GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2021
H 1
HOUSE BILL 666
Short Title: Up Volunteer Firefighters' Retirement Benefit. |
(Public) |
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Sponsors: |
Representatives Pickett, Saine, and Clampitt (Primary Sponsors). For a complete list of sponsors, refer to the North Carolina General Assembly web site. |
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Referred to: |
Pensions and Retirement, if favorable, Rules, Calendar, and Operations of the House |
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April 27, 2021
A BILL TO BE ENTITLED
AN ACT increasing the amount of members' monthly payments and monthly pensions under the north carolina firefighters' and rescue squad workers' pension fund.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 58‑86‑35 reads as rewritten:
"§ 58‑86‑35. Firefighters' application for membership in fund; monthly payments by members; payments credited to separate accounts of members; termination of membership.
Those firefighters who are eligible
pursuant to G.S. 58‑86‑25 may apply to the board for
membership. Each firefighter upon becoming a member of the fund shall pay the
director of the fund the sum of ten dollars ($10.00) fifteen dollars
($15.00) per month; each payment shall be made no later than March 31
subsequent to the end of the calendar year in which the month occurred. The
Pension Fund shall not award fully credited service based on payments received
later than March 31 subsequent to the end of the calendar year in which the
month occurred unless the payment is applied as provided in G.S. 58‑86‑45(a1).
The monthly payments shall be credited to the separate account of the member
and shall be kept by the custodian so it is available for payment on withdrawal
from membership or retirement.
A member may elect to terminate membership in the fund at any time and request the refund of payments previously made to the fund. However, a member's delinquency in making the monthly payments required by this section does not result in the termination of membership without such an election by the member."
SECTION 2. G.S. 58‑86‑40 reads as rewritten:
"§ 58‑86‑40. Rescue squad worker's application for membership in funds; monthly payments by members; payments credited to separate accounts of members; termination of membership.
Those rescue squad workers eligible
pursuant to G.S. 58‑86‑30 may apply to the board for
membership. Each eligible rescue squad worker upon becoming a member shall pay
the director of the fund the sum of ten dollars ($10.00) fifteen
dollars ($15.00) per month; each payment shall be made no later than March
31 subsequent to the end of the calendar year in which the month occurred. The
Pension Fund shall not award fully credited service based on payments received
later than March 31 subsequent to the end of the calendar year in which the
month occurred unless the payment is applied as provided in G.S. 58‑86‑45(a1).
The monthly payments shall be credited to the separate account of the member
and shall be kept by the custodian so it is available for payment on withdrawal
from membership or retirement.
A member may elect to terminate membership in the fund at any time and request the refund of payments previously made to the fund. However, a member's delinquency in making the monthly payments required by this section does not result in the termination of membership without such an election by the member."
SECTION 3. G.S. 58‑86‑45 reads as rewritten:
"§ 58‑86‑45. Additional retroactive membership.
(a) Repealed by Session Laws 2013‑284, s. 1(a), effective July 1, 2013.
(a1) Any firefighter or rescue squad worker who is 35 years of age or older and who is a current or former member of a fire department or rescue squad chartered by the State of North Carolina may purchase credit for any periods of service to any chartered fire department or rescue squad not otherwise creditable by making a lump sum payment to the Annuity Savings Fund equal to the full liability of the service credits calculated on the basis of the assumptions used for purposes of the actuarial valuation of the system's liabilities, which payment shall take into account the retirement allowance arising on account of the additional service credit commencing at the earliest age at which the member could retire on a retirement allowance, as determined by the board of trustees upon the advice of the consulting actuary, plus an administrative fee to be set by the board of trustees. This provision for the payment of a lump sum for service "not otherwise creditable" shall apply, inter alia, to all purchases of service credits for months as to which timely payments were not previously made pursuant to G.S. 58‑86‑35 or G.S. 58‑86‑40, whichever is applicable.
(b) An eligible firefighter
or rescue squad worker who is not yet 35 years old may apply to the board of
trustees for membership in the fund at any time. Upon becoming a member, the
worker may make a lump sum payment of ten dollars ($10.00) fifteen
dollars ($15.00) per month retroactively to the time the worker first
became eligible to become a member, plus interest at an annual rate to be set
by the board upon advice from actuary for each year of retroactive payments.
Upon making this lump sum payment, the worker shall be given credit for all
prior service in the same manner as if the worker had applied for membership
upon first becoming eligible.
(c) A member of the Pension
Fund who is not yet 35 years old may receive credit for the prior service upon
making a lump sum payment of ten dollars ($10.00) fifteen dollars
($15.00) for each month since the worker first became eligible, plus
interest at an annual rate to be set by the board for each year of retroactive
payments. Upon making this lump sum payment, the date of membership shall be
the same as if the worker had applied for membership upon first becoming
eligible. This provision for the payment of a lump sum for service "not
otherwise creditable" shall apply, inter alia, to all purchases of service
credits for months as to which timely payments were not previously made
pursuant to G.S. 58‑86‑35 or G.S. 58‑86‑40,
whichever is applicable, for any firefighter or rescue squad worker who is not
yet 35 years of age or older and who is a current or former member of a fire
department or rescue squad chartered by the State of North Carolina."
SECTION 4. G.S. 58‑86‑55 reads as rewritten:
"§ 58‑86‑55. Monthly pensions upon attaining the age of 55 years.
(a) Any member who has
served 20 years as an "eligible firefighter" or "eligible rescue
squad worker" in the State of North Carolina, as provided in G.S. 58‑86‑25
and G.S. 58‑86‑30, and who has attained the age of 55 years is
entitled to be paid a monthly pension from this fund. The monthly pension shall
be in the amount of one hundred seventy dollars ($170.00) two hundred
dollars ($200.00) per month. Any retired firefighter receiving a pension
shall, effective July 1, 2008, January 1, 2022, receive a pension
of one hundred seventy dollars ($170.00) two hundred dollars
($200.00) per month.
(b) Members shall pay ten
dollars ($10.00) fifteen dollars ($15.00) per month as required by
G.S. 58‑86‑35 and G.S. 58‑86‑40 for a period
of no longer than 20 years. No "eligible rescue squad member" shall
receive a pension prior to July 1, 1983.
(c) A member who is totally
and permanently disabled while in the discharge of the member's official duties
as a result of bodily injuries sustained or as a result of extreme exercise or
extreme activity experienced in the course and scope of those official duties
and who leaves the fire or rescue squad service because of this disability
shall be entitled to be paid from the fund a monthly benefit in an amount of one
hundred seventy dollars ($170.00) two hundred dollars ($200.00) per
month beginning the first month after the member's fifty‑fifth birthday.
All applications for disability are subject to the approval of the board who
may appoint physicians to examine and evaluate the disabled member prior to
approval of the application, and annually thereafter. Any disabled member shall
not be required to make the monthly payment of ten dollars ($10.00) fifteen
dollars ($15.00) as required by G.S. 58‑86‑35 and
G.S. 58‑86‑40.
(d) A member who is totally
and permanently disabled for any cause, other than line of duty, who leaves the
fire or rescue squad service because of this disability and who has at least 10
years of service with the pension fund, may be permitted to continue making a
monthly contribution of ten dollars ($10.00) fifteen dollars ($15.00)
to the fund until the member has made contributions for a total of 240
months. The member shall upon attaining the age of 55 years be entitled to
receive a pension as provided by this section. All applications for disability
are subject to the approval of the board who may appoint physicians to examine
and evaluate the disabled member prior to approval of the application and
annually thereafter.
(d1) Benefits shall be paid in the following manner when a member is killed in the line of duty and the requirements of Article 12A of Chapter 143 of the General Statutes are met:
(1) If the member had been
receiving a monthly pension fund benefit prior to being killed in the line of
duty, there shall be paid to the member's principal beneficiary, if only one
principal beneficiary is eligible and has not accepted a return of
contributions, an amount of one hundred seventy dollars ($170.00) two
hundred dollars ($200.00) per month beginning the month following the
member's month of death, payable until the beneficiary's death.
(2) If the member had been receiving a monthly pension fund benefit prior to being killed in the line of duty and the beneficiary is not payable as described in subdivision (1) of this subsection, a lump sum payment equal to the difference between the amount paid into the member's separate account by or on behalf of the member and the amount received by the member as a pensioner will be paid to the eligible beneficiaries, or if there are no eligible beneficiaries, shall be paid to the member's estate.
(3) If the member had not yet
begun receiving a monthly benefit prior to being killed in the line of duty,
there shall be paid to the member's principal beneficiary, if only one
principal beneficiary is eligible and has not accepted a return of
contributions, an amount of one hundred seventy dollars ($170.00) two
hundred dollars ($200.00) per month beginning the month following the month
the member would have attained age 55, or if the member had already attained
age 55, beginning the month following the member's month of death, payable until
the beneficiary's death.
(4) If the member had not begun receiving a monthly benefit prior to being killed in the line of duty and the beneficiary is not payable as described in subdivision (3) of this subsection, a lump sum payment equal to the member's contributions will be paid to the eligible beneficiaries, or if there are no eligible beneficiaries, a return of the contributions shall be paid to the member's estate.
A beneficiary under this subsection
shall not be required to make the monthly payment of ten dollars ($10.00) fifteen
dollars ($15.00) as required by G.S. 58‑86‑35 and
G.S. 58‑86‑40 after the member has been killed in the line of
duty.
(d2) Repealed by Session Laws 2016‑108, s. 1(f), effective July 1, 2018.
(e) A member who, because
the member's residence is annexed by a city under Part 2 or Part 3 of Article
4A of Chapter 160A of the General Statutes, or whose department is closed
because of an annexation by a city under Part 2 or Part 3 of Article 4A of
Chapter 160A of the General Statutes, or whose volunteer department is taken
over by a city or county, and because of such annexation or takeover is unable
to perform as a firefighter or rescue squad worker of any status, and if the
member has at least 10 years of service with the pension fund, may be permitted
to continue making a monthly contribution of ten dollars ($10.00) fifteen
dollars ($15.00) to the fund until the member has made contributions for a
total of 240 months. The member upon attaining the age of 55 years and
completion of such contributions shall be entitled to receive a pension as
provided by this section. Any application to make monthly contributions under
this section shall be subject to a finding of eligibility by the Board of
Trustees upon application of the member.
(f) The pensions provided shall be in addition to all other pensions or benefits under any other statutes of the State of North Carolina or the United States, notwithstanding any exclusionary provisions of other pensions or retirement systems provided by law."
SECTION 5. This act becomes effective January 1, 2022, and applies to monthly payments due from, and monthly pension benefits owed to, members of the North Carolina Firefighters' and Rescue Squad Workers' Pension Fund on or after that date.