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7/28/2021 SL 2018-22(HB 284) <br /> 7 <br /> Internal Revenue Code. In addition, any transfer under this subsection maybe paid in whole <br /> or in part with employer contributions paid directly to this Retirement System at the time of <br /> transfer. <br /> Notwithstanding anything to the contrary, a member may not transfer such amounts as <br /> will cause the member's retirement allowance under the System to exceed the amount <br /> allowable under G.S. 135-18.7(b). The Board of Trustees may establish a minimum amount <br /> that must be transferred if a transfer is elected. The member may elect a special retirement <br /> allowance with no postretirement increases or a special retirement allowance with annual <br /> postretirement increases equal to the annual increase in the U.S. Consumer Price Index. <br /> Postretirement increases on any other allowance will not apply to the special retirement <br /> allowance. The Board of Trustees shall provide educational materials to the members who <br /> apply for the transfer authorized by this section. Those materials shall describe the special <br /> retirement allowance and shall explain the relationship between the transferred balance and <br /> the monthly benefit and how the member's heirs may be impacted by the election to make <br /> this transfer and any costs and fees involved. <br /> For the purpose of determining the special retirement allowance, the Board of Trustees <br /> shall adopt straight life annuity factors on the basis of yields on U.S. Treasury Bonds and <br /> mortality and such other tables as may be necessary based upon actual experience. A single <br /> set of mortality and such other tables will be used for all members, with factors differing <br /> only based on the age of the member and the election of postretirement increases. The Board <br /> of Trustees shall modify the mortality and such other tables every five years, as shall be <br /> deemed necessary, based upon the five-year experience study as required by G.S. 135-6(n). <br /> Provided, however, a member who transfers the member's eligible accumulated contributions <br /> from an eligible retirement plan pursuant to this subsection to this Retirement System shall <br /> be taxed for North Carolina State Income Tax purposes on the special retirement allowance <br /> the same as if that special retirement allowance had been paid directly by the eligible plan or <br /> the plan through which the transfer was made, whichever is most favorable to the member. <br /> The Teachers' and State Employees' Retirement System shall be responsible to determine the <br /> taxable amount, if any, and report accordingly. <br /> The Supplemental Retirement Board of Trustees established under G.S. 135-96 may <br /> assess a one-time flat administrative fee not to exceed the actual cost of the administrative <br /> expenses relating to these transfers. An eligible plan shall not assess a fee specifically <br /> relating to a transfer of accumulated contributions authorized under this subsection. This <br /> provision shall not prohibit other fees that may be assessable under the plan. Each plan, <br /> contract, account, or annuity shall fully disclose to any member participating in a transfer <br /> under this subsection any surrender charges or other fees, and such disclosure shall be made <br /> contemporaneous with the initiation of the transfer by the member. <br /> The special retirement allowance shall continue for the life of the member and the <br /> beneficiary designated to receive a monthly survivorship benefit under Option 2, 3 or 6 as <br /> provided in G.S. 135-5(g), if any. The Board of Trustees, however, shall establish two <br /> payment options that guarantee payments as follows: <br /> (1) A member may elect to receive the special retirement allowance for life <br /> but with payments guaranteed for a number of months to be specified by <br /> the Board of Trustees. Under this plan, if the member dies before the <br /> expiration of the specified number of months, the special retirement <br /> allowance will continue to be paid to the member's designated beneficiary <br /> for the life of the beneficiary, if Option 2, 3 or 6 is selected. If Option 2, 3 <br /> or 6 is not selected, the member's designated beneficiary will receive the <br /> benefit only for the remainder of the specified number of months. If the <br /> member's designated beneficiary dies before receiving payments for the <br /> specified number of months, any remaining payments will be paid to the <br /> member's estate. <br /> file:///C:/Users/bbartholomew/Documents/ATT 3 ABTRACT 9 14 2021 SL 2018-22(HB 284).html 2/13 <br />