Section .0100 ‑ Definitions And General Provisions

Link to law: http://reports.oah.state.nc.us/ncac/title 20 - state treasurer/chapter 02 - retirement systems/subchapter m/subchapter m rules.html
Published: 2015

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SUBCHAPTER 2M ‑ CONTRIBUTORY DEATH BENEFIT FOR

RETIRED MEMBERS

 

 

SECTION .0100 ‑ DEFINITIONS AND GENERAL PROVISIONS

 

 

20 NCAC 02M .0101         DEFINITIONS

The following definitions apply to the Contributory Death

Benefit for Retired Members:

(1)           "Retired member" shall mean a former

teacher, employee or official in receipt of a monthly retirement allowance or

who has a terminated retirement allowance resulting from reemployment or an

optional payment selection (Option 4) from the Teachers' and State Employees' Retirement

System, Local Governmental Employees' Retirement System, Consolidated Judicial

Retirement System, Legislative Retirement System or Legislative Retirement

Fund; however, retired member shall not mean any beneficiary in receipt of a

monthly retirement allowance by reason of the death of a retired member or

former teacher, employee or official.

(2)           "Member" shall mean a retired member of

the Teachers' and State Employees' Retirement System, Local Governmental

Employees' Retirement System, Consolidated Judicial Retirement System,

Legislative Retirement System or Legislative Retirement Fund who has elected

coverage and who makes continuous contributions under the Contributory Death

Benefit for Retired Members.

(3)           "Surviving spouse" shall mean a living person

who is legally married to a member covered under the Contributory Death Benefit

for Retired Members at the date of death of the member.

(4)           "Legal representative" shall mean the

administrator or executor of the estate of a member or the collector of funds

for the estate of the member.

(5)           "Retirement system" shall mean the

Teachers' and State Employees' Retirement System, Local Governmental Employees'

Retirement System, Consolidated Judicial Retirement System, Legislative

Retirement System or Legislative Retirement Fund.

(6)           "Board of Trustees" of the Contributory

Death Benefit for Retired Members shall mean the Board of Trustees of the

Teachers' and State Employees' Retirement System and the Local Governmental

Employees' Retirement System.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

20 NCAC 02M .0102         AGENCY AND

AUTHORITY OF DIRECTOR

(a)  The agency acting on behalf of the Board of Trustees of

the Contributory Death Benefit for Retired Members is the Department of State

Treasurer, Retirement Systems Division, 325 North Salisbury Street, Raleigh,

North Carolina 27611.

(b)  The Director of the Retirement Systems Division shall

make decisions administratively as it relates to the Contributory Death Benefit

for Retired Members in accordance with the statutes and rules and regulations adopted

by the Board of Trustees and previous decisions of the Board of Trustees. 

Appeals may be made from the decisions of the director under the same

procedures used for contested cases.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0103         CONTRIBUTORY DEATH BENEFIT TRUST FOR

RETIRED MEMBERS

(a)  A trust entitled the Contributory Death Benefit Trust

for Retired Members shall be established for the purpose of collecting all

member contributions, investment of contributions, and payment of benefits and

expenses.

(b)  Funds deposited in the Contributory Death Benefit Trust

Retired Members shall be invested in accordance with law and all investment

earnings shall accrue to the Contributory Death Benefit Trust for Retired

Members.

(c)  The funds in the Contributory Death Benefit Trust for

Retired Members shall be used for the sole purpose of paying the benefits and

expenses of the Contributory Death Benefit for Retired Members.

(d)  Members of the Contributory Death Benefit for Retired

Members do not gain any rights or interest in the earnings on the investments

in the Contributory Death Benefit Trust for Retired Members nor share in any

gains or losses resulting from the mortality experience for the trust beyond

the benefits set forth.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0104         TIME AND DATE

"Date and time" shall be the equivalent date and

time for Raleigh, North Carolina, where and when it becomes necessary to

establish a date and time for payment of benefits, payment or collection of

contributions, effective dates of coverage and cancellation, and other matters

related to the Contributory Death Benefit for Retired Members.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(12); 128‑28(g); 135‑5(1);

135‑6(f); 135‑64(g);

Eff. April 1, 1989.

 

 

 

 

SECTION .0200 ‑ ELECTION AND CANCELLATION OF COVERAGE

 

 

20 NCAC 02M .0201         ELIGIBILITY TO ELECT COVERAGE

(a)  A retired member in receipt of a monthly retirement

allowance as a former teacher, employee or official of more than one of the

retirement systems is eligible to elect coverage under each retirement system

from which the member receives a retirement benefit; however, if a retired

member is receiving more than one retirement benefit from the same retirement

system, he may elect coverage only on the basis of one retirement benefit.

(b)  A former teacher, employee or official in receipt of

disability benefits from the Disability Income Plan of North Carolina is not in

receipt of a retirement allowance and is not eligible to elect coverage under

the Contributory Death Benefit for Retired Members until such time as the

disability benefit is converted to an unreduced service retirement allowance.

 

History Note:        Authority G.S.  120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0202         WHEN FIRST ELIGIBLE

A retired member's eligibility to make an election for

coverage is based on the following:

(1)           If retired on or before June 1, 1988, the words

"when first eligible" to make an election for coverage will mean 60

days from July 1, 1988 or no later than September 1, 1988.

(2)           If retiring on or after July 1, 1988, the words

"when first eligible" to make an election for coverage will mean 60

days from the effective date of retirement under the retirement system.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0203         FORM OF ELECTION

A retired member's election must be made on a Notice of

Election form as provided by the Retirement Systems Division or in lieu thereof

by written notice clearly stating the election of the retired member and

providing all information necessary for the determination of rates and payment

of benefits.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0204         EFFECTIVE DATE OF COVERAGE

Coverage under the Contributory Death Benefit for Retired

Members is not to be delayed beyond the 60 days from the effective date of

retirement or if retired prior to July 1, 1988, not beyond September 1, 1988 and

shall become effective:

(1)           the first of the month in which election of

coverage is made provided that the election is received by the Retirement

Systems Division by the 15th of a month but not earlier than July 1, 1988, or

(2)           the first of the month following the month in which

the election of coverage is made if the election is received by the Retirement

Systems Division after the 15th of a month but not earlier than July 1, 1988.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0205         CANCELLATION OF COVERAGE

Cancellation of coverage under the Contributory Death

Benefit for Retired Members shall be:

(1)           By written notice of cancellation of coverage to

the Board of Trustees with cancellation of coverage becoming effective :

(a)           the first day of the month in which the

member's written notice of cancellation is received and no contribution will be

due in that month if written notice of cancellation is received in the offices

of the Retirement Systems Division between the first and the tenth of a month.

(b)           the first day of the month following the

month in which written notice of cancellation is received with contributions

due for the month in which written notice is received if the written notice of

cancellation is received in the offices of the Retirement Systems Division

after the tenth of a month.

(2)           By non‑payment of monthly contributions if

payment for any month is not received in the offices of the Retirement Systems

Division by the 25th of the month following the month for which the

contribution is due and payable with coverage to be cancelled automatically

effective the first day of the month for which the contribution was due and

payable.

(3)           By death of a member.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0206         REINSTATEMENT

Upon cancellation of coverage, coverage cannot be reinstated

nor can a retired member reapply for coverage.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

 

SECTION .0300 ‑  CONTRIBUTIONS AND BENEFITS

 

20 NCAC 02M .0301         CONTRIBUTION RATES

(a)  The monthly contribution rates shall be established by

resolution of the Boards of Trustees as recommended by the consulting actuary. 

The consulting actuary in making a recommended schedule of monthly contribution

rates shall take into consideration mortality experience, selection experience,

actuarial interest rate assumption which may be different from the interest

rate assumption used in the valuation of the liabilities of the retirement

system, administrative and investment costs, and such other factors as may be

appropriate in establishing such schedule of monthly contribution rates.

(b)  The schedule of monthly contribution rates established

by resolution of the Boards of Trustees adopted on March 19, 1988, is as

follows:

 

Age at                                                                                           Monthly

Rate

Effective Date                                                                                       For

Life

 

Less than 50                                                                                                    $8

50                                                                                                                         8

51                                                                                                                         9

52                                                                                                                       10

53                                                                                                                       10

54                                                                                                                       11

55                                                                                                                       12

56                                                                                                                       12

57                                                                                                                       13

58                                                                                                                       14

59                                                                                                                       15

60                                                                                                                       16

61                                                                                                                       17

62                                                                                                                       18

63                                                                                                                       20

64                                                                                                                       21

65                                                                                                                       22

66                                                                                                                       24

67                                                                                                                       26

68                                                                                                                       27

69                                                                                                                       29

70                                                                                                                       31

71                                                                                                                       33

72                                                                                                                       35

73                                                                                                                       38

74                                                                                                                       40

75                                                                                                                       43

76                                                                                                                       46

77                                                                                                                       49

78                                                                                                                       52

79                                                                                                                       56

80                                                                                                                       59

81                                                                                                                       63

82                                                                                                                       67

83                                                                                                                       71

84                                                                                                                       75

85                                                                                                                       80

86                                                                                                                       84

87                                                                                                                       89

88                                                                                                                       94

89                                                                                                                       99

90                                                                                                                    105

91                                                                                                                    110

92                                                                                                                    115

93                                                                                                                    120

94                                                                                                                    125

95                                                                                                                    130

96                                                                                                                    140

97                                                                                                                    150

98                                                                                                                    160

99                                                                                                                    170

100 and over                                                                                                 200

 

The schedule of monthly contribution rates shall be

applicable for members electing coverage effective on or after July 1, 1988 and

shall remain in effect until such resolution, as duly adopted by the Boards of

Trustees, revises such schedule of monthly contribution rates.

(c)  The Boards of Trustees may from time to time revise by

resolution the schedule of monthly contribution rates as may be recommended by

the consulting actuary for teachers, employees and officials retiring and

electing an effective date of coverage after the effective date of the

revision.  Such revision may be, but is not required to be, applicable to

members electing coverage prior to the effective date of the revision provided

that such revised rates shall not be greater than the rates in effect at the

effective date of coverage for those members electing an effective date of

coverage prior to the effective date of the revision.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(12); 128‑28(g); 135‑5(1); 135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0302         MEMBER CONTRIBUTION

(a)  The monthly contribution rate paid by a member shall be

based on the member's nearest age as of the effective date of coverage and the

applicable rates as of that date as set by the Boards of Trustees and will remain

the same as long as the coverage is in effect.

(b)  Any misstatement as to the age of the member which

causes the contribution of the member to have been paid at a higher or lower

rate during the period of the coverage of the member not paid or refunded prior

to the death of the member will result in any underpayment of contributions

being offset against the death benefit and any overpayment of contributions

being paid to the surviving spouse or legal representative for the correct age

of the member.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0303         PAYMENT OF CONTRIBUTION

(a)  The monthly contributions of members covered under the

Contributory Death Benefit for Retired Members are to be paid monthly to the

Contributory Death Benefit Trust for Retired Members beginning in the month in

which coverage becomes effective and shall continue each month thereafter.

(b)  Payment of the monthly contributions shall be deducted

from a member's net monthly retirement allowance from the retirement system if

member's net monthly retirement allowance, after other required deductions, is

sufficient to cover the cost of the contribution; however, if the net monthly

retirement allowance from the retirement system is not sufficient to cover the

cost of the contribution, the Retirement Systems Division shall provide the

member a Notice of Contribution Due within ten days after the determination of

insufficiency with payment of monthly contributions due not later than the 25th

of the month following the determination of insufficiency, and thereafter a Notice

of Contribution Due shall be provided between the first and the fifth of each

month with payment due on or before the 25th of that month.

(c)  The contribution due for the month in which the

member's death occurs is to be paid from the final monthly retirement benefit

due in the month of death, or by payment from the member's surviving spouse or

legal representative; provided that, if member's death occurs during the 24‑month

period from the effective date of coverage, the deduction and/or payment of the

contribution for the month in which death occurs may be waived.

(d)  Once coverage is elected, the required monthly

contribution must be paid in order to maintain coverage regardless of any

condition which might occur that would terminate or diminish the retirement

benefit the retired member is receiving such as reemployment and the reduction

or termination of retirement benefits by reason of an optional payment plan

selected by the retired member at retirement.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0304         AMOUNT OF BENEFIT PAYABLE

(a)  If the member's death occurs on or after the first day

of the month following the 24th month of coverage for which the member has paid

the required contributions, the amount of the benefit payable shall be five

thousand dollars ($5,000.00).

(b)  If the member's death occurs prior to the first day of

the month following the 24th month of coverage for which the member has made

the required contributions, the amount of the benefit payable shall be the

total of the monthly contributions made by the member plus interest as set by

the Board of Trustees.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0305         PAYMENT OF INTEREST ON BENEFIT

Interest payable on the monthly contributions of a member

where member's death occurs prior to the first day of the month following the

24th month of coverage:

(1)           The annual rate of interest shall be set from time

to time by resolution of the Board of Trustees and, in setting such annual rate

of interest, the Board of Trustees may take into consideration the actuarial

interest rate assumption, yields realized and anticipated on short‑term

investments, cost of investing and administration, and such other factors

affecting interest rates as may be appropriate.

(2)           Such interest as set by the Board of Trustees shall

be computed on each monthly payment from the end of the month in which the

monthly payment is paid and on the balance of the monthly contributions and

interest at the beginning of the calendar year to the end of the month in which

the member dies.

(3)           The interest rate established by resolution of the

Boards of Trustees, adopted on January 28, 1988, is 6 1/2 percent.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0306         PAYMENT OF BENEFIT

Upon the death of a member, a certified death certificate

and such other documentation as deemed necessary in order to initiate payment

of the death benefit is to be furnished by the member's spouse or legal representative

if not survived by a spouse.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0307         BENEFITS PAYABLE AFTER CANCELLATION

Should death of a former member occur on or after the

effective date of cancellation of coverage, benefits under the Contributory

Death Benefit for Retired Members shall not be due and payable.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

20 NCAC 02M .0308         REFUNDS

(a)  No refund of contributions or interest shall be made if

coverage is cancelled by reason of non‑payment of contributions or if

written notice of cancellation is received 90 or more days after the effective

date of coverage.

(b)  Refund of contributions without interest may be made if

coverage is cancelled by written notice of cancellation received prior to 90

days after the effective date of coverage.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27;

128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.