A BILL TO BE ENTITLED
AN ACT to allow for the revocation of a retirement allowance beneficiary and a new nomination to be made at any time.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 135‑5(g) reads as rewritten:
"(g)	Election of Optional Allowance. – A member may elect to receive his or her benefits in a retirement allowance payable throughout life, or the member may elect to receive the actuarial equivalent of such retirement allowance, including any special retirement allowance, in a reduced allowance payable throughout life under the provisions of one of the options set forth in this subsection. Except as provided in this subsection, the member may not change the member's retirement benefit option after the member has cashed the first retirement check or after the 25th day of the month following the month in which the first check is mailed, whichever comes first. The following shall apply to the election of a retirement benefit option and the nomination of a person under certain retirement benefit options:
(1)	The election of Option 2, 3, or 6, or the nomination of the person under Option 2, 3, or 6 shall be automatically revoked if the person nominated dies before the member's first retirement check has been cashed or before the 25th day of the month following the month in which the first check is mailed, whichever comes first.
(2)	Within 10 years of the member's date of retirement, the nomination of a person under Option 2, 3, 5, or 6 may be revoked by the member and a new nomination made. A new nomination under this subdivision shall be effective on the first day of the month in which it is made and shall provide for a retirement allowance computed to be the actuarial equivalent of the retirement allowance in effect immediately prior to the effective date of the new nomination.
(3)	If a member has elected Option 2, 3, or 5 and nominated his or her spouse at the time of nomination to receive a retirement allowance upon the member's death and that spouse predeceases the member and if the member remarries, then, within 90 days of the remarriage, the member may request to nominate the new spouse to receive the retirement allowance under the previously elected option and may nominate the new spouse to receive the retirement allowance under the previously elected option by written designation duly acknowledged and filed with the Board of Trustees within 120 days of the remarriage. The new nomination shall be effective on the first day of the month in which it is made and shall provide for a retirement allowance computed to be the actuarial equivalent of the retirement allowance in effect immediately prior to the effective date of the new nomination.
(4)	If a member has elected Option 2, 3, 5, or 6 and nominated his or her spouse at the time of nomination to receive a retirement allowance upon the member's death, and the member is now divorced from that spouse, then the member may, after divorce from that spouse, revoke the nomination and elect a new option, effective on the first day of the month in which the new option is elected, providing for a retirement allowance computed to be the actuarial equivalent of the retirement allowance in effect immediately prior to the effective date of the new option.
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SECTION 2.  This act is effective when it becomes law and applies to all benefit option elections or nominations made on and after that date, including benefit option change requests and nomination change requests made by members already receiving retirement allowances that are received on or after that date.