GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1995

H	1 

HOUSE BILL 1045

Short Title:  28-Year Retirement Window.	(Public)

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Sponsors: Representatives Black, Grady, Preston, Warner; Buchanan, Hurley, Luebke, and Sexton.

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Referred to:  Appropriations.

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May 8, 1995

A BILL TO BE ENTITLED
AN ACT TO ESTABLISH A ONE-YEAR WINDOW FOR RETIREMENT BY MEMBERS OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM WITH UNREDUCED BENEFITS AFTER COMPLETING TWENTY-EIGHT YEARS OF SERVICE AND TO APPROPRIATE FUNDS TO IMPLEMENT THE ACT.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 135-5 is amended by adding a new subsection to read:
"( b16)	Window Retirement Allowance of Members Retiring on or after July 1, 1995, but before July 1, 1996. – Upon retirement from service in accordance with subsection (a) or (a1) above, on or after July 1, 1995, but before July 1, 1996, 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 28 years of creditable service, the allowance shall be equal to one and seventy-three hundredths percent (1.73%) of his average final compensation, multiplied by the number of years of his creditable service.
b.	If the member's service retirement date occurs on or after his 50th birthday and before his 55th birthday with 15 or more years of creditable service as a law enforcement officer and prior to the completion of 28 years of creditable service, his retirement allowance shall be equal to the greater of:
1.	The service retirement allowance payable under G.S. 135-5(b15)(1)a. reduced by one-third of one percent (1/3 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 55th birthday; or
2.	The service retirement allowance as computed under G.S. 135-5(b15)(1)a. reduced by five percent (5%) times the difference between 30 years and his creditable service at retirement.
(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 28 years of creditable service or on or after his 60th birthday upon the completion of 25 years of creditable service, the allowance shall be equal to one and seventy-three hundredths percent (1.73%) of his average final compensation, multiplied by the number of years of creditable service.
b.	If the member's service retirement date occurs after his 60th and before his 65th birthday and prior to his completion of 25 years or more of creditable service, his retirement allowance shall be computed as in G.S. 135-5(b15)(2)a. but shall be reduced by one-quarter of one percent (1/4 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following his 65th birthday.
c.	If the member's early service retirement date occurs on or after his 50th birthday and before his 60th birthday and after completion of 20 years of creditable service but prior to the completion of 28 years of creditable service, his early service retirement allowance shall be equal to the greater of:
1.	The service retirement allowance as computed under G.S. 135-5(b15)(2)a. but reduced by the sum of five-twelfths of one percent (5/12 of 1%) thereof for each month by which his retirement date precedes the first day of the month coincident with or next following the month the member would have attained his 60th birthday, plus one-quarter of one percent (1/4 of 1%) thereof for each month by which his 60th birthday precedes the first day of the month coincident with or next following his 65th birthday; or
2.	The service retirement allowance as computed under G.S. 135-5(b15)(2)a. reduced by five percent (5%) times the difference between 28 years and his creditable service at retirement; or
3.	If the member's creditable service commenced prior to July 1, 1994, the service retirement allowance provided by G.S. 135-5(b14)(2)c.
d.	Notwithstanding the foregoing provisions, any member whose creditable service commenced prior to July 1, 1963, shall not receive less than the benefit provided by G.S. 135-5(b)."
Sec. 2.  It is the intent of the General Assembly to protect or enhance the present retirement formula and cost-of-living increases for retirees from the Teachers' and State Employees' Retirement System.
Sec. 3.  There is appropriated from the General Fund to the Teachers' and State Employees' Retirement System the sum of fourteen million seven hundred ninety-one thousand dollars ($14,791,000) for the 1995-96 fiscal year to implement the provisions of this act.
Sec. 4.  There is appropriated from the Highway Fund to the Teachers' and State Employees' Retirement System the sum of one million three hundred twenty thousand dollars ($1,320,000) for the 1995-96 fiscal year to implement the provisions of this act.
Sec. 5.  This act becomes effective July 1, 1995, and Section 1 of this act applies to persons retiring on or after that date but before July 1, 1996.