North Carolina 2025 Session Status: In Committee 4 R cosponsors

SB 359 — Retirement Death Benefits Rewrite.-AB

Last action — Sequential Referral To Judiciary Added After Pensions and Retirement and Aging

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the Senate. Introduced March 20, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the Senate.

Prognosis

Stalled 22% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 4 sponsors

    2 primary, 2 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (4 R).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

77 added · 78 removed

Plain-language change summary

In the latest version of Senate Bill 359, a few technical phrases and formatting issues have been corrected for clarity. This includes removing unnecessary repetitions and cleaning up language around the Disability Income Plan and retirement benefits. These changes are important because they make the bill easier to understand without altering its intent, ensuring that stakeholders can clearly interpret the rules and benefits outlined in the legislation.

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FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA Mar 20, 2025 S.B.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 1 SENATE BILL 359 Short Title:
359 SESSION 2025 PRINCIPAL CLERK S D SENATE BILL DRS55015-MRp-1H Short Title:
A BILL TO BE ENTITLED AN ACT TO RECODIFY AND STANDARDIZE THE LAWS RELATING TO THE DEATH BENEFIT PLAN, INCLUDING BY MAKING TECHNICAL, CLARIFYING, AND CONFORMING CHANGES, UNDER THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM, TO MAKE CHANGES TO THE SURVIVOR'S ALTERNATE BENEFIT UNDER THOSE RETIREMENT SYSTEMS, AND TO ENSURE SUFFICIENT FUNDING FOR LINE OF DUTY DEATH BENEFITS.
Rules and Operations of the Senate March 24, 2025 A BILL TO BE ENTITLED AN ACT TO RECODIFY AND STANDARDIZE THE LAWS RELATING TO THE DEATH BENEFIT PLAN, INCLUDING BY MAKING TECHNICAL, CLARIFYING, AND CONFORMING CHANGES, UNDER THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM, TO MAKE CHANGES TO THE SURVIVOR'S ALTERNATE BENEFIT UNDER THOSE RETIREMENT SYSTEMS, AND TO ENSURE SUFFICIENT FUNDING FOR LINE OF DUTY DEATH BENEFITS.
*DRS55015-MRp-1H* General Assembly Of North Carolina Session 2025 SECTION 1.(e) The fourth, fifth, and sixth sentences of G.S.
*S359-v-1* General Assembly Of North Carolina Session 2025 SECTION 1.(e) The fourth, fifth, and sixth sentences of G.S.
Page 2 DRS55015-MRp-1H General Assembly Of North Carolina Session 2025 SECTION 3.
Page 2 Senate Bill 359-First Edition General Assembly Of North Carolina Session 2025 SECTION 3.
(3) Disability Income Plan.
(3) DisabilityIncome Plan.
– The Disability Income Plan of North Carolina under Article 6 of this Chapter.
– The DisabilityIncome Plan of North Carolina under Article 6 of this Chapter.
It is the intent of the General Assembly that a this master trust fund be created that provides provide an irrevocable source of funding to be used, to the extent the fund's assets aresufficient, only fordeath benefits anddisability benefits payableto the Plans'members, participants, andbeneficiaries, pursuant to G.S.
It is the intent of the General Assembly that a this master trust fund be created that provides provide an irrevocable source of funding to be used, to the extent the fund's assets aresufficient, onlyfordeath benefits anddisabilitybenefits payable to thePlans'members, participants, andbeneficiaries, pursuant to G.S.
– Assets of one participating plan cannot be used to pay for liabilities of anotherparticipating plan within the Benefit Trust.
– Assets of one participating plan cannot be used to pay for liabilities of anotherparticipatingplan within theBenefit Trust.
DRS55015-MRp-1H Page 3 General Assembly Of North Carolina Session 2025 (1) An employer or nonemployer making contributions to the Trust, are not subject to the claims of any creditors of the Trust, trustees, and administrators, and are not subject to the claims of creditors of members, participants, and beneficiaries.Benefit Trust.
Senate Bill 359-First Edition Page 3 General Assembly Of North Carolina Session 2025 (1) An employer or nonemployer making contributions to the Trust, are not subject to the claims of any creditors of the Trust, trustees, and administrators, and are not subject to the claims of creditors of members, participants, and beneficiaries.Benefit Trust.
Page 4 DRS55015-MRp-1H General Assembly Of North Carolina Session 2025 (c) Such death Death Benefit Amount.
Page 4 Senate Bill 359-First Edition General Assembly Of North Carolina Session 2025 (c) Such death Death Benefit Amount.
The last day of actual service shall be the most recent legislative day of the applicable General Assembly session or the last DRS55015-MRp-1H Page 5 General Assembly Of North Carolina Session 2025 day the member performed work as a teacher or State employee, whichever is later.
The last day of actual service shall be the most recent legislative day of the applicable General Assembly session or the last Senate Bill 359-First Edition Page 5 General Assembly Of North Carolina Session 2025 day the member performed work as a teacher or State employee, whichever is later.
Page 6 DRS55015-MRp-1H General Assembly Of North Carolina Session 2025 (1) If the death occurred on or after the first day of the twenty-fifth month of coverage under this section, the amount payable is ten thousand dollars ($10,000) upon the completion of 24 months of contributions required under this subsection.
Page 6 Senate Bill 359-First Edition General Assembly Of North Carolina Session 2025 (1) If the death occurred on or after the first day of the twenty-fifth month of coverage under this section, the amount payable is ten thousand dollars ($10,000) upon the completion of 24 months of contributions required under this subsection.
– A member who is a beneficiary of the Disability Income Plan provided forin Article6 ofthis Chapter, or amember whois in receipt of Workers'Compensation workers' compensation benefits during the period for which he or she the member would have otherwise been eligible to receive short-term benefits or extended short-term benefits and as provided in G.S.
– A member who is a beneficiary of the Disability Income Plan provided forin Article6 ofthis Chapter, or amember whois in receipt ofWorkers'Compensation workers' compensation benefits during the period for which he or she the member would have otherwise been eligible to receive short-term benefits or extended short-term benefits and as provided in G.S.
If no beneficiaries are DRS55015-MRp-1H Page 7 General Assembly Of North Carolina Session 2025 designated or living at the time of the member's death, then the benefit shall be paid to the member's legal representative.
If no beneficiaries are Senate Bill 359-First Edition Page 7 General Assembly Of North Carolina Session 2025 designated or living at the time of the member's death, then the benefit shall be paid to the member's legal representative.
– Only for the purpose of determining eligibility for the death benefit benefits provided for in subsection (l) of this section, under this Article, membership service standing to the credit of (i) a member of the Legislative Retirement System or the Consolidated Judicial Retirement System or (ii) a retired member of the Legislative Retirement System ortheConsolidatedJudicialRetirement System whoseretirementbenefit was suspended upon entrance into membership in the Teachers' and State Employees' Retirement System shall be added to the membership service standing to the credit of a member of the Teachers' and State Employees' Retirement System.
– Only for the purpose of determining eligibility for the death benefit benefits provided for in subsection (l) of this section, under this Article, membership service standing to the credit of (i) a member of the Legislative Retirement System or the Consolidated Judicial Retirement System or (ii) a retired member of the Legislative Retirement System orthe ConsolidatedJudicial RetirementSystem whoseretirement benefit was suspended upon entrance into membership in the Teachers' and State Employees' Retirement System shall be added to the membership service standing to the credit of a member of the Teachers' and State Employees' Retirement System.
However, in the event that a participant or beneficiaryis aretired memberoftheLegislativeRetirement System ortheConsolidatedJudicial Retirement System whose retirement benefit was suspended upon entrance into membership in the Teachers' and State Employees' Retirement System, such membership service standing to the credit of the retired member prior to retirement shall be likewise counted.
However, in the event that a participant or beneficiaryis aretired memberofthe LegislativeRetirementSystem orthe Consolidated Judicial Retirement System whose retirement benefit was suspended upon entrance into membership in the Teachers' and State Employees' Retirement System, such membership service standing to the credit of the retired member prior to retirement shall be likewise counted.
Page 8 DRS55015-MRp-1H General Assembly Of North Carolina Session 2025 SECTION 4.(e) The first sentence of the first paragraph of G.S.
Page 8 Senate Bill 359-First Edition General Assembly Of North Carolina Session 2025 SECTION 4.(e) The first sentence of the first paragraph of G.S.
(a) DeathBenefitPlan.–ThereisherebycreatedaGroupLifeInsurancePlan(hereinafter called the "Plan") which is established as the Local Governmental Death Benefit Plan, a group life insurance plan that is an employee welfare benefit plan that is separate and apart from the DRS55015-MRp-1H Page 9 General Assembly Of North Carolina Session 2025 Retirement System and under which the members of the Retirement System shall participate and be eligible for group life insurance benefits.System.
(a) DeathBenefitPlan.–ThereisherebycreatedaGroupLifeInsurancePlan(hereinafter called the "Plan") which is established as the Local Governmental Death Benefit Plan, a group life insurance plan that is an employee welfare benefit plan that is separate and apart from the Senate Bill 359-First Edition Page 9 General Assembly Of North Carolina Session 2025 Retirement System and under which the members of the Retirement System shall participate and be eligible for group life insurance benefits.System.
Theprovisions of theRetirementSystem pertaining to administration,G.S.
Theprovisions of theRetirementSystem pertainingto administration, G.S.
128-29, are hereby made G.S.
128-29, are herebymade G.S.
(2) Employers are required to participate in the Death Benefit Plan with regard to all law enforcement officers employed by the employer who are members of theRetirementSystemshallparticipateandbeeligibleforgrouplifeinsurance benefits under the Group Life Insurance Plan, and employers shall fund the cost of these benefits.
(2) Employers are required to participate in the Death Benefit Plan with regard to all law enforcement officers employed by the employer who are members of theRetirementSystemshallparticipateandbeeligiblefor grouplifeinsurance benefits under the Group Life Insurance Plan, and employers shall fund the cost of these benefits.
– If a member eligible for benefits under this section dies while in service, then, upon receipt of proof, proof of the death that is satisfactory to the Board of Trustees in their capacity as trustees under the Group Life Insurance Plan, of the death, in service, of a member who had completed at least one full calendar year of membership in the Retirement System, there Trustees, a lump sum death benefit amount shall be paid to such person as the member shall have nominated by electronic submission in a form approved by the Board of Trustees or by written designation duly acknowledged and filed with the Board of Page 10 DRS55015-MRp-1H General Assembly Of North Carolina Session 2025 Trustees, if such person is living at the time of the member's death, otherwise to the member's legal representatives, a death benefit.paid.
– If a member eligible for benefits under this section dies while in service, then, upon receipt of proof, proof of the death that is satisfactory to the Board of Trustees in their capacity as trustees under the Group Life Insurance Plan, of the death, in service, of a member who had completed at least one full calendar year of membership in the Retirement System, there Trustees, a lump sum death benefit amount shall be paid to such person as the member shall have nominated by electronic submission in a form approved by the Board of Trustees or by written designation duly acknowledged and filed with the Board of Page 10 Senate Bill 359-First Edition General Assembly Of North Carolina Session 2025 Trustees, if such person is living at the time of the member's death, otherwise to the member's legal representatives, a death benefit.paid.
The DRS55015-MRp-1H Page 11 General Assembly Of North Carolina Session 2025 eligible for the death benefit under G.S.
The Senate Bill 359-First Edition Page 11 General Assembly Of North Carolina Session 2025 eligible for the death benefit under G.S.
The last day of actual service shall be the most recent legislative day of the applicable General Assembly session or the last day the member performed work asalocalgovernmentalemployee,whicheverislater.Notwithstanding G.S.
The last day of actual service shall be the most recent legislative day of the applicable General Assemblysession or the last day the member performed work asalocal governmentalemployee,whicheverislater.Notwithstanding G.S.
128-38.35(c), the amount of the death benefit for such a member who is on a leave of absence due to General Assembly service shall be the equivalent of the salary to which the member would have been entitled as a local governmental employee during the 12-month period immediately prior to the month in which death occurred, not to be less than subject to a minimum of twenty-five thousand dollars ($25,000) nor to exceed and a maximum of fifty thousand dollars ($50,000).
128-38.35(c), the amount of the death benefit for such a member who is on a leave of absence due to General Assemblyservice shall be the equivalent of the salary to which the member would have been entitled as a local governmental employee during the 12-month period immediately prior to the month in which death occurred, not to be less than subject to a minimum of twenty-five thousand dollars ($25,000) nor to exceed and a maximum of fifty thousand dollars ($50,000).
Retired members electing to receive a fully contributory death benefit under the Death Benefit Plan shall continuously pay monthly premiums on a fully contributory basis, as determined by the Board ofTrustees,totheNorth CarolinaTeachers'andStateEmployees' BenefitTrustestablishedunder G.S.
Retired members electing to receive a fully contributory death benefit under the Death Benefit Plan shall continuously pay monthly premiums on a fully contributory basis, as determined by the Board ofTrustees,totheNorth CarolinaTeachers'andStateEmployees'BenefitTrustestablishedunder G.S.
– If a retired member who has elected to receive a fully contributory death benefit under this section dies, then, upon receipt of proof, proof of the death that is satisfactory to the Board of Trustees in its capacity under this subsection, of the death of a retired member of the Retirement System on or after January 1, 2015, there Trustees, a lump sum death benefit amount shall be paid a death benefit to the person or persons designated by the member or, if not survived by a designated beneficiary, to the deceased retired member's legal representative;
– If a retired member who has elected to receive a fully contributory death benefit under this section dies, then, upon receipt of proof, proof of the death that is satisfactory to the Board of Trustees in its capacity under this subsection, of the death of a retired member of the Retirement System on or after January 1, 2015, there Trustees, a lump sum death benefit amount shall be paid a death benefit to the person or persons designated bythe member or, if not survived by a designated beneficiary, to the deceased retired member's legal representative;
(2) If the death occurred before the completion of 24 months of contributions required under this subsection, the deceased retired member's designated beneficiary or beneficiaries, or legal representative if not survived by a designated beneficiary, shall be paid first day of the twenty-fifth month of coverage under this section, then the amount payable is the sum of the retired member's contributions required by this subsection premium payments made Page 12 DRS55015-MRp-1H General Assembly Of North Carolina Session 2025 in accordance with this section plus interest in an amount to be determined by the Board of Trustees.
(2) If the death occurred before the completion of 24 months of contributions required under this subsection, the deceased retired member's designated beneficiary or beneficiaries, or legal representative if not survived by a designated beneficiary, shall be paid first day of the twenty-fifth month of coverage under this section, then the amount payable is the sum of the retired member's contributions required by this subsection premium payments made Page 12 Senate Bill 359-First Edition General Assembly Of North Carolina Session 2025 in accordance with this section plus interest in an amount to be determined by the Board of Trustees.
All receipts, transfers, appropriations, contributions, investment earnings, and other income associated with the fully contributory death benefits for retirees under this Article shall be deposited in the Benefit Trust.
All receipts, transfers, appropriations, contributions, investment earnings, and other income associated with the fullycontributorydeath benefits for retirees under this Article shall be deposited in the Benefit Trust.
provided, however, that if thememberhas attained his or her fiftieth birthday with at least five years of membership service at the member's date of death, and if the designated recipient of the death benefits is the compensation, unless a member's surviving spouse who survives him or her, and if the spouse so elects, is eligible for and elects to receive a survivor's alternate benefit under subsection (a1) of this section.
provided, however, that if thememberhas attained his or her fiftieth birthdaywith at least five years of membership service at the member's date of death, and if the designated recipient of the death benefits is the compensation, unless a member's surviving spouse who survives him or her, and if the spouse so elects, is eligible for and elects to receive a survivor's alternate benefit under subsection (a1) of this section.
DRS55015-MRp-1H Page 13 General Assembly Of North Carolina Session 2025 (a1) Survivor's Alternate Benefit.
Senate Bill 359-First Edition Page 13 General Assembly Of North Carolina Session 2025 (a1) Survivor's Alternate Benefit.
If the surviving spouse elects a survivor's alternate benefit, then the lump-sum death benefit provided for herein under subsection (a) of this section shall consist only of a payment equal to the member's final compensationand there shall be paid tothesurviving spouse an annual retirement allowance, payable monthly, which monthly.
If the surviving spouse elects a survivor's alternate benefit, then the lump-sum death benefit provided for herein under subsection (a) of this section shall consist only of a payment equal to the member's final compensationand there shall be paid tothesurvivingspouse an annual retirement allowance, payable monthly, which monthly.
135-57(a) on the first day of the calendar month coinciding with or next following the member's date of death, reduced by two percent (2%) thereof for each full year, if any, by which the age of the member at his or her date of death exceeds that of the member's spouse.
135-57(a) on the first dayof the calendar month coinciding with or next following the member's date of death, reduced by two percent (2%) thereof for each full year, if any, by which the age of the member at his or her date of death exceeds that of the member's spouse.
(3) If the retirement allowance to the spouse shall terminate terminates on the remarriage or death of the spouse before the total of the retirement allowance payments made equals the amount of the member's accumulated contributions at date of death, then the excess of such those accumulated contributions over thetotal oftheretirement allowances paid to thespouseshall bepaid in alump sum to such person as the beneficiary or beneficiaries the member shall have nominated designated by electronic submission in a form approved by the Board of Trustees or by written designation duly acknowledged and filed with the Board of Trustees, if such person is Trustees.
(3) If the retirement allowance to the spouse shall terminate terminates on the remarriage or death of the spouse before the total of the retirement allowance payments made equals the amount of the member's accumulated contributions at date of death, then the excess of such those accumulated contributions over thetotal oftheretirement allowances paid to thespouseshall bepaid in alump sum to such person as the beneficiary or beneficiaries the member shall have nominated designated by electronic submission in a form approved by the Board of Trustees or by written designation dulyacknowledged and filed with the Board of Trustees, if such person is Trustees.
If no beneficiary is designated or living at the time such payment falls due, otherwise the lump sum payment becomesdueunderthis subdivision,then thelumpsumpayment shall be made to the former member's legal representatives.
If no beneficiary is designated or living at the time such payment falls due, otherwise the lump sum payment becomesdueunderthis subdivision,thenthelump sumpayment shall be made to the former member's legal representatives.
The monthly payments shall commence on the first day of the calendar month next following the date of death of the former member and shall be Page 14 DRS55015-MRp-1H General Assembly Of North Carolina Session 2025 continued on the first day of each month thereafter until the remarriage or death of the spouse.
The monthlypayments shall commence on the first day of the calendar month next following the date of death of the former member and shall be Page 14 Senate Bill 359-First Edition General Assembly Of North Carolina Session 2025 continued on the first day of each month thereafter until the remarriage or death of the spouse.
135-61, reduced by two percent (2%) thereof for each full year, if any, by which the age of the former member at date of death exceeds that of his the spouse.
135-61, reduced by two percent (2%) thereof for each full year, if any, bywhich the age of the former member at date of death exceeds that of his the spouse.
The monthly payments shall commence on the first day of the calendar month next following the date of death of the former member and shall be continued on the first day of each month thereafter until the remarriage or death of the spouse.
The monthlypayments shall commence on the first day of the calendar month next following the date of death of the former member and shall be continued on the first day of each month thereafter until the remarriage or death of the spouse.
135-58 if he the member had remained in service from his the disability retirement date to his the date of death with no change in his the former member's final compensation or status and had then retired, reduced by two percent (2%) thereof for each full year, if any, by which the age of the former member at date of death exceeds that of his the spouse.
135-58 if he the member had remained in service from his the disability retirement date to his the date of death with no change in his the former member's final compensation or status and had then retired, reduced by two percent (2%) thereof for each full year, if any, bywhich the age of the former member at date of death exceeds that of his the spouse.
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135-61, and such that retirement allowance to the spouse shall terminate terminated on the remarriage or death of the spouse, or on the death of spouse or the designated survivor, survivor before the total of the retirement allowances paid to the former member and his the spouse or the designated survivor combined equals the amount of the member's accumulated contributions at his the member's date of retirement, then the excess of such those accumulated contributions over the total of the retirement allowances paid to the former member and his the spouse or the designated survivor combined shall be paid in a lump sum to such person as the beneficiary that the member shall have nominated designated by electronic submission in a form approved by the Board of Trustees or by written designation duly acknowledged and filed with the Board of Trustees, if such person Trustees.
135-61, and such that retirement allowance to the spouse shall terminate terminated on the remarriage or death of the spouse, or on the death of spouse or the designated survivor, survivor before the total of the retirement allowances paid to the former member and his the spouse or the designated survivor combined equals the amount of the member's accumulated contributions at his the member's date of retirement, then the excess of such those accumulated contributions over the total of the retirement allowances paid to the former member and his the spouse or the designated survivor combined shall be paid in a lump sum to such person as the beneficiary that the member shall have nominated designated byelectronic submission in a form approved bythe Board of Trustees or by written designation duly acknowledged and filed with the Board of Trustees, if such person Trustees.
135-58(d), then there shall be paid to the DRS55015-MRp-1H Page 15 General Assembly Of North Carolina Session 2025 former judge's surviving spouse, if any, an annual retirement allowance payable monthly, which monthly.
135-58(d), then there shall be paid to the Senate Bill 359-First Edition Page 15 General Assembly Of North Carolina Session 2025 former judge's surviving spouse, if any, an annual retirement allowance payable monthly, which monthly.
(1) Elections to participate in the fully contributory death benefit for retirees shall be made prior to the member's death and no later than 60 calendar days from the effective date of the member's retirement.
(1) Elections to participate in the fullycontributory death benefit for retirees shall be made prior to the member's death and no later than 60 calendar days from the effective date of the member's retirement.
provided the retired member has elected, when first eligible, to make, and has continuously made, in advance of the member's death required contributions as determined by the Board of Trustees on a fully contributory basis, through retirement allowance deductions or other methods adopted by the Board of Trustees, to a group death benefit trust fund, the North Carolina Teachers' and State Employees' Benefit Trust, administered by the Board of Trustees separate and apart from the Retirement System's Annuity Savings Fund and Pension Accumulation Fund.
provided the retired member has elected, when first eligible, to make, and has continuously made, in advance of the member's death required contributions as determined by the Board of Trustees on a fully contributory basis, through retirement allowance deductions or other methods adopted by the Board of Trustees, to a group death benefit trust fund, the North Carolina Teachers' and State Employees' Benefit Trust, administered bythe Board of Trustees separate and apart from the Retirement System's Annuity Savings Fund and Pension Accumulation Fund.
The assets of the Benefit Trust arededicatedto providing benefits tomembersandbeneficiaries in accordance with the Plan's benefit terms.
The assets of the Benefit Trust arededicatedto providingbenefits tomembersandbeneficiaries in accordance with the Plan's benefit terms.
If the death occurred on or after the first day of the twenty-fifth month of coverage under this subsection, then the amount payable is ten thousand dollars ($10,000) upon the completion of 24 months of Page 16 DRS55015-MRp-1H General Assembly Of North Carolina Session 2025 contributions required under this subsection.
If the death occurred on or after the first day of the twenty-fifth month of coverage under this subsection, then the amount payable is ten thousand dollars ($10,000) upon the completion of 24 months of Page 16 Senate Bill 359-First Edition General Assembly Of North Carolina Session 2025 contributions required under this subsection.
If the death occurred before the completion of 24 months of contributions required under this subsection, the deceased retired member's designated beneficiary or beneficiaries,or legal representativeifnotsurvivedbyadesignatedbeneficiary,shallbepaid first day of the twenty-fifth month of coverage under this subsection, then the amount payable is the sum of the retired member's contributions required by this subsection premium payments made in accordance with this subsection plus interest in an amount to be determined by the Board of Trustees." PART IV.
If the death occurred before the completion of 24 months of contributions required under this subsection, the deceased retired member's designated beneficiary or beneficiaries, or legal representativeifnotsurvivedbyadesignatedbeneficiary,shallbepaid first day of the twenty-fifth month of coverage under this subsection, then the amount payable is the sum of the retired member's contributions required by this subsection premium payments made in accordance with this subsection plus interest in an amount to be determined by the Board of Trustees." PART IV.
(a) The Board of Trustees of the Teachers' and State Employees' Retirement System shall be the trustee of the Retirement System.
(a) The Board of Trustees of the Teachers'and State Employees'Retirement System shall be the trustee of the Retirement System.
All receipts, transfers, appropriations, contributions, investment earnings, and other income associated with the fully contributory death benefits for retirees under this Article shall be deposited in the Benefit Trust.
All receipts, transfers, appropriations, contributions, investment earnings, and other income associated with the fullycontributorydeath benefits for retirees under this Article shall be deposited in the Benefit Trust.
(a) In the event of the death of If a retired member dies while in receipt of a retirement allowance under the provisions of this Article, there a lump sum death benefit shall be paid to such person or persons as the beneficiary that the retiree shall have nominated designated by electronic submission in a form approved by the Board of Trustees or by written designation duly acknowledged and filed with the Board of Trustees, if such person or persons Trustees.
(a) In the event of the death of If a retired member dies while in receipt of a retirement allowance under the provisions of this Article, there a lump sum death benefit shall be paid to such person or persons as the beneficiary that the retiree shall have nominated designated by electronic submission in a form approved bythe Board of Trustees or bywritten designation duly acknowledged and filed with the Board of Trustees, if such person or persons Trustees.
120-4.26 and such retirement allowance to the survivor shall terminate terminates upon the death of the survivor before the total of the retirement allowances paid to the retiree and the designated survivor combined equals the amount of the accumulated contributions of the retiree at the date of retirement, then the excess, if any, excess of such those accumulated contributions over the total of the retirement allowances paid to the retiree and the survivor combined shall be paid in a lump sum to such person or persons as the beneficiary that the retiree shall have nominated designated by electronic submission in a form approved by the Board of Trustees or by written designation DRS55015-MRp-1H Page 17 General Assembly Of North Carolina Session 2025 duly acknowledged and filed with the Board of Trustees, if such person or persons are Trustees.
120-4.26 and such retirement allowance to the survivor shall terminate terminates upon the death of the survivor before the total of the retirement allowances paid to the retiree and the designated survivor combined equals the amount of the accumulated contributions of the retiree at the date of retirement, then the excess, if any, excess of such those accumulated contributions over the total of the retirement allowances paid to the retiree and the survivor combined shall be paid in a lump sum to such person or persons as the beneficiary that the retiree shall have nominated designated by electronic submission in a form approved by the Board of Trustees or by written designation Senate Bill 359-First Edition Page 17 General Assembly Of North Carolina Session 2025 duly acknowledged and filed with the Board of Trustees, if such person or persons are Trustees.
If the participantdoes notreturnimmediatelyafterthatservicetoemploymentwithacovered employer in this Retirement System, then the participant shall be deemed "in service" until the date on which the participant was first eligible to be separated or released from his or her involuntary military service.
If the participantdoes notreturnimmediatelyafterthatservicetoemploymentwitha coveredemployer in this Retirement System, then the participant shall be deemed "in service" until the date on which the participant was first eligible to be separated or released from his or her involuntary military service.
This death benefit shall be a lump-sum payment in the amount of six thousand dollars ($6,000) upon the completion of 24 months of contributions required under this Page 18 DRS55015-MRp-1H General Assembly Of North Carolina Session 2025 subsection.
This death benefit shall be a lump-sum payment in the amount of six thousand dollars ($6,000) upon the completion of 24 months of contributions required under this Page 18 Senate Bill 359-First Edition General Assembly Of North Carolina Session 2025 subsection.
provided the retired member has elected, when first eligible, to make, and has continuously made, in advance of his death required contributions as determined by the Retirement System on a fully contributory basis, through retirement allowance deductions or other methods adopted by the Retirement System, to a group death benefit trust fund administered by the Board of Trustees separate and apartfromtheRetirement System's Annuity Savings FundandPension AccumulationFund.This death benefit shall be a lump-sum payment in the amount of nine thousand dollars ($9,000) upon the completion of 24 months of contributions required under this subsection.
provided the retired member has elected, when first eligible, to make, and has continuously made, in advance of his death required contributions as determined by the Retirement System on a fully contributory basis, through retirement allowance deductions or other methods adopted by the Retirement System, to a group death benefit trust fund administered by the Board of Trustees separate and apartfromtheRetirement System's AnnuitySavings FundandPension AccumulationFund.This death benefit shall be a lump-sum payment in the amount of nine thousand dollars ($9,000) upon the completion of 24 months of contributions required under this subsection.
(1) Elections to participate in the fully contributory death benefit for retirees shall be made prior to the member's death and no later than 60 calendar days from the effective date of the member's retirement.
(1) Elections to participate in the fullycontributory death benefit for retirees shall be made prior to the member's death and no later than 60 calendar days from the effective date of the member's retirement.
(3) If a retired member who has elected to receive a fully contributory death benefit under this subsection dies, then, upon receipt of proof of the death that is satisfactory to the Board of Trustees, a lump sum death benefit amount shall be paid a death benefit to the person or persons beneficiary or beneficiaries DRS55015-MRp-1H Page 19 General Assembly Of North Carolina Session 2025 designated by the member or, if not survived by a designated beneficiary, member.
(3) If a retired member who has elected to receive a fully contributory death benefit under this subsection dies, then, upon receipt of proof of the death that is satisfactoryto the Board of Trustees, a lump sum death benefit amount shall be paid a death benefit to the person or persons beneficiary or beneficiaries Senate Bill 359-First Edition Page 19 General Assembly Of North Carolina Session 2025 designated by the member or, if not survived by a designated beneficiary, member.
provided the retired member has elected, when first eligible, to make, and has continuously made, in advance of the member's death required contributions as determined by the Retirement System on a fully contributory basis, through retirement allowance deductions or other methods adopted by the Retirement System, to a group death benefit trust fund, the North Carolina Teachers' and State Employees' Benefit Trust, administered by the Board of Trustees separate and apart from the Retirement System's Annuity Savings Fund and Pension Accumulation Fund.
provided the retired member has elected, when first eligible, to make, and has continuously made, in advance of the member's death required contributions as determined by the Retirement System on a fully contributory basis, through retirement allowance deductions or other methods adopted by the Retirement System, to a group death benefit trust fund, the North Carolina Teachers' and State Employees' Benefit Trust, administered bythe Board of Trustees separate and apart from the Retirement System's Annuity Savings Fund and Pension Accumulation Fund.
The assets of the Benefit Trust arededicatedto providing benefits tomembersandbeneficiaries in accordance with the Plan's benefit terms.
The assets of the Benefit Trust arededicatedto providingbenefits tomembersandbeneficiaries in accordance with the Plan's benefit terms.
If the death occurred before the completion of 24 months of contributions required under this subsection, the deceased retired member's designated beneficiary or beneficiaries,or legal representativeifnotsurvivedbyadesignatedbeneficiary,shallbepaid first day of the twenty-fifth month of coverage under this subsection, then the amount payable is the sum of the retired member's contributions required by premium payments made in accordancewith this subsection plus interest in an amount to be determined by the Board of Trustees." PART V.
If the death occurred before the completion of 24 months of contributions required under this subsection, the deceased retired member's designated beneficiary or beneficiaries,or legal representativeifnotsurvivedbyadesignatedbeneficiary,shallbepaid first day of the twenty-fifth month of coverage under this subsection, then the amount payable is the sum of the retired member's contributions required bypremium payments made in accordancewith this subsection plus interest in an amount to be determined by the Board of Trustees." PART V.
– Upon the death of amember in service, the beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option 2 of subsection (g) above of this section computed by assuming that the member had retired on the first day of the month following thedateofthemember's death, provided thatall fourofthefollowing conditions apply:
– Upon the death of amember in service, the beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option 2 of subsection (g) above of this section computed by assuming that the member had retired on the first day of the month followingthedateofthemember's death, provided thatall fourofthefollowingconditions apply:
… Page 20 DRS55015-MRp-1H General Assembly Of North Carolina Session 2025 For the purpose of this benefit, a member is considered to be in service at the date of his the member's death if his the death occurs within 180 days from the last day of his the member's actual service.
… Page 20 Senate Bill 359-First Edition General Assembly Of North Carolina Session 2025 For the purpose of this benefit, a member is considered to be in service at the date of his the member's death if his the death occurs within 180 days from the last day of his the member's actual service.
– Upon the death of amember in service, the beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option two of subsection (g) above of this section computed by assuming that the member had retired on the first day of the month following thedateofthemember's death, provided thatall fourof thefollowing conditions apply:
– Upon the death of amember in service, the beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option two of subsection (g) above of this section computed by assuming that the member had retired on the first day of the month followingthedateofthemember's death, provided thatall fourofthefollowingconditions apply:
DRS55015-MRp-1H Page 21 General Assembly Of North Carolina Session 2025 "(g) Collection of Contributions.
Senate Bill 359-First Edition Page 21 General Assembly Of North Carolina Session 2025 "(g) Collection of Contributions.
"(b) The Boards of Trustees of the Teachers' and State Employees' Retirement System and the Local Governmental Employees' Retirement System shall jointly administer the Plan and shall, under the terms and conditions otherwise appearing in this Article, provide Plan benefits either (i) by establishing a separate trust fund or, (ii) by causing the Plan to affiliate with a master trust, Plan.TheSeparate Insurance Benefits Planis partof the North Carolina Teachers' and State Employees' Benefits Trust, providing the same benefits for participants.
"(b) The Boards of Trustees of the Teachers' and State Employees' Retirement System and the Local Governmental Employees' Retirement System shall jointly administer the Plan and shall, under the terms and conditions otherwise appearing in this Article, provide Plan benefits either (i) byestablishing a separate trust fund or, (ii) by causing the Plan to affiliate with a master trust, Plan.TheSeparate Insurance Benefits Planis partof the North Carolina Teachers' and State Employees' Benefits Trust, providing the same benefits for participants.
– Upon the death of amember in service, the beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option 2 of subsection (g) of this sectioncomputedbyassumingthatthememberhadretiredonthefirstdayofthemonthfollowing the date of the member's death, provided that all four of the following conditions apply:
– Upon the death of amember in service, the beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option 2 of subsection (g) of this sectioncomputedbyassumingthatthememberhadretiredonthefirst dayofthemonthfollowing the date of the member's death, provided that all four of the following conditions apply:
Page 22 DRS55015-MRp-1H General Assembly Of North Carolina Session 2025 (4) The member had not commenced to receive a retirement allowance as provided under this Chapter.
Page 22 Senate Bill 359-First Edition General Assembly Of North Carolina Session 2025 (4) The member had not commenced to receive a retirement allowance as provided under this Chapter.
If the surviving spouse elects a survivor's alternate benefit, then the lump-sum death benefit provided for under subsection (a) of this section shall consist only of a payment equal to the member's final compensationand there shall be paid tothesurviving spouse an annual retirement allowance, payable monthly.
If the surviving spouse elects a survivor's alternate benefit, then the lump-sum death benefit provided for under subsection (a) of this section shall consist only of a payment equal to the member's final compensationand there shall be paid tothesurvivingspouse an annual retirement allowance, payable monthly.
The monthly payments shall commence on the first day of the calendar month coinciding with or next following the death of the member.
The monthlypayments shall commence on the first day of the calendar month coinciding with or next following the death of the member.
(a) The designated beneficiary of If a member who dies in service before retirement but after age 60 and after completing five years of creditable service or after completing 12 years of creditable service service, then the principal beneficiary designated by that member to receive a DRS55015-MRp-1H Page 23 General Assembly Of North Carolina Session 2025 return of accumulated contributions under G.S.
(a) The designated beneficiary of If a member who dies in service before retirement but after age 60 and after completing five years of creditable service or after completing 12 years of creditable service service, then the principal beneficiary designated by that member to receive a Senate Bill 359-First Edition Page 23 General Assembly Of North Carolina Session 2025 return of accumulated contributions under G.S.
The Department of State Treasurer is authorized to use the funds deposited into this separate fund for the sole purpose of paying for death benefits awarded by the Industrial Commission under the Public Safety Employees' Death Benefits Act and may do so only if all other State funds appropriated to the Department for the fiscalyearforthepaymentofthosedeathbenefitshavebeenfully expended.
The Department of State Treasurer is authorized to use the funds deposited into this separate fund for the sole purpose of paying for death benefits awarded by the Industrial Commission under the Public Safety Employees' Death Benefits Act and may do so only if all other State funds appropriated to the Department for the fiscal yearforthepaymentofthosedeathbenefitshavebeenfullyexpended.
Page 24 DRS55015-MRp-1H General Assembly Of North Carolina Session 2025 PART VIII.
Page 24 Senate Bill 359-First Edition General Assembly Of North Carolina Session 2025 PART VIII.
DRS55015-MRp-1H Page 25
Senate Bill 359-First Edition Page 25
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How this bill changes current law

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Compared against the N.C. General Statutes as published AI-generated reading aid — verify against the official bill.

The bill recodifies and reorganizes several sections relating to the Death Benefit Plan for State Employees and Retirees, making clarifying and technical changes.

  • G.S. 135-154

    the plans participating → the Plans participating

    Standardizes the terminology for consistency in referencing participating plans.

  • G.S. 135-154

    irrevocable source of funding to be used, to the extent the fund's assets are sufficient, only for benefits payable to the members, participants, and beneficiaries of the participating plans and reasonable expenses for the administration of the participating plans. → a this master trust fund be created that provides provide an irrevocable source of funding to be used, to the extent the fund's assets aresufficient, onlyfordeath benefits anddisabilitybenefits payable to thePlans'members, participants, andbeneficiaries, pursuant to G.S. 1204.27, G.S. 12827(l), subsections (l2)through (l6) of G.S. 128 27, 135 5(l), 135 64(k), and 143 166.60. beneficiaries of the participating plans and reasonable expenses for the administration of the participating plans.

    Clarifies funding sources and the purposes for which the master trust fund is to be utilized.

  • G.S. 135-154

    a trustee or administrator of the Benefit Trust. → any of the following: (2) A trustee or administrator of the Benefit Trust.

    Reformats and makes clear the list of entities that cannot have claims on the assets of the Benefit Trust.

  • G.S. 135-155

    is established the Death Benefit Plan for State Employees and Retirees, a group life insurance plan that is an employee welfare benefit plan that is separate and apart from the Retirement System. → is hereby created a Group Life Insurance Plan (hereinafter called the "Plan") which is established as the Death Benefit Plan for State Employees and Retirees, a group life insurance plan that is an employee welfare benefit plan that is separate and apart from the Retirement System and under which the members of the Retirement System shall participate and be eligible for group life insurance benefits.System.

    Updates the wording to clarify the establishment of the Death Benefit Plan.

  • G.S. 135-160

    the provisions of G.S. 135-6 and G.S. 135-7 are applicable to the Death Benefit Plan. → the provisions of the Retirement System pertaining to Administration, G.S. 135-6, and management of funds, G.S. 135-7, are hereby made G.S. 135-6 and G.S. 135-7 are applicable to the Death Benefit Plan.

    Clarifies the applicability of existing administrative provisions to the Death Benefit Plan.

  • G.S. 135-160

    fully contributory death benefit for retirees provided for under any of the following takes effect unless and until this same decision has been made and voted on by the Board of Trustees of the Local Governmental Employees Retirement System: → fully contributory death benefit for retirees provided for under this Chapter, Chapter 120, or Chapter 127A of the General Statutes, any of the following shall take effect unless and until this same decision has been made and voted on by the Board of Trustees of the Local Governmental Employees Retirement System.System:

    Clarifies the conditions under which decisions about contributory death benefits take effect.

  • G.S. 135-165

    (a) Eligibility. – A member who is not retired and who has completed at...

    This section is not fully provided but would indicate the introduction of eligibility requirements.

Action History

  1. Sequential Referral To Judiciary Added After Pensions and Retirement and Aging

  2. Withdrawn From Com

  3. Re-ref to Pensions and Retirement and Aging. If fav, re-ref to Rules and Operations of the Senate

  4. Passed 1st Reading

  5. Ref To Com On Rules and Operations of the Senate

  6. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 2 co-sponsors · 175 not signed on

Sponsors (2)

Co-sponsors (2)

Not signed on (175)

175 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

finance healthcare labor health-insurance
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Frequently asked questions

Who sponsors SB 359?
SB 359 is sponsored by Jim Burgin (Republican), Bobby Hanig (Republican), Carl Ford (Republican), and W. Ted Alexander (Republican).
What is the current status of SB 359?
This bill is in committee in the Senate. Introduced March 20, 2025. It must pass committee before a floor vote.
Where can I track SB 359?
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