GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	1 

HOUSE BILL 1556

Short Title:  Lenoir Supp. Firefighter Fund.	(Local)
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Sponsors: Representatives Robinson; and Flaherty.
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Referred to:  Pensions and Retirement.
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June 3, 1992

A BILL TO BE ENTITLED
AN ACT TO REWRITE THE LAW REVISING AND CONSOLIDATING THE CHARTER OF THE CITY OF LENOIR AS IT RELATES TO THE CITY OF LENOIR'S FIREMEN'S SUPPLEMENTAL RETIREMENT FUND.
The General Assembly of North Carolina enacts:
Section 1.  Section 5.2 of the Charter of the City of Lenoir, as revised and consolidated in Section 1 of Chapter 118 of the 1977 Session Laws, as amended by Chapter 292 of the 1981 Session Laws reads as rewritten:
"Sec. 5.2.  Firemen's supplemental retirement fund. A. The board of trustees of the local firemen's relief fund of the City of Lenoir, as established in accordance with G.S. 58-84-30, hereinafter called the board of trustees, shall create and maintain a separate fund to be called the Lenoir Firemen's Supplemental Retirement Fund, hereinafter called the supplemental retirement fund, and shall maintain books of account for such fund separate from the books of account of the firemen's local relief fund of the City of Lenoir hereinafter called the local relief fund. The board of trustees shall pay into the supplemental retirement fund the funds prescribed by this section.
B.  Notwithstanding the provisions of G.S. 58-84-35, the board of trustees of the local firemen's relief fund of the city shall:     (1) Prior to July 1, 1974, transfer to the supplemental retirement fund all funds, including earnings on investments, of the local relief fund in excess of twenty-five thousand dollars ($25,000);
(2)	At any time when the amount of funds in the local relief fund shall, by reason of disbursements authorized by G.S. 58-84-35, be less than twenty-five thousand dollars ($25,000), transfer from the supplemental retirement fund to the local relief fund an amount sufficient to maintain in the local relief fund the sum of twenty-five thousand dollars ($25,000);
(3)	As soon as practicable after July 1 of each year, divide the sum of the annual funds paid to the local relief fund by authority of G.S. 58-84-30, the income earned in the preceding fiscal year upon investments of funds belonging to the local relief fund and the income earned in the preceding fiscal year upon investments of funds belonging to the supplemental retirement fund into equal amounts and disburse the same as supplemental retirement benefits in accordance with subsection C hereof.  Provided, however, in the event the total amount of these funds in any fiscal year exceeds the total of the benefit limits of one thousand two hundred dollars ($1,200) per annum per eligible person, as set forth in subsection C of this section such excess amount shall become a part of the supplemental retirement fund.
C.  Each fully-paid or volunteer active city fireman who retired after July 1, 1974, with 20 years or more service and has attained the age of 60 shall be entitled to and shall receive in each fiscal year following the fiscal year in which he retires an annual supplemental retirement benefit, provided, in no event shall any retired fireman be entitled to or receive in any year an annual benefit in excess of one thousand two hundred dollars ($1,200).
Any fireman of the city who is not otherwise entitled to supplemental retirement benefits under the first paragraph of this subsection shall nevertheless be entitled to such benefits in any fiscal year in which the board of trustees makes the following written findings of fact:
(1)	That he initially retired from his position as fireman because of his inability, by reason of sickness or injury, to perform the normal duties of an active fireman; and
(2)	That, within 30 days prior to or following his initial retirement as a fireman, at least two physicians licensed to practice medicine in North Carolina certified that he was at such time unable, by reason of sickness or injury, to perform the normal duties of an active fireman; and
(3)	That, at the time of his initial retirement as a fireman, there was not available to him in the fire department or in any other department of the city a position of employment the normal duties of which he was capable of performing.
D.  It is the intention of subsection C hereof to authorize the disbursement as supplemental retirement benefits only of the income derived in any fiscal year from funds received from subsection B, part (3). It is the intention of subsection B of this section to require that the funds paid into the supplemental retirement fund pursuant to parts (1) and (3) thereof shall be held in trust, and that no funds paid into the supplemental retirement fund pursuant to parts (1) and (3) thereof or as a gift, grant, bequest, or donation to such fund shall ever be disbursed except as and when required by part (2).
E.  The board of trustees is hereby authorized to invest any funds, either of the local relief fund or of the supplemental retirement fund, in any investment named in or authorized by G.S. 159-28.1, only in accordance with the provisions thereof, and is hereby directed to invest all of the funds of the supplemental retirement fund in one or more of such investments.
F.  The board of trustees is hereby authorized to accept any gift, grant, bequest, or donation of money for the use of the supplemental retirement funds.
G.  The board of trustees shall bond the treasurer of the local relief fund with a good and sufficient bond, in an amount at least equal to the amount of funds in his control, payable to the board of trustees, and conditioned upon the faithful performance of his duties; such bond shall be in lieu of the bond required by G.S. 58-84-30. The board of trustees shall pay from the local relief fund the premiums of the bond of the treasurer."
Sec. 2.  Nothing in this act creates an additional liability for the City of Lenoir's Firemen's Supplemental Retirement Fund unless there are sufficient assets in the Fund to pay for the liability.
Sec. 3.  This act applies to the City of Lenoir only.
Sec. 4.  This act is effective upon ratification.