GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 1022

Short Title:  Retirement Service Transfer.	(Public)

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Sponsors: Representatives Hardy; and Morris.

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Referred to:  Rules, Calendar and Operations of the House.

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April 21, 1997

A BILL TO BE ENTITLED
AN ACT TO PROVIDE FOR MEMBERS OF THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM TO TRANSFER CREDITABLE SERVICE FROM THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE LEGISLATIVE RETIREMENT SYSTEM, OR THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM TO THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM.
The General Assembly of North Carolina enacts:
Section 1.  Article 1A of Chapter 120 of the General Statutes is amended by adding a new subsection to read:
"§ 120-4.32.  Transfer of members.
On or after July 1, 1997, the accumulated contributions and creditable service of any member whose service as a member of the General Assembly has been or is terminated other than by retirement or death and who, while still a member of this Retirement System, became or becomes a member, as defined in G.S. 135-53(11), of the Consolidated Judicial Retirement System, shall be transferred from this Retirement System to the Consolidated Judicial Retirement System.  In order to effect the transfer of a member's creditable service from the Legislative Retirement System to the Consolidated Judicial Retirement System on and after July 1, 1997, the accumulated contributions of each member credited in the annuity savings fund in the Legislative Retirement System shall be transferred and credited to the annuity savings fund in the Consolidated Judicial Retirement System."
Section 2.  G.S. 128-34 is amended by adding a new subsection to read:
"( d)	On or after July 1, 1997, the accumulated contributions and creditable service of any member whose service as a local governmental employee has been or is terminated other than by retirement or death and who, while still a member of this Retirement System, became or becomes a member, as defined in G.S. 135-53(11), of the Consolidated Judicial Retirement System, shall be transferred from this Retirement System to the Consolidated Judicial Retirement System.  In order to effect the transfer of a member's creditable service from the Local Governmental Employees' Retirement System to the Consolidated Judicial Retirement System on and after July 1, 1997, the accumulated contributions of each member credited in the annuity savings fund in the Local Governmental Employees' Retirement System shall be transferred and credited to the annuity savings fund in the Consolidated Judicial Retirement System."
Section 3.  G.S. 135-28.1 is amended by adding a new subsection to read:
"( f)	Notwithstanding the provisions of subsections (a), (b), (c), (d), and (e) of this section, on or after July 1, 1997, the accumulated contributions and creditable service of any member whose service as a teacher or State employee has been or is terminated other than by retirement or death and who, while still a member of this Retirement System, became or becomes a member, as defined in G.S. 135-53(11), of the Consolidated Judicial Retirement System, shall be transferred from this Retirement System to the Consolidated Judicial Retirement System.  In order to effect the transfer of a member's creditable service from the Teachers' and State Employees' Retirement System to the Consolidated Judicial Retirement System on and after July 1, 1997, the accumulated contributions of each member credited in the annuity savings fund in the Teachers' and State Employees' Retirement System shall be transferred and credited to the annuity savings fund in the Consolidated Judicial Retirement System."
Section 4.  G.S. 135-56 is amended by adding a new subsection to read:
"( f)	On and after July 1, 1997, the creditable service of a member who was a member of the Legislative Retirement System, Local Governmental Retirement System, or Teachers' and State Employees' Retirement System and whose accumulated contributions are transferred from that System to this System, includes service that was creditable in the Legislative Retirement System, the Local Governmental Employees' Retirement System, or Teachers' and State Employees' Retirement System, and membership service with that Retirement System is membership service with this Retirement System.  Any service transferred shall be creditable service for the purposes of G.S. 135-58(a2) at the level provided at the time the person first became a member of this System."
Section 5.  G.S. 135-56.2 is repealed.
Section 6.  G.S. 135-58(a1) reads as rewritten:
"(a1)	Any member who retires under the provisions of subsection (a) or subsection (c) of G.S. 135-57 on or after July 1, 1990, but before July 1, 1997, after he either has attained his 65th birthday or has completed 24 years or more of creditable service shall receive an annual retirement allowance, payable monthly, which shall commence on the effective date of his retirement and shall be continued on the first day of each month thereafter during his lifetime, the amount of which shall be computed as the sum of (1), (2), and (3) following, provided that in no event shall the annual allowance payable to any member be greater than an amount which, when added to the allowance, if any, to which he is entitled under the Teachers' and State Employees' Retirement System, the Legislative Retirement System or the North Carolina Local Governmental Employees' Retirement System (prior in any case to any reduction for early retirement or for an optional mode of payment) would total three-fourths of his final compensation:
(1)	Four and two-hundredths percent (4.02%) of his final compensation, multiplied by the number of years of his creditable service rendered as a justice of the Supreme Court or judge of the Court of Appeals;
(2)	Three and fifty-two hundredths percent (3.52%) of his final compensation, multiplied by the number of years of his creditable service rendered as a judge of the superior court or as administrative officer of the courts;
(3)	Three and two-hundredths percent (3.02%) of his final compensation, multiplied by the number of years of his creditable service rendered as a judge of the district court, district attorney, or clerk of superior court."
Section 7.  G.S. 135-58 is amended by adding a new subsection to read:
"( a2)	Any member who retires under the provisions of subsection (a) or subsection (c) of G.S. 135-57 on or after July 1, 1997, after he either has attained his 65th birthday or has completed 24 years or more of creditable service, shall receive an annual retirement allowance, payable monthly, which shall commence on the effective date of his retirement and shall be continued on the first day of each month thereafter during his lifetime, the amount of which shall be computed as the sum of the amounts in subdivisions (1), (2), (3), and (4) following, provided that in no event shall the annual allowance payable to any member be greater than an amount which, prior in any case to any reduction for early retirement or for an optional mode of payment, would total three-fourths of his final compensation:
(1)	Four and two-hundredths percent (4.02%) of his final compensation, multiplied by the number of years of his creditable service rendered as a justice of the Supreme Court or judge of the Court of Appeals, or creditable service transferred from the Legislative Retirement System, the Local Governmental Retirement System, or the Teachers' and State Employees' Retirement System;
(2)	Three and fifty-two hundredths percent (3.52%) of his final compensation, multiplied by the number of years of his creditable service rendered as a judge of the superior court or as administrative officer of the courts, or creditable service transferred from the Legislative Retirement System, the Local Governmental Retirement System, or the Teachers' and State Employees' Retirement System;
(3)	Three and two-hundredths percent (3.02%) of his final compensation, multiplied by the number of years of his creditable service, rendered as a judge of the district court, district attorney, or clerk of superior court, or creditable service transferred from the Legislative Retirement System, the Local Governmental Retirement System, or the Teachers' and State Employees' Retirement System."
Section 8.  G.S. 135-60(a) reads as rewritten:
"(a)	Upon retirement for disability in accordance with G.S. 135-59, a member shall receive a disability retirement allowance computed and payable as provided for service retirement in G.S. 135-58(a2) except that the member's creditable service shall be taken as the creditable service he would have had had he continued in service to the earliest date he could have retired on an unreduced service retirement allowance as a member in the same division of the General Court of Justice in which he was serving on his disability retirement date."
Section 9.  Chapter 135 is amended by adding a new section to read:
"§ 135-70A.  Transfer of members from the Teachers' and State Employees' Retirement System.
(a)	On or after July 1, 1997, the accumulated contributions and creditable service, if any, of a former teacher or State employee, member of the General Assembly, or local governmental employee, as defined in G.S. 135-1(25), 135-1(10), 120-4.8(9), 120-4.8(12), and  128-21(10), respectively, who is an actively contributing member of the Consolidated Judicial Retirement System, shall be transferred from the Teachers' and State Employees' Retirement System, the Legislative Retirement System, or the Local Governmental Employees' Retirement System to the Consolidated Judicial Retirement System.  The accumulated contributions and creditable service of any member whose service as a teacher or State employee, member of the General Assembly, or local governmental employee is terminated other than by retirement or death and, who becomes a member of the Consolidated Judicial Retirement System on or after July 1, 1997, shall be transferred from the Teachers' and State Employees' Retirement System, the Legislative Retirement System, or the Local Governmental Employees' Retirement System to the Consolidated Judicial Retirement System.  In order to effect the transfer of a member's creditable service from the Teachers' and State Employees' Retirement System, the Legislative Retirement System, or the Local Governmental Employees' Retirement System to the Consolidated Judicial Retirement System on and after July 1, 1997, the accumulated contributions of each member credited in the annuity savings fund in the Teachers' and State Employees' Retirement System, the Legislative Retirement System, or the Local Governmental Employees' Retirement System shall be transferred and credited to the annuity savings fund in the Consolidated Judicial Retirement System.
(b)	The Board of Trustees shall effect such rules as it may deem necessary to administer the preceding subsection and to prevent any duplication of service credits or benefits that might otherwise occur."
Section 10.  This act becomes effective July 1, 1997.