NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 118

SENATE BILL 233

 

 

AN ACT ENLARGING AND EXTENDING BENEFITS OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM WITHOUT REQUIRING ANY ADDITIONAL APPROPRIATION OF FUNDS.

 

The General Assembly of North Carolina do enact:

 

Section 1.  (a) G.S. 135-3(8)a, as the same appears in the 1969 Cumulative Supplement to the General Statutes, is hereby amended by striking out the period following the word "service" in line 17, inserting a semicolon in lieu thereof, and adding the following words:

"and further provided that in the case of a member who so separates from service on or after July 1, 1971, or whose account is active on July 1, 1971, the afore-stated requirement of 12 or more years of creditable service shall be reduced to 5 or more years of creditable service."

(b)        G.S. 135-3(3), as the same appears in the 1969 Cumulative Supplement of the General Statutes, is hereby amended by striking out the period at the end thereof, inserting a colon in lieu thereof, and adding the following words:

"Provided that on and after July 1, 1971, a member shall cease to be a member only if he withdraws his accumulated contributions, or becomes a beneficiary, or dies."

Sec. 2.  G.S. 135-3(8)b, as the same appears in the 1969 Cumulative Supplement to the General Statutes, is hereby amended by striking out the last sentence and inserting the following in lieu thereof:

"Such early retirement allowance so elected shall be equal to the deferred retirement allowance otherwise payable at the attainment of the age of sixty years reduced by the percentage thereof indicated below.

Age at Retirement                                                         Percentage Reduction

59                                                                                        7

58                                                                                        14

57                                                                                        20

56                                                                                        25

55                                                                                        30

54                                                                                        35

53                                                                                        39

52                                                                                        43

51                                                                                        46

50                                                                                        50."

Sec. 3.  G.S. 135-5(c), as the same appears in the 1969 Cumulative Supplement to the General Statutes, is hereby amended by striking out all of the first sentence preceding the colon in line 5 and inserting in lieu thereof the following:

"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 thirty and not more than ninety days next following the date of filing such application, on a disability retirement allowance".

Sec. 4.  (a) G.S. 135-5(d2), as the same appears in the 1969 Cumulative Supplement to the General Statutes, is hereby amended by striking out the first five lines and inserting in lieu thereof the following:

"(d2)    Allowance on Disability Retirement of Persons Retiring on or after July 1, 1969, but prior to July 1,1971. — Upon retirement for disability, in accordance with subsection (c) above, on or after July 1, 1969, but prior to July 1, 1971, a member shall receive a service retirement allowance if he has attained the age of sixty years, otherwise he shall receive a disability retirement allowance which shall be computed as follows:"

(b)        G.S. 135-5, as the same appears in the 1969 Cumulative Supplement to the General Statutes, is hereby amended by inserting a new subsection, to be designated as subsection (d3), and to read as follows:

"(d3)    Allowance on Disability Retirement of Persons Retiring on or after July 1, 1971. — Upon retirement for disability, in accordance with subsection (c) above, on or after July 1, 1971 a member shall receive a service retirement allowance if he has attained the age of sixty-five years, otherwise he shall receive a disability retirement allowance which shall be computed as follows:

(1)        Such allowance shall be equal to a service retirement allowance calculated on the basis of the member's average final compensation prior to his disability retirement and the creditable service he would have had at the age of sixty-five years if he had continued in service.

(2)        Notwithstanding the foregoing provisions, any member whose creditable service commenced prior to July 1, 1971, shall receive not less than the benefit provided by G.S. 135-5(d2)."

Sec. 5.  G.S. 135-5(f), as the same appears in the 1969 Cumulative Supplement to the General Statutes, is hereby amended by striking out the first two sentences ending with the word "thereon" in line 10 and inserting in lieu thereof the following:

"Should a member cease to be a teacher or State employee except by death or retirement under the provisions of this chapter, he shall upon submission of an application be paid, not earlier than 60 days from receipt in the Raleigh offices of the board of trustees of an acceptable application on a form provided by the Retirement System, the sum of his contributions and the accumulated regular interest thereon, provided that he has not in the meantime returned to service."

Sec. 6.  G.S. 135-5(o), as the same appears in the Cumulative Supplement to the General Statutes, is hereby amended to read as follows:

"(o)      Post Retirement Increases in Allowances. — As of December 31, 1969, the ratio of the Consumer Price Index to such index one year earlier shall be determined. If such ratio indicates an increase that equals or exceeds three per centum, each beneficiary receiving a retirement allowance as of December 31, 1968, shall be entitled to have his allowance increased three per centum effective July 1, 1970.

As of December 31, 1970, the ratio of the Consumer Price Index to such index one year earlier shall be determined. If such ratio indicates an increase of at least one per centum, each beneficiary on the retirement rolls as of July 1, 1970, shall be entitled to have his allowance increased effective July 1, 1971 as follows:

Increase In Index                                                                       Increase In Allowance

1.00 to 1.49%                                                                                         1%

1.50 to 2.49%                                                                                         2%

2.50 to 3.49%                                                                                         3%

3.50% or more                                                                                        4%

As of December 31st of each year after 1970, the ratio of the Consumer Price Index to such index one year earlier shall be determined. If such ratio indicates an increase of at least one per centum, each beneficiary on the retirement rolls as of July 1st of the year of determination shall be entitled to have his allowance increased to the extent indicated in the foregoing table effective on July 1st of the year following the year of determination; provided that any such increase in allowance shall become effective only if the additional liabilities on account of such increase do not require an increase in the total employer rate of contributions.

The allowance of a surviving annuitant of a beneficiary whose allowance is increased under this subsection shall, when and if payable, be increased by the same per centum.

Any increase in allowance granted hereunder shall be permanent, irrespective of any subsequent decrease in the Consumer Price Index, and shall be included in determining any subsequent increase.

For purposes of this subsection, Consumer Price Index shall mean the Consumer Price Index (all items-United States City average), as published by the United States Department of Labor, Bureau of Labor Statistics."

Sec. 7.  G.S. 135-5, as the same appears in the 1969 Cumulative Supplement to the General Statutes, is hereby amended by adding a new subsection at the end to be designated as subsection (p), and to read as follows:

"(p)      Increases in Benefits Paid in Respect to Members Retired Prior to July 1, 1967. — From and after July 1, 1971, the monthly benefits to or on account of persons who commenced receiving benefits prior to July 1, 1963, shall be increased by 20 percent thereof; the monthly benefits to or on account of persons who commenced receiving benefits after June 30, 1963 and before July 1, 1967, shall be increased by 5 percent thereof. These increases shall be calculated after monthly retirement allowances as of July 1, 1971, have been increased to the extent provided for in the preceding subsection (o)."

Sec. 8.  Notwithstanding any other provisions of this act, all new or increased benefits provided herein shall be payable subject to the availability of funds as determined by the board of trustees of the Retirement System, and no additional appropriations shall be made by the General Assembly of 1971 or any future session of the General Assembly to provide the above referred to new or increased benefits.

Sec. 9.  This act shall become effective July 1, 1971.

In the General Assembly read three times and ratified, this the 25th day of March, 1971.