Title: S.L. 1971-860
Category: Session Law

NORTH CAROLINA GENERAL ASSEMBLY
1971 SESSION

CHAPTER 860
HOUSE BILL 1443

AN ACT TO AMEND CHAPTER 926 OF THE 1947 SESSION LAWS, AS AMENDED, ESTABLISHING THE CHARLOTTE FIREMEN'S RETIREMENT SYSTEM.

The General Assembly of North Carolina do enact:

Section 1. Section 4 of Chapter 926 of the 1947 Session Laws is hereby amended by the addition of two new subsections entitled "(r)" and "(s)" at the end of this section to read as follows: 
"(r)	Authority of Trustees to Recommend Changes in the Benefit Structure and Method of Financing. The Board of Trustees are hereby authorized to recommend to the City Council changes in the benefit structure and method of financing the retirement system, including changes in the rate of contribution as set forth in Section 5 of this act. All recommendations for changes by the Board of Trustees must be actuarially sound and must take into account the interests of both active and retired members of the system.
"(s)	Authority of City Council to Make Changes with Respect to the Benefit Structure and Method of Financing. Upon recommendation of the Board of Trustees as provided in subsection (r), the City Council may, within its discretion, increase or decrease the rate of contribution of active members of the System and the City of Charlotte as may be necessary for the proper operation of the Retirement System. Provided, however, that no such change shall reduce benefits being paid to retired members of the System.
Provided further, however, that the rate of contribution of the City of Charlotte may not be increased so as to exceed the combined rate of City contributions to the Law Enforcement Officers Benefit and Retirement System and to Social Security. Provided further, however, that in no event shall the City's rate of contribution exceed the rate of contributions of the active members of this System. In addition thereto, the City Council may within its discretion and upon the recommendation of the Board of Trustees, appropriate funds necessary to provide a retroactive cost of living increase in benefits of retired members of the System."
Sec. 2. Section 5 of Chapter 926 of the 1947 Session Laws, as amended by Chapter 859 of the 1955 Session Laws is hereby amended by deleting the words and figures "six and forty-eight hundredths per centum (6.48%), and substituting in lieu thereof the words and figures "eight and thirteen hundredths per centum (8.13%), wherever it appears in said section. Provided, however, the method of financing said system may be amended from time to time as provided by Section 4, subsections (r) and (s) of this act.
Sec. 3. Section 6 (a)(1) of Chapter 926 of the 1947 Session Laws, as amended by Chapter 859 of the 1955 Session Laws, Chapter 723 of the 1959 Session Laws, and Chapter 181 of the 1967 Session Laws, is hereby further amended by deleting the phrase "and will be at least fifty-five (55) years old", and substituting in lieu thereof the phrase "regardless of age".
Sec. 4. Section 6(a)(3) of Chapter 926 of the 1947 Session Laws as amended by Chapter 859 of the 1955 Session Laws, is hereby further amended by the deletion of this entire section including the table set forth therein, and substituting in lieu thereof the following:
"(3)	Service Retirement Benefits. Members will become eligible after thirty (30) years service, regardless of age, but not later than age sixty-five (65).
(a)	Service Retirement Income. A member retired under the Service Retirement provision shall receive a monthly income equal to fifty per centum (50%) of his Final Average Salary. Final Average Salary is defined as the member's average monthly pay during the highest twenty-four (24) consecutive months of his last sixty (60) months of active service.
(b)	Computation of 'Final Average Salary'. Final Average Salary shall include the member's base salary, plus the total of any additional longevity compensation received during that twenty-four (24) months. If a retiring member has any credited vacation or sick leave which has not been taken, and receives payment for it at retirement under the City's personnel rules, such accrued leave payment shall be excluded from the Final Average Salary on which retirement in computed. However, in calculating his total years and fractional years of completed service, the retiring member shall receive the full credit toward his total length of service that City personnel rules and regulations provide, for all such unused vacation and/or sick leave.
(4)	Early Retirement. Members shall become eligible after age fifty (50) and completion of twenty-five (25) years of active service.
(a)	Early Retirement Income. A member retired under the Early Retirement Provision shall receive monthly income computed on the same basis as for Service Retirement, but reduced by three per centum (3%) for each year that Early Retirement precedes thirty (30) years of completed service.
(5)	Optional Benefits for Survivors of Members Retired under Service Retirement or Early Retirement Provisions. The basic Service Retirement benefits shall provide the maximum possible life income for a member's own lifetime only. However, a member retiring under Service Retirement or Early Retirement provisions may elect to receive a reduced life income for himself, to also assure a further life income for his surviving wife or beneficiary. Four alternate plans of Optional Benefits shall be available to furnish such income benefits to survivors.
The amount of any optional retirement benefits set forth below shall be the actuarial equivalent of the amount of benefits subject to election and otherwise payable to the member. Actuarial equivalent shall, for all members, be computed in accordance with the Group Annuity Table for 1951 with interest at four per centum (4%), or such other table as the Board of Trustees may hereafter adopt.
Option 1. Reduced Lifetime Benefits to Member. If member dies within ten years of retirement, benefit to continue to his named beneficiary for balance of ten-year period. If member is living at end of ten (10) years, benefit will continue during his lifetime.
Option 2. One Hundred Per Cent Joint and Survivor. Reduced monthly lifetime benefits which continue after member's death to his designated beneficiary for beneficiary's lifetime.
Option 3. Fifty Per Cent Joint and Survivor. Similar to Option 2, but one-half of member's benefit continues to designated beneficiary, after member's death.
Option 4. Joint and Survivor with an amount equal to a percentage other than 100% or 50% of member's benefit continued for life to designated beneficiary after member's death.
Time Requirement for Electing Optional Benefits: Options may be elected at any time which is at least three months prior to Early or Service Retirement.
No Optional Benefits Shall be Available for Disability Retirement."
Sec. 5. Section 6, subsections 3(b)(1) and 3(b)(2) of Chapter 926 of the 1947 Session Laws, as amended by Chapter 859 of the 1955 Session Laws, Chapter 723 of the 1959 Session Laws and Chapter 181 of the 1967 Session Laws, are hereby further amended by deleting them in their entirety, and substituting the following in lieu thereof:
"(1)	Any uniformed member of the Charlotte Fire Department who shall become totally and permanently disabled by reason of an injury received or by reason of an accident or occupational disease occurring in the line of duty or of his employment as a fireman shall be entitled to retirement benefits, as specified in Section 6(b)(2) and 6(b)(3) of this Chapter.
(2)	Disability in Line of Duty. No minimum service eligibility requirements. Disability retirement income benefit is fifty per cent (50%) of Final Average Salary as of date of total and permanent disability incurred in line of duty. If the disabled member's total service is less than twenty-four (24) month, Final Average Salary will be based on his proportionate earnings during his total service, and projected to derive the annualized Final Average Salary.
(3)	Disability Not in Line of Duty. Payable in the event of total and permanent disability after ten (10) years of service. Disability Retirement income benefit shall be:
25% of Final Average Salary, plus 1-1/4% of such salary for each year of service in excess of ten (10) years. Maximum benefit shall not exceed 50% of Final Average Salary as of date of disability."
Sec. 6. Section 6(b)(3) of Chapter 926 of the 1947 Session Laws, as amended by Chapter 859 of the 1955 Session Laws, is hereby further amended by deleting the word "two" as it appears in the first sentence of said section, and substituting the word "three", and by renumbering this subsection as (b)(4).
Sec. 7. Section 6(b)(4), (b)(5), and (b)(6) of Chapter 926 of the 1947 Session Laws, as amended by Chapter 859 of the 1955 Session Laws, are hereby further amended by renumbering said subsections as (b)(5), (b)(6) and (b)(7).
Sec. 8. Section 6(c) of Chapter 926 of the 1947 Session Laws, as amended by Chapter 723 of the 1959 Session Laws, is hereby further amended by deleting the second and third sentences.
Sec. 9. Section 6(d) of Chapter 926 of the 1947 Session Laws, as amended by Chapter 723 of the 1959 Session Laws is hereby further amended by deleting it in its entirety, and substituting in lieu thereof the following:
"(d)	Special Death Benefit to Deceased Members.
(1)	Death Prior to Retirement. In the event of the death of any member of the system prior to retirement or disability as heretofore provided, the full amount paid into the fund by such deceased member, and the full amount paid into the fund by the City of Charlotte to his retirement account shall be paid to the beneficiary or beneficiaries named by such member in writing on a form furnished for that purpose and filed by the member with the Fire Department of the City of Charlotte. In the event such deceased member shall have named no beneficiary or in the event that the named beneficiary shall predecease the member, said amounts shall be paid to the deceased member's estate.
(2)	Death After Retirement. In the event of the death of any member after retirement and before such member has received retirement income payments equaling the total amount of his contributions to the Retirement System fund, plus the total amount of the contributions made by the City of Charlotte to his retirement account, an amount equal to the difference between such contributions to the System and what he received as retirement pay, shall be paid to the beneficiary or beneficiaries named by such member in writing on a form furnished for that purpose and filed by the member with the Fire Department of the City of Charlotte. In the event such deceased member shall have named no beneficiary, or in the event that the named beneficiary shall predecease the member, said amount shall be paid to the deceased member's estate. This provision shall not be available to a member who has elected any of the Optional Benefits for Survivors provided in Section 6(a)(5) of this Chapter."
Sec. 10. Sections l through 9 of this act shall apply to the City of Charlotte only.
Sec. 11. Sections 1 through 10 of this act shall become effective August 1, 1971.
Sec. 12. Section 18, G.S. 160A-360, as enacted by the 1971 General Assembly, is amended by adding a new subsection (I) to read as follows:
"(I)	In Mecklenburg County, municipalities may exercise the powers granted by this Article only within their corporate limits. Elsewhere in the county, the powers shall be exercised by the Board of County Commissioners."
Sec. 13. The following acts are hereby repealed: Chapters 123 and 124 of the Session Laws of 1955; Chapter 510 of the Session Laws of 1957; and Chapters 113 and 114 of the Session Laws of 1959.
Sec. 14. Whenever any zoning amendment or conditional or special use permit is proposed for property which would, in the absence of this act, have fallen within the extraterritorial jurisdiction of a municipality in Mecklenburg County as granted by general law or special act, the Board of County Commissioners shall refer such application to the governing board of such municipality for its recommendations. In formulating its recommendations, the municipal governing board may hold any public hearings which it deems desirable. The municipal governing board shall give its recommendations to the Board of County Commissioners within 15 days after the proposal is delivered to the town clerk or city clerk. The Board of County Commissioners shall take no action on the proposal until it either has received such recommendation or until the 15-day period has elapsed, whichever is sooner.
Sec. 15. Sections 12 through 14 of this act shall become effective January 1, l972.
Sec. 16. All laws and clauses of laws in conflict with this act are hereby repealed.
In the General Assembly read three times and ratified, this the 14th day of July, 1971.

Page 	S.L. 1971-860	House Bill 1443

House Bill 1443	S.L. 1971-860	Page