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7/28/2021 SL 2018-22(HB 284) <br /> 9 <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. 128-28(0). <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 Local Governmental Employees' Retirement System shall be responsible to determine <br /> the taxable amount, if any, and report accordingly. <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. 128-27(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 /> (2) A member may elect to receive the special retirement allowance for life <br /> but is guaranteed that the sum of the special allowance payments will <br /> equal the total of the transferred amount. Under this payment option, if the <br /> member dies before receiving the total transferred amount, the special <br /> retirement allowance will continue to be paid to the member's designated <br /> beneficiary for the life of the beneficiary, if Option 2, 3 or 6 is selected. If <br /> Option 2, 3 or 6 is not selected, the member's designated beneficiary or <br /> the member's estate shall be paid any remaining balance of the transferred <br /> amount. <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 that disclosure shall be made <br /> contemporaneous with the initiation of the transfer by the member. <br /> The Board of Trustees shall report annually to the Joint Legislative Commission on <br /> Governmental Operations on the number of persons who made an election in the previous <br /> calendar year, with any recommendations it might make on amendment or repeal based on <br /> any identified problems. <br /> file:///C:/Users/bbartholomew/Documents/ATT 3 ABTRACT 9 14 2021 SL 2018-22(HB 284).html 4/13 <br />