Amends GS 135-5 (Teacher and State Employees' Retirement System) and GS 128-27 (Retirement System for Counties, Cities, and Towns), to provide that until the first payment on account of any benefit becomes due, any member may convert his benefit otherwise payable on his account after retirement into a retirement allowance of equivalent actuarial value of such amount that with his benefit under Title II he will receive, approximately the same amount per year before and after the earliest age at which he becomes eligible, effective as of the first of the month following the month of initial entitlement, upon application, to receive a Social Security benefit. Effective January 1, 2015.

Amends GS 135-8 (Teacher and State Employees' Retirement System) and GS 128-30 (Retirement System for Counties, Cities, and Towns), to add allowing waiver of one penalty for failing to pay contributions by the deadline per employer every five years if it is found that the employer has consistently demonstrated good faith efforts to comply with the set deadline. Effective October 1, 2014.

Amends GS 135-5 (Teacher and State Employees' Retirement System), GS 135-64 (Judicial Retirement System), GS 120-4.27 (Legislative Retirement System), and GS 128-27 (Retirement System for Counties, Cities, and Towns), to add that upon receipt of proof of the death of a retired member on or after January 1, 2015, a death benefit must be paid to the person designated by the member, or if no designation was made, to the surviving spouse, or if there is no surviving spouse, to the member's legal representative. In order for the payment to be made, requires that the member have elected to make in advance of his death required contributions as determined by the Board of Trustees on a fully contributory basis to a group death benefit trust fund. Requires the death benefit be a lump sum payment of $10,000 upon the completion of 24 months of contributions. If death occurs before the 24 months of contributions are completed, the pay out is the sum of the retired member's contributions plus interest. Makes conforming changes in several statutes to make the existing provisions applicable to the death of members on or after July 1, 2007, but before January 1, 2015.  These changes are effective January 1, 2015.

Amends GS 135-6 (Teacher and State Employees' Retirement System) to add the requirement that the Board of Trustees publish annually a report on contracts and usage by retired members regarding any supplemental insurance products offered through the Retirement System. Amends GS 128-28 (Retirement System for Counties, Cities, and Towns) to add the requirement that the Board of Trustees publish annually a report on contracts and usage by retired members regarding any supplemental insurance products offered through the Retirement System. Effective October 1, 2014.

Amends GS 135-9 (Teacher and State Employees' Retirement System) and GS 128-31 (Retirement System for Counties, Cities, and Towns) to add that for domestic relations orders entered on or after January 1, 2015, payment to a member's former spouse pursuant to the order is limited to the lifetime of that former spouse and, upon the death of that former spouse, the former spouse's share reverts to the member. Adds that any overpayment of benefits to a member, including benefits paid to, or State Health Plan premiums paid on behalf of, any member or beneficiary who is later determined to have been ineligible for those benefits, may be offset against any retirement allowance, return of contributions or any other right accruing under this Chapter to the same person, the person's estate, or designated beneficiary. Effective October 1, 2014.

Amends GS 135-6 (Teacher and State Employees' Retirement System) and GS 128-27 (Retirement System for Counties, Cities, and Towns) to create immunity from civil liability for monetary damages for the individuals serving on the Board of Trustees, except to the extent covered by insurance, for any act or failure to act arising out of their service. Sets out five exceptions. Effective October 1, 2014.

Amends GS 135-151 (Teacher and State Employees' Retirement System) and GS 128-38.10 (Retirement System for Counties, Cities, and Towns), to provide that no member of the retirement system retiring on or after January 1, 2017 (was, January 1, 2015), is eligible to participate in the Qualified Excess Benefit Arrangement, and the system must not pay any new retiree more retirement benefits than allowed under the limitations of section 415(b) of the Internal Revenue Code. Effective October 1, 2014.

Amends GS 128-27(a)(1) to add rescue squad workers to those required to have attained age 55 and have at least five years of creditable service at the time specified for retirement. Effective July 1, 2014.