GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	2 

HOUSE BILL 1840
Second Edition Engrossed 6/7/89

Short Title:  Winston-Salem Firemen's Fund.	(Local)
─────────────────────────────────────── 
Sponsors: Representative Duncan.
─────────────────────────────────────── 
Referred to:  Pensions and Retirement.
─────────────────────────────────────── 

May 9, 1989

A BILL TO BE ENTITLED
AN ACT TO AMEND THE LAW REGARDING THE WINSTON-SALEM FIREMEN'S FUND ASSOCIATION.
The General Assembly of North Carolina enacts:
Section 1.  Section 2(b) of Chapter 388, 1973 Session Laws, as rewritten by Chapter 508, 1987 Session Laws, reads as rewritten:
"(b)	As of July 1, 1987, and thereafter, any person not covered under (a) above who shall have been regularly and continuously employed full time by the Fire Department of the City of Winston-Salem (hereinafter referred to as the Fire Department), including any Fire Department mechanic or electrician, who shall have attained his 18th birthday and shall not have attained his 40th birthday.  Any person not covered under (a) above who was hired by the Fire Department prior to July 1, 1987, and continues to be employed by the Fire Department on such date, and who had attained his 30th birthday when hired but had not then attained his 40th birthday, may elect within 90 days following July 1, 1987, to become a member by contributing to the Association the sum of twelve dollars ($12.00) per month from his date of hire by the Fire Department, plus interest at the rate of eight percent (8%), applicable to any payments made on and after July 1, 1989, per annum, computed on the amount accrued as of the end of each fiscal year of the Association."
Sec. 2.  Section 16 of Chapter 388, 1973 Session Laws, as rewritten by Chapter 508, 1987 Session Laws, reads as rewritten:
"Sec. 16.  (a)	Notwithstanding the provisions of subsection (b) immediately following, if a person who shall not be a member of the Association shall be transferred to the employment of the Fire Department from the employment of the City of Winston-Salem (hereinafter referred to as the City), the following provisions shall apply in determining whether he shall be a member of the Association following such transfer:
(1)	If he shall have attained at least his 18th  birthday and shall not have attained his 40th  birthday on the date of such transfer, he shall automatically become a member on such date of transfer.  In determining such transferred employee's number of years of continuous employment by the City, employment with the City prior to such transfer shall be taken into account only if such employee shall elect to contribute to the Association the amount of twelve dollars ($12.00) per month from the date of his hire by the City until the date of such transfer, plus interest at the rate of eight percent (8%), applicable to any payments made on and after July 1, 1989, per annum, computed on the amount accrued as of the end of each fiscal year of the Association.
(2)	If he shall have attained at least his 40th  birthday on the date of transfer, but had not attained such birthday when last employed by the City, he may elect within 90 days following such transfer to become a member.  If he elects to become a member, he shall contribute to the Association the amount he would have contributed if he had become a member on the day next preceding his 40th birthday.  In addition, at the option of such employee, he may further elect to contribute such additional amount as he would have contributed prior to his 40th birthday if his employment with the City had been with the Fire Department.  Any such contributions shall include interest at the rate of eight percent (8%), applicable to any payments made on and after July 1, 1989, per annum, computed on the amount accrued as of the end of each fiscal year of the Association.
(3)	If he shall have attained at least his 40th birthday when last employed by the City, he shall be ineligible to become a member following such transfer.
(4)	The elections specified in subdivisions (1) and (2) hereof shall be made in writing to the Trustees within 90 days following such transfer, and shall be irrevocable when made (subject to termination of membership upon subsequent separation from employment with the Fire Department).  Any contributions (and interest) payable pursuant to such election shall be paid in cash in a lump sum at the time such election shall be filed.
(b)	Notwithstanding the provisions of subsection (a) of Section 2 hereof, as soon as practicable following April 3, 1979, (but in no event more than 60 days thereafter), the Trustees gave each person who was then employed by the City of Winston-Salem as a Public Safety Officer an election to be a member or not to be a member of the Association.  Each such election was to be made in accordance with procedures established by the Trustees and was irrevocable when made (subject to termination of membership upon a subsequent separation from the employment of the City, and subject to the provisions of subsection (a) of this Section 16).  If a Public Safety Officer failed to file a timely election, he was deemed to have elected not to be a member.  If a Public Safety Officer who was a member on the date of the election elected to discontinue membership (or shall have been deemed to have so elected), within 30 days following such date there should have been refunded to him the full amount of his prior contributions to the Association, if any, without interest.  If a Public Safety Officer who failed to make contributions prior to the election date elected to be a member, he shall have within 30 days following such election paid to the Association the full amount he would have contributed if he had made required contributions during the entire period that he was eligible to be a member.  Such contributions included interest at the rate of six percent (6%) per annum, computed on the amount accrued as of the end of each fiscal year of the Association.
(c)	Any member whose employment by the Fire Department as a Public Safety Officer shall be terminated on or after June 27, 1981, for any reason, including transfer to another department in the employment of the City, shall be terminated immediately as a member; provided, that any member who is transferred on or after July 1, 1981, to another department of the City in a fire-related job shall not become a terminated member if the following conditions are met: (i) within 15 days following the date of such transfer he shall file with the Trustees a written election to continue as a member; and (ii) such member shall be notified in writing by the secretary of the Association on or before the date of transfer of his right to make the election.  If a terminated member shall reenter employment of the Fire Department, his eligibility to become a member shall be determined at that time in accordance with Section 2 hereof, except to the extent such individual may be entitled to elect to become a member upon a transfer of employment as provided in subsection (a) of this Section 16.
(d)	In determining the number of years of continuous employment of a member, there shall be taken into account all years for which he shall make contributions in accordance with subsection (a) or (e) of this Section 16 or Section 19.  For purposes of computing a member's years of continuous employment with the City, any period of unused sick leave with the Fire Department accrued by the member on the date of his retirement shall be deemed to be a period of continuous employment with the Fire Department.
(e)	If any member of the Association was employed by the Fire Department as a cadet, such member's number of years of employment as a cadet may be added to the period of his continuous employment with the City if, by July 31, 1981, such member contributed to the Association an amount equal to twelve dollars ($12.00) per month for the time he was a cadet, plus interest at the rate of six percent (6%) per annum, computed on the amount accrued as of the end of each fiscal year of the Association.
(f)	If a member has been employed by the City continuously for a period of 10 years and has any military service, and is not otherwise treated under Section 26 as being in the employment of the City during the period of such military service, the period of such military service shall nevertheless be added to his period of continuous employment with the City upon such member's paying to the Association an amount equal to twelve dollars ($12.00) for each month of such military service plus interest at the rate of eight percent (8%), applicable to any payments made on and after July 1, 1989, per annum, compounded annually.  Such military service shall be limited to the initial period of active duty in the armed forces of the United States up to the time the member was first eligible to be separated or released therefrom, and subsequent periods of such active duty as required by the armed forces of the United States up to the date of first eligibility for separation or release therefrom.  The member must submit evidence satisfactory to the Trustees of the military service claimed.  Such election must be made within one year after the member first becomes eligible to contribute for such military service.  Credit for military service under this subsection shall not be considered service creditable under another retirement system for purposes of G.S. 128-26(a).
(g)	If an individual who is an active participant in the North Carolina Local Governmental Employees' Retirement System (the ‘System') shall terminate service with the employer enabling the individual to participate in the System (the ‘System Employer'), and shall immediately enter the employment of the Fire Department, he may elect to have his period of service under the System considered as continuous employment with the Fire Department for purposes of this act; provided, that such election shall be permitted only if the individual was under age 40 when he entered the employment of the System Employer.  This election shall be made in writing to the Trustees within 90 days of the individual's commencement of employment with the Fire Department (or, with respect to an individual who becomes employed by the Fire Department prior to July 1, 1989, this election shall be made on or before September 30, 1989).  The election, if made, shall be accompanied by a cash contribution to the Association of an amount equal to twelve dollars ($12.00) per month during the period of his service under the System, plus interest at the rate of eight percent (8%) per annum, compounded annually on the amount accrued as of the end of each fiscal year of the Association.  The election shall be irrevocable when made.  If the election is not made in a timely fashion, the right to make the election is forfeited."
Sec. 3.  Section 18 of Chapter 388, 1973 Session Laws, as rewritten by Chapter 508, 1987 Session Laws, reads as rewritten:
"Sec. 18.  If at any time there shall not be sufficient assets in the retirement fund of the Association to pay fully the persons entitled to benefits provided herein, such persons shall be paid such benefits on a pro rata basis to the extent the assets of such fund will allow, as shall be determined by the Trustees; provided, that the assets of such fund determined as of the close of any fiscal year of the Association shall in no event be less than one million five hundred thousand dollars ($1,500,000)."
Sec. 4.  Section 19 of Chapter 388, 1973 Session Laws, as rewritten by Chapter 508, 1987 Session Laws, reads as rewritten:
	"Sec. 19.  Whenever any member of the Association has been employed by the City continuously for a period off at least 30 years, such member may make written application to the trustees for his normal retirement benefit, and whenever any member of the Association has been employed by the City continuously for a period of at least 25 years but not more than 30 years, such member may make written application to the Trustees for his early retirement benefit; provided, however, that such member must retire from the service of the City to receive such benefits.  The normal and early retirement benefits of such member shall be a monthly pension for the remainder of his life, as provided hereinbelow.  For this purpose and for the purpose of Section 20 hereof, a member shall be deemed to have been employed by the City continuously if such member shall have been employed continuously by any combination of the Fire Department or Police Department (but only such employment by the Police Department as is described in subsection 16(b) and (c) hereof), and the transfer of a member from the employ of one of such organizations to the employ of the other such organization shall not be deemed to be a termination of employment by the City.  Provided, that if a member has at least 25 years of employment with the City, but such service is not continuous solely because of a leave of absence lasting not more than a year and not described in Section 26, such member shall be deemed to have continuous employment with the City during such leave of absence; and provided further, that if a member has less than 25 years of employment with the City but the sum of his years of employment with the City plus
any leave of absence lasting not more than one year and not described in Section 26, equals or exceeds 25 years, the period of such leave shall be deemed to be continuous employment with the City if such member contributes to the Association twelve dollars ($12.00) for each month he was on such leave, plus interest at the rate of eight percent (8%), applicable to any payments made on and after July 1, 1989, per annum, computed on the amount accrued as of the end of each fiscal year of the Association.
Effective beginning July 1, 1989, and ending June 30, 1990, the amount of the monthly pension for each member who is entitled to receive a normal retirement benefit (including members who retired prior to July 1, 1989) shall be two hundred dollars ($200.00).  Effective on and after July 1, 1990, the amount of the monthly pension for each member who is entitled to receive a normal retirement benefit (including members who retired prior to this date) shall be two hundred fifteen dollars ($215.00).  The amount of the monthly pension for each member who is entitled to receive an early retirement benefit as of any date shall be the product of (1) and (2), where (1) is the applicable percentage listed in the following table based on his years of continuous employment at his early retirement date, and (2) is the amount of the payment that he would have received as a normal retirement benefit under this section as of that date:
	Years of Employment at	Percentage of Normal
	Retirement Date	Retirement Benefit
	25	85%
	26	88%
	27	91%
	28	94%
	29	97%
Payment shall be subject to the provisions of Section 18 of this act.  Section 16(d) governs the determinations of a member's years of continuous employment."
Sec. 5.  Section 20 of Chapter 388, 1973 Session Laws, as rewritten by Chapter 508, 1987 Session Laws, reads as rewritten:
"Sec. 20.  Whenever any member of the Association becomes totally and permanently unable, because of infirmity or disease affecting mind or body (whether or not induced by injury) to perform his duties for the City, which inability shall be determined by a medical examination by a physician or physicians of good standing and repute selected by the Trustees, he shall be deemed to be a disabled member.  If a disabled member has been employed by the City for at least five full years prior to suffering disability, he shall be entitled to retire and receive a monthly benefit payable for the remainder of his life.
Effective beginning July 1, 1989, and ending June 30, 1989, the monthly benefit of a member who retires as a disabled member (including a member who retired as a disabled member prior to July 1, 1989) shall equal eight dollars ($8.00) times his years of service but in no event more than two hundred dollars ($200.00) per month.  Effective on and after July 1, 1990, the monthly benefit of a member (including a member who retires as a disabled member prior to this date) shall equal eight dollars and sixty cents ($8.60) times his years of service, but in no event more than two hundred fifteen dollars ($215.00) per month.  For this purpose only, years of service shall mean the number of his earned years of service in the employment of the City (as determined pursuant to Section 16(d) of this act).  Payments shall be subject to the provisions of Section 18 of this act."
Notwithstanding the foregoing provisions of this Section 20, in the case of a disabled member whose disability shall arise out of injuries incurred in fire safety activities, such as fire fighting, fire training and fire inspection, such monthly benefit shall in no event be less than forty dollars ($40.00) per month, whether or not such disabled member was employed by the City for at least five years prior to suffering such disability.  The determination of whether such disability arises out of injuries incurred in fire safety activities shall be made by the Trustees."
Sec. 6.  None of the provisions of this act shall create an additional liability for the Winston-Salem Firemen's Fund Association unless sufficient funds are available to pay fully for the liability.
Sec. 7.  This act shall become effective July 1, 1989.