§ 128-28. Administration and responsibility for operation of System. - North Carolina Statutes

§ 128‑28. Administration and responsibility for operation of System.

(a)        Vested in Board ofTrustees. – The general administration and responsibility for the properoperation of the Retirement System and for making effective the provisions ofthis Article are hereby vested in the Board of Trustees: Provided, that allexpenses in connection with the administration of the North Carolina LocalGovernmental Employees' Retirement System shall be charged against and paidfrom the expense fund as provided in subsection (f) of G.S. 128‑30.

(b)        Board of Trustees aBody Politic and Corporate; Powers and Authority; Exemption from Taxation. – TheBoard of Trustees shall be a body politic and corporate under the name Board ofTrustees of the North Carolina Local Governmental Employees' Retirement System,and as a body politic and corporate shall have the right to sue and be sued,shall have perpetual succession and a common seal, and in said corporate nameshall be able and capable in law to take, demand, receive and possess all kindsof real and personal property necessary and proper for its corporate purposes,and to bargain, sell, grant, alien, or dispose of all such real and personalproperty as it may lawfully acquire. All such property owned or acquired bysaid body politic and corporate shall be exempt from all taxes imposed by theState or any political subdivision thereof, and shall not be subject to incometaxes.

(c)        Members of Board. –The Board shall consist of (i) seven members of the Board of Trustees of the Teachers'and State Employees' Retirement System appointed under G.S. 135‑6(b): theState Treasurer; the Superintendent of Public Instruction; the two membersappointed by the General Assembly; and the three members appointed by theGovernor who are not members of the teaching profession or State employees; and(ii) seven members designated by the Governor:

(1)        One member shall bea mayor or a member of the governing body of a city or town participating inthe Retirement System;

(2)        One member shall bea county commissioner of a county participating in the Retirement System;

(3)        One member shall bea law‑enforcement officer employed by an employer participating in theRetirement System;

(4)        One member shall bea county manager of a county participating in the Retirement System;

(5)        One member shall bea city or town manager of a city or town participating in the RetirementSystem;

(6)        One member shall bean active, Fair Labor Standards Act nonexempt, local governmental employee ofan employer; and

(7)        One member shall bea retired, Fair Labor Standards Act nonexempt, local governmental employee ofan employer.

The Governor shall designateseven members on April 1 of years in which an election is held for the officeof Governor, or as soon thereafter as possible, and the seven membersdesignated by the Governor shall serve on the Board in addition to the regularduties of their city, town, or county office: Provided, that if for any reasonany member appointed pursuant to subdivisions (1) through (6) of this subsectionvacates the city, town, or county office or employment which the member held atthe time of this designation, the Governor shall designate another member toserve until the next regular date for the designation of  members to serve onthe Board.

(d)        Compensation ofTrustees. – The trustees shall be paid during sessions of the Board at theprevailing rate established for members of State boards and commissions, andthey shall be reimbursed for all necessary expenses that they incur throughservice on the Board.

(e)        Oath. – Eachtrustee other than the ex officio members shall, within 10 days after hisappointment, take an oath of office, that, so far as it devolves upon him, hewill diligently and honestly administer the affairs of the said Board, and thathe will not knowingly violate or willingly permit to be violated any of theprovisions of law applicable to the Retirement System. Such oath shall besubscribed to by the member making it, and certified by the officer before whomit is taken, and immediately filed in the office of the Secretary of State:Provided, that where a local governmental official designated by the Governorhas taken an oath of office in connection with the local governmental officethat he holds, the oath for his local governmental office shall be deemed to besufficient, and he shall not be required to take the oath hereinabove provided.

(f)         Voting Rights. – Eachtrustee shall be entitled to one vote in the Board. A majority of affirmativevotes in attendance shall be necessary for a decision by the trustees at anymeeting of said Board.

(g)        Rules andRegulations. – Subject to the limitations of this Chapter, the Board ofTrustees shall, from time to time, establish rules and regulations for theadministration of the funds created by this Chapter and for the transaction ofits business. The Board of Trustees shall also, from time to time, in itsdiscretion, adopt rules and regulations to prevent injustices and inequalitieswhich might otherwise arise in the administration of this Chapter.

(h)        Officers and OtherEmployees, Salaries and Expenses. – The Board of Trustees shall elect from itsmembership a chairman, and shall, by a majority vote of all the members,appoint a director, who may be, but need not be, one of its members. The Boardof Trustees shall engage such actuarial and other service as shall be requiredto transact the business of the Retirement System. The compensation of allpersons engaged by the Board of Trustees, and all other expenses of the Boardnecessary for the operation of the Retirement System, shall be paid at suchrates and in such amounts as the Board of Trustees shall approve.

(i)         Actuarial Data. – TheBoard of Trustees shall keep in convenient form such data as shall be necessaryfor actuarial valuation of the various funds of the Retirement System, and forchecking the experience of the System.

(j)         Record ofProceedings; Annual Report. – The Board of Trustees shall keep a record of allof its proceedings which shall be open to public inspection. It shall publishannually a report showing the fiscal transactions of the Retirement System forthe preceding year, the amount of the accumulated cash and securities of theSystem, and the last balance sheet showing the financial condition of theSystem by means of an actuarial valuation of the assets and liabilities of theRetirement System.

(k)        Legal Adviser. – TheAttorney General shall be the legal adviser of the Board of Trustees.

(l)         Medical Board. – TheBoard of Trustees shall designate a Medical Board to be composed of not lessthan three nor more than five physicians not eligible to participate in theRetirement System. If required, other physicians may be employed to report onspecial cases. The Medical Board shall arrange for and pass upon all medical examinationsrequired under the provisions of this Chapter, and shall investigate allessential statements and certificates by or on behalf of a member in connectionwith an application for disability retirement, and shall report in writing tothe Board of Trustees its conclusion and recommendations upon all the mattersreferred to it.

(m)       Duties of Actuary. –The Board of Trustees shall designate an actuary who shall be the technicaladviser of the Board of Trustees on matters regarding the operation of the fundscreated by the provisions of this Chapter and shall perform such other dutiesas are required in connection therewith.

(n)        Immediately afterthe establishment of the Retirement System the actuary shall make suchinvestigation of the mortality, service and compensation experience of themembers of the System as he shall recommend and the Board of Trustees shallauthorize, and on the basis of such investigation he shall recommend foradoption by the Board of Trustees such tables and such rates as are required insubsection (o), paragraphs (1) and (2), of this section. The Board of Trusteesshall adopt tables and certify rates, and as soon as practicable thereafter theactuary shall make a valuation based on such tables and rates of the assets andliabilities of the funds created by this Chapter.

(o)        In the year 1945,and at least once in each five‑year period thereafter, the actuary shallmake an actuarial investigation into the mortality, service and compensationexperience of the members and beneficiaries of the Retirement System, and shallmake a valuation of the assets and liabilities of the funds of the System, andtaking into account the result of such investigation and valuation, the Boardof Trustees shall:

(1)        Adopt for theRetirement System such mortality, service and other tables as shall be deemednecessary; and

(2)        Certify the rates ofcontributions payable by the participating units on account of new entrants atvarious ages.

(p)        On the basis ofsuch tables and interest assumption rate as the Board of Trustees shall adopt,the actuary shall make an annual valuation of the assets and liabilities of thefunds of the System created by this Chapter.

(q)        Notwithstanding anylaw, rule, regulation or policy to the contrary, any board, agency, department,institution or subdivision of the State maintaining lists of names andaddresses in the administration of their programs may upon request provide tothe Retirement System information limited to social security numbers, currentname and addresses of persons identified by the System as members,beneficiaries, and beneficiaries of members of the System. The System shall usesuch information for the sole purpose of notifying members, beneficiaries, andbeneficiaries of members of their rights to and accruals of benefits in theRetirement System. Any social security number, current name and address soobtained and any information concluded therefrom and the source thereof shallbe treated as confidential and shall not be divulged by any employee of theRetirement System or of the Department of State Treasurer except as may benecessary to notify the member, beneficiary, or beneficiary of the member oftheir rights to and accruals of benefits in the Retirement System. Any person,officer, employee or former employee violating this provision shall be guiltyof a Class 1 misdemeanor; and if such offending person be a public official oremployee, he shall be dismissed from office or employment and shall not holdany public office or employment in this State for a period of five yearsthereafter. (1939,c. 390, s. 8; 1941, c. 357, s. 6; 1945, c. 526, s. 7; 1961, c. 515, ss. 3, 4;1965, c. 781; 1969, c. 442, s. 15; 1973, c. 243, s. 8; 1985, c. 479, s. 196(o);1987, c. 539, s. 1; 1993, c. 539, s. 944; 1994, Ex. Sess., c. 24, s. 14(c);2006‑64, ss. 1.1, 1.2.)