Bill > H477

This bill is a comprehensive rewrite and standardization of death benefit plans for various state retirement systems in North Carolina, including the Teachers' and State Employees' Retirement System, Local Governmental Employees' Retirement System, Consolidated Judicial Retirement System, and Legislative Retirement System. The bill creates a master trust called the North Carolina Teachers' and State Employees' Benefit Trust to consolidate and manage death benefit funds across these systems. Key provisions include establishing standardized fully contributory death benefits for both in-service and retired members, with consistent rules for benefit amounts, eligibility, and premium payments. For in-service members who die, the bill provides a lump sum death benefit ranging from $25,000 to $50,000 based on the member's compensation. For retired members who elect to participate, a fully contributory death benefit of $10,000 is available after 24 months of premium payments, with a prorated benefit for deaths occurring before that time. The bill also ensures that death benefit funds are kept separate from other retirement system funds, are not subject to creditor claims, and can only be used for member benefits. Additionally, the bill includes a provision to potentially set aside a small percentage of employer contributions (up to 0.04%) to support line of duty death benefits awarded by the Industrial Commission.

Government Affairs, Justice, Labor and Employment

https://www.ncleg.gov/BillLookUp/2025/H477