GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	1 

SENATE BILL 943

Short Title:  Retirement Formula Increase.	(Public)
─────────────────────────────────────── 
Sponsors: Senator Johnson of Wake.
─────────────────────────────────────── 
Referred to:  Pensions and Retirement.
─────────────────────────────────────── 

April 19, 1989

A BILL TO BE ENTITLED
AN ACT TO INCREASE THE RETIREMENT FORMULA FOR MEMBERS AND BENEFICIARIES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM AND MEMBERS AND BENEFICIARIES OF THE LOCAL GOVERNMENT RETIREMENT SYSTEM.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 135-5(b10) reads as rewritten:
	"(b10) Service Retirement Allowance of Members Retiring on or after July 1, 1988, but before July 1, 1989. – Upon retirement from service in accordance with subsection (a) above, on or after July 1, 1988, but before July 1, 1989, a member shall receive the following service retirement allowance:
(1)	A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to one and sixty hundredths percent (1.60%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	This allowance shall also be governed by the provisions of G.S. 135-5(b9)(1)b.
(2)	A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of creditable service or after the completion of 30 years of creditable service or on or after his 60th birthday upon the completion of 25 years of creditable service, such allowance shall be equal to one and sixty hundredths percent (1.60%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	This allowance shall also be governed by the provisions of G.S. 135-5(b9)(2)b., c. and d."
Sec. 2.  G.S. 135-5 is amended by adding a new subsection to read:
"( b11)	Service Retirement Allowance of Members Retiring on or after July 1, 1989. – Upon retirement from service in accordance with subsection (a) above, on or after July 1, 1989, a member shall receive the following service retirement allowance:
(1)	A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to one and sixty-two hundreths percent (1.62%)  of his average final compensation, multiplied by the number of years of his creditable service.
b.	This allowance shall also be governed by the provisions of G.S. 135-5(b9)(1)b.
(2)	A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of creditable service or after the completion of 30 years of creditable service or on or after his 60th birthday upon the completion of 25 years of creditable service, such allowance shall be equal to  one and sixty-two hundredths percent (1.62%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	This allowance shall also be governed by the provisions of G.S. 135-5(b9)(2)b., c. and d."
Sec. 3.  G.S. 135-5 is amended by adding a new subsection to read:
"( pp)	Increase in Allowance as to Persons on Retirement Rolls as of June 1, 1989.  From and after July 1, 1989, the retirement allowance to or on account of beneficiaries on the retirement rolls as of June 30, 1989, shall be increased by two-tenths percent (.2%) of the allowance payable on June 30, 1989.  This allowance shall be calculated on the basis of the allowance payable and in effect on June 30, 1989, so as not to be compounded on any other increase payable under subsection (k) of this section or otherwise granted by act of the 1989 Session of the General Assembly."
Sec. 4.  G.S. 128-27(b10) reads as rewritten:
"(b10)	Service Retirement Allowance of Members Retiring on or after July 1, 1988, but before July 1, 1989. – Upon retirement from service in accordance with subsection (a) above, on or after July 1, 1988, but before July 1, 1989, a member shall receive the following service retirement allowance:
(1)	A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to one and sixty hundredths percent (1.60%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	Such allowance shall also be governed by the provisions of G.S. 128-27(b8)(2).
(2)	A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of creditable service or after the completion of 30 years of creditable service, or on or after his 60th birthday upon the completion of 25 years of creditable service, such allowance shall be equal to one and sixty-hundreths percent (1.60%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	Such allowance shall also be governed by the provisions of G.S. 128-27(b7)(2a), (2b) and (3)."
Sec. 5.  G.S. 128-27 is amended by adding a new subsection to read:
"( b11)	Service Retirement Allowance of Members Retiring on or after July 1, 1989. – Upon retirement from service in accordance with subsection (a) above, on or after July 1, 1989, a member shall receive the following service retirement allowance:
(1)	A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 55th birthday, and completion of five years of creditable service as a law enforcement officer, or after the completion of 30 years of creditable service, the allowance shall be equal to  one and sixty-two hundredths percent (1.62%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	Such allowance shall also be governed by the provisions of G.S. 128-27(b8)(2).
(2)	A member who is not a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:
a.	If the member's service retirement date occurs on or after his 65th birthday upon the completion of five years of creditable service or after the completion of 30 years of creditable service, or on or after his 60th birthday upon the completion of 25 years of creditable service, such allowance shall be equal to one and sixty-two hundredths percent (1.62%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	Such allowance shall also be governed by the provisions of G.S. 128-27(b7)(2a), (2b) and (3)."
Sec. 6.  G.S. 128-27 is amended by adding a new subsection to read:
"( ff)	Increase in Allowance as to Persons on Retirement Rolls as of June 1, 1989.  From and after July 1, 1989, the retirement allowance to or on account of beneficiaries on the retirement rolls as of June 30, 1989, shall be increased by two-tenths percent (.2%) of the allowance payable on June 30, 1989.  This allowance shall be calculated on the basis of the allowance payable and in effect on June 30, 1989, so as not to be compounded on any other increase payable under subsection (k) of this section or otherwise granted by act of the 1989 Session of the General Assembly."
Sec. 7.  In order to fund the provisions of this act, the Board of Trustees of the Teachers' and State Employees' Retirement System, with the advice of its consulting actuary, shall apply unencumbered actuarial gain remaining after application of this gain to cost-of-living increases for retired members and any other increases in retirement benefits contained in the 1989-90 Current Operations Appropriations Act, and shall allocate the percentage of payroll contribution rates for employers among the normal and accrued liability contributions to the Retirement System without an increase in the total employer contribution rate and without an increase in the scheduled amortization period for liquidation of unfunded accrued liabilities in the Retirement System.
Sec. 8.  This act shall become effective July 1, 1989.