A BILL TO BE ENTITLED
AN ACT to make technical changes to the statutes governing the teachers' and state employees' retirement system, the local governmental employees' retirement system, the consolidated judicial retirement system, the legislative retirement system, the supplemental retirement income plan, and the achieving a better life EXPERIENCE (ABLE) program trust.
The General Assembly of North Carolina enacts:
SECTION 1.(a)  G.S. 128‑21 is amended by adding a new subdivision to read:
"(8a)	"Duly acknowledged" means notarized, including electronic notarization, or verified through an identity authentication service approved by the Department of State Treasurer."
SECTION 1.(b)  G.S. 135‑1 is amended by adding a new subdivision to read:
"(8a)	"Duly acknowledged" means notarized, including electronic notarization, or verified through an identity authentication service approved by the Department of State Treasurer."
SECTION 2.(a)  G.S. 135‑5(m4) reads as rewritten:
"(m4)	A member who has contributions in this System and is not eligible for a retirement benefit as set forth in G.S. 135‑5(a) shall be paid his or her contributions in a lump sum as provided in G.S. 135‑5(f) by April 1 of the calendar year following the later of the calendar year in which the member (i) attains 72 years of age or (ii) has ceased to be a teacher or State employee except by death. If the member fails, following reasonable notification, to complete a refund application by the required date, then the requirement that a refund application be completed shall be waived and the refund shall be paid without a refund application as a single lump‑sum payment with applicable required North Carolina and federal income taxes withheld.
A member who has contributions in this System and is eligible for a retirement benefit as set forth in G.S. 135‑5(a) shall begin to receive a monthly benefit no later than April 1 of the calendar year following the later of the calendar year in which the member (i) attains 72 years of age or (ii) has ceased to be a teacher or State employee except by death. If the member fails, following reasonable notification, to complete the retirement process as set forth under Chapter 135 of the General Statutes by such required beginning date, then the requirement that a retirement application and an election of payment plan form be completed shall be waived and the retirement allowance shall be paid as a single life annuity. The single life annuity shall be calculated and processed in accordance with this section.
For purposes of this subsection, a member shall not be considered to have ceased to be a teacher or State employee if the member is actively contributing to the Consolidated Judicial Retirement System, Local Governmental Employees' Retirement System, or Legislative Retirement System. A retirement benefit or lump‑sum refund shall not be paid under this subsection if the member is actively contributing to the Consolidated Judicial Retirement System, Local Governmental Employees' Retirement System, or Legislative Retirement System."
SECTION 2.(b)  G.S. 128‑27(m3) reads as rewritten:
"(m3)	A member who has contributions in this System and is not eligible for a retirement benefit as set forth in G.S. 128‑27(a) or G.S. 128‑27(a1) shall be paid his or her contributions in a lump sum as provided in G.S. 128‑27(f) by April 1 of the calendar year following the later of the calendar year in which the member (i) attains 72 years of age or (ii) has ceased to be an employee except by death. If the member fails, following reasonable notification, to complete a refund application by the required date, then the requirement that a refund application be completed shall be waived and the refund shall be paid without a refund application as a single lump‑sum payment with applicable required North Carolina and federal income taxes withheld..
A member who has contributions in this System and is eligible for a retirement benefit as set forth in G.S. 128‑27(a) or G.S. 128‑27(a1) shall begin to receive a monthly benefit no later than April 1 of the calendar year following the later of the calendar year in which the member (i) attains 72 years of age or (ii) has ceased to be an employee except by death. If the member fails, following reasonable notification, to complete the retirement process as set forth under Chapter 128 of the General Statutes by the required beginning date, then the requirement that a retirement application and an election of payment plan form be completed shall be waived and the retirement allowance shall be paid as a single life annuity. The single life annuity shall be calculated and processed in accordance with this section.
For purposes of this subsection, a member shall not be considered to have ceased to be an employee if the member is actively contributing to the Teachers' and State Employees' Retirement System, Consolidated Judicial Retirement System, or Legislative Retirement System. A retirement benefit or lump‑sum refund shall not be paid under this subsection if the member is actively contributing to the Teachers' and State Employees' Retirement System, Consolidated Judicial Retirement System, or Legislative Retirement System."
SECTION 2.(c)  G.S. 135‑74(c1) reads as rewritten:
"(c1)	A member who has contributions in this System and is not eligible for a retirement benefit as set forth in G.S. 135‑57 shall be paid his or her contributions in a lump sum as provided in G.S. 135‑62 by April 1 of the calendar year following the later of the calendar year in which the member (i) attains 72 years of age or (ii) has ceased to be a judge, district attorney, public defender, the Director of Indigent Defense Services, or clerk of superior court as provided in G.S. 135‑53, except by death. If the member fails, following reasonable notification, to complete a refund application by the required date, then the requirement that a refund application be completed shall be waived and the refund shall be paid without a refund application as a single lump‑sum payment with applicable required North Carolina and federal income taxes withheld.
A member who has contributions in this System and is eligible for a retirement benefit as set forth in G.S. 135‑57 shall begin to receive a monthly benefit no later than April 1 of the calendar year following the later of the calendar year in which the member (i) attains 72 years of age or (ii) has ceased to be a judge, district attorney, public defender, the Director of Indigent Defense Services, or clerk of superior court as provided in G.S. 135‑53, except by death. If the member fails, following reasonable notification, to complete the retirement process as set forth under Chapter 135 of the General Statutes by such required beginning date, then the requirement that a retirement application and an election of payment plan form be completed shall be waived and the retirement allowance shall be paid as a single life annuity. The single life annuity shall be calculated and processed in accordance with G.S. 135‑58.
For purposes of this subsection, a member shall not be considered to have ceased to be a judge, district attorney, public defender, the Director of Indigent Defense Services, or clerk of superior court as provided in G.S. 135‑53 if the member is actively contributing to the Teachers' and State Employees' Retirement System, Local Governmental Employees' Retirement System, or Consolidated Judicial Retirement System. A retirement benefit or lump‑sum refund shall not be paid under this subsection if the member is actively contributing to the Teachers' and State Employees' Retirement System, Local Governmental Employees' Retirement System, or Legislative Retirement System."
SECTION 2.(d)  G.S. 120‑4.31(c1) reads as rewritten:
"(c1)	A member who has contributions in this System and is not eligible for a retirement benefit as set forth in G.S. 120‑4.21 shall be paid his or her contributions in a lump sum as provided in G.S. 120‑4.25 by April 1 of the calendar year following the later of the calendar year in which the member (i) attains 72 years of age or (ii) has ceased to be a member of the General Assembly, except by death. If the member fails, following reasonable notification, to complete a refund application by the required date, then the requirement that a refund application be completed shall be waived and the refund shall be paid without a refund application as a single lump‑sum payment with applicable required North Carolina and federal income taxes withheld.
A member who has contributions in this System and is eligible for a retirement benefit as set forth in G.S. 120‑4.21 shall begin to receive a monthly benefit no later than April 1 of the calendar year following the later of the calendar year in which the member (i) attains 72 years of age or (ii) has ceased to be a member of the General Assembly, except by death. If the member fails, following reasonable notification, to complete the retirement process as set forth under Chapter 120 of the General Statutes by the required beginning date, then the requirement that a retirement application and an election of payment plan form be completed shall be waived and the retirement allowance shall be paid as a single life annuity. The single life annuity shall be calculated and processed in accordance with G.S. 120‑4.21.
For purposes of this subsection, a member shall not be considered to have ceased to be a member of the General Assembly if the member is actively contributing to the Teachers' and State Employees' Retirement System, Local Governmental Employees' Retirement System, or Consolidated Judicial Retirement System. A retirement benefit or lump‑sum refund shall not be paid under this subsection if the member is actively contributing to the Teachers' and State Employees' Retirement System, Local Governmental Employees' Retirement System, or Consolidated Judicial Retirement System."
SECTION 2.(e)  This section becomes effective January 1, 2021, and applies to members on or after that date. If a member attains age 70 and one‑half years of age on or before December 31, 2019, then the statute that is in effect on the day the member attains age 70 and one‑half years of age will be applicable to that member.
SECTION 3.(a)  G.S. 135‑90(b) reads as rewritten:
"(b)	The purpose of the Article is to attract and hold qualified employees and officials of the State of North Carolina and its political subdivisions by permitting them to participate in a profit sharing or salary reduction form of deferred compensation which will provide supplemental retirement income payments upon retirement, termination, hardship, and death as allowed under section 401(k), or any other relevant section, of the Internal Revenue Code of 1954 as amended. As used in this Article, the term "profit" means the excess revenue over expenditures prior to the expenditure of the amount which may be optionally made available for employees to be placed in trust by the State and its political subdivisions on behalf of the employees and officials covered by this Article."
SECTION 3.(b)  G.S. 135‑92 reads as rewritten:
"§ 135‑92.  Membership.
(a)	The membership eligibility of the Supplemental Retirement Income Plan shall consist of any of the following individuals who voluntarily elect to enroll in the Plan:
(1)	Members of the Teachers' and State Employees' Retirement System.
(2)	Members of the Consolidated Judicial Retirement System.
(3)	Members of the Legislative Retirement System.
(4)	Members of the Local Governmental Employees' Retirement System.
(5)	Law enforcement officers as defined under G.S. 143‑166.30 and G.S. 143‑166.50.
(6)	Participants in the Optional Retirement Program provided for under G.S. 135‑5.1.
(7)	Members of retirement and pension plans sponsored by political subdivisions of the State so long as such plans are qualified under Section 401(a) of the Internal Revenue Code of 1986 as amended.
(8)	Individuals required under the Internal Revenue Code to be eligible for participation in the Plan.
(b)	The membership of any person in the Supplemental Retirement Income Plan shall cease upon any of the following:
(1)	The withdrawal of a member's accumulated account.
(2)	Retirement under the provisions of the Supplemental Income Retirement Plan.
(3)	Death."
SECTION 3.(c)  G.S. 135‑94(a)(3) reads as rewritten:
"(3)	The Department of State Treasurer and Board of Trustees shall provide members with alternative payment options, including survivors' options, for the distribution of benefits from the Plan upon retirement, termination, hardship, and death."
SECTION 4.(a)  G.S. 147‑86.70(b) reads as rewritten:
"(b)	Definitions. – The following definitions apply in this section:
(1)	ABLE account. – An account established and owned by an eligible individual and maintained under this Article. A parent, sibling, guardian, or agent under a power of attorney may act on behalf of an account owner.
(2)	Account owner. – The person who enters into an ABLE savings agreement pursuant to the provisions of this Article. The account owner must be the designated beneficiary.
(3)	Board. – The ABLE Program Board of Trustees established in G.S. 147‑86.72.
(4)	Repealed by Session Laws 2016‑56, s. 9(c), effective June 30, 2016.
(5)	Designated beneficiary. – The eligible individual who established and owns an ABLE account.
(6)	Disability certification. – Defined in 26 U.S.C. § 529A(e)(2).
(7)	Eligible individual. – Defined in 26 U.S.C. § 529A(e)(1).
(8)	Federal ABLE Act. – Division B of the Tax Increase Prevention Act of 2014, P.L. 113‑295, the Achieving a Better Life Experience Act of 2014.
	
(10)	Qualified disability expense. – Defined in 26 U.S.C. § 529A(e)(5).
(11)	Reserved for future codification purposes.
(12)	Reserved for future codification purposes.
(13)	Sibling. – A brother, sister, stepbrother, or stepsister."
SECTION 4.(b)  G.S. 147‑86.71(b) reads as rewritten:
"(b)	Accounts. – The following provisions apply to an ABLE account:
(1)	An account owner or contributor may establish an account by making an initial contribution to the ABLE Program Trust, signing an application form approved by the Board or its designee, and naming the designated beneficiary. If the contributor is not the account owner, the account owner or the account owner's parent, sibling, guardian, trustee, or agent shall also sign the application form.
(2)	Any person may make contributions to an account after the account is opened.
(3)	Contributions to an account shall be made only in U.S. Dollars.
(4)	Contributions to an account shall not exceed maximum contribution limits applicable to program accounts in accordance with the federal ABLE Act.
(5)	An account owner may change the designated beneficiary of an account to an eligible individual who is a sibling of the former designated beneficiary. At the direction of an account owner, all or a portion of an account may be transferred to another account of which the designated beneficiary is a sibling of the designated beneficiary of the transferee account if the transferee account was created pursuant to this section or in accordance with the federal ABLE Act."
SECTION 4.(c)  G.S. 147‑86.71(d)(9) reads as rewritten:
"(9)	A parent, sibling, trustee, or guardian appointed as a signatory of an ABLE account does not have or acquire any beneficial interest in the account and administers the account for the benefit of the designated beneficiary."
SECTION 4.(d)  This section is effective when it becomes law and applies to actions taken on behalf of an ABLE account owner on or after that date.
SECTION 5.  Except as provided otherwise, this act is effective when it becomes law.