NORTH CAROLINA GENERAL ASSEMBLY
1975 SESSION

CHAPTER 418
HOUSE BILL 846

AN ACT TO PROVIDE A SUPPLEMENTAL RETIREMENT FUND FOR FIREMEN IN THE CITY OF WASHINGTON, NORTH CAROLINA, AND TO MODIFY THE APPLICATION OF G.S. 118-5, G.S. 118-6 AND G.S. 118-7 TO THE CITY OF WASHINGTON, NORTH CAROLINA.

The General Assembly of North Carolina enacts:

Section 1. Supplemental Retirement Fund Created.  The Board of Trustees of the Local Fireman's Relief Fund of the City of Washington, North Carolina, as established in accordance with G.S. 118-6, hereinafter called the board of trustees, shall create and maintain a separate fund, to be called the Washington Fireman's Supplemental Retirement Fund, hereinafter called the Supplemental Retirement Fund, and shall maintain books of account for such fund separate from the books of account of the Local Fireman's Relief Fund of the City of Washington, hereinafter called the Local Relief Fund.  The board of trustees shall pay into the Supplemental Retirement Fund the funds prescribed by this act.
Sec. 2. Transfer of Funds and Disbursements. Notwithstanding the provisions of G.S. 118-7, the Board of Trustees of the Local Fireman's Relief Fund of the City of Washington shall:
(a)	Prior to July 1, 1975, transfer to the Supplemental Retirement Fund all funds, including earnings on investments, of the Local Relief Fund in excess of ten thousand dollars ($10,000);
(b)	As soon as practicable after July 1 of each year divide the sum of the annual funds paid the Local Relief Fund by authority of G.S. 118-5, the income earned in the preceding fiscal year upon investments of funds belonging to the Local Relief Fund and the income earned in the preceding fiscal year upon investments of funds belonging to the Supplemental Retirement Fund into equal amounts and disburse the same as supplemental retirement benefits in accordance with Section 3 of this act;
(c)	At any time when the amount of funds in the Local Relief Fund shall by reason of disbursements authorized by G.S. 118-7, be less than ten thousand dollars ($10,000), transfer from the Supplemental Retirement Fund to the Local Relief Fund an amount sufficient to maintain in the Local Relief Fund the sum of ten thousand dollars ($10,000).
Sec. 3. Supplemental Retirement Benefits. (a)  Each fireman of the City of Washington who has completed 20 years or more service as a city fireman, volunteer or paid, shall be entitled to and shall receive the following supplemental retirement benefits, until his death, funds permitting:
(1)	One share of each full year of service as a full-time and fully-paid fireman of the city;
(2)	One share of each full year of service as a volunteer fireman of the City of Washington, North Carolina.
(b)	Any fireman of the city who is not otherwise entitled to supplemental retirement benefits under subsection (a) of this section shall nevertheless be entitled to such benefits in any fiscal year in which the board of trustees make the following written findings of fact:
(1)	That he initially retired from his position as fireman because of his inability, by reason of sickness or injury, to perform the normal duties of an active fireman; and
(2)	That, within 30 days prior to or following his initial retirement as a fireman, at least two physicians licensed to practice medicine in North Carolina certified that he was at such time unable, by reason of sickness or injury, to perform the normal duties of an active fireman.
Sec. 4. Intention. It is the intention of Section 3 of this act to authorize the disbursement as supplemental retirement benefits only income derived in any fiscal year from funds received from Section 2(b).  It is the intention of Section 2 of this act to require that the funds paid into the Supplemental Retirement Fund pursuant to subsections (a) and (b) thereof shall be held in trust, and that no funds paid into the Supplemental Retirement Fund pursuant to subsections (a) and (b) thereof or as a gift, grant, bequest, or donation to such fund shall ever be disbursed except as and when required by (c).
Sec. 5. Investment of Funds. The board of trustees is hereby authorized to invest any funds, either of the Local Relief Fund or of the Supplemental Retirement Fund, in any investment named in or authorized by G.S. 159-30, only in accordance with the provisions thereof, and is hereby directed to invest all of the funds of the Supplemental Retirement Fund in one or more of such investments.
Sec. 6.  Acceptance of Gifts.  The board of trustees is hereby authorized to accept any gift, grant, bequest, or donation of money for the use of the Supplemental Retirement Fund.
Sec. 7. Bond of Treasurer. The board of trustees shall bond the treasurer of the Local Relief Fund with a good and sufficient bond, in an amount at least equal to the amount of funds in his control, payable to the board of trustees, and conditioned upon the faithful performance of his duties; such bond shall be in lieu of the bond required by G.S. 118-6.  The board of trustees shall pay from the Local Relief Fund the premiums of the bond of the treasurer.
Sec. 8. Severability. If any provision of this act shall be declared invalid by a court of competent jurisdiction, such invalidity shall not affect other provisions hereof which can be given effect without the invalid provision, and to this end the provisions of this act are declared to be severable.
Sec. 9. All laws and clauses of laws in conflict with this act are hereby repealed.
Sec. 10. This act shall become effective upon ratification.
In the General Assembly read three times and ratified, this the 27th day of May, 1975.