NORTH CAROLINA GENERAL ASSEMBLY
1967 SESSION
CHAPTER 978
SENATE BILL 669
AN ACT RELATING TO THE NORTH CAROLINA LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM.
The General Assembly of North Carolina do enact:
Section 1. Section 128-24, subdivision (5), of the General Statutes is hereby amended in the following respects:
(a) By deleting the second sentence thereof which reads as follows: "Such benefits shall be computed in accordance with the provisions of G.S. 128-27(b1)."
(b) By deleting the period at the end of the first sentence in subparagraph (a) and the second sentence and by adding the following: "; and further provided that in the case of a member who so separates from service on or after July 1, 1967, the aforestated requirement of 15 or more years of creditable service shall be reduced to 12 or more years of creditable service. Such deferred retirement allowance shall be computed in accordance with the provisions of Section 128-27, subsection (b1); provided that such benefits will be computed in accordance with subsection(b2) on and after July 1, 1967."
Sec. 2. Section 128-24, subsection (5)b, of the General Statutes is hereby amended by substituting a period in lieu of the semicolon at the end of the first proviso on line 13 and deleting the second proviso, "provided further that such application shall be duly filed within 60 days following the date of such separation".
Sec. 3. Section 128-27, subsection (b1), of the General Statutes is hereby amended by rewriting the portion thereof preceding the colon, to read as follows:
"(b1) Service Retirement Allowances of persons retiring on or after July 1, 1965, but prior to July 1, 1967. Upon retirement from service on or after July 1, 1965, but prior to July 1, 1967, a member shall receive a service retirement allowance which shall consist of:".
Sec. 4. Section 128-27 of the General Statutes is hereby amended by adding a new subsection (b2) to read as follows:
"(b2) Service Retirement Allowances of persons retiring on or after July 1, 1967. Upon retirement from service on or after July 1, 1967, a member shall receive a service retirement which shall consist of:
"(1) If the member's service retirement date occurs on or after his sixty-fifth birthday, such allowance shall be equal to one and one quarter per centum (1Ό%) of the portion of his average final compensation not in excess of five thousand six hundred dollars ($5,600.00) plus one and one half per centum (1½%) of the portion of such compensation in excess of five thousand six hundred dollars ($5,600.00), multiplied by the number of years of his creditable service.
"(2a) If the member's service retirement date occurs before his sixty-fifth birthday, his service retirement allowance shall be computed as in (1) above, but shall be reduced by one-third of one per cent (1/3 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following his sixty-fifth birthday.
"(2b) If the member's service retirement date occurs before his sixtieth birthday, his service retirement allowance shall be the actuarial equivalent of the allowance payable at the age of sixty years as computed in (2a) above.
"(3) Notwithstanding the foregoing provision, any member whose creditable service commenced prior to July 1, 1965, and policemen or firemen not covered under the Social Security Act employed thereafter, shall receive not less than the benefits provided by G.S. 128-27(b)."
Sec. 5. Section 128-27, subsection (d), of the General Statutes is hereby amended by adding the following: "Supplemental disability benefits heretofore provided are hereby made a permanent part of disability benefits after age sixty-five, and shall not be discontinued at age sixty-five."
Sec. 6. Section 128-27, subsection (g), of the General Statutes is hereby amended in the following respects:
(a) The first sentence thereof is amended to read as follows: "With the provision that until the first payment on account of any benefit becomes normally due, or his first retirement check has been cashed, any member may elect to receive his benefits in a retirement allowance payable throughout life, or he may elect to receive the actuarial equivalent of such retirement allowance in a reduced allowance payable throughout life under the provisions of one of the Options set forth below: Provided further, that an optional election may be made after attainment of age sixty without establishment of a date of retirement: and further provided that, on or after July 1, 1967, said optional election may be made after attainment of age fifty‑five or after completion of 30 years of creditable service, without establishment of a date of retirement."
(b) A new Option five is hereby added to read as follows: "Option five. The member may elect to receive a reduced retirement allowance during his life, with some other benefit payable after his death; provided that the benefit shall be approved by the board of trustees."
Sec. 7. Section 128-27 of the General Statutes is hereby amended by adding a new subsection (j), to read as follows:
"(j) Increase in benefits to those persons who were in receipt of benefits prior to July 1, 1967. From and after July 1, 1967, the monthly benefits, to or on account of persons who commenced receiving benefits from the system prior to July 1, 1967, shall be increased by a percentage thereof. Such percentage shall be determined in accordance with the following schedule:
Period in Which Benefits Commenced Percentage
January 1, 1966, to June 30, 1967 5%
Year 1965 ..6%
Year 1964 ..7%
Year 1963 ..8%
Year 1962 ..9%
Year 1961 ..10%
Year 1960 ..11%
Year 1959 ..12%
Year 1958 ..13%
Year 1957 ..14%
Year 1956 ..15%
Year 1955 ..16%
Year 1954 ..17%
Year 1953 ..18%
Year 1952 ..19%
Year 1951 ..20%
Year 1950 ..21%
Year 1949 ..22%
Year 1948 ..23%
Year 1947 ..24%
Year 1946 ..25%
The minimum increase pursuant to this subsection (j) shall be five dollars ($5.00) per month; provided that, if an optional benefit has been elected, said minimum shall be reduced actuarially as determined by the board and shall be applicable to a retired member, if surviving, otherwise to his designated beneficiary under the Option elected."
Sec. 8. Section 128-29 of the General Statutes is hereby amended by changing the last line of subsection (a)(2) to read as follows: "operatives, Federal Land Banks, International Bank for Reconstruction and Development, and Inter-American Development Bank."
Sec. 9. Section 128-30, subsection (b)(1), of the General Statutes is hereby amended by substituting "and with respect to the period of service commencing January 1, 1966, and ending June 30, 1967," for "and with respect to the period of service commencing January 1, 1966," in the first sentence of the second paragraph thereof, by deleting the period at the end of said sentence, and by adding thereto the following: "; and with respect to the period of service commencing July 1, 1967, the rate of such deductions shall be five per centum (5%) of the portion of compensation not in excess of five thousand six hundred dollars ($5,600.00) and six per centum (6%) of the portion of compensation in excess of five thousand six hundred dollars ($5,600.00)."
Sec. 10. Section 128-30 of the General Statutes is hereby amended by adding a new paragraph (3) to subsection (g) thereof, to read as follows:
"(3) If within 90 days after request therefor by the board any employer shall not have provided the system with the records and other information required hereunder or if the full accrued amount of the contributions provided for under this Section due from members employed by an employer or from an employer shall not have been received by the system from the chief fiscal officer of such employer within 30 days after the last due date as herein provided, then, notwithstanding anything herein or in the provisions of any other law to the contrary, upon notification by the board to the State Treasurer as to the default of such employer as herein provided, any distributions which might otherwise be made to such employer from any funds of the State shall be withheld from such employer until notice from the board to the State Treasurer that such employer is no longer in default."
Sec. 11. Section 128-26, subsection (a), of the General Statutes, is hereby amended by adding the following: "An employer may allow additional prior service credit on account of earlier service in the employ of any other political subdivision of the State of North Carolina. Upon participation of an employer, prior service credits may be allowed to a former employee who earlier transferred to the service of a participating employer. Upon transfer of an employee from a non-participating political subdivision of North Carolina to a participating employer, the participating employer may allow prior service and membership service credits for such earlier employment to the same extent as for employees in service on date of participation."
Sec. 12. Section 128-26, subsection (a), of the General Statutes is hereby amended by adding the following at the end thereof: "With respect to members retiring on or after July 1, 1967, the governing board of a participating unit may allow credit for any period of military service in the armed forces of the United States; provided the person returned to the service of his employer within two years after having been honorably discharged, or becoming entitled to be discharged, released, or separated from such armed services; provided further that notwithstanding the above provisions, any member having credit for not less than 10 years of otherwise creditable service may be allowed credit for such military services which are not creditable in any other governmental retirement system."
Sec. 13. All laws and clauses of laws in conflict with this Act are hereby repealed.
Sec. 14. This Act shall become effective July 1, 1967.
In the General Assembly read three times and ratified, this the 28th day of June, 1967.