditable service by any member for leaves of absence or for interrupted service to an employer only for the purpose of (currently, for the sole purpose of) acquiring knowledge, talents, or abilities and to increase the efficiency of service to the employer, subject to the provisions of GS 128-30(b). Establishes that a leave of absence or interrupted service may be approved for purchase under this subdivision for a period of employment as a teacher in a charter school.  Establishes that, similar to the provisions set out in GS 135-8(b)(5) concerning the Retirement System for Teachers and State Employees, any other leave of absence or interrupted service must qualify for purchase under this subdivision only if (1) during the time of the leave or interrupted service the member is enrolled and participates in a full-time degree program at an accredited institution of higher education; (2) the member is not paid for the activity in which he or she is acquiring knowledge, talents, or abilities; and (3) the service is not purchased for any month in which the member performed any services for any of the organizations listed in GS 135-27(a) or GS 135-27(f), or a successor to any of those organizations. Approval by the Board of Trustees of the Retirement System for the county, city, or town under this subdivision must be made prior to the purchase of the creditable service is limited to a career total of four years for each member and may be obtained in the manner laid out by GS 128-30(b)(4).  Effective January 1, 2017.

    Amends GS 135-8(f)(2) concerning the collection of employers' contributions under the Retirement System for Teachers and State Employees to provide that each employer must transmit to the Retirement System on account of each member who retires on or after January 1, 2015, having earned his or her last month of membership service as an employee of that employer the lump sum payment, as calculated under GS 135-4(jj) for inclusion in the Pension Accumulation Fund [currently, under GS 135-4(jj)], that would have been necessary in order for the retirement system to restore the member's retirement allowance to the pre-cap amount.  Amends GS 135-8(f)(3) to provide that, in the event the employee or employer contributions required under this section are not received by the date set by the Board of Trustees, the Board must assess the employer with a penalty, in lieu of interest, and a one-time exception has not been agreed upon in advance due to exigent circumstances (currently, no provision for a situation where a one-time exception has been agreed upon in advance due to exigent circumstances), of 1% per month with a minimum penalty of $25.

    Amends GS 128-30(g)(2) concerning the collection of employers' contributions under the Retirement System of a county, city, or town to provide that each employer must transmit to the Retirement System on account of each member who retires on or after January 1, 2015, having earned his or her last month of membership service as an employee of that employer the lump sum payment, as calculated under GS 128-26(y) for inclusion in the Pension Accumulation Fund [currently, under GS 128-26(y)], that would have been necessary in order for the retirement system to restore the member's retirement allowance to the pre-cap amount.  Amends GS 128-30(g)(3) to provide that, in the event the employee or employer contributions required under this section are not received by the date set by the Board of Trustees, the Board must assess the employer with a penalty, in lieu of interest, and a one-time exception has not been agreed upon in advance due to exigent circumstances (currently, no provision for a situation where a one-time exception has been agreed upon in advance due to exigent circumstances), of 1% per month with a minimum penalty of $25.

    Amends GS 147-86.71(b)(3) by providing that contributions to an Achieving a Better Life Experience (ABLE) account, under Article 6F of GS Chapter 147, must be made only in US Dollars (was, cash).

    Amends GS 147-86.72(c)(3) by adding a provision that provides that notwithstanding the provisions of Article 3 of GS Chapter 143 concerning the Governor, the Board of Trustees of the Achieving a Better Life Experience Program has a duty to retain the services of auditors, attorneys, investment counseling firms, custodians, or other persons or firms possessing specialized skills or knowledge necessary for the proper administration of investment programs that the Board administers pursuant to Article 6F of GS Chapter 143.

    Repeals GS 147-86.71(d)(4), requiring that an ABLE account may only be established for a designated beneficiary who is a resident of North Carolina or a resident of a contracting state, and GS 147-86.70(b)(4), defining a contracting state.

    Amends GS 135-48.40(d)(13) concerning the categories of eligibility for the State Health Plan for Teachers and State Employees to include persons receiving a pension from the North Carolina Firefighters' (currently, Firemen) and Rescue Squad Workers' Pension Fund.

    Amends GS 135-5(g), GS 128-27(g), and GS 128-30(g) by making the language gender neutral.

    Includes a severability clause.


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