NORTH CAROLINA GENERAL ASSEMBLY
1975 SESSION
CHAPTER 457
HOUSE BILL 1125
AN ACT REVISING BENEFITS OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM.
The General Assembly of North Carolina enacts:
Section 1. G.S. 135-1(5), as the same appears in the 1974 Replacement Volume of the General Statutes, is hereby amended by striking out the word "five" in line 2 thereof and inserting in lieu thereof the word "four".
Sec. 2. (a) The first four lines of G.S. 135-5(b4), as the same appear in the 1974 Replacement Volume of the General Statutes, are hereby amended by rewriting the same to read as follows:
"(b4) Service retirement allowances of members retiring on or after July 1, 1973, but prior to July 1, 1975. Upon retirement from service, in accordance with subsection (a) above, on or after July 1, 1973, but prior to July 1, 1975, a member shall receive a service retirement allowance computed as follows:".
(b) G.S. 135-5, as the same appears in the 1974 Replacement Volume of the General Statutes, is hereby further amended by the addition of a new subsection immediately after (b4) reading as follows:
"(b5) Service retirement allowances of members retiring on or after July 1, 1975. Upon retirement from service, in accordance with subsection (a) above, on or after July 1, 1975, a member shall receive a service retirement allowance computed as follows:
(1) If the member's service retirement date occurs on or after his sixty-fifth birthday, regardless of his years of creditable service, or after the completion of 30 years of creditable service, such allowance shall be equal to one and one-half percent (1-1/2%) of his average final compensation, multiplied by the number of years of his creditable service.
(2) If the member's service retirement date occurs before his sixty-fifth birthday and prior to his completion of 30 or more years of creditable service, his retirement allowance shall be computed as in (1) above, 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 sixty-fifth birthday.
(3) Notwithstanding the foregoing provisions, any member whose creditable service commenced prior to July 1, 1963, shall receive not less than the benefit provided by G.S. 135-5(b)."
Sec. 3. G.S. 135-5(g), as the same appears in the 1974 Supplement to the General Statutes, is hereby amended by the addition of a new option to follow immediately after Option 5 and reading as follows:
"Option 6. A member may elect either Option 2 or Option 3 with the added provision that in the event the designated beneficiary predeceases the member, the retirement allowance payable to the member after the designated beneficiary's death shall be equal to the retirement allowance which would have been payable had the member not elected the option."
Sec. 4. G.S. 135-5, as the same appears in the 1974 Supplement to the General Statutes, is hereby further amended by the addition of a new subsection (v) reading as follows:
"(v) Notwithstanding any of the foregoing provisions, the increase in allowance to each beneficiary on the retirement rolls as of July 1, 1974, which shall become payable on July 1, 1975, and to each beneficiary on the retirement rolls as of July 1, 1975, which shall become payable on July 1, 1976, as otherwise provided in G.S. 135-5(o), shall be the current maximum four percent(4%) plus an additional four percent (4%) to a total of eight percent (8%) for the years 1975 and 1976 only, provided that the increases do not exceed the actual percentage increase in the Consumer Price Index as determined in G.S. 135-5(o). The provisions of this subsection shall apply also to the allowance of a surviving annuitant of a beneficiary."
Sec. 5. (a) G.S. 135-8(b)(l), as the same appears in the 1974 Replacement Volume of the General Statutes, is hereby amended by inserting after the comma and before the word "the" in line 13 of the second paragraph the following: "and ending June 30, 1975,".
(b) G.S. 135-8(b)(l), as the same appears in the 1974 Replacement Volume of the General Statutes, is hereby further amended by adding a new paragraph at the end thereof, to read as follows:
"Notwithstanding the foregoing, effective July 1, 1975, with respect to the period of service commencing on July 1, 1975, the rate of such deductions shall be six per centum (6%) of the compensation received by any member. Such rates shall apply uniformly to all members of the Retirement System, without regard to their coverage under the Social Security Act."
Sec. 6. This act shall become effective July 1, 1975.
In the General Assembly read three times and ratified, this the 2nd day of June, 1975.