North Carolina 2025-2026 Regular Session

North Carolina House Bill H477 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 3
	3	+	H 2
4	4		HOUSE BILL 477
5	5		Committee Substitute Favorable 4/9/25
6		-	Committee Substitute #2 Favorable 4/15/25
7	6
8	7		Short Title: Retirement Death Benefits Rewrite.-AB (Public)
9	8		Sponsors:
10	9		Referred to:
11	10		March 24, 2025
12		-	H477 -v-3
	11	+	H477 -v-2
13	12		A BILL TO BE ENTITLED 1
14	13		AN ACT TO RECODIFY AND STANDARDIZE THE LAWS RELATING TO THE DEATH 2
15	14		BENEFIT PLAN, INCLUD ING BY MAKING TECHNI CAL, CLARIFYING, AND 3
16	15		CONFORMING CHANGES, UNDER THE TEACHERS' AND STATE EMPLOYEES' 4
17	16		RETIREMENT SYSTEM, T HE LOCAL GOVERNMENTA L EMPLOYEES' 5
18	17		RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, 6
19	18		AND THE LEGISLATIVE RETIREMENT SYSTEM, TO MAKE CHANGES TO TH E 7
20	19		SURVIVOR'S ALTERNATE BENEFIT UNDER THOSE RETIREMENT SYSTEMS, 8
21	20		AND TO ENSURE SUFFICIENT FUNDING FOR LINE OF DUTY DEATH BENEFITS. 9
22	21		The General Assembly of North Carolina enacts: 10
23	22		11
24	23		PART I. TECHNICAL RE CODIFICATION AND STA NDARDIZATION OF THE 12
25	24		DEATH BENEFIT PLAN F OR MEMBERS OF THE TE ACHERS' AND STATE 13
26	25		EMPLOYEES' RETIREMEN T SYSTEM 14
27	26		SECTION 1.(a) Chapter 135 of the General Statutes is amended to add a new Article 15
28	27		8 to be entitled "Death Benefit Plan for State Employees and Retirees" that consists of the 16
29	28		following new sections: 17
30	29		(1) G.S. 135-153. 18
31	30		(2) G.S. 135-154. 19
32	31		(3) G.S. 135-155. 20
33	32		(4) G.S. 135-160. 21
34	33		(5) G.S. 135-165. 22
35	34		(6) G.S. 135-170. 23
36	35		(7) G.S. 135-175. 24
37	36		(8) G.S. 135-180. 25
38	37		(9) G.S. 135-185. 26
39	38		(10) G.S. 135-190. 27
40	39		(11) G.S. 135-195. 28
41	40		(12) G.S. 135-200. 29
42	41		SECTION 1.(b) The first and second sentence of G.S. 135-7(g)(2) are recodified as 30
43	42		the first and third sentence of subsection (a) of G.S. 135-154. 31
44	43		SECTION 1.(c) The first sentence of the lead-in language in subsection 135-7(g) is 32
45	44		recodified as the second sentence of subsection (a) of G.S. 135-154. 33
46	45		SECTION 1.(d) The third sentence of G.S. 135-7(g)(2) is recodified as subsection 34
47	46		(b) of G.S. 135-154. 35 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 477-~~Third~~ Edition
	47	+	Page 2 House Bill 477-Second Edition
49	48		SECTION 1.(e) The fourth, fifth, and sixth sentences of G.S. 135-7(g)(2) are 1
50	49		recodified as the first three sentences of subsection (c) of G.S. 135-154. 2
51	50		SECTION 1.(f) The third sentence of G.S. 135-7(g)(3) is recodified as the fourth 3
52	51		sentence of subsection (c) of G.S. 135-154. 4
53	52		SECTION 1.(g) The first sentence of G.S.135-7(g)(3) is recodified as subsection (d) 5
54	53		of G.S. 135-154. 6
55	54		SECTION 1.(h) The caption and the first sentence of the first paragraph of 7
56	55		G.S. 135-5(l) are recodified as subsection (a) of G.S. 135-155. 8
57	56		SECTION 1.(i) The second, third, and fourth sentences of the first paragraph of 9
58	57		G.S. 135-5(l) are recodified as subsection (b) of G.S. 135-155. 10
59	58		SECTION 1.(j) The seventh paragraph of G.S. 135-5(l) is recodified as subsection 11
60	59		(a) of G.S. 135-160. 12
61	60		SECTION 1.(j1) G.S. 135-6(e1) is recodified as subsection (b) of G.S. 135-160. 13
62	61		SECTION 1.(k) The first sentence of the second paragraph of G.S. 135-5(l) is 14
63	62		recodified as subsection (b) of G.S. 135-165. 15
64	63		SECTION 1.(l) The second sentence of the second paragraph of G.S. 135-5(l) is 16
65	64		recodified as subsection (c) of G.S. 135-165. 17
66	65		SECTION 1.(m) The fourth sentence of the second paragraph of G.S. 135-5(l) is 18
67	66		recodified as subsection (d) of G.S. 135-165. 19
68	67		SECTION 1.(n) Sub-subdivision a. of subdivision (2) of the sixth paragraph of 20
69	68		G.S. 135-5(l) is recodified as subdivision (3) of G.S. 135-170. 21
70	69		SECTION 1.(o) Sub-subdivision b. of subdivision (2) of the sixth paragraph of 22
71	70		G.S. 135-5(l) is recodified as subdivision (1) of G.S. 135-170. 23
72	71		SECTION 1.(p) Sub-subdivision c. of subdivision (2) of the sixth paragraph of 24
73	72		G.S. 135-5(l) is recodified as sub-subdivision a. of subdivision (2) of G.S. 135-170. 25
74	73		SECTION 1.(q) Subdivision (3) of the sixth paragraph of G.S. 135-5(l) is recodified 26
75	74		as sub-subdivision b. of subdivision (2) of G.S. 135-170. 27
76	75		SECTION 1.(r) Subdivision (4) of the sixth paragraph of G.S. 135-5(l) is recodified 28
77	76		as sub-subdivision c. of subdivision (2) of G.S. 135-170. 29
78	77		SECTION 1.(s) The first sentence of the thirteenth paragraph of G.S. 135-5(l) is 30
79	78		recodified as subsection (b) of G.S. 135-175. 31
80	79		SECTION 1.(t) The sixth and seventh sentences of the thirteenth paragraph of 32
81	80		G.S. 135-5(l) are recodified as subsection (c) of G.S. 135-175. 33
82	81		SECTION 1.(u) The first sentence of the eighth paragraph of G.S. 135-5(l) is 34
83	82		recodified as subsection (a) of G.S. 135-180. 35
84	83		SECTION 1.(v) The second sentence of the eighth paragraph of G.S. 135-5(l) is 36
85	84		recodified as subsection (c) of G.S. 135-180. 37
86	85		SECTION 1.(w) The third sentence of the eighth paragraph of G.S. 135-5(l) is 38
87	86		recodified as subsection (d) of G.S. 135-180. 39
88	87		SECTION 1.(x) The caption and first and second sentences of G.S. 135-5(l1) are 40
89	88		recodified as subsection (a) of G.S. 135-190. 41
90	89		SECTION 1.(y) The third sentence of G.S. 135-5(l1) is recodified as subsection (b) 42
91	90		of G.S. 135-190. 43
92	91		SECTION 1.(z) The third sentence of the second paragraph of G.S. 135-5(l) is 44
93	92		recodified as G.S. 135-195. 45
94	93		SECTION 1.(aa) The fourth sentence of G.S. 135-5(l1) is recodified as 46
95	94		G.S. 135-200. 47
96	95		SECTION 2.(a) The remainder of G.S. 135-7(g) not recodified by Section 1 of this 48
97	96		act is repealed. 49
98	97		SECTION 2.(b) The remainder of G.S. 135-5(l) not recodified by Section 1 of this 50
99	98		act is repealed. 51 General Assembly Of North Carolina Session 2025
100		-	House Bill 477-~~Third~~ Edition Page 3
	99	+	House Bill 477-Second Edition Page 3
101	100		SECTION 3. Article 8 of Chapter 135 of the General Statutes, as created by Section 1
102	101		1 of this act, reads as rewritten: 2
103	102		"Article 8. 3
104	103		"Death Benefit Plan for State Employees. 4
105	104		"§ 135-153. Definitions. 5
106	105		The following definitions apply in this Article: 6
107	106		(1) Benefit Trust. – The North Carolina Teachers' and State Employees' Benefit 7
108	107		Trust under G.S. 135-154. 8
109	108		(2) Death Benefit Plan. – The Death Benefit Plan for State Employees and 9
110	109		Retirees under this Article. 10
111	110		(3) Disability Income Plan. – The Disability Income Plan of North Carolina under 11
112	111		Article 6 of this Chapter. 12
113	112		(4) Reserved for future codification purposes. 13
114	113		(5) Reserved for future codification purposes. 14
115	114		(6) Participating plans. – All of the following: 15
116	115		a. The Death Benefit Plan. 16
117	116		b. The Local Governmental Death Benefit Plan under Part 2 of Article 3 17
118	117		of Chapter 128 of the General Statutes. 18
119	118		c. Contributory death benefits available to retired members of the 19
120	119		Consolidated Judicial Retirement System under G.S. 135-64. 20
121	120		d. Contributory death benefits available to retired members of the 21
122	121		Legislative Retirement System under G.S. 120-4.27. 22
123	122		e. The Separate Insurance Benefits Plan under G.S. 143-166.60. 23
124	123		(7) Reserved for future codification purposes. 24
125	124		(8) Reserved for future codification purposes. 25
126	125		(9) Workers' compensation benefits. – Excluding any payments for a permanent 26
127	126		partial disability rating, disability income benefits provided under Chapter 97 27
128	127		of the General Statutes. 28
129	128		"§ 135-154. North Carolina Teachers' and State Employees' Benefit Trust. 29
130	129		(a) Benefit Trust. – A trust fund, the North Carolina Teachers' and State Employees' 30
131	130		Benefit Trust, is hereby created as a master trust to which all receipts, transfers, appropriations, 31
132	131		contributions, investment earnings, and other income belonging to the Plans participating plans 32
133	132		shall be deposited, and from which all benefits and expenses against the Plans those participating 33
134	133		plans shall be disbursed. It is the intent of the General Assembly that a this master trust fund be 34
135	134		created that provides provide an irrevocable source of funding to be used, to the extent the fund's 35
136	135		assets are sufficient, only for death benefits and disability benefits payable to the Plans' members, 36
137	136		participants, and beneficiaries, pursuant to G.S. 120 4.27, G.S. 128 27(l), subsections (l2) through 37
138	137		(l6) of G.S. 128 27, 135 5(l), 135 64(k), and 143 166.60. beneficiaries of the participating plans 38
139	138		and reasonable expenses for the administration of the participating plans. The Boards of Trustees 39
140	139		of the Teachers' and State Employees' Retirement System and the Local Governmental 40
141	140		Employees' Retirement System shall be the trustee of the Benefit Trust. 41
142	141		(b) No Commingling of Funds. – Within the Benefit Trust, the funds of each of the Plans 42
143	142		participating plans shall be accounted for separately and not commingled. 43
144	143		(c) Assets. – Assets of one participating plan cannot be used to pay for liabilities of 44
145	144		another participating plan within the Benefit Trust. The assets of the trust fund Benefit Trust shall 45
146	145		be used only for the exclusive benefit of persons who are or may be entitled to benefits under the 46
147	146		Plans. participating plans. In no event, including dissolution, will the shall any assets of the trust 47
148	147		fund Benefit Trust be distributed to any entity that is not a state, a political subdivision of a state, 48
149	148		or another entity the income of which is excludable from its gross income by application of 49
150	149		section 115(1) of the Internal Revenue Code. The assets of the Benefit Trust are not subject to 50
151	150		the claims of creditors of the employers and non employers any of the following: 51 General Assembly Of North Carolina Session 2025
152		-	Page 4 House Bill 477-~~Third~~ Edition
	151	+	Page 4 House Bill 477-Second Edition
153	152		(1) An employer or nonemployer making contributions to the Trust, are not 1
154	153		subject to the claims of any creditors of the Trust, trustees, and administrators, 2
155	154		and are not subject to the claims of creditors of members, participants, and 3
156	155		beneficiaries.Benefit Trust. 4
157	156		(2) A trustee or administrator of the Benefit Trust. 5
158	157		(3) A member. 6
159	158		(4) Participants or beneficiaries of any participating plan. 7
160	159		(d) Contributions. – Employer and non employer nonemployer contributions to the North 8
161	160		Carolina Teachers' and State Employees' Benefit Trust and earnings on those contributions are 9
162	161		irrevocable. 10
163	162		"§ 135-155. Death Benefit Plan established. 11
164	163		(a) Death Benefit Plan. Plan for State Employees and Retirees. – There is hereby created 12
165	164		a Group Life Insurance Plan (hereinafter called the "Plan") which is established as the Death 13
166	165		Benefit Plan for State Employees and Retirees, a group life insurance plan that is an employee 14
167	166		welfare benefit plan that is separate and apart from the Retirement System and under which the 15
168	167		members of the Retirement System shall participate and be eligible for group life insurance 16
169	168		benefits.System. 17
170	169		(b) Benefit Trust. – The Death Benefit Plan shall be part of the North Carolina Teachers' 18
171	170		and State Employees' Benefit Trust, as established under G.S. 135-7(g). Trust. All receipts, 19
172	171		transfers, appropriations, contributions, investment earnings, and other income belonging to the 20
173	172		Death Benefit Plan shall be deposited in the Benefit Trust. All benefits and expenses against the 21
174	173		Death Benefit Plan shall be disbursed from the Benefit Trust. 22
175	174		"§ 135-160. Administration of Death Benefit Plan. 23
176	175		(a) Provisions Applicable. – The Death Benefit Plan is administered by the Board of 24
177	176		Trustees. The provisions of the Retirement System pertaining to Administration, G.S. 135-6, and 25
178	177		management of funds, G.S. 135-7, are hereby made G.S. 135-6 and G.S. 135-7 are applicable to 26
179	178		the Death Benefit Plan. 27
180	179		(b) Effect of Vote Related to Contributory Death Benefit. – No decision of the Board of 28
181	180		Trustees related to the Contributory Death Benefit fully contributory death benefit for retirees 29
182	181		provided for under this Chapter, Chapter 120, or Chapter 127A of the General Statutes, any of 30
183	182		the following shall take effect unless and until this same decision has been made and voted on 31
184	183		by the Board of Trustees of the Local Governmental Employees Retirement System.System: 32
185	184		(1) G.S. 120-4.27. 33
186	185		(2) G.S. 135-64. 34
187	186		(3) G.S. 134-166.60. 35
188	187		(c) Rulemaking. – The Board of Trustees may adopt temporary or permanent rules, as 36
189	188		necessary, for all aspects of administration of this Article. 37
190	189		"§ 135-165. Death benefit for in-service members. 38
191	190		(a) Eligibility. – A member who is not retired and who has completed at least one full 39
192	191		year of membership in the Retirement System is a participant in, and eligible for death benefits 40
193	192		under, the Death Benefit Plan in accordance with this section. 41
194	193		(b) Benefits Upon Death While in Service. – If a member eligible for benefits under this 42
195	194		section dies while in service, then, upon receipt of proof, proof of the death that is satisfactory to 43
196	195		the Board of Trustees in their capacity as trustees under the Group Life Insurance Plan, of the 44
197	196		death, in service, of a member who had completed at least one full calendar year of membership 45
198	197		in the Retirement System, there Trustees, a lump sum death benefit amount shall be paid to such 46
199	198		person as the member shall have nominated by electronic submission in a form approved by the 47
200	199		Board of Trustees or by written designation duly acknowledged and filed with the Board of 48
201	200		Trustees, if such person is living at the time of the member's death, otherwise to the member's 49
202	201		legal representatives, a death benefit.paid. 50 General Assembly Of North Carolina Session 2025
203		-	House Bill 477-~~Third~~ Edition Page 5
	202	+	House Bill 477-Second Edition Page 5
204	203		(c) Such death Death Benefit Amount. – Subject to a minimum of twenty-five thousand 1
205	204		dollars ($25,000) and to a maximum of fifty thousand dollars ($50,000), the lump sum death 2
206	205		benefit shall be amount payable under this section is equal to the greater of:of the following 3
207	206		amounts: 4
208	207		(1) The compensation on which contributions to the Retirement System were 5
209	208		made by the member during the calendar year preceding the year in which his 6
210	209		the member's death occurs, oroccurred. 7
211	210		(2) The greatest compensation on which contributions to the Retirement System 8
212	211		were made by the member during a 12-month period of service within the 9
213	212		24-month period of service ending on the last day of the month preceding the 10
214	213		month in which his the member's last day of actual service occurs; 11
215	214		subject to a minimum of twenty-five thousand dollars ($25,000) and to a maximum 12
216	215		of fifty thousand dollars ($50,000).occurred. 13
217	216		(d) Members Deemed to be in Service. – For the purpose of the Plan, this section, a 14
218	217		member shall be deemed to be in service at the date of his the member's death if his the death 15
219	218		occurs within 180 days from the last day of his actual service.service, as determined in 16
220	219		accordance with G.S. 135-170. 17
221	220		"§ 135-170. Last day of actual service; death benefit for in-service members. 18
222	221		To determine the last day of actual service for the purposes of the death benefit for in-service 19
223	222		members, all of the following apply: 20
224	223		(1) When the employee has not been terminated, Uninterrupted service. – For a 21
225	224		member with uninterrupted service, the last day of actual service is the date 22
226	225		on which an absent member's sick and annual leave expire, unless the member 23
227	226		is on an approved leave of absence and is deemed to be in service under the 24
228	227		provisions of G.S. 135-4(h). If a member is deemed to be in service under 25
229	228		G.S. 135-4(h), then the last day of actual service is the last day for which the 26
230	229		member made a contribution to the Retirement System. 27
231	230		(2) Interrupted service. – All of the following apply to a member whose service 28
232	231		has been interrupted: 29
233	232		a. When a member's For a member whose service is interrupted by reason 30
234	233		of service in the Uniformed Services, as that term is defined in section 31
235	234		4303(16) of the Uniformed Services Employment and Reemployment 32
236	235		Rights Act, Public Law 103-353, and the participant member does not 33
237	236		return immediately after that service to employment with a covered 34
238	237		employer in this the Retirement System, the last day of actual service 35
239	238		is the date on which the participant member was first eligible to be 36
240	239		separated or released from his or her involuntary military service. 37
241	240		b. For a period when a member who is on an approved leave of absence, 38
242	241		his status with respect to the death benefit will be determined by the 39
243	242		provisions of G.S. 135-4(h).but is not deemed to be in service under 40
244	243		G.S. 135-4(h), the last day of actual service is either the last day for 41
245	244		which the member made a contribution to the Retirement System or 42
246	245		the date on which the member's sick and annual leave expired, 43
247	246		whichever is later. 44
248	247		c. A member on leave of absence from his a position as a teacher or State 45
249	248		employee for the purpose of serving as a member or officer of the 46
250	249		North Carolina General Assembly shall be deemed to be in service 47
251	250		during sessions of the General Assembly and thereby covered by the 48
252	251		provisions of the death benefit. The eligible for the death benefit under 49
253	252		G.S. 135-165. The last day of actual service shall be the most recent 50
254	253		legislative day of the applicable General Assembly session or the last 51 General Assembly Of North Carolina Session 2025
255		-	Page 6 House Bill 477-~~Third~~ Edition
	254	+	Page 6 House Bill 477-Second Edition
256	255		day the member performed work as a teacher or State employee, 1
257	256		whichever is later. Notwithstanding G.S. 135-165(c), the amount of 2
258	257		the death benefit for such a member who is on a leave of absence due 3
259	258		to General Assembly service shall be the equivalent of the salary to 4
260	259		which the member would have been entitled as a teacher or State 5
261	260		employee during the 12-month period immediately prior to the month 6
262	261		in which death occurred, not to be less than subject to a minimum of 7
263	262		twenty-five thousand dollars ($25,000) nor to exceed and a maximum 8
264	263		of fifty thousand dollars ($50,000). 9
265	264		d. All of the following apply for a member who is either (i) receiving 10
266	265		workers' compensation benefits during the period for which the 11
267	266		member would have been otherwise eligible to receive short-term 12
268	267		benefits or extended short-term benefits under G.S. 135-105 or (ii) a 13
269	268		beneficiary under the Disability Income Plan: 14
270	269		1. If the date the member last performed work as a teacher or 15
271	270		State employee occurred within 180 days of the date the 16
272	271		member died, then the last day of actual service is the last day 17
273	272		the member performed that work. 18
274	273		2. If the date the member last performed worked as a teacher or 19
275	274		State employee occurred more than 180 days from the date the 20
276	275		member died, then that member shall not be deemed in active 21
277	276		service for the purposes of G.S. 135-165. 22
278	277		(3) When the employee Terminated service. – For a member whose employment 23
279	278		has been terminated, terminated for reasons other than retirement, whether by 24
280	279		the employer or the employee, the last day of actual service is the last day the 25
281	280		member actually worked.performed work as a teacher or State employee. 26
282	281		"§ 135-175. Fully contributory death benefit for retired members. 27
283	282		(a) Participation and Premiums. – All retired members may elect to participate in the 28
284	283		Death Benefit Plan and therefore become eligible to receive death benefits under the Death 29
285	284		Benefit Plan in accordance with this section. Elections shall be made prior to death and no later 30
286	285		than 60 calendar days from the effective date of the member's retirement. Elections shall be 31
287	286		received by the Board of Trustees prior to the death of the retired member. Retired members 32
288	287		electing to receive a fully contributory death benefit under the Death Benefit Plan shall 33
289	288		continuously pay monthly premiums on a fully contributory basis, as determined by the Board 34
290	289		of Trustees, to the Benefit Trust. Premium payments shall be made through retirement allowance 35
291	290		deductions or other methods adopted by the Board of Trustees. 36
292	291		(b) Benefits Upon Death. – If a retired member who has elected to receive a fully 37
293	292		contributory death benefit under to this section dies, then, upon receipt of proof, proof of the 38
294	293		death that is satisfactory to the Board of Trustees in its capacity under this subsection, of the 39
295	294		death of a retired member of the Retirement System on or after January 1, 2015, there Trustees, 40
296	295		a lump sum death benefit amount shall be paid a death benefit to the person or persons designated 41
297	296		by the member or, if not survived by a designated beneficiary, to the deceased retired member's 42
298	297		legal representative; provided the retired member has elected, when first eligible, to make, and 43
299	298		has continuously made, in advance of the member's death required contributions as determined 44
300	299		by the Board of Trustees on a fully contributory basis, through retirement allowance deductions 45
301	300		or other methods adopted by the Board of Trustees, to a group death benefit trust fund, the North 46
302	301		Carolina Teachers' and State Employees' Benefit Trust, administered by the Board of Trustees 47
303	302		Fund and Pension Accumulation Fund.paid. 48
304	303		(c) This Death Benefit Amount. – The lump sum death benefit payable under this section 49
305	304		shall be a lump-sum payment in the amount of one of the following amounts: 50 General Assembly Of North Carolina Session 2025
306		-	House Bill 477-~~Third~~ Edition Page 7
	305	+	House Bill 477-Second Edition Page 7
307	306		(1) If the death occurred on or after the first day of the twenty-fifth month of 1
308	307		coverage under this section, the amount payable is ten thousand dollars 2
309	308		($10,000) upon the completion of 24 months of contributions required under 3
310	309		this subsection. Should death occur ($10,000). 4
311	310		(2) If the death occurred before the completion of 24 months of contributions 5
312	311		required under this subsection, the deceased retired member's designated 6
313	312		beneficiary or beneficiaries, or legal representative if not survived by a 7
314	313		designated beneficiary, shall be paid first day of the twenty-fifth month of 8
315	314		coverage under this section, the amount payable is the sum of the retired 9
316	315		member's contributions required by this subsection premium payments made 10
317	316		in accordance with this section plus interest in an amount to be determined by 11
318	317		the Board of Trustees. 12
319	318		"§ 135-180. Death benefits; workers' compensation benefits and Disability Income Plan 13
320	319		beneficiaries. 14
321	320		(a) Eligibility. – A member who is a beneficiary of the Disability Income Plan provided 15
322	321		for in Article 6 of this Chapter, or a member who is in receipt of Workers' Compensation workers' 16
323	322		compensation benefits during the period for which he or she the member would have otherwise 17
324	323		been eligible to receive short-term benefits or extended short-term benefits and as provided in 18
325	324		G.S. 135-105 benefits under G.S. 135-105 is eligible for death benefits under the Death Benefit 19
326	325		Plan in accordance with this section if all of the following criteria are met: 20
327	326		(1) The member is not retired. 21
328	327		(2) The member is not eligible for death benefits under G.S. 135-165. 22
329	328		(3) The member dies on or after 181 days from the last day of his or her actual 23
330	329		service the member performed work as a teacher or State employee but prior 24
331	330		to the date the workers' compensation benefits or benefits as provided in 25
332	331		G.S. 135-105 under the Disability Income Plan would have ended, shall be 26
333	332		eligible for group life insurance benefits as provided in this subsection, 27
334	333		notwithstanding that the member is no longer an employee or teacher or that 28
335	334		the member's death occurs after the eligibility period after active 29
336	335		service.ended. 30
337	336		(b) Benefits Upon Death. – Upon receipt of proof of the death of a member eligible for 31
338	337		benefits under subsection (a) of this section that is satisfactory to the Board of Trustees, a lump 32
339	338		sum death benefit amount shall be paid. 33
340	339		(c) Benefit Amount. – The basis of the death benefit payable hereunder under this section 34
341	340		shall be the higher of the death benefit computed as above amount calculated in accordance with 35
342	341		G.S. 135-165(c) or a the death benefit amount based on compensation used in computing the 36
343	342		benefit payable under G.S. 135-105 and G.S. 135-106, as may be adjusted for percentage 37
344	343		post-disability increases, all subject to but shall not exceed the maximum dollar limitation as 38
345	344		provided above.for the death benefit for in-service members under G.S. 135-165. 39
346	345		(d) Exceptions. – A member in receipt of benefits from the Disability Income Plan under 40
347	346		the provisions of G.S. 135-112 whose right to a benefit accrued under the former Disability 41
348	347		Salary Continuation Plan shall not be covered under the provisions of this paragraph.entitled to 42
349	348		benefits under the Death Benefit Plan under this Article. 43
350	349		"§ 135-185. Beneficiaries under the Death Benefit Plan. 44
351	350		(a) Designation. – A member shall designate a beneficiary or beneficiaries for each 45
352	351		applicable benefit payable under this Article by electronic submission in a form approved by the 46
353	352		Board of Trustees or by written designation duly acknowledged and filed with the Board of 47
354	353		Trustees. 48
355	354		(b) Benefits Payable. – Each applicable benefit payable under this Article shall be paid 49
356	355		to the designated beneficiary or beneficiaries to receive the benefit. If no beneficiaries are 50 General Assembly Of North Carolina Session 2025
357		-	Page 8 House Bill 477-~~Third~~ Edition
	356	+	Page 8 House Bill 477-Second Edition
358	357		designated or living at the time of the member's death, then the benefit shall be paid to the 1
359	358		member's legal representative. 2
360	359		"§ 135-190. Reciprocity of Death Benefit Plan. 3
361	360		(a) Reciprocity of Death Benefit Plan. – Only for the purpose of determining eligibility 4
362	361		for the death benefit benefits provided for in subsection (l) of this section, under this Article, 5
363	362		membership service standing to the credit of (i) a member of the Legislative Retirement System 6
364	363		or the Consolidated Judicial Retirement System or (ii) a retired member of the Legislative 7
365	364		Retirement System or the Consolidated Judicial Retirement System whose retirement benefit was 8
366	365		suspended upon entrance into membership in the Teachers' and State Employees' Retirement 9
367	366		System shall be added to the membership service standing to the credit of a member of the 10
368	367		Teachers' and State Employees' Retirement System. However, in the event that a participant or 11
369	368		beneficiary is a retired member of the Legislative Retirement System or the Consolidated Judicial 12
370	369		Retirement System whose retirement benefit was suspended upon entrance into membership in 13
371	370		the Teachers' and State Employees' Retirement System, such membership service standing to the 14
372	371		credit of the retired member prior to retirement shall be likewise counted. 15
373	372		(b) Prohibitions. – Membership service under this section shall not be counted twice for 16
374	373		the same period of time. 17
375	374		"§ 135-195. Accumulated contributions separate. 18
376	375		Such death benefit Death benefit amounts payable under this Article shall be payable apart 19
377	376		and separate from the payment of the member's accumulated contributions under the Retirement 20
378	377		System on his the member's death pursuant to the provisions of subsection (f) of this 21
379	378		section.G.S. 135-5. 22
380	379		"§ 135-200. Benefits disallowed under this Article. 23
381	380		In Notwithstanding anything in this Article to the contrary, no event shall a death benefit 24
382	381		provided for in G.S. 135-5(l) under this Article shall be paid at the death of a member if a death 25
383	382		benefit is paid related to that member under G.S. 135-63." 26
384	383		27
385	384		PART II. TECHNICAL R ECODIFICATION AND ST ANDARDIZATION OF THE 28
386	385		DEATH BENEFIT PLAN F OR MEMBERS OF THE LO CAL GOVERNMENTAL 29
387	386		EMPLOYEES' RETIREMEN T SYSTEM 30
388	387		SECTION 4.(a) Article 3 of Chapter 128 of the General Statutes is amended to add 31
389	388		a new Part 1 to be entitled "Local Governmental Employees Retirement System" consisting of 32
390	389		G.S. 128-21 through G.S. 128-38.29. 33
391	390		SECTION 4.(a1) Article 3 of Chapter 128 of the General Statutes is amended to add 34
392	391		a new Part 2 to be entitled "Local Governmental Death Benefit Plan" that consists of the 35
393	392		following new sections: 36
394	393		(1) G.S. 128-38.30. 37
395	394		(2) G.S. 128-38.31. 38
396	395		(3) G.S. 128-38.35. 39
397	396		(4) G.S. 128-38.36. 40
398	397		(5) G.S. 128-38.40. 41
399	398		(6) G.S. 128-38.45. 42
400	399		(7) G.S. 128-38.46. 43
401	400		SECTION 4.(b) The caption and the second sentence of G.S. 128-27(l) are 44
402	401		recodified as subsection (a) of G.S. 128-38.30. 45
403	402		SECTION 4.(c) The third, fourth, and fifth sentences of the first paragraph of 46
404	403		G.S. 128-27(l) are recodified as subsection (b) of G.S. 128-38.30. 47
405	404		SECTION 4.(d) The seventh paragraph of G.S. 128-27(l) is recodified as subsection 48
406	405		(a) of G.S. 128-38.31. 49
407	406		SECTION 4.(d1) G.S. 128-28(f1) is recodified as subsection (b) of G.S. 128-38.31. 50 General Assembly Of North Carolina Session 2025
408		-	House Bill 477-~~Third~~ Edition Page 9
	407	+	House Bill 477-Second Edition Page 9
409	408		SECTION 4.(e) The first sentence of the first paragraph of G.S. 128-27(l) is 1
410	409		recodified as the first sentence of subsection (a) of G.S. 128-38.35. 2
411	410		SECTION 4.(f) The first sentence of G.S. 128-27(l1) is recodified as the second 3
412	411		sentence of subsection (a) of G.S. 128-38.35. 4
413	412		SECTION 4.(g) The first sentence of the second paragraph of G.S. 128-27(l) is 5
414	413		recodified as subsection (b) of G.S. 128-38.35. 6
415	414		SECTION 4.(h) The second sentence of the second paragraph of G.S. 128-27(l) is 7
416	415		recodified as subsection (c) of G.S. 128-38.35. 8
417	416		SECTION 4.(i) The fourth sentence of the second paragraph of G.S. 128-27(l) is 9
418	417		recodified as subsection (d) of G.S. 128-38.35. 10
419	418		SECTION 4.(j) Sub-subdivision a. of subdivision (2) of the sixth paragraph of 11
420	419		G.S. 128-27(l) is recodified as subdivision (3) of G.S. 128-38.36. 12
421	420		SECTION 4.(k) Sub-subdivision b. of subdivision (2) of the sixth paragraph of 13
422	421		G.S. 128-27(l) is recodified as subdivision (1) of G.S. 128-38.36. 14
423	422		SECTION 4.(l) Sub-subdivision c. of subdivision (2) of the sixth paragraph of 15
424	423		G.S. 128-27(l) is recodified as sub-subdivision a. of subdivision (2) of G.S. 128-38.36. 16
425	424		SECTION 4.(m) Subdivision (3) of the sixth paragraph of G.S. 128-27(l) is 17
426	425		recodified as sub-subdivision b. of subdivision (2) of G.S. 128-38.36. 18
427	426		SECTION 4.(n) Subdivision (4) of the sixth paragraph of G.S. 128-27(l) is 19
428	427		recodified as sub-subdivision c. of subdivision (2) of G.S. 128-38.36. 20
429	428		SECTION 4.(o) The first sentence of the first paragraph of G.S. 128-27(l6) is 21
430	429		recodified as subsection (b) of G.S. 128-38.40. 22
431	430		SECTION 4.(p) The second paragraph of G.S. 128-27(l6) is recodified as subsection 23
432	431		(c) of G.S. 128-38.40. 24
433	432		SECTION 4.(q) The third sentence of the second paragraph of G.S. 128-27(l) is 25
434	433		recodified as G.S. 128-38.46. 26
435	434		SECTION 5.(a) The remainder of subsections (l), (l1), and (l6) of G.S. 128-27 not 27
436	435		recodified by Section 4 of this act are repealed. 28
437	436		SECTION 5.(b) Subsections (l2), (l3), (l4), and (l5) of G.S. 128-27 are repealed. 29
438	437		SECTION 6.(a) G.S. 128-21 reads as rewritten: 30
439	438		"§ 128-21. Definitions. 31
440	439		The following words and phrases as used definitions apply in this Article, unless a different 32
441	440		meaning is plainly required by the context, shall have the following meanings:context: 33
442	441		… 34
443	442		(6a) "Benefit Trust" means the North Carolina Teachers' and State Employees' 35
444	443		Benefit Trust under G.S. 135-154. 36
445	444		… 37
446	445		(8a) "Death Benefit Plan" means the Local Governmental Death Benefit Plan 38
447	446		established under Part 2 of this Article. 39
448	447		(8b) "Duly acknowledged" means notarized, including electronic notarization, or 40
449	448		verified through an identity authentication service approved by the 41
450	449		Department of State Treasurer. 42
451	450		…." 43
452	451		SECTION 6.(b) Part 2 of Article 3 of Chapter 128 of the General Statutes, as created 44
453	452		by Section 4 of this act, reads as rewritten: 45
454	453		"Part 2. Local Governmental Death Benefit Plan. 46
455	454		"§ 128-38.30. Death Benefit Plan established. 47
456	455		(a) Death Benefit Plan. – There is hereby created a Group Life Insurance Plan (hereinafter 48
457	456		called the "Plan") which is established as the Local Governmental Death Benefit Plan, a group 49
458	457		life insurance plan that is an employee welfare benefit plan that is separate and apart from the 50 General Assembly Of North Carolina Session 2025
459		-	Page 10 House Bill 477-~~Third~~ Edition
	458	+	Page 10 House Bill 477-Second Edition
460	459		Retirement System and under which the members of the Retirement System shall participate and 1
461	460		be eligible for group life insurance benefits.System. 2
462	461		(b) Benefit Trust. – The Death Benefit Plan shall be part of the North Carolina Teachers' 3
463	462		and State Employees' Benefit Trust, as established under G.S. 135-7(g). Trust. All receipts, 4
464	463		transfers, appropriations, contributions, investment earnings, and other income belonging to the 5
465	464		Death Benefit Plan shall be deposited in the Benefit Trust. All benefits and expenses against the 6
466	465		Death Benefit Plan shall be disbursed from the Benefit Trust. 7
467	466		"§ 128-38.31. Administration of Death Benefit Plan. 8
468	467		(a) Provisions Applicable. – The Death Benefit Plan is administered by the Board of 9
469	468		Trustees. The provisions of the Retirement System pertaining to administration, G.S. 128-28, and 10
470	469		management of funds, G.S. 128-29, are hereby made G.S. 128-28 and G.S. 128-29 are applicable 11
471	470		to the Death Benefit Plan. 12
472	471		(b) Effect of Vote Related to Contributory Death Benefit. – No decision of the Board of 13
473	472		Trustees related to the Contributory Death Benefit fully contributory death benefit for retirees 14
474	473		provided for under this Article Part shall take effect unless and until this same decision has been 15
475	474		made and voted on by the Board of Trustees of the Teachers' and State Employees' Retirement 16
476	475		System. 17
477	476		(c) Rulemaking. – The Board of Trustees may adopt temporary or permanent rules, as 18
478	477		necessary, for all aspects of administration of this Part. 19
479	478		"§ 128-38.35. Death benefit for in-service members. 20
480	479		(a) The provisions of this subsection shall become effective for any employer only after 21
481	480		Participation. – Benefits under this section are only available to an otherwise eligible in-service 22
482	481		member if that member's employer has opted to participate in the Death Benefit Plan or if the 23
483	482		member is a law enforcement officer. All of the following apply: 24
484	483		(1) If an employer elects to participate in the Death Benefit Plan with regards to 25
485	484		in-service members who are not law enforcement officers employed by the 26
486	485		employer, then an agreement to that effect has been shall be executed by the 27
487	486		employer and the Executive Director of the Retirement System. Under all 28
488	487		requirements and conditions as otherwise provided for in subsection (l) of this 29
489	488		section, except for the requirement that the provisions are effective only after 30
490	489		an agreement has been executed by the employer and the Executive Director 31
491	490		of the Retirement Systems Division, Participation in, and eligibility for death 32
492	491		benefits under, the Death Benefit Plan in accordance with this section shall be 33
493	492		begin only after this agreement has been executed. 34
494	493		(2) Employers are required to participate in the Death Benefit Plan with regard to 35
495	494		all law enforcement officers employed by the employer who are members of 36
496	495		the Retirement System shall participate and be eligible for group life insurance 37
497	496		benefits under the Group Life Insurance Plan, and employers shall fund the 38
498	497		cost of these benefits. 39
499	498		(a1) Eligibility. – Subject to employer participation in the Death Benefit Plan for members 40
500	499		who are not law enforcement officers, a member who has not retired and who has completed at 41
501	500		least one full year of membership in the Retirement System is a participant in, and eligible for 42
502	501		the death benefits under, the Death Benefit Plan in accordance with this section. 43
503	502		(b) Benefits Upon Death While in Service. – If a member eligible for benefits under this 44
504	503		section dies while in service, then, upon receipt of proof, proof of the death that is satisfactory to 45
505	504		the Board of Trustees in their capacity as trustees under the Group Life Insurance Plan, of the 46
506	505		death, in service, of a member who had completed at least one full calendar year of membership 47
507	506		in the Retirement System, there Trustees, a lump sum death benefit amount shall be paid to such 48
508	507		person as the member shall have nominated by electronic submission in a form approved by the 49
509	508		Board of Trustees or by written designation duly acknowledged and filed with the Board of 50 General Assembly Of North Carolina Session 2025
510		-	House Bill 477-~~Third~~ Edition Page 11
	509	+	House Bill 477-Second Edition Page 11
511	510		Trustees, if such person is living at the time of the member's death, otherwise to the member's 1
512	511		legal representatives, a death benefit.paid. 2
513	512		(c) Such death Death Benefit Amount. – Subject to a minimum of twenty-five thousand 3
514	513		dollars ($25,000) and to a maximum of fifty thousand dollars ($50,000), the lump sum death 4
515	514		benefit shall be amount payable under this section is equal to the greater of:of the following 5
516	515		amounts: 6
517	516		(1) The compensation on which contributions to the Retirement System were 7
518	517		made by the member during the calendar year preceding the year in which his 8
519	518		the member's death occurs, oroccurred. 9
520	519		(2) The greatest compensation on which contributions to the Retirement System 10
521	520		were made by the member during a 12-month period of service within the 11
522	521		24-month period of service ending on the last day of the month preceding the 12
523	522		month in which his the member's last day of actual service occurs; 13
524	523		subject to a minimum of twenty-five thousand dollars ($25,000) and a 14
525	524		maximum of fifty thousand dollars ($50,000).occurred. 15
526	525		(d) Members Deemed to be in Service. – For the purpose of the Plan, section, a member 16
527	526		shall be deemed to be in service at the date of his the member's death if his the death occurs 17
528	527		within 180 days from the last day of his actual service.service, as determined in accordance with 18
529	528		G.S. 128-38.36. 19
530	529		"§ 128-38.36. Last day of actual service; death benefit for in-service members. 20
531	530		To determine the last day of actual service for the purposes of a death benefit for in-service 21
532	531		members, all of the following apply: 22
533	532		(1) When the employee has not been terminated, Uninterrupted service. – For 23
534	533		members with uninterrupted service, the last day of actual service is the date 24
535	534		on which an absent member's sick and annual leave expire.expire unless the 25
536	535		member is on an approved leave of absence and is deemed to be in service 26
537	536		under G.S. 128-26(g). If a member is deemed to be in service under 27
538	537		G.S. 128-26(g), then the last day of actual service is the last day for which the 28
539	538		member made a contribution to the Retirement System. 29
540	539		(2) Interrupted service. – All of the following apply to a member whose service 30
541	540		has been interrupted: 31
542	541		a. When a member's For a member whose service is interrupted by reason 32
543	542		of service in the Uniformed Services, as that term is defined in section 33
544	543		4303(16) of the Uniformed Services Employment and Reemployment 34
545	544		Rights Act, Public Law 103-353, and the participant member does not 35
546	545		return immediately after that service to employment with a covered 36
547	546		employer in this the Retirement System, the last day of actual service 37
548	547		is the date on which the participant member was first eligible to be 38
549	548		separated or released from his or her involuntary military service. 39
550	549		b. For a period when a member who is on an approved leave of absence, 40
551	550		his status with respect to the death benefit will be determined by the 41
552	551		provisions of G.S. 128-26(g).but who is not deemed to be in service 42
553	552		under G.S. 128-26(g), the last day of actual service is either the last 43
554	553		day for which the member made a contribution to the Retirement 44
555	554		System or the date on which the member's sick and annual leave 45
556	555		expired, whichever is later. 46
557	556		c. A member on leave of absence from his a position as a local 47
558	557		governmental employee for the purpose of serving as a member or 48
559	558		officer of the North Carolina General Assembly shall be deemed to be 49
560	559		in service during sessions of the General Assembly and thereby 50
561	560		covered by the provisions of the death benefit, if applicable. The 51 General Assembly Of North Carolina Session 2025
562		-	Page 12 House Bill 477-~~Third~~ Edition
	561	+	Page 12 House Bill 477-Second Edition
563	562		eligible for the death benefit under G.S. 128-38.35. The last day of 1
564	563		actual service shall be the most recent legislative day of the applicable 2
565	564		General Assembly session or the last day the member performed work 3
566	565		as a local governmental employee, whichever is later. Notwithstanding 4
567	566		G.S. 128-38.35(c), the amount of the death benefit for such a member 5
568	567		who is on a leave of absence due to General Assembly service shall be 6
569	568		the equivalent of the salary to which the member would have been 7
570	569		entitled as a local governmental employee during the 12-month period 8
571	570		immediately prior to the month in which death occurred, not to be less 9
572	571		than subject to a minimum of twenty-five thousand dollars ($25,000) 10
573	572		nor to exceed and a maximum of fifty thousand dollars ($50,000). 11
574	573		(3) When the employee Terminated service. – For a member whose employment 12
575	574		has been terminated, terminated for reasons other than retirement, whether by 13
576	575		the employer or the employee, the last day of actual service is the last day the 14
577	576		member actually worked.performed work as a local governmental employee. 15
578	577		"§ 128-38.40. Fully contributory death benefit for retired members. 16
579	578		(a) Participation and Premiums. – All retired members may elect to participate in the 17
580	579		Death Benefit Plan and therefore become eligible to receive death benefits under the Death 18
581	580		Benefit Plan in accordance with this section. Elections shall be made prior to death and no later 19
582	581		than 60 calendar days from the effective date of the member's retirement. Elections shall be 20
583	582		received by the Board of Trustees prior to the death of the retired member. Retired members 21
584	583		electing to receive a fully contributory death benefit under the Death Benefit Plan shall 22
585	584		continuously pay monthly premiums on a fully contributory basis, as determined by the Board 23
586	585		of Trustees, to the North Carolina Teachers' and State Employees' Benefit Trust established under 24
587	586		G.S. 135-7(g). Premium payments shall be made through retirement allowance deductions or 25
588	587		other methods adopted by the Board of Trustees. 26
589	588		(b) Benefits Upon Death. – If a retired member who has elected to receive a fully 27
590	589		contributory death benefit under this section dies, then, upon receipt of proof, proof of the death 28
591	590		that is satisfactory to the Board of Trustees in its capacity under this subsection, of the death of 29
592	591		a retired member of the Retirement System on or after January 1, 2015, there Trustees, a lump 30
593	592		sum death benefit amount shall be paid a death benefit to the person or persons designated by the 31
594	593		member or, if not survived by a designated beneficiary, to the deceased retired member's legal 32
595	594		representative; provided the retired member has elected, when first eligible, to make, and has 33
596	595		continuously made, in advance of the member's death required contributions as determined by 34
597	596		the Board of Trustees on a fully contributory basis, through retirement allowance deductions or 35
598	597		other methods adopted by the Board of Trustees, to a group death benefit trust fund, the North 36
599	598		Carolina Teachers' and State Employees' Benefit Trust, administered by the Board of Trustees 37
600	599		separate and apart from the Retirement System's Annuity Savings Fund and Pension 38
601	600		Accumulation Fund.paid. 39
602	601		(c) The Death Benefit Amount. – The lump sum death benefit payable under this 40
603	602		subsection section shall be a lump-sum payment in the amount of one of the following amounts: 41
604	603		(1) If the death occurred on or after the first day of the twenty-fifth month of 42
605	604		coverage under this section, then the amount payable is ten thousand dollars 43
606	605		($10,000) upon the completion of 24 months of contributions required under 44
607	606		this subsection. Should death occur ($10,000). 45
608	607		(2) If the death occurred before the completion of 24 months of contributions 46
609	608		required under this subsection, the deceased retired member's designated 47
610	609		beneficiary or beneficiaries, or legal representative if not survived by a 48
611	610		designated beneficiary, shall be paid first day of the twenty-fifth month of 49
612	611		coverage under this section, then the amount payable is the sum of the retired 50
613	612		member's contributions required by this subsection premium payments made 51 General Assembly Of North Carolina Session 2025
614		-	House Bill 477-~~Third~~ Edition Page 13
	613	+	House Bill 477-Second Edition Page 13
615	614		in accordance with this section plus interest in an amount to be determined by 1
616	615		the Board of Trustees. 2
617	616		"§ 128-45. Beneficiaries under the Death Benefit Plan. 3
618	617		(a) Designation. – A member shall designate a beneficiary or beneficiaries for each 4
619	618		applicable benefit payable under this Part by electronic submission in a form approved by the 5
620	619		Board of Trustees or by written designation duly acknowledged and filed with the Board of 6
621	620		Trustees. 7
622	621		(b) Benefits Payable. – Each applicable benefit payable under this Part shall be paid to 8
623	622		the designated beneficiary or beneficiaries to receive the benefit. If no beneficiaries are 9
624	623		designated or living at the time of the member's death, then the benefit shall be paid to the 10
625	624		member's legal representative. 11
626	625		"§ 128-38.46. Accumulated contributions separate. 12
627	626		Such death benefit Death benefit amounts payable under this Part shall be payable apart and 13
628	627		separate from the payment of the member's accumulated contributions under the Retirement 14
629	628		System on his the member's death pursuant to the provisions of subsection (f) of this 15
630	629		section.G.S. 128-27(f)." 16
631	630		17
632	631		PART III. STANDARDIZATION OF DEATH BENEF ITS FOR MEMBERS OF T HE 18
633	632		CONSOLIDATED JUDICIA L RETIREMENT SYSTEM 19
634	633		SECTION 7.(a) G.S. 135-53 is amended by adding a new subdivision to read: 20
635	634		"(3a) "Benefit Trust" means the North Carolina Teachers' and State Employees' 21
636	635		Benefit Trust under G.S. 135-154." 22
637	636		SECTION 7.(b) G.S. 135-52 is amended by adding a new subsection to read: 23
638	637		"(c) Fully contributory death benefits under this Article are established as a group life 24
639	638		insurance plan that is an employee welfare benefit plan that is separate and apart from the 25
640	639		Retirement System and administered by the Board of Trustees. Fully contributory death benefits 26
641	640		for retirees under this Article are part of the Benefit Trust. All receipts, transfers, appropriations, 27
642	641		contributions, investment earnings, and other income associated with the fully contributory death 28
643	642		benefits for retirees under this Article shall be deposited in the Benefit Trust. All benefits and 29
644	643		expenses against the fully contributory death benefits for retirees under this Article shall be 30
645	644		disbursed from the Benefit Trust." 31
646	645		SECTION 7.(c) Subsections (b) and (d) of G.S. 135-63 are repealed. 32
647	646		SECTION 7.(d) G.S. 135-63, as amended by subsection (c) of this section, reads as 33
648	647		rewritten: 34
649	648		"§ 135-63. Benefits on death before retirement. 35
650	649		(a) Upon In-Service Benefit. – If a member dies while in service, then, upon receipt of 36
651	650		proof, proof of the death that is satisfactory to the Board of Trustees, of the death of a member 37
652	651		in service, there shall be paid in a lump sum death benefit shall be paid to such person as the 38
653	652		beneficiary or beneficiaries that the member shall have nominated designated by electronic 39
654	653		submission in a form approved by the Board of Trustees or by written designation duly 40
655	654		acknowledged and filed with the Board of Trustees, if such person is Trustees. If no beneficiaries 41
656	655		are designated or living at the time of the member's death, otherwise then the death benefit shall 42
657	656		be paid to the member's legal representatives, a representative. The amount of the death benefit 43
658	657		payable under this subsection is equal to the sum of (i) the member's accumulated contributions, 44
659	658		plus (ii) the member's final compensation; provided, however, that if the member has attained his 45
660	659		or her fiftieth birthday with at least five years of membership service at the member's date of 46
661	660		death, and if the designated recipient of the death benefits is the compensation, unless a member's 47
662	661		surviving spouse who survives him or her, and if the spouse so elects, is eligible for and elects to 48
663	662		receive a survivor's alternate benefit under subsection (a1) of this section. 49
664	663		(a1) Survivor's Alternate Benefit. – The surviving spouse of a member who was age 50 or 50
665	664		older with at least five years of membership service at the time of death may elect a survivor's 51 General Assembly Of North Carolina Session 2025
666		-	Page 14 House Bill 477-~~Third~~ Edition
	665	+	Page 14 House Bill 477-Second Edition
667	666		alternate benefit. If the surviving spouse elects a survivor's alternate benefit, then the lump-sum 1
668	667		death benefit provided for herein under subsection (a) of this section shall consist only of a 2
669	668		payment equal to the member's final compensation and there shall be paid to the surviving spouse 3
670	669		an annual retirement allowance, payable monthly, which monthly. The monthly payments shall 4
671	670		commence on the first day of the calendar month coinciding with or next following the death of 5
672	671		the member and shall be continued member. All of the following apply to the survivor's alternate 6
673	672		benefit: 7
674	673		(1) The survivor's alternate benefit shall continue on the first day of each month 8
675	674		thereafter until the remarriage or death of the spouse. 9
676	675		(2) The amount of any such the survivor's alternate benefit retirement allowance 10
677	676		shall be equal to one half of the amount of the retirement allowance to which 11
678	677		the member would have been entitled had the member retired under the 12
679	678		provisions of G.S. 135-57(a) on the first day of the calendar month coinciding 13
680	679		with or next following the member's date of death, reduced by two percent 14
681	680		(2%) thereof for each full year, if any, by which the age of the member at his 15
682	681		or her date of death exceeds that of the member's spouse. 16
683	682		(3) If the retirement allowance to the spouse shall terminate terminates on the 17
684	683		remarriage or death of the spouse before the total of the retirement allowance 18
685	684		payments made equals the amount of the member's accumulated contributions 19
686	685		at date of death, then the excess of such those accumulated contributions over 20
687	686		the total of the retirement allowances paid to the spouse shall be paid in a lump 21
688	687		sum to such person as the beneficiary or beneficiaries the member shall have 22
689	688		nominated designated by electronic submission in a form approved by the 23
690	689		Board of Trustees or by written designation duly acknowledged and filed with 24
691	690		the Board of Trustees, if such person is Trustees. If no beneficiary is 25
692	691		designated or living at the time such payment falls due, otherwise the lump 26
693	692		sum payment becomes due under this subdivision, then the lump sum payment 27
694	693		shall be made to the former member's legal representatives. 28
695	694		… 29
696	695		(c) Not in Service Benefit. – Upon receipt of proof, satisfactory to the Board of Trustees, 30
697	696		of the death of a member not in service, there shall be paid in a lump sum to such person as the 31
698	697		beneficiary that the member shall have nominated designated by electronic submission in a form 32
699	698		approved by the Board of Trustees or by written designation duly acknowledged and filed with 33
700	699		the Board of Trustees, if such person is Trustees. If no beneficiary is designated or living at the 34
701	700		time of the member's death, otherwise the lump sum death benefit shall be paid to the member's 35
702	701		legal representatives, a representatives. The lump sum death benefit payable under this 36
703	702		subsection is equal to the member's accumulated contributions. 37
704	703		…." 38
705	704		SECTION 7.(e) Subsections (f) through (j) of G.S. 135-64 are repealed. 39
706	705		SECTION 7.(f) G.S. 135-64, as amended by subsection (e) of this section, reads as 40
707	706		rewritten: 41
708	707		"§ 135-64. Benefits on death after retirement. 42
709	708		(a) In the event of the death of If a former member while in receipt of dies after a service 43
710	709		retirement allowance pursuant to his retirement under the provisions of G.S. 135-57, G.S. 135-57 44
711	710		or after a the former member's sixty-fifth birthday while in receipt of a retirement allowance 45
712	711		pursuant to his retirement under the provisions of after a disability retirement under G.S. 135-59, 46
713	712		then there shall be paid to the former member's surviving spouse, if any, an annual retirement 47
714	713		allowance, payable monthly, which monthly. The monthly payments shall commence on the first 48
715	714		day of the calendar month next following the date of death of the former member and shall be 49
716	715		continued on the first day of each month thereafter until the remarriage or death of the spouse. 50
717	716		The amount of any such the retirement allowance under this subsection shall be equal to one half 51 General Assembly Of North Carolina Session 2025
718		-	House Bill 477-~~Third~~ Edition Page 15
	717	+	House Bill 477-Second Edition Page 15
719	718		of the allowance that was payable to the former member for the month immediately prior to his 1
720	719		the member's month of death, or which that would have been so payable had an optional mode 2
721	720		of payment not been elected under the provisions of G.S. 135-61, reduced by two percent (2%) 3
722	721		thereof for each full year, if any, by which the age of the former member at date of death exceeds 4
723	722		that of his the spouse. 5
724	723		(b) In the event of the death of If a former member dies prior to his the former member's 6
725	724		sixty-fifth birthday while in receipt of a after a disability retirement allowance pursuant to his 7
726	725		retirement under the provisions of G.S. 135-59, then there shall be paid to the former member's 8
727	726		surviving spouse, if any, an annual retirement allowance, payable monthly, which monthly. The 9
728	727		monthly payments shall commence on the first day of the calendar month next following the date 10
729	728		of death of the former member and shall be continued on the first day of each month thereafter 11
730	729		until the remarriage or death of the spouse. The amount of any such the retirement allowance 12
731	730		under this subsection shall be equal to one half of the allowance to which the former member 13
732	731		would have been entitled under the provisions of G.S. 135-58 if he the member had remained in 14
733	732		service from his the disability retirement date to his the date of death with no change in his the 15
734	733		former member's final compensation or status and had then retired, reduced by two percent (2%) 16
735	734		thereof for each full year, if any, by which the age of the former member at date of death exceeds 17
736	735		that of his the spouse. 18
737	736		(c) In the event of the death of If a former member dies while in receipt of a retirement 19
738	737		allowance under the provisions of G.S. 135-58, 135-60, or 135-61, and if such that former 20
739	738		member is not survived by a spouse to whom a retirement allowance is payable under the 21
740	739		provisions of subsection (a) or subsection (b) above, of this section nor survived by a beneficiary 22
741	740		to whom a monthly survivorship benefit is payable under one of the optional modes of payment 23
742	741		under G.S. 135-61, then there shall be paid to such person as a lump sum death benefit to the 24
743	742		beneficiary that the member shall have nominated designated by electronic submission in a form 25
744	743		approved by the Board of Trustees or by written designation duly acknowledged and filed with 26
745	744		the Board of Trustees, if such person is Trustees. If no beneficiary is designated or living at the 27
746	745		time of the member's death, otherwise then the lump sum death benefit shall be paid to the 28
747	746		member's legal representatives, a representative. The lump sum death benefit payable under this 29
748	747		subsection shall be equal to the excess, if any, of the accumulated contributions of the member 30
749	748		at his the member's date of retirement over the total of the retirement allowances paid to him the 31
750	749		member prior to his death. 32
751	750		(d) In the event that If a retirement allowance becomes payable to the spouse of a former 33
752	751		member under the provisions of subsection (a) or subsection (b) above, of this section or to the 34
753	752		designated survivor of a former member under one of the optional modes of payment under 35
754	753		G.S. 135-61, and such that retirement allowance to the spouse shall terminate terminated on the 36
755	754		remarriage or death of the spouse, or on the death of spouse or the designated survivor, survivor 37
756	755		before the total of the retirement allowances paid to the former member and his the spouse or the 38
757	756		designated survivor combined equals the amount of the member's accumulated contributions at 39
758	757		his the member's date of retirement, then the excess of such those accumulated contributions over 40
759	758		the total of the retirement allowances paid to the former member and his the spouse or the 41
760	759		designated survivor combined shall be paid in a lump sum to such person as the beneficiary that 42
761	760		the member shall have nominated designated by electronic submission in a form approved by the 43
762	761		Board of Trustees or by written designation duly acknowledged and filed with the Board of 44
763	762		Trustees, if such person Trustees. If no beneficiary is designated or is living at the time such 45
764	763		payment under this subsection falls due, otherwise then the lump sum shall be paid to the former 46
765	764		member's legal representatives. 47
766	765		(e) In the event of the death of If a retired former judge dies while in receipt of a 48
767	766		retirement allowance under the provisions of G.S. 135-58(d), then there shall be paid to the 49
768	767		former judge's surviving spouse, if any, an annual retirement allowance payable monthly, which 50
769	768		monthly. The monthly payments shall commence on the first day of the calendar month next 51 General Assembly Of North Carolina Session 2025
770		-	Page 16 House Bill 477-~~Third~~ Edition
	769	+	Page 16 House Bill 477-Second Edition
771	770		following the date of death of the former judge and shall be continued on the first day of each 1
772	771		month thereafter until the remarriage or death of the spouse. The amount of any such the 2
773	772		retirement allowance under this subsection shall be equal to one half of the allowance that was 3
774	773		payable to the former judge for the month immediately prior to his the month of death, reduced 4
775	774		by two percent (2%) thereof for each full year, if any, by which the age of the former judge at 5
776	775		date of death exceeds that of his the spouse. 6
777	776		… 7
778	777		(k) Upon the death of a retired member on or after January 1, 2015, there All retired 8
779	778		members may elect to participate in the fully contributory death benefit for retirees. All of the 9
780	779		following apply to the fully contributory death benefit for retirees: 10
781	780		(1) Elections to participate in the fully contributory death benefit for retirees shall 11
782	781		be made prior to the member's death and no later than 60 calendar days from 12
783	782		the effective date of the member's retirement. Elections shall be received by 13
784	783		the Board of Trustees prior to the death of the retired member. 14
785	784		(2) Retired members electing to receive a fully contributory death benefit under 15
786	785		this subsection shall continuously pay monthly premiums on a fully 16
787	786		contributory basis, as determined by the Board of Trustees. Premium 17
788	787		payments shall be made through retirement allowance deductions or other 18
789	788		methods adopted by the Board of Trustees. 19
790	789		(3) If a retired member who has elected to receive a fully contributory death 20
791	790		benefit under this subsection dies, then, upon receipt of proof of death that is 21
792	791		satisfactory to the Board of Trustees, a lump sum death benefit amount shall 22
793	792		be paid a death benefit to the person or persons beneficiary or beneficiaries 23
794	793		designated by the member or, if not survived by a designated beneficiary, 24
795	794		member. If no beneficiary is designated or living, then the death benefit shall 25
796	795		be paid to the deceased retired member's legal representative; provided the 26
797	796		retired member has elected, when first eligible, to make, and has continuously 27
798	797		made, in advance of the member's death required contributions as determined 28
799	798		by the Board of Trustees on a fully contributory basis, through retirement 29
800	799		allowance deductions or other methods adopted by the Board of Trustees, to 30
801	800		a group death benefit trust fund, the North Carolina Teachers' and State 31
802	801		Employees' Benefit Trust, administered by the Board of Trustees separate and 32
803	802		apart from the Retirement System's Annuity Savings Fund and Pension 33
804	803		Accumulation Fund. Employer and non-employer contributions to the Benefit 34
805	804		Trust and earnings on those contributions are irrevocable. The assets of the 35
806	805		Benefit Trust are dedicated to providing benefits to members and beneficiaries 36
807	806		in accordance with the Plan's benefit terms. The assets of the Benefit Trust are 37
808	807		not subject to the claims of creditors of the employees and non-employees 38
809	808		making contributions to the Benefit Trust, are not subject to the claims of any 39
810	809		creditors of the Benefit Trust's trustees and administrators, and are not subject 40
811	810		to the claims of creditors of members and beneficiaries. Benefit Trust assets 41
812	811		may be used for reasonable expenses to administer benefits provided by the 42
813	812		Fund as approved by the Board of Trustees.representative. 43
814	813		(4) The amount of the lump sum fully contributory death benefit payable under 44
815	814		this subsection shall be a lump-sum payment in the amount of is one of the 45
816	815		following: 46
817	816		a. If the death occurred on or after the first day of the twenty-fifth month 47
818	817		of coverage under this subsection, then the amount payable is ten 48
819	818		thousand dollars ($10,000) upon the completion of 24 months of 49
820	819		contributions required under this subsection. Should death occur 50
821	820		($10,000). 51 General Assembly Of North Carolina Session 2025
822		-	House Bill 477-~~Third~~ Edition Page 17
	821	+	House Bill 477-Second Edition Page 17
823	822		b. If the death occurred before the completion of 24 months of 1
824	823		contributions required under this subsection, the deceased retired 2
825	824		member's designated beneficiary or beneficiaries, or legal 3
826	825		representative if not survived by a designated beneficiary, shall be paid 4
827	826		first day of the twenty-fifth month of coverage under this subsection, 5
828	827		then the amount payable is the sum of the retired member's 6
829	828		contributions required by this subsection premium payments made in 7
830	829		accordance with this subsection plus interest in an amount to be 8
831	830		determined by the Board of Trustees." 9
832	831		10
833	832		PART IV. STANDARDIZA TION OF DEATH BENEFI TS FOR MEMBERS OF TH E 11
834	833		LEGISLATIVE RETIREME NT SYSTEM 12
835	834		SECTION 8.(a) G.S. 120-4.8 is amended by adding a new subdivision to read: 13
836	835		"(4d) Benefit Trust. – The North Carolina Teachers' and State Employees' Benefit 14
837	836		Trust under G.S. 135-154." 15
838	837		SECTION 8.(b) G.S. 120-4.10 reads as rewritten: 16
839	838		"§ 120-4.10. Administration of retirement system.Article. 17
840	839		(a) The Board of Trustees of the Teachers' and State Employees' Retirement System shall 18
841	840		be the trustee of the Retirement System. The provisions of this Article shall be administered by 19
842	841		the Board of Trustees. 20
843	842		(b) Fully contributory death benefits under this Article are established as a group life 21
844	843		insurance plan that is an employee welfare benefit plan that is separate and apart from the 22
845	844		Retirement System and administered by the Board of Trustees. Fully contributory death benefits 23
846	845		for retirees under this Article are part of the Benefit Trust. All receipts, transfers, appropriations, 24
847	846		contributions, investment earnings, and other income associated with the fully contributory death 25
848	847		benefits for retirees under this Article shall be deposited in the Benefit Trust. All benefits and 26
849	848		expenses against the fully contributory death benefits for retirees under this Article shall be 27
850	849		disbursed from the Benefit Trust." 28
851	850		SECTION 8.(c) G.S. 120-4.26A reads as rewritten: 29
852	851		"§ 120-4.26A. Benefits on death after retirement. 30
853	852		(a) In the event of the death of If a retired member dies while in receipt of a retirement 31
854	853		allowance under the provisions of this Article, there a lump sum death benefit shall be paid to 32
855	854		such person or persons as the beneficiary that the retiree shall have nominated designated by 33
856	855		electronic submission in a form approved by the Board of Trustees or by written designation duly 34
857	856		acknowledged and filed with the Board of Trustees, if such person or persons Trustees. If no 35
858	857		beneficiary or beneficiaries are designated or are living at the time of the retiree's death, otherwise 36
859	858		then the lump sum death benefit shall be paid to the retiree's legal representatives, a 37
860	859		representative. The lump sum death benefit payable under this subsection is equal to the excess, 38
861	860		if any, of the accumulated contributions of the retiree at the date of retirement over the total of 39
862	861		the retirement allowances paid prior to the death of the retiree. 40
863	862		(b) In the event that If a retirement allowance becomes that became payable to the 41
864	863		designated survivor of a retired member under the provisions of G.S. 120-4.26 and such 42
865	864		retirement allowance to the survivor shall terminate terminates upon the death of the survivor 43
866	865		before the total of the retirement allowances paid to the retiree and the designated survivor 44
867	866		combined equals the amount of the accumulated contributions of the retiree at the date of 45
868	867		retirement, then the excess, if any, excess of such those accumulated contributions over the total 46
869	868		of the retirement allowances paid to the retiree and the survivor combined shall be paid in a lump 47
870	869		sum to such person or persons as the beneficiary that the retiree shall have nominated designated 48
871	870		by electronic submission in a form approved by the Board of Trustees or by written designation 49
872	871		duly acknowledged and filed with the Board of Trustees, if such person or persons are Trustees. 50
873	872		If no beneficiary is designated or living at the time such payment falls due, otherwise the lump 51 General Assembly Of North Carolina Session 2025
874		-	Page 18 House Bill 477-~~Third~~ Edition
	873	+	Page 18 House Bill 477-Second Edition
875	874		sum payment becomes due under this subsection, then the payment shall be made to the retiree's 1
876	875		legal representative." 2
877	876		SECTION 8.(d) G.S. 120-4.27 reads as rewritten: 3
878	877		"§ 120-4.27. Death benefit.while in service; fully contributory death benefit for retirees. 4
879	878		(a) The designated beneficiary of a member who dies while in service after completing 5
880	879		one year of creditable service shall receive a lump-sum payment of an amount equal to the 6
881	880		deceased member's highest annual salary, to a maximum of fifteen thousand dollars ($15,000). 7
882	881		For purposes of this death benefit "in service" means currently serving as a member of the North 8
883	882		Carolina General Assembly. "In service" also means service in the Uniformed Services, as that 9
884	883		term is defined in section 4303(16) of the Uniformed Services Employment and Reemployment 10
885	884		Rights Act, Public Law 103-353, if that service begins during the member's term of office. If the 11
886	885		participant does not return immediately after that service to employment with a covered employer 12
887	886		in this Retirement System, then the participant shall be deemed "in service" until the date on 13
888	887		which the participant was first eligible to be separated or released from his or her involuntary 14
889	888		military service. 15
890	889		The death benefit provided by this section shall be designated a group life insurance benefit 16
891	890		payable under an employee welfare benefit plan that is separate and apart from the Retirement 17
892	891		System but under which the members of the Retirement System shall participate and be eligible 18
893	892		for group life insurance benefits. The Board of Trustees is authorized to provide the death benefit 19
894	893		in the form of group life insurance either by purchasing a contract or contracts of group life 20
895	894		insurance with any life insurance company or companies licensed and authorized to transact 21
896	895		business in the State of North Carolina for the purpose of insuring the lives of qualified members 22
897	896		in service, or by establishing or affiliating with a separate trust fund. 23
898	897		Upon receipt of proof, satisfactory to the Board of Trustees, of the death of a retired member 24
899	898		of the Retirement System or Retirement Fund on or after July 1, 1988, but before January 1, 25
900	899		1999, there shall be paid a death benefit to the surviving spouse of a deceased retired member, 26
901	900		or to the deceased retired member's legal representative if not survived by a spouse; provided the 27
902	901		retired member has elected, when first eligible, to make, and has continuously made, in advance 28
903	902		of his death required contributions as determined by the Retirement System on a fully 29
904	903		contributory basis, through retirement allowance deductions or other methods adopted by the 30
905	904		Retirement System, to a group death benefit trust fund administered by the Board of Trustees 31
906	905		separate and apart from the Retirement System's Annuity Savings Fund and Pension 32
907	906		Accumulation Fund. This death benefit shall be a lump-sum payment in the amount of five 33
908	907		thousand dollars ($5,000) upon the completion of twenty-four months of contributions required 34
909	908		under this subsection. Should death occur before the completion of twenty-four months of 35
910	909		contributions required under this subsection, the deceased retired member's surviving spouse or 36
911	910		legal representative if not survived by a spouse shall be paid the sum of the retired member's 37
912	911		contributions required by this subsection plus interest to be determined by the Board of Trustees. 38
913	912		Upon receipt of proof, satisfactory to the Board of Trustees, of the death of a retired member 39
914	913		of the Retirement System or Retirement Fund on or after January 1, 1999, but before July 1, 40
915	914		2004, there shall be paid a death benefit to the surviving spouse of a deceased retired member, 41
916	915		or to the deceased retired member's legal representative if not survived by a spouse; provided the 42
917	916		retired member has elected, when first eligible, to make, and has continuously made, in advance 43
918	917		of his death required contributions as determined by the Retirement System on a fully 44
919	918		contributory basis, through retirement allowance deductions or other methods adopted by the 45
920	919		Retirement System, to a group death benefit trust fund administered by the Board of Trustees 46
921	920		separate and apart from the Retirement System's Annuity Savings Fund and Pension 47
922	921		Accumulation Fund. This death benefit shall be a lump-sum payment in the amount of six 48
923	922		thousand dollars ($6,000) upon the completion of 24 months of contributions required under this 49
924	923		subsection. Should death occur before the completion of 24 months of contributions required 50
925	924		under this subsection, the deceased retired member's surviving spouse or legal representative if 51 General Assembly Of North Carolina Session 2025
926		-	House Bill 477-~~Third~~ Edition Page 19
	925	+	House Bill 477-Second Edition Page 19
927	926		not survived by a spouse shall be paid the sum of the retired member's contributions required by 1
928	927		this subsection plus interest to be determined by the Board of Trustees. 2
929	928		Upon receipt of proof, satisfactory to the Board of Trustees, of the death of a retired member 3
930	929		of the Retirement System or Retirement Fund on or after July 1, 2004, but before July 1, 2007, 4
931	930		there shall be paid a death benefit to the surviving spouse of a deceased retired member, or to the 5
932	931		deceased retired member's legal representative if not survived by a spouse; provided the retired 6
933	932		member has elected, when first eligible, to make, and has continuously made, in advance of his 7
934	933		death required contributions as determined by the Retirement System on a fully contributory 8
935	934		basis, through retirement allowance deductions or other methods adopted by the Retirement 9
936	935		System, to a group death benefit trust fund administered by the Board of Trustees separate and 10
937	936		apart from the Retirement System's Annuity Savings Fund and Pension Accumulation Fund. This 11
938	937		death benefit shall be a lump-sum payment in the amount of nine thousand dollars ($9,000) upon 12
939	938		the completion of 24 months of contributions required under this subsection. Should death occur 13
940	939		before the completion of 24 months of contributions required under this subsection, the deceased 14
941	940		retired member's surviving spouse or legal representative if not survived by a spouse shall be 15
942	941		paid the sum of the retired member's contributions required by this subsection plus interest to be 16
943	942		determined by the Board of Trustees. 17
944	943		Upon receipt of proof, satisfactory to the Board of Trustees, of the death of a retired member 18
945	944		of the Retirement System or Retirement Fund on or after July 1, 2007, but before January 1, 19
946	945		2015, there shall be paid a death benefit to the surviving spouse of a deceased retired member, 20
947	946		or to the deceased retired member's legal representative if not survived by a spouse; provided the 21
948	947		retired member has elected, when first eligible, to make, and has continuously made, in advance 22
949	948		of his death required contributions as determined by the Retirement System on a fully 23
950	949		contributory basis, through retirement allowance deductions or other methods adopted by the 24
951	950		Retirement System, to a group death benefit trust fund administered by the Board of Trustees 25
952	951		separate and apart from the Retirement System's Annuity Savings Fund and Pension 26
953	952		Accumulation Fund. This death benefit shall be a lump-sum payment in the amount of ten 27
954	953		thousand dollars ($10,000) upon the completion of 24 months of contributions required under 28
955	954		this subsection. Should death occur before the completion of 24 months of contributions required 29
956	955		under this subsection, the deceased retired member's surviving spouse or legal representative if 30
957	956		not survived by a spouse shall be paid the sum of the retired member's contributions required by 31
958	957		this subsection plus interest to be determined by the Board of Trustees. 32
959	958		Upon receipt of proof, satisfactory to the Board of Trustees, of the death of a retired member 33
960	959		of the Retirement System or Retirement Fund on or after January 1, 2015, there 34
961	960		(b) All retired members may elect to participate in a fully contributory death benefit for 35
962	961		retirees. All of the following apply to the fully contributory death benefit for retirees: 36
963	962		(1) Elections to participate in the fully contributory death benefit for retirees shall 37
964	963		be made prior to the member's death and no later than 60 calendar days from 38
965	964		the effective date of the member's retirement. Elections shall be received by 39
966	965		the Board of Trustees prior to the death of the retired member. 40
967	966		(2) Retired members electing to receive a fully contributory death benefit under 41
968	967		this subsection shall continuously pay monthly premiums on a fully 42
969	968		contributory basis, as determined by the Board of Trustees. Premium 43
970	969		payments shall be made through retirement allowance deductions or other 44
971	970		methods adopted by the Board of Trustees. 45
972	971		(3) If a retired member who has elected to receive a fully contributory death 46
973	972		benefit under this subsection dies, then, upon receipt of proof of the death that 47
974	973		is satisfactory to the Board of Trustees, a lump sum death benefit amount shall 48
975	974		be paid a death benefit to the person or persons beneficiary or beneficiaries 49
976	975		designated by the member or, if not survived by a designated beneficiary, 50
977	976		member. If no beneficiary is designated or living, then the death benefit shall 51 General Assembly Of North Carolina Session 2025
978		-	Page 20 House Bill 477-~~Third~~ Edition
	977	+	Page 20 House Bill 477-Second Edition
979	978		be paid to the deceased retired member's legal representative; provided the 1
980	979		retired member has elected, when first eligible, to make, and has continuously 2
981	980		made, in advance of the member's death required contributions as determined 3
982	981		by the Retirement System on a fully contributory basis, through retirement 4
983	982		allowance deductions or other methods adopted by the Retirement System, to 5
984	983		a group death benefit trust fund, the North Carolina Teachers' and State 6
985	984		Employees' Benefit Trust, administered by the Board of Trustees separate and 7
986	985		apart from the Retirement System's Annuity Savings Fund and Pension 8
987	986		Accumulation Fund. Employer and non-employer contributions to the Benefit 9
988	987		Trust and earnings on those contributions are irrevocable. The assets of the 10
989	988		Benefit Trust are dedicated to providing benefits to members and beneficiaries 11
990	989		in accordance with the Plan's benefit terms. The assets of the Benefit Trust are 12
991	990		not subject to the claims of creditors of the employees and non-employees 13
992	991		making contributions to the Benefit Trust, are not subject to the claims of any 14
993	992		creditors of the Benefit Trust's trustees and administrators, and are not subject 15
994	993		to the claims of creditors of members and beneficiaries. Benefit Trust assets 16
995	994		may be used for reasonable expenses to administer benefits provided by the 17
996	995		Fund as approved by the Board of Trustees.representative. 18
997	996		(4) A member shall designate a beneficiary or beneficiaries for the death benefit 19
998	997		payable under this subsection by electronic submission in a form approved by 20
999	998		the Board of Trustees or by written designation duly acknowledged and filed 21
1000	999		with the Board of Trustees. 22
1001	1000		(5) The amount of the lump sum fully contributory death benefit payable under 23
1002	1001		this subsection shall be a lump-sum payment in the amount of is one of the 24
1003	1002		following: 25
1004	1003		a. If the death occurred on or after the first day of the twenty-fifth month 26
1005	1004		of coverage under this subsection, then the amount payable is ten 27
1006	1005		thousand dollars ($10,000) upon the completion of 24 months of 28
1007	1006		contributions required under this subsection. Should death occur 29
1008	1007		($10,000). 30
1009	1008		b. If the death occurred before the completion of 24 months of 31
1010	1009		contributions required under this subsection, the deceased retired 32
1011	1010		member's designated beneficiary or beneficiaries, or legal 33
1012	1011		representative if not survived by a designated beneficiary, shall be paid 34
1013	1012		first day of the twenty-fifth month of coverage under this subsection, 35
1014	1013		then the amount payable is the sum of the retired member's 36
1015	1014		contributions required by premium payments made in accordance with 37
1016	1015		this subsection plus interest in an amount to be determined by the 38
1017	1016		Board of Trustees." 39
1018	1017		40
1019	1018		PART V. TECHNICAL AN D CONFORMING CHANGES RELATED TO 41
1020	1019		RECODIFICATION AND S TANDARDIZATION 42
1021	1020		SECTION 9.(a) G.S. 135-5(m) reads as rewritten: 43
1022	1021		"(m) Survivor's Alternate Benefit. – Upon the death of a member in service, the beneficiary 44
1023	1022		designated to receive a return of accumulated contributions shall have the right to elect to receive 45
1024	1023		in lieu thereof the reduced retirement allowance provided by Option 2 of subsection (g) above of 46
1025	1024		this section computed by assuming that the member had retired on the first day of the month 47
1026	1025		following the date of the member's death, provided that all four of the following conditions apply: 48
1027	1026		… 49
1028	1027		For the purpose of this benefit, a member is considered to be in service at the date of his the 50
1029	1028		member's death if his the death occurs within 180 days from the last day of his the member's 51 General Assembly Of North Carolina Session 2025
1030		-	House Bill 477-~~Third~~ Edition Page 21
	1029	+	House Bill 477-Second Edition Page 21
1031	1030		actual service. The last day of actual service shall be determined as provided in subsection (l) of 1
1032	1031		this section. G.S. 135-170. Upon the death of a member in service, the surviving spouse may 2
1033	1032		make all purchases for creditable service as provided for under this Chapter Article for which the 3
1034	1033		member had made application in writing prior to the date of death, provided that the date of death 4
1035	1034		occurred prior to or within 60 days after notification of the cost to make the purchase. The term 5
1036	1035		"in service" as used in this subsection includes a member in receipt of a benefit under the 6
1037	1036		Disability Income Plan as provided in Article 6 of this Chapter. 7
1038	1037		…." 8
1039	1038		SECTION 9.(b) G.S. 128-27(m) reads as rewritten: 9
1040	1039		"(m) Survivor's Alternate Benefit. – Upon the death of a member in service, the beneficiary 10
1041	1040		designated to receive a return of accumulated contributions shall have the right to elect to receive 11
1042	1041		in lieu thereof the reduced retirement allowance provided by Option two of subsection (g) above 12
1043	1042		of this section computed by assuming that the member had retired on the first day of the month 13
1044	1043		following the date of the member's death, provided that all four of the following conditions apply: 14
1045	1044		… 15
1046	1045		For the purpose of this benefit, a member is considered to be in service at the date of his the 16
1047	1046		member's death if his the death occurs within 180 days from the last day of his the member's 17
1048	1047		actual service. The last day of actual service shall be determined as provided in subsection (l) of 18
1049	1048		this section. G.S. 128-38.36. Upon the death of a member in service, the surviving spouse may 19
1050	1049		make all purchases for creditable service as provided for under this Chapter for which the 20
1051	1050		member had made application in writing prior to the date of death, provided that the date of death 21
1052	1051		occurred prior to or within 60 days after notification of the cost to make the purchase. 22
1053	1052		…." 23
1054	1053		SECTION 10.(a) G.S. 135-3(c) reads as rewritten: 24
1055	1054		"(c) Members who are participating in an intergovernmental exchange of personnel under 25
1056	1055		the provisions of Article 10 of Chapter 126 may retain their membership status and receive all 26
1057	1056		benefits provided by this Chapter during the period of the exchange provided the requirements 27
1058	1057		of Article 10 of Chapter 126 are met; provided further, that a met. A member participating in an 28
1059	1058		intergovernmental exchange of personnel under Article 10 of Chapter 126 shall, notwithstanding 29
1060	1059		whether the member and the member's employer are making contributions to the member's 30
1061	1060		account during the exchange period, be entitled to the death benefit and, if applicable, benefits 31
1062	1061		under the Death Benefit Plan under Article 8 of this Chapter, if the member otherwise qualifies 32
1063	1062		under the provisions of this Article and provided further Article, except that no duplicate benefits 33
1064	1063		shall be paid." 34
1065	1064		SECTION 10.(b) G.S. 128-24(6) reads as rewritten: 35
1066	1065		"(6) Employees of a sending agency participating in an intergovernmental exchange of 36
1067	1066		personnel under the provisions of Article 10 of Chapter 126 shall remain members entitled to all 37
1068	1067		benefits of the Retirement System provided that the requirements of Article 10 of Chapter 126 38
1069	1068		are met; provided further, that a met. A member may retain membership status while serving as 39
1070	1069		an assigned employee or employee on leave under the provisions of Article 10 of Chapter 126 40
1071	1070		for purposes of receiving the death benefit and, if applicable, benefits under the Death Benefit 41
1072	1071		Plan regardless of whether he and his the member and the member's employer are contributing 42
1073	1072		to his the member's account during the exchange period period, except that no duplicate benefits 43
1074	1073		shall be paid." 44
1075	1074		SECTION 11.(a) G.S. 135-8(f) reads as rewritten: 45
1076	1075		"(f) Collection of Contributions. – The following shall apply apply to the collection of 46
1077	1076		contributions:contributions under this Chapter: 47
1078	1077		…." 48
1079	1078		SECTION 11.(b) G.S. 128-30(g) reads as rewritten: 49
1080	1079		"(g) Collection of Contributions. – The following shall apply apply to the collection of 50
1081	1080		contributions:contributions under this Article: 51 General Assembly Of North Carolina Session 2025
1082		-	Page 22 House Bill 477-~~Third~~ Edition
	1081	+	Page 22 House Bill 477-Second Edition
1083	1082		…." 1
1084	1083		SECTION 12.(a) G.S. 143-166.60(b) reads as rewritten: 2
1085	1084		"(b) The Boards of Trustees of the Teachers' and State Employees' Retirement System and 3
1086	1085		the Local Governmental Employees' Retirement System shall jointly administer the Plan and 4
1087	1086		shall, under the terms and conditions otherwise appearing in this Article, provide Plan benefits 5
1088	1087		either (i) by establishing a separate trust fund or, (ii) by causing the Plan to affiliate with a master 6
1089	1088		trust, Plan. The Separate Insurance Benefits Plan is part of the North Carolina Teachers' and State 7
1090	1089		Employees' Benefits Trust, providing the same benefits for participants. Employer and 8
1091	1090		non-employer contributions to the Benefit Trust and earnings on those contributions are 9
1092	1091		irrevocable. The assets of the Benefit Trust are dedicated to providing benefits to participants, 10
1093	1092		surviving spouses, participants' estates, and persons named by the participant to receive the 11
1094	1093		benefit. The assets of the Benefit Trust are not subject to the claims of creditors of the employees 12
1095	1094		and non-employees making contributions to the Benefit Trust, are not subject to the claims of 13
1096	1095		any creditors of the Benefit Trust's trustees and administrators, and are not subject to the claims 14
1097	1096		of creditors of participants. Benefit Trust assets may be used for reasonable expenses to 15
1098	1097		administer benefits provided by the Fund as approved by the Board of Trustees.Benefit Trust 16
1099	1098		established under G.S. 135-154. All receipts, transfers, appropriations, contributions, investment 17
1100	1099		earnings, and other income belonging to the Separate Insurance Benefits Plan shall be deposited 18
1101	1100		in the Benefit Trust. All benefits and expenses against the Separate Insurance Benefits Plan for 19
1102	1101		retirees shall be disbursed from the Benefit Trust." 20
1103	1102		SECTION 12.(b) G.S. 143-166.70(5) is expired. 21
1104	1103		22
1105	1104		PART VI. SURVIVOR'S ALTERNATE BENEFIT C HANGES 23
1106	1105		SECTION 13.(a) G.S. 135-5(m)(1) expires June 30, 2025. 24
1107	1106		SECTION 13.(b) G.S. 135-5(m), as amended by Section 9(a) of this act, reads as 25
1108	1107		rewritten: 26
1109	1108		"(m) Survivor's Alternate Benefit. – Upon the death of a member in service, the beneficiary 27
1110	1109		designated to receive a return of accumulated contributions shall have the right to elect to receive 28
1111	1110		in lieu thereof the reduced retirement allowance provided by Option 2 of subsection (g) of this 29
1112	1111		section computed by assuming that the member had retired on the first day of the month following 30
1113	1112		the date of the member's death, provided that all four of the following conditions apply: 31
1114	1113		… 32
1115	1114		(1a) The member falls into one of the following categories: 33
1116	1115		a. The member had attained the minimum age, creditable service amount, 34
1117	1116		or combination of both necessary to be eligible to commence 35
1118	1117		retirement with an early or service retirement allowance. 36
1119	1118		b. The member had completed at least five years of membership service, 37
1120	1119		in which case the retirement allowance shall be computed in 38
1121	1120		accordance with G.S. 135-5(b21)(1)c. or G.S. 135-5(b21)(2)c., 39
1122	1121		whichever is applicable, notwithstanding any age or service 40
1123	1122		requirements. In no case shall the retirement allowance under this 41
1124	1123		sub-subdivision be less than the actuarial equivalent of the return of 42
1125	1124		accumulated contributions, computed using the beneficiary's age as of 43
1126	1125		the first day of the month following the date of the member's death. 44
1127	1126		(2) At the time of the member's death, one and only one beneficiary is eligible to 45
1128	1127		receive a return of his the member's accumulated contributions. 46
1129	1128		(3) The member had not instructed the Board of Trustees in writing that he the 47
1130	1129		member did not wish the provisions of this subsection to apply. 48
1131	1130		(4) The member had not commenced to receive a retirement allowance as 49
1132	1131		provided under this Chapter. 50
1133	1132		…." 51 General Assembly Of North Carolina Session 2025
1134		-	House Bill 477-~~Third~~ Edition Page 23
	1133	+	House Bill 477-Second Edition Page 23
1135	1134		SECTION 13.(c) Subsection (b) of this section is effective July 1, 2025, and applies 1
1136	1135		to member deaths occurring on or after that date. 2
1137	1136		SECTION 14.(a) G.S. 128-27(m)(1) expires on June 30, 2025. 3
1138	1137		SECTION 14.(b) G.S. 128-27(m), as amended by Section 9(b) of this act, reads as 4
1139	1138		rewritten: 5
1140	1139		"(m) Survivor's Alternate Benefit. – Upon the death of a member in service, the beneficiary 6
1141	1140		designated to receive a return of accumulated contributions shall have the right to elect to receive 7
1142	1141		in lieu thereof the reduced retirement allowance provided by Option two of subsection (g) of this 8
1143	1142		section computed by assuming that the member had retired on the first day of the month following 9
1144	1143		the date of the member's death, provided that all four of the following conditions apply: 10
1145	1144		… 11
1146	1145		(1a) The member falls into one of the following categories: 12
1147	1146		a. The member had attained the minimum age, creditable service amount, 13
1148	1147		or combination of both necessary to be eligible to commence 14
1149	1148		retirement with an early or service retirement allowance. 15
1150	1149		b. The member had completed at least five years of membership service, 16
1151	1150		in which case the retirement allowance shall be computed in 17
1152	1151		accordance with G.S. 128-27(b22)(1)c. or G.S. 128-27(b22)(2)c., 18
1153	1152		whichever is applicable, notwithstanding any age or service 19
1154	1153		requirements. In no case shall the retirement allowance under this 20
1155	1154		sub-subdivision be less than the actuarial equivalent of the return of 21
1156	1155		accumulated contributions, computed using the beneficiary's age as of 22
1157	1156		the first day of the month following the date of the member's death. 23
1158	1157		(2) At the time of the member's death, one and only one beneficiary is eligible to 24
1159	1158		receive a return of his the member's accumulated contributions. 25
1160	1159		(3) The member had not instructed the Board of Trustees in writing that he the 26
1161	1160		member did not wish the provisions of this subsection apply. 27
1162	1161		(4) The member had not commenced to receive a retirement allowance as 28
1163	1162		provided under this Chapter. 29
1164	1163		…." 30
1165	1164		SECTION 14.(c) Subsection (b) of this section is effective July 1, 2025, and applies 31
1166	1165		to member deaths occurring on or after that date. 32
1167	1166		SECTION 15.(a) G.S. 135-63(a1), as amended by Section 7(d) of this act, reads as 33
1168	1167		rewritten: 34
1169	1168		"(a1) Survivor's Alternate Benefit. – The surviving spouse of a member who was age 50 or 35
1170	1169		older with had completed at least five years of membership service at the time of death may elect 36
1171	1170		a survivor's alternate benefit. If the surviving spouse elects a survivor's alternate benefit, then the 37
1172	1171		lump-sum death benefit provided for under subsection (a) of this section shall consist only of a 38
1173	1172		payment equal to the member's final compensation and there shall be paid to the surviving spouse 39
1174	1173		an annual retirement allowance, payable monthly. The monthly payments shall commence on the 40
1175	1174		first day of the calendar month coinciding with or next following the death of the member. All 41
1176	1175		of the following apply to the survivor's alternate benefit: 42
1177	1176		… 43
1178	1177		(2) The amount of the survivor's alternate benefit retirement allowance shall be 44
1179	1178		equal to one half of the amount of the retirement allowance to which the 45
1180	1179		member would have been entitled had the member retired under the provisions 46
1181	1180		of G.S. 135-57(a) on the first day of the calendar month coinciding with or 47
1182	1181		next following the member's date of death, reduced by two percent (2%) 48
1183	1182		thereof for each full year, if any, by which the age of the member at his or her 49
1184	1183		date of death exceeds that of the member's spouse.spouse, notwithstanding 50
1185	1184		any age or service requirements. In no case shall the retirement allowance 51 General Assembly Of North Carolina Session 2025
1186		-	Page 24 House Bill 477-~~Third~~ Edition
	1185	+	Page 24 House Bill 477-Second Edition
1187	1186		under this subdivision be less than the actuarial equivalent of the return of 1
1188	1187		accumulated contributions, computed using the beneficiary's age as of the first 2
1189	1188		day of the month following the date of the member's death. 3
1190	1189		…." 4
1191	1190		SECTION 15.(b) G.S. 120-4.28 reads as rewritten: 5
1192	1191		"§ 120-4.28. Survivor's alternate benefit. 6
1193	1192		(a) The designated beneficiary of If a member who dies in service before retirement but 7
1194	1193		after age 60 and after completing five years of creditable service or after completing 12 years of 8
1195	1194		creditable service service, then the principal beneficiary designated by that member to receive a 9
1196	1195		return of accumulated contributions under G.S. 120-4.25 is entitled to Option 2 prescribed by 10
1197	1196		G.S. 120-4.26.G.S. 120-4.26, notwithstanding any age or service requirements. In no case shall 11
1198	1197		the retirement allowance under this subsection be less than the actuarial equivalent of the return 12
1199	1198		of accumulated contributions, computed using the beneficiary's age as of the first day of the 13
1200	1199		month following the date of the member's death. 14
1201	1200		(b) In the event that If a retirement allowance becomes payable under this section to the 15
1202	1201		principal beneficiary designated to receive a return of accumulated contributions pursuant to this 16
1203	1202		subsection and that principal beneficiary dies before the total of the retirement allowances paid 17
1204	1203		equals is equal to or greater than the amount of those the member's accumulated contributions 18
1205	1204		over the total of the retirement allowances paid to the beneficiary, contributions, then the 19
1206	1205		allowance excess of those accumulated contributions over the total of the retirement allowance 20
1207	1206		paid to the principal beneficiary shall be paid in a lump sum to the person or persons the member 21
1208	1207		has designated as the contingent beneficiary for return of accumulated contributions, if the person 22
1209	1208		or persons contributions under G.S. 120-4.25. 23
1210	1209		(c) If a retirement allowance becomes payable under this section and the principal 24
1211	1210		beneficiary is not living at the time the payment falls due, then the retirement allowance shall be 25
1212	1211		paid to the contingent beneficiary designated to receive a return of accumulated contributions 26
1213	1212		under G.S. 120-4.25. If that contingent beneficiary dies before the total of the retirement 27
1214	1213		allowances paid is equal to or greater than the amount of the member's accumulated 28
1215	1214		contributions, then the excess of those accumulated contributions over the total of the retirement 29
1216	1215		allowances paid to the contingent beneficiary shall be paid in a lump sum to the contingent 30
1217	1216		beneficiary's legal representative. 31
1218	1217		(d) If no beneficiaries are living at the time the payment required under this section first 32
1219	1218		falls due, otherwise to then the allowance shall be paid in a lump sum to the principal beneficiary's 33
1220	1219		legal representative. In the event that a retirement allowance becomes payable to the contingent 34
1221	1220		beneficiary designated to receive a return of accumulated contributions pursuant to subsection 35
1222	1221		(m) of this section and that beneficiary dies before the total of the retirement allowances paid 36
1223	1222		equals the amount of the accumulated contributions of the member at the date of the member's 37
1224	1223		death, the excess of those accumulated contributions over the total of the retirement allowances 38
1225	1224		paid to the beneficiary shall be paid in a lump sum to the contingent beneficiary's legal 39
1226	1225		representative." 40
1227	1226		SECTION 15.(c) This section is effective July 1, 2025, and applies to member deaths 41
1228	1227		occurring on or after that date. 42
1229		-	SECTION 15.(d) There is appropriated from the General Fund to the Department of 43
1230		-	State Treasurer the sum of two million seven hundred two thousand dollars ($2,702,000) in 44
1231		-	recurring funds for the 2025-2027 biennium to expand eligibility for the survivor's alternate 45
1232		-	benefit in the Teachers' and State Employees' Retirement System, the Local Governmental 46
1233		-	Employees' Retirement System, the Consolidated Judicial Retirement System, and the 47
1234		-	Legislative Retirement System. 48
1235		-	49
1236		-	PART VII. ENSURE SUF FICIENT FUNDING FOR LINE OF DUTY DEATH 50
1237		-	BENEFITS 51 General Assembly Of North Carolina Session 2025
1238		-	House Bill 477-Third Edition Page 25
1239		-	SECTION 16.(a) G.S. 135-154, as created and amended by Part I of this act, is 1
1240		-	amended by adding a new subsection to read: 2
1241		-	"(e) Separate Fund for Line of Duty Death Benefits. – The Board of Trustees may make 3
1242		-	additional funding available to the Department of State Treasurer to ensure the timely payment 4
1243		-	of death benefits awarded by the Industrial Commission under the Public Safety Employees' 5
1244		-	Death Benefits Act, Article 12A of Chapter 143 of the General Statutes, by depositing a 6
1245		-	percentage of the State's employer contribution rate established for the benefits provided under 7
1246		-	G.S. 135-165 into a separate fund from the Benefits Trust. This percentage shall not exceed four 8
1247		-	hundredths percent (0.04%) in any given fiscal year. The Department of State Treasurer is 9
1248		-	authorized to use the funds deposited into this separate fund for the sole purpose of paying for 10
1249		-	death benefits awarded by the Industrial Commission under the Public Safety Employees' Death 11
1250		-	Benefits Act and may do so only if all other State funds appropriated to the Department for the 12
1251		-	fiscal year for the payment of those death benefits have been fully expended. Any funds deposited 13
1252		-	by the Department of State Treasurer into a separate fund in accordance with this subsection that 14
1253		-	remain unspent as of June 30 of the same fiscal year shall be transferred to the Benefit Fund as 15
1254		-	an additional employer contribution." 16
1255		-	SECTION 16.(b) This section becomes effective July 1, 2025. 17
1256		-	18
1257		-	PART VIII. EFFECTIVE DATE 19
1258		-	SECTION 17. Except as otherwise provided, this act is effective when it becomes 20
1259		-	law. 21
	1228	+	43
	1229	+	PART VII. ENSURE SUF FICIENT FUNDING FOR LINE OF DUTY DEATH 44
	1230	+	BENEFITS 45
	1231	+	SECTION 16.(a) G.S. 135-154, as created and amended by Part I of this act, is 46
	1232	+	amended by adding a new subsection to read: 47
	1233	+	"(e) Separate Fund for Line of Duty Death Benefits. – The Board of Trustees may make 48
	1234	+	additional funding available to the Department of State Treasurer to ensure the timely payment 49
	1235	+	of death benefits awarded by the Industrial Commission under the Public Safety Employees' 50
	1236	+	Death Benefits Act, Article 12A of Chapter 143 of the General Statutes, by depositing a 51 General Assembly Of North Carolina Session 2025
	1237	+	House Bill 477-Second Edition Page 25
	1238	+	percentage of the State's employer contribution rate established for the benefits provided under 1
	1239	+	G.S. 135-165 into a separate fund from the Benefits Trust. This percentage shall not exceed four 2
	1240	+	hundredths percent (0.04%) in any given fiscal year. The Department of State Treasurer is 3
	1241	+	authorized to use the funds deposited into this separate fund for the sole purpose of paying for 4
	1242	+	death benefits awarded by the Industrial Commission under the Public Safety Employees' Death 5
	1243	+	Benefits Act and may do so only if all other State funds appropriated to the Department for the 6
	1244	+	fiscal year for the payment of those death benefits have been fully expended. Any funds deposited 7
	1245	+	by the Department of State Treasurer into a separate fund in accordance with this subsection that 8
	1246	+	remain unspent as of June 30 of the same fiscal year shall be transferred to the Benefit Fund as 9
	1247	+	an additional employer contribution." 10
	1248	+	SECTION 16.(b) This section becomes effective July 1, 2025. 11
	1249	+	12
	1250	+	PART VIII. EFFECTIVE DATE 13
	1251	+	SECTION 17. Except as otherwise provided, this act is effective when it becomes 14
	1252	+	law. 15