Bill Text: NC H1193 | 2013-2014 | Regular Session | Chaptered
Bill Title: Retirement Technical Corrections Act of 2014
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2014-08-01 - Ch. SL 2014-97 [H1193 Detail]
Download: North_Carolina-2013-H1193-Chaptered.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
SESSION LAW 2014-97
HOUSE BILL 1193
AN ACT to make technical changes to the statutes affecting the state retirement systems.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 58‑86‑2(9) reads as rewritten:
"(9) "Inactive
member" means a member of the fund who is not on a leave of absence under G.S. 58‑86‑95
and who is not making has not made timely monthly payments
under G.S. 58‑86‑35 or G.S. 58‑86‑40.G.S. 58‑86‑40
for two consecutive years."
SECTION 2. G.S. 135‑5(r) reads as rewritten:
"(r) Notwithstanding anything herein to the contrary, for persons who commenced receiving benefits from the System prior to January 1, 1970, effective July 1, 1973, any member who retired after attaining the age of 60 with 15 or more years of creditable service shall receive a monthly benefit of no less than seventy‑five dollars ($75.00) prior to the application of any optional benefit."
SECTION 3.(a) G.S. 135‑5(m2) reads as rewritten:
"(m2) Special Retirement Allowance. – At any time coincident with or following retirement, a member may make 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 which shall be based upon the member's transferred balance.
A member 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 election to transfer eligible balances, not including any Roth after‑tax contributions and the earnings thereon, from any of the following 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:
(1) A plan
participating in the North Carolina Public School Teachers' and Professional
Educators' Investment Plan.
(2) A plan
described in section 403(b) of the Internal Revenue Code.
(3) A plan
described in section 457(b) of the Internal Revenue Code that is maintained by
a state, political subdivision of a state, or any agency or instrumentality of
a state or political subdivision of a state.
(4) An individual
retirement account or annuity described in Section 408(a) or 408(b) of the
Internal Revenue Code that is eligible to be rolled over and would otherwise be
includible in gross income.
(5) A tax‑qualified
plan described in section 401(a) or 403(a) of the Internal Revenue Code.
(i) a plan participating in the North Carolina Public School Teachers' and Professional Educators' Investment Plan; (ii) a plan described in section 403(b) of the Internal Revenue Code; (iii) a plan described in section 457(b) of the Internal Revenue Code that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state; (iv) an individual retirement account or annuity described in section 408(a) or section 408(b) of the Internal Revenue Code that is eligible to be rolled over and would otherwise be includible in gross income; or (v) a tax‑qualified plan described in section 401(a) or section 403(a) of the Internal Revenue Code.
Notwithstanding anything to the
contrary, a member may not transfer such amounts as will cause the member's
retirement allowance under the System to exceed the amount allowable under G.S. 135‑18.7(b).
The Board of Trustees may establish a minimum amount that must be transferred
if a transfer is elected. The member may elect a special retirement allowance
with no postretirement increases or a special retirement allowance with annual
postretirement increases equal to the annual increase in the U.S. Consumer
Price Index. Postretirement increases on any other allowance will not apply to
the special retirement allowance. The Board of Trustees shall provide
educational materials to the members who apply for the transfer authorized by
this section. Those materials shall describe the special retirement allowance
and shall explain (i) the relationship between the transferred balance
and the monthly benefit; benefit and (ii) how the member's
heirs may be impacted by the election to make this transfer and any costs and
fees involved.
For the purpose of determining the special retirement allowance, the Board of Trustees shall adopt straight life annuity factors on the basis of yields on U.S. Treasury Bonds and mortality and such other tables as may be necessary based upon actual experience. A single set of mortality and such other tables will be used for all members, with factors differing only based on the age of the member and the election of postretirement increases. The Board of Trustees shall modify the mortality and such other tables every five years, as shall be deemed necessary, based upon the five‑year experience study as required by G.S. 135‑6(n). Provided, however, a member who transfers the member's eligible accumulated contributions from an eligible retirement plan pursuant to this subsection to this Retirement System shall be taxed for North Carolina State Income Tax purposes on the special retirement allowance the same as if that special retirement allowance had been paid directly by the eligible plan or the plan through which the transfer was made, whichever is most favorable to the member. The Teachers' and State Employees' Retirement System shall be responsible to determine the taxable amount, if any, and report accordingly.
The Supplemental Retirement Board of Trustees established under G.S. 135‑96 may assess a one‑time flat administrative fee not to exceed the actual cost of the administrative expenses relating to these transfers. An eligible plan shall not assess a fee specifically relating to a transfer of accumulated contributions authorized under this subsection. This provision shall not prohibit other fees that may be assessable under the plan. Each plan, contract, account, or annuity shall fully disclose to any member participating in a transfer under this subsection any surrender charges or other fees, and such disclosure shall be made contemporaneous with the initiation of the transfer by the member.
The special retirement allowance shall continue for the life of the member and the beneficiary designated to receive a monthly survivorship benefit under Option 2, 3 or 6 as provided in G.S. 135‑5(g), if any. The Board of Trustees, however, shall establish two payment options that guarantee payments as follows:
(1) A member may elect to receive the special retirement allowance for life but with payments guaranteed for a number of months to be specified by the Board of Trustees. Under this plan, if the member dies before the expiration of the specified number of months, the special retirement allowance will continue to be paid to the member's designated beneficiary for the life of the beneficiary, if Option 2, 3 or 6 is selected. If Option 2, 3 or 6 is not selected, the member's designated beneficiary will receive the benefit only for the remainder of the specified number of months. If the member's designated beneficiary dies before receiving payments for the specified number of months, any remaining payments will be paid to the member's estate.
(2) A member may elect to receive the special retirement allowance for life but is guaranteed that the sum of the special allowance payments will equal the total of the transferred amount. Under this payment option, if the member dies before receiving the total transferred amount, the special retirement allowance will continue to be paid to the member's designated beneficiary for the life of the beneficiary, if Option 2, 3 or 6 is selected. If Option 2, 3 or 6 is not selected, the member's designated beneficiary or the member's estate shall be paid any remaining balance of the transferred amount.
The Board of Trustees shall report annually to the Joint Legislative Commission on Governmental Operations on the number of persons who made an election in the previous calendar year, with any recommendations it might make on amendment or repeal based on any identified problems.
The General Assembly reserves the right to repeal or amend this subsection, but such repeal or amendment shall not affect any person who has already made the one‑time election provided in this subsection."
SECTION 3.(b) G.S. 128‑27(m2) reads as rewritten:
"(m2) Special Retirement Allowance. – At any time coincident with or following retirement, a member may make 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 which shall be based upon the member's transferred balance.
A member 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 election to transfer eligible balances, not including any Roth after‑tax contributions and the earnings thereon, from any of the following 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 (i) a plan participating in the North Carolina Public School Teachers' and Professional Educators' Investment Plan; (ii) a plan described in section 403(b) of the Internal Revenue Code; (iii) a plan described in section 457(b) of the Internal Revenue Code that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state; (iv) an individual retirement account or annuity described in section 408(a) or section 408(b) of the Internal Revenue Code that is eligible to be rolled over and would otherwise be includible in gross income; or (v) a tax‑qualified plan described in section 401(a) or section 403(a) of the Internal Revenue Code.
Notwithstanding anything to the
contrary, a member may not transfer such amounts as will cause the member's
retirement allowance under the System to exceed the amount allowable under G.S. 128‑38.2(b).
The Board of Trustees may establish a minimum amount that must be transferred
if a transfer is elected. The member may elect a special retirement allowance
with no postretirement increases or a special retirement allowance with annual
postretirement increases equal to the annual increase in the U.S. Consumer
Price Index. Postretirement increases on any other allowance will not apply to
the special retirement allowance. The Board of Trustees shall provide
educational materials to the members who apply for the transfer authorized by this
section. Those materials shall describe the special retirement allowance and
shall explain (i) the relationship between the transferred balance and
the monthly benefit; benefit and (ii) how the member's
heirs may be impacted by the election to make this transfer and any costs and
fees involved.
For the purpose of determining the
special retirement allowance, the Board of Trustees shall adopt straight life
annuity factors on the basis of yields on U.S. Treasury Bonds and mortality and
such other tables as may be necessary based upon actual experience. A single
set of mortality and such other tables will be used for all members, with
factors differing only based on the age of the member and the election of
postretirement increases. The Board of Trustees shall modify the mortality and
such other tables every five years, as shall be deemed necessary, based upon
the five‑year experience study as required by G.S. 128‑28(o).
Provided, however, a member who transfers the member's eligible accumulated
contributions from the Supplemental Retirement Income Plan of North Carolina
or the North Carolina Public Employee Deferred Compensation Plan an
eligible retirement plan pursuant to this subsection to this Retirement
System shall be taxed for North Carolina State Income Tax purposes on the
special retirement allowance the same as if that special retirement allowance
had been paid directly by the Supplemental Retirement Income Plan of North
Carolina. eligible plan or the plan through which the transfer was made,
whichever is most favorable to the member. The Local Governmental Employees'
Retirement System shall be responsible to determine the taxable amount, if any,
and report accordingly.
The special retirement allowance shall continue for the life of the member and the beneficiary designated to receive a monthly survivorship benefit under Option 2, 3 or 6 as provided in G.S. 128‑27(g), if any. The Board of Trustees, however, shall establish two payment options that guarantee payments as follows:
(1) A member may elect to receive the special retirement allowance for life but with payments guaranteed for a number of months to be specified by the Board of Trustees. Under this plan, if the member dies before the expiration of the specified number of months, the special retirement allowance will continue to be paid to the member's designated beneficiary for the life of the beneficiary, if Option 2, 3 or 6 is selected. If Option 2, 3 or 6 is not selected, the member's designated beneficiary will receive the benefit only for the remainder of the specified number of months. If the member's designated beneficiary dies before receiving payments for the specified number of months, any remaining payments will be paid to the member's estate.
(2) A member may elect to receive the special retirement allowance for life but is guaranteed that the sum of the special allowance payments will equal the total of the transferred amount. Under this payment option, if the member dies before receiving the total transferred amount, the special retirement allowance will continue to be paid to the member's designated beneficiary for the life of the beneficiary, if Option 2, 3 or 6 is selected. If Option 2, 3 or 6 is not selected, the member's designated beneficiary or the member's estate shall be paid any remaining balance of the transferred amount.
The Supplemental Retirement Board of Trustees established under G.S. 135‑96 may assess a one‑time flat administrative fee not to exceed the actual cost of the administrative expenses relating to these transfers. An eligible plan shall not assess a fee specifically relating to a transfer of accumulated contributions authorized under this subsection. This provision shall not prohibit other fees that may be assessable under the plan. Each plan, contract, account, or annuity shall fully disclose to any member participating in a transfer under this subsection any surrender charges or other fees, and that disclosure shall be made contemporaneous with the initiation of the transfer by the member.
The Board of Trustees shall report annually to the Joint Legislative Commission on Governmental Operations on the number of persons who made an election in the previous calendar year, with any recommendations it might make on amendment or repeal based on any identified problems.
The General Assembly reserves the right to repeal or amend this subsection, but such repeal or amendment shall not affect any person who has already made the one‑time election provided in this subsection."
SECTION 4.(a) G.S. 135‑1 is amended by adding a new subdivision to read:
"(8a) "Consumer Price Index" shall mean the Consumer Price Index for All Urban Consumers (CPI‑U), U.S. City Average, all items, not seasonally adjusted, standard reference base, as published by the Bureau of Labor Statistics of the U.S. Department of Labor."
SECTION 4.(b) G.S. 128‑21 is amended by adding a new subdivision to read:
"(8a) "Consumer Price Index" shall mean the Consumer Price Index for All Urban Consumers (CPI‑U), U.S. City Average, all items, not seasonally adjusted, standard reference base, as published by the Bureau of Labor Statistics of the U.S. Department of Labor."
SECTION 4.(c) G.S. 135‑53 is amended by adding a new subdivision to read:
"(5a) "Consumer Price Index" shall mean the Consumer Price Index for All Urban Consumers (CPI‑U), U.S. City Average, all items, not seasonally adjusted, standard reference base, as published by the Bureau of Labor Statistics of the U.S. Department of Labor."
SECTION 4.(d) G.S. 135‑3(8)c. reads as rewritten:
"c. Should a beneficiary
who retired on an early or service retirement allowance under this Chapter be
reemployed by, or otherwise engaged to perform services for, an employer
participating in the Retirement System on a part time, temporary, interim, or
on a fee for service basis, whether contractual or otherwise, and if such
beneficiary earns an amount during the 12 month period immediately following
the effective date of retirement or in any calendar year which exceeds fifty
percent (50%) of the reported compensation, excluding terminal payments, during
the 12 months of service preceding the effective date of retirement, or twenty
thousand dollars ($20,000), whichever is greater, as hereinafter indexed, then
the retirement allowance shall be suspended as of the first day of the month
following the month in which the reemployment earnings exceed the amount above,
for the balance of the calendar year, except when the reemployment earnings
exceed the amount above in the month of December, in which case the retirement
allowance shall not be suspended. The retirement allowance of the beneficiary
shall be reinstated as of January 1 of each year following suspension. The
amount that may be earned before suspension shall be increased on January 1 of
each year by the ratio of the Consumer Price Index to the Index one year
earlier, percentage change between the December Consumer Price Index in
the year prior to retirement and the December Consumer Price Index in the year
most recently ended, calculated to the nearest tenth of a percent (1/10
of 1%).(1/10 of 1%), provided that this percentage change is positive."
SECTION 4.(e) G.S. 128‑24(5)c. reads as rewritten:
"c. Should a
beneficiary who retired on an early or service retirement allowance be
reemployed by, or otherwise engaged to perform services for, an employer
participating in the Retirement System on a part‑time, temporary,
interim, or on fee‑for‑service basis, whether contractual or
otherwise, and if such beneficiary earns an amount during the 12‑month
period immediately following the effective date of retirement or in any
calendar year which exceeds fifty percent (50%) of the reported compensation,
excluding terminal payments, during the 12 months of service preceding the
effective date of retirement, or twenty thousand dollars ($20,000), whichever
is greater, as hereinafter indexed, then the retirement allowance shall be
suspended as of the first day of the month following the month in which the
reemployment earnings exceed the amount above, for the balance of the calendar
year, except when the reemployment earnings exceed the amount above in the
month of December, in which case the retirement allowance shall not be
suspended. The retirement allowance of the beneficiary shall be reinstated as
of January 1 of each year following suspension. The amount that may be earned
before suspension shall be increased on January 1 of each year by the ratio
of the Consumer Price Index to the Index one year earlier, percentage
change between the December Consumer Price Index in the year prior to retirement
and the December Consumer Price Index in the year most recently ended, calculated
to the nearest tenth of a percent (1/10 of 1%).(1/10 of 1%), provided
that this percentage change is positive."
SECTION 4.(f) G.S. 135‑5(e)(1) reads as rewritten:
"(1) The Board of
Trustees shall determine whether a disability beneficiary is engaged in or is
able to engage in a gainful occupation paying more than the difference, as
hereinafter indexed, between his disability retirement allowance and the gross
compensation earned as an employee during the 12 consecutive months of service
in the final 48 months prior to retirement producing the highest gross
compensation excluding any compensation received on account of termination. If
the disability beneficiary is earning or is able to earn more than the
difference, the portion of his disability retirement allowance not provided by
his contributions shall be reduced to an amount which, together with the
portion of the disability retirement allowance provided by his contributions
and the amount earnable by him shall equal the amount of his gross compensation
prior to retirement. This difference shall be increased on January 1 each year
by the ratio of the Consumer Price Index to the Index one year earlier, percentage
change between the December Consumer Price Index in the year prior to
retirement and the December Consumer Price Index in the year most recently
ended, calculated to the nearest tenth of one percent (1/10th of 1%). (1/10
of 1%), provided that this percentage change is positive. Should the
earning capacity of the disability beneficiary later change, the portion of his
disability retirement allowance not provided by his contributions may be
further modified. In lieu of the reductions on account of a disability beneficiary
earning more than the aforesaid difference, he may elect to convert his
disability retirement allowance to a service retirement allowance calculated on
the basis of his average final compensation and creditable service at the time
of disability and his age at the time of conversion to service retirement. This
election is irrevocable. Provided, the provisions of this subdivision shall not
apply to beneficiaries of the Law‑Enforcement Officers' Retirement System
transferred to this Retirement System who commenced retirement on and before
July 1, 1981."
SECTION 4.(g) G.S. 128‑27(e)(1) reads as rewritten:
"(1) The Board of
Trustees shall determine whether a disability beneficiary is engaged in or is
able to engage in a gainful occupation paying more than the difference, as
hereinafter indexed, between his disability retirement allowance and the gross
compensation earned as an employee during the 12 consecutive months in the
final 48 months of service prior to retirement producing the highest gross compensation
excluding any compensation received on account of termination. If the
disability beneficiary is earning or is able to earn more than the difference,
the portion of his disability retirement allowance not provided by his
contributions shall be reduced to an amount which, together with the portion of
the disability retirement allowance provided by his contributions and the
amount earnable by him shall equal the amount of his gross compensation prior
to retirement. This difference shall be increased on January 1 each year by the
ratio of the Consumer Price Index to the Index one year earlier, percentage
change between the December Consumer Price Index in the year prior to
retirement and the December Consumer Price Index in the year most recently
ended, calculated to the nearest tenth of a percent (1/10 of 1%). (1/10
of 1%), provided that this percentage change is positive. Should the
earning capacity of the disability beneficiary later change, the portion of his
disability retirement allowance not provided by his contributions may be
further modified. In lieu of the reductions on account of a disability
beneficiary earning more than the aforesaid difference, he may elect to convert
his disability retirement allowance to a service retirement allowance calculated
on the basis of his average final compensation and creditable service at the
time of disability retirement and his age at the time of conversion to service
retirement. This election is irrevocable.
The provisions of this subdivision shall not apply to beneficiaries of the Law Enforcement Officers' Retirement System transferred to this Retirement System who commenced retirement on and before July 1, 1981."
SECTION 4.(h) G.S. 135‑60(d) reads as rewritten:
"(d) The Board of
Trustees shall determine whether a disability beneficiary is engaged in or is
able to engage in a gainful occupation paying more than the difference, as
hereinafter indexed, between his disability retirement allowance and the gross
compensation earned as an employee during the 12 consecutive months in the
final 48 months of service prior to retirement producing the highest gross
compensation excluding any compensation received on account of termination. If
the disability beneficiary is earning or is able to earn more than the difference,
the portion of his disability retirement allowance not provided by his
contributions shall be reduced to an amount which, together with the portion of
the disability retirement allowance provided by his contributions and the
amount earnable by him shall equal the amount of his gross compensation prior
to retirement. This difference shall be increased on January 1 of each year by
the ratio of the Consumer Price Index to the Index one year earlier, percentage
change between the December Consumer Price Index in the year prior to
retirement and the December Consumer Price Index in the year most recently
ended, calculated to the nearest tenth of one percent (1/10th of 1%). (1/10
of 1%), provided that this percentage change is positive. Should the
earning capacity of the disability beneficiary later change, the portion of his
disability retirement allowance not provided by his contributions may be
further modified. In lieu of the reductions on account of a disability
beneficiary earning more than the aforesaid difference, he may elect to convert
his disability retirement allowance to a service retirement allowance
calculated on the basis of his final compensation and creditable service at the
time of disability retirement and his age at the time of conversion to service
retirement. This election is irrevocable."
SECTION 5.(a) G.S. 135‑48.1(12) reads as rewritten:
"(12) Firefighter. – A
member of the group "eligible firemen" as defined in G.S. 58‑86‑25."eligible
firefighter" as defined in G.S. 58‑86‑2."
SECTION 5.(b) G.S. 128‑27(c) reads as rewritten:
"(c) Disability Retirement Benefits. – Upon the application of a member or of his employer, any member who has had five or more years of creditable service may be retired by the Board of Trustees, on the first day of any calendar month, not less than one day nor more than 120 days next following the date of filing such application, on a disability retirement allowance: Provided, that the medical board, after a medical examination of such member, shall certify that such member is mentally or physically incapacitated for the further performance of duty, that such incapacity was incurred at the time of active employment and has been continuous thereafter, that such incapacity is likely to be permanent, and that such member should be retired; Provided further the medical board shall determine if the member is able to engage in gainful employment and, if so, the member may still be retired and the disability retirement allowance as a result thereof shall be reduced as in subsection (e) below. Provided further, that the Medical Board shall not certify any member as disabled who:
(1) Applies for disability retirement based upon a mental or physical incapacity which existed when the member first established membership in the system; or
(2) Is in receipt of any payments on account of the same disability which existed when the member first established membership in the system.
The Board of Trustees shall require each employee upon enrolling in the retirement system to provide information on the membership application concerning any mental or physical incapacities existing at the time the member enrolls.
Notwithstanding the requirement of
five or more years of creditable service to the contrary, a member who is a law
enforcement officer, an eligible fireman firefighter as defined
in G.S. 58‑86‑25, G.S. 58‑86‑2, or
an eligible rescue squad worker as defined in G.S. 58‑86‑30
G.S. 58‑86‑2, and becomes incapacitated for duty as
the natural and proximate result of injuries incurred while in the actual
performance of his or her duties, and meets all other requirements for
disability retirement benefits, may be retired by the Board of Trustees on a
disability retirement allowance.
Notwithstanding the foregoing to the contrary, any beneficiary who commenced retirement with an early or service retirement benefit has the right, within three years of his retirement, to convert to an allowance with disability retirement benefits without modification of any election of optional allowance previously made; provided, the beneficiary would have met all applicable requirements for disability retirement benefits while still in service as a member. The allowance on account of disability retirement benefits to the beneficiary shall be retroactive to the effective date of early or service retirement.
Notwithstanding the foregoing, effective April 1, 1991, the surviving designated beneficiary of a deceased member who met all other requirements for disability retirement benefits, except whose death occurred before the first day of the calendar month in which the member's disability retirement allowance was to be due and payable, may elect to receive the reduced retirement allowance provided by a one hundred percent (100%) joint and survivor payment option in lieu of a return of accumulated contributions, provided the following conditions apply:
(1) At the time of the member's death, one and only one beneficiary is eligible to receive a return of accumulated contributions, and
(2) The member had not instructed the Board of Trustees in writing that he did not wish the provision of this subsection to apply."
SECTION 6. G.S. 135‑53(16) reads as rewritten:
"(16) "Retirement"
under this Chapter shall mean the commencement of monthly retirement benefits,
along with the termination of employment and the complete separation from
active service with no intent or agreement, expressed or implied, to return to
service. A retirement allowance under the provisions of this Chapter may only
be granted upon retirement of a member. In order for a member's retirement to
become effective in any month, the member must perform no work, including
part‑time, temporary, substitute, or contractor work, work in a
position covered by this Article at any time during the same month
immediately following the effective first day of retirement."
SECTION 7. G.S. 120‑4.2(c) reads as rewritten:
"(c) Solely for
purposes of administering the benefits authorized by G.S. 120‑3 to
120‑4.2, the authority and duties created by G.S. 120‑4.1 as
it existed prior to this repealing act shall continue in effect.effect,
except that the General Assembly may opt to make annual transfers instead of
quarterly transfers of funds to the Department of State Treasurer."
SECTION 8. G.S. 135‑103(b)(2) reads as rewritten:
"(b) The participation of any person in the Disability Income Plan shall cease upon:
…
(2) The participant's retirement under the provisions of the Teachers' and State Employees' Retirement System or the Optional Retirement Program, or
…."
SECTION 9. G.S. 143‑166.60(e) reads as rewritten:
"(e) The insurance
benefit of the Plan on account of the death of a participant shall be payable
to the surviving spouse of the participant or otherwise to the participant's
estate; provided, should a participant instruct the Board of Trustees in
writing that he the participant does not wish these benefits to
be paid to his or her spouse or estate, then the benefits shall be paid
to the person or persons as the participant may name for this purpose. The life
insurance benefits shall be payable only on account of participants in the Plan
for six or more months or, if an actively employed officer, at any time after
employment if death results from an accident. The accident and sickness
disability insurance benefits shall be payable to a participant at any time
after becoming a participant in the Plan."
SECTION 10. Section 4 of this act becomes effective January 1, 2015. The remainder of this act becomes effective July 1, 2014.
In the General Assembly read three times and ratified this the 29th day of July, 2014.
s/ Philip E. Berger
President Pro Tempore of the Senate
s/ William Brawley
Presiding Officer of the House of Representatives
s/ Pat McCrory
Governor
Approved 11:57 a.m. this 1st day of August, 2014
