AN ACT INCREASING THE DEATH BENEFIT FOR MEMBERS OF THE LEGISLATIVE RETIREMENT SYSTEM WHO DIE WHILE IN SERVICE, APPROPRIATING FUNDS TO THE GENERAL ASSEMBLY FOR THE INCREASED DEATH BENEFIT, AND MAKING TECHNICAL CHANGES TO REORGANIZE THE LEGISLATIVE RETIREMENT SYSTEM DEATH BENEFIT STATUTE.
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. Makes language gender neutral.
Effective retroactively to January 1, 2020, and applies to eligible deaths occurring on or after that date.
Directs the State Treasurer to transfer from the LRS to the Teachers' and State Employees' Benefit Trust (Benefit Trust) an amount equal to 0.34% of the reported compensation for the LRS for the period beginning January 1, 2020, and ending June 30, 2021.
Appropriates $21,358 in recurring funds and $10,679 in nonrecurring funds from the General Fund to the NCGA for 2020-21 for the LRS death benefit under GS 120-4.27, as amended. Requires the NCGA to make a $32,037 contribution to the Benefit Trust by June 30, 2021, of the funds appropriated, for the LRS death benefit.
States legislative intent to make adjustments to the required employer salary-related contributions for 2021-22 to reflect the act's provisions.
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