GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

S	2 

SENATE BILL 975
Second Edition Engrossed 5/25/89

Short Title:  Retirees' Guaranteed Returns.	(Public)
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Sponsors: Senators Speed; Barker, Basnight, Block, Ezzell, Guy, Harris, Hunt of Durham, Hunt of Moore, Martin of Guilford, Parnell, Rauch, Richardson, and Soles.
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Referred to:  Pensions and Retirement.
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April 19, 1989

A BILL TO BE ENTITLED
AN ACT TO PROVIDE CERTAIN MINIMUM RETURNS TO ALL RETIREES OF ALL STATE-ADMINISTERED RETIREMENT SYSTEMS.
The General Assembly of North Carolina enacts:
Section 1.  Chapter 120 of the General Statutes is amended by adding a new section to read:
"§ 120-21.26A.  Retirees' guaranteed return.
In the event of the death of a former member while in receipt of a retirement allowance under the provisions of this Article, if such former member is not survived by a beneficiary to whom a retirement allowance is payable under the provisions of this Article, there shall be paid to such person as the member shall have nominated by written designation duly acknowledged and filed with the Board of Trustees, if such person is living at the time of the member's death, otherwise to the member's legal representatives, a death benefit equal to the excess, if any, of the accumulated contributions of the member at his date of retirement  over the total of the retirement allowances paid to him prior to his death.  Provided that, in the event that a retirement allowance becomes payable to the beneficiary of a former member under the provisions of this Article before the total of the retirement allowances paid to the former member and his surviving beneficiary combined equals the amount of the member's  contributions at his date of retirement, the excess of such contributions over the total of the retirement allowances paid to the  former member and his surviving beneficiary combined shall be paid in a lump sum to such person as the member shall have nominated by written designation duly acknowledged and filed with the Board of Trustees, if such person is living at the time such payment falls due, otherwise to the former member's legal representatives."
Sec. 2.  G.S. 128-27 is amended by inserting a new subsection to read:
"( g1)	In the event of the death of a former member while in receipt of a retirement allowance under the provisions of this Article, if such former member is not survived by a beneficiary to whom a retirement allowance is payable under the provisions of this Article, there shall be paid to such person as the member shall have nominated by written designation duly acknowledged and filed with the Board of Trustees, if such person is living at the time of the member's death, otherwise to the member's legal representatives, a death benefit equal to the excess, if any, of the accumulated contributions of the member at his date of retirement  over the total of the retirement allowances paid to him prior to his death.  Provided that, in the event that a retirement allowance becomes payable to the beneficiary of a former member under the provisions of this Article before the total of the retirement allowances paid to the former member and his surviving beneficiary combined equals the amount of the member's  contributions at his date of retirement, the excess of such contributions over the total of the retirement allowances paid to the  former member and his surviving beneficiary combined shall be paid in a lump sum to such person as the member shall have nominated by written designation duly acknowledged and filed with the Board of Trustees, if such person is living at the time such payment falls due, otherwise to the former member's legal representatives."
Sec. 3.  G.S. 135-5 is amended by inserting a new subsection to read:
"( g1)	In the event of the death of a former member while in receipt of a retirement allowance under the provisions of this Article, if such former member is not survived by a beneficiary to whom a retirement allowance is payable under the provisions of this Article, there shall be paid to such person as the member shall have nominated by written designation duly acknowledged and filed with the Board of Trustees, if such person is living at the time of the member's death, otherwise to the member's legal representatives, a death benefit equal to the excess, if any, of the accumulated contributions of the member at his date of retirement  over the total of the retirement allowances paid to him prior to his death.  Provided that, in the event that a retirement allowance becomes payable to the beneficiary of a former member under the provisions of this Article before the total of the retirement allowances paid to the former member and his surviving beneficiary combined equals the amount of the member's  contributions at his date of retirement, the excess of such contributions over the total of the retirement allowances paid to the  former member and his surviving beneficiary combined shall be paid in a lump sum to such person as the member shall have nominated by written designation duly acknowledged and filed with the Board of Trustees, if such person is living at the time such payment falls due, otherwise to the former member's legal representatives."
Sec. 4.  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. 5.  This act shall become effective July 1, 1989.