Amends definitions provisions of GS 135-1 (Teachers’ and State Employees Retirement System [TSERS]), GS 128-21 (Local Government Employees Retirement System [LGERS]) to add defined term conduct directly related to the office or employment, which means conduct by a member resulting in a felony conviction that: (1) is an offense listed in GS 115C-270.35(b)(felonies that trigger an automatic revocation of a professional educator without a hearing) committed while employed in or working in a public school); (2) an offense which required the revocation of the member’s licensure or certification required for the member’s employment or office at the time of the commission of the offense; or (3) is conduct that was directly related to the member’s employment or office as determined by each system’s Board of Trustees. Makes organizational changes.

Amends TSER’s provision (GS 135.18.10), pertaining to forfeiture of retirement benefits for certain felonies committed while serving as an elected government official, to require that each employer who reported compensation for a member convicted of embezzlement to recertify the accuracy of all compensation within 120 days of notice of the conviction. Provides for an employer to request an extension of an additional 60 days to provide for the recertification. Specifies that if recertification does not occur within 180 days after notice of conviction, then the member’s right to receive a distribution from the Retirement System is reinstated and eligible to receive a distribution based on the previously reported compensation. Specifies, however, that if the employer subsequently recertifies the compensation the distributions by TSERs will be adjusted accordingly. As the act incorporates this process into other retirement system statutory schemes, the above described recertification process upon notice of a conviction for embezzlement in this paragraph is be referred to as the “Compensation Recertification” throughout this summary.

Amends GS 135-18.10A (TSERS) and GS 128-38.4A (LGERS), pertaining to forfeiture of retirement benefits for certain felonies related to employment or holding office as follows. Adds removal from office for certain felonies committed under GS 128-16 (pertaining to unfit officers) and, for TSERS, GS 7A-173(c)(pertaining to removal of magistrates) as a triggering violation for forfeiture of retirement benefits (currently, just requires conviction of felony under federal or State law). Requires Compensation Recertification.  Specifies that if the system’s Board of Trustees receives an order from a judge determining that the member's removal from office was due to conduct directly related to the member's service and directing the Board of Trustees not to pay retirement benefits or allowances to the member, except for a return of member contributions plus interest, then the Board of Trustees must not pay to the member any benefits or allowances except as provided in statutory provisions pertaining to credit for service. Specifies that the order must state the dates on which the conduct occurred. As the act incorporates this process into other retirement system statutory schemes and provisions of LGERS, the above described court order decompensation in this paragraph will be referred to as “Court Ordered Retirement Forfeiture” throughout this summary.

Amends LGERS’s provision (GS 128-38.4), pertaining to forfeiture of retirement benefits for certain felonies committed while serving as an elected government official, to add removal from office for certain felonies committed under GS 128-16 (pertaining to unfit officers) as a triggering violation for forfeiture of retirement benefits (currently, just requires conviction of felony under certain federal law). Provides for Court Ordered Retirement Forfeiture. Requires Compensation Recertification.

Amends provisions of the Judicial Retirement System (JRS) pertaining to forfeiture of retirement benefits for certain felonies committed while serving as an elected official (GS 135-75.1) and forfeiture of retirement benefits related to employment or holding office (GS 135-75.1A), to add removal from office for certain crimes committed under GS 7A-66 (grounds for removal of district attorneys), GS 7A-105 (grounds for suspension, removal, and reinstatement of clerk), or GS 7A-376(b) (grounds for discipline by the Judicial Standards Commission) as a triggering violation for forfeiture of retirement benefits (currently, just requires conviction of felony under certain federal law). Provides for Court Ordered Retirement Forfeiture. Requires Compensation Recertification.

Amends the Allowance for Service provisions of TSERS (GS 135-4(ii), LGERS (GS 128-26) and JRS (GS 135-56) to allow for forfeiture of retirement benefits if a member is removed from office. For LGERS and JRS, clarifies that that service imputed under the allowance on disability retirement (GS 128-27(d4)-LGERS; GS 135-60(a)-JRS) accrues on the effective date of disability retirement.

Amends TSERS, LGERS, JRS, and the Legislative Retirement System (LRS), to require an annual report to each Board of Trustees of forfeited retirement benefits due to felonies committed while serving as an elected government official and felonies related to employment or holding office, as follows. Requires the Director of each retirement system to supply an annual report to each Board of Trustees listing members to whom the felony forfeiture statutes were applied in the previous year. Requires certain identifying information of each member in the report. Specifies the report is a public record under State public records law.  Amends GS 135-6.1 (TSERS) and GS 128-33.1 (LGERS) to specify that records pertaining to whether the member has had credible service forfeited is a public record. 

Amends definitions provision of LRS (GS 120-4.8) to add definition of conduct directly related to the office, which means conduct by the member resulting in a felony conviction that was directly related to the member’s office as determined by the LRS Board of Trustees. Amends GS 120-4.33, (pertaining to forfeiture of retirement benefits for certain felonies under the LRS) and GS 120-4.33A (pertaining to forfeiture of retirement benefits for certain felonies related to employment or holding office under the LRS) to require Compensation Recertification. Clarifies that that service imputed under the allowance on disability retirement under LRS (GS 120-4.22(c)) accrues on the effective date of disability retirement.

Amends GS 7A-66, pertaining to the removal of district attorneys, GS 7A-376 (pertaining to grounds for discipline by the Judicial Standard Commission), GS 7A-105 (pertaining to suspension, removal and reinstatement of clerks of court), GS 7A-173 (pertaining to suspension, removal, and reinstatement of magistrates), GS 128-16 (pertaining to removal of unfit sheriffs or police officers) to require Court Ordered Retirement Forfeiture.

Effective January 1, 2024.