NORTH CAROLINA GENERAL ASSEMBLY

1961 SESSION

 

 

CHAPTER 516

HOUSE BILL 482

 

 

AN ACT TO AMEND CHAPTER 135 OF THE GENERAL STATUTES RELATING TO THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM AND SOCIAL SECURITY REFERENDUMS.

 

The General Assembly of North Carolina do enact:

 

Section 1.  General Statutes 135‑3 is hereby amended by adding the following at the end of Subsection (1) thereof:

"Provided, that every person who is employed by the State as a State highway patrolman or other law enforcement officer as defined in G.S. 143‑166(m) shall automatically become a member of the Teachers' and State Employees' Retirement System unless such person shall, within fifteen days after his employment, become a member of the Law Enforcement Officers' Benefit and Retirement Fund, in which event such person shall not be entitled to membership in the Teachers' and State Employees' Retirement System; provided, that any such State employee who joins said fund and is later transferred to a position other than one described in G.S. 143‑166(m) shall be enrolled in the Teachers' and State Employees' Retirement System and in addition thereto be entitled to transfer to this Retirement System his contributions in lump sum and credits for membership and prior service standing to his credit in the Law Enforcement Officers' Benefit and Retirement Fund. Upon request for transfer of such credits, the State's employer contributions shall also be paid to the Teachers' and State Employees' Retirement System by the Executive Secretary of the Law Enforcement Officers' Benefit and Retirement Fund. This right shall apply retroactively in the case of any member who heretofore has transferred to non‑law enforcement duties. Under such rules and regulations as the board of trustees may establish and promulgate, Co‑operative Agricultural Extension Service employees may, in the discretion of the governing authority of a county, become members of the Teachers' and State Employees' Retirement System to the extent of that part of their compensation derived from a county."

Sec. 2.  G.S. 135‑3 is hereby amended by rewriting all of paragraph "a" of Subdivision (7) of the Section to read as follows:

"a.        Notwithstanding any other provision of this Chapter, any member who separates from service prior to the attainment of the age of 60 years for any reason other than death or retirement for disability as provided in G.S. 135‑5, Subsection (d), after completing 20 or more years of creditable service, and who leaves his total accumulated contributions in said system shall have the right to retire on a deferred retirement allowance upon attaining the age of 60 years: Provided, that such member may retire only upon written application to the board of trustees setting forth at what time, not less than 30 days nor more than 90 days subsequent to the execution and filing thereof, he desires to be retired. Such deferred retirement allowance shall be computed in accordance with the provisions of G.S. 135‑5, Subsection (b), Subdivisions (1), (2) and (3)."

Sec. 3.  G.S. 135‑4(f), as the same appears in the 1959 Supplement to the General Statutes, is hereby amended by striking out the word and figures "February 17th, 1941" in line eight and inserting in lieu thereof the word and figures "September 16th, 1940", and by rewriting the fourth sentence thereof to read as follows:

"Under such rules as the board of trustees shall adopt; credit will be provided by the Retirement System with respect to each such teacher or other State employee in the amounts that he would have been paid during such service in such armed services on the basis of his earnable compensation when such service commenced."

Sec. 4.  (a) G.S. 135‑5(f), as the same appears in the 1959 Supplement to the General Statutes, is hereby amended by inserting the following sentence immediately following the first sentence, as follows:

"Provided that, if the member at the time of separation from service shall have attained the age of 60 years or is otherwise entitled to a retirement allowance under this Chapter, he shall be paid the amount of his accumulated contributions plus the full amount of his accumulated regular interest thereon."

(b)        G.S. 135‑5(f), as the same appears in the 1959 Supplement to the General Statutes, is hereby further amended by rewriting the last sentence to read as follows:

"Notwithstanding any other provision of Chapter 135, there shall be deducted from any amount otherwise payable hereunder any amount due any agency or subdivision of the State by the member by reason of any outstanding overpayment of salary or by reason of the embezzlement of fees collected by the member for any agency or subdivision of the State; provided that, notwithstanding any other provisions of this Chapter, even if the member fails to demand the return of his accumulated contributions within 90 days from the day he ceases to be a teacher or State employee, any amount due such agency or subdivision by reason of any outstanding overpayment of salary or embezzlement of fees shall be paid to such agency or subdivision by the Retirement System upon demand; provided, further, that such agency or subdivision shall have notified the executive secretary of any amount so due and that the Retirement System shall have no liability for amounts so deducted and transmitted to such agency or subdivision nor for any failure by the Retirement System for any reason to make such deductions."

(c)        G.S. 135‑5 is hereby amended by adding a new subsection at the end thereof, to be designated as Subsection (1), and to read as follows:

"(1)      No action shall be commenced against the State or the Retirement System by any retired member or beneficiary respecting any deficiency in the payment of benefits more than three years after such deficient payment was made, and no action shall be commenced by the State or the Retirement System against any retired member or former member or beneficiary respecting any overpayment of benefits or contributions more than three years after such overpayment was made."

Sec. 5.  G.S. 135‑27 is hereby amended by adding a new subsection at the end thereof, to be designated as Subsection (d), and to read as follows:

"(d)      The governing board of any association or organization listed in Subsection (a), in its discretion, may elect, by an appropriate resolution of said board, to cause the employees of such association or organization to become members of the Teachers' and State Employees' Retirement System. Such Retirement System coverage shall be conditioned on such association's or organization's paying all of the employer's contributions or matching funds from funds of the association or organization and on such board's collecting from its employees the employee's contributions at such rates as may be fixed by law and by the regulations of the board of trustees of the Retirement System, all of such funds to be paid to the Retirement System and placed in the appropriate funds. Retroactive coverage of the employees of any such association or organization may also be affected to the extent that such board requests; provided, the association or organization shall pay all of the employer's contributions or matching funds necessary for such purposes; and, provided further, such association or organization shall collect from its employees all employees' contributions necessary for such purpose, computed at such rates and in such amount as the board of trustees of the Retirement System shall determine, all of such funds to be paid to the Retirement System, together with such interest as may be due, and placed in the appropriate funds."

Sec. 6.  (a) G.S. 135‑28 is hereby amended by rewriting Subsection (a) thereof to read as follows:

"(a)       Any member whose services as a teacher or State employee are terminated for any reason other than retirement or death, who becomes employed by an employer participating in the North Carolina Local Governmental Employees' Retirement System or an employer which brings its employees into participation in said system within five years after such teacher or State employee has ceased to be a teacher or State employee, may elect to leave his total accumulated contributions in the Teachers' and State Employees' Retirement System during the period he is in the employment of such employer provided he files notice thereof in writing with the board of trustees of the Teachers' and State Employees' Retirement System within five years of separation from service as a teacher or State employee. This subsection shall be effective retroactively as well as prospectively.

(b)        G.S. 135‑28 is hereby further amended by striking out the period at the end of Subsection (b), inserting a colon in lieu thereof, and adding the following:

"Provided, however, that in lieu of transfer of funds from one Retirement System to another, such member who is eligible for retirement benefits shall file application therefor with each Retirement System to the end that each Retirement System shall pay appropriate benefits without transfer of funds between the systems."

Sec. 7.  Subsection (c) of G.S. 135‑18.1 is hereby amended by striking out the figures "60" in the third line from the end and inserting in lieu thereof the figures "65".

Sec. 8.  Subsection (b) of G.S. 135‑29 is hereby amended by inserting in the next to the last line immediately following the word "Governor the words "or such State official as may be designated by him,".

Sec. 9.  G.S. 135‑3.1 and G.S. 135‑3.2 and all other laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 10.  This Act shall become effective upon its ratification.

In the General Assembly read three times and ratified, this the 26th day of May, 1961.