§ 143-166.60. Separate insurance benefits plan for law-enforcement officers. - North Carolina Statutes

Article 12F.

Separate Insurance Benefits Plan for State and LocalGovernmental Law‑Enforcement Officers.

§ 143‑166.60.  Separate insurance benefits planfor law‑enforcement officers.

(a)        A Separate Insurance Benefits Plan, hereinafter called the"Plan", is to be an employee welfare benefit plan, established forthe benefit of (i) all law enforcement officers, as defined in G.S. 135‑1(11b)and G.S. 128‑21(11b) employed by the State and local governments and (ii)all former law‑enforcement officers previously employed by the State andlocal governments, who had 20 or more years of service as an officer or are inreceipt of a disability retirement allowance from any State‑administeredretirement system or are in receipt of a benefit from the Disability Income Planof North Carolina, who shall be participants.

(b)        The Boards of Trustees of the Teachers' and State Employees'Retirement System and the Local Governmental Employees' Retirement System shalljointly administer the Plan and shall, under the terms and conditions otherwiseappearing in this Article, provide Plan benefits either (i) by establishing aseparate trust fund in conformance with Section 501(c)(9) of the InternalRevenue Code of 1954 as amended or, (ii) by causing the Plan to affiliate witha master trust providing the same benefits for participants.

(c)        The initial assets of the Plan are the assets of the formerSeparate Benefit Plan established under G.S. 143‑166.04 as it existedprior to January 1, 1986, which shall be transferred to the Plan on January 1,1986. The Plan shall be separate and apart from any retirement systems orplans.

(d)        The Boards of Trustees shall promulgate rules andregulations as are necessary to establish benefits under the Plan, within theavailability of funds, to provide:

(1)        An accident and sickness disability insurance benefit;

(2)        A group life insurance benefit for participants employed byan employer at the time of death, not to exceed five thousand dollars ($5,000);

(3)        A group life insurance benefit for participants who areeligible former officers, not to exceed four thousand dollars ($4,000); and

(4)        An accidental line‑of‑duty insurance deathbenefit not to exceed two thousand one hundred dollars ($2,100) in total onaccount of the death of a participant caused by an accident while in the actualperformance of duty as an officer.

(e)        The insurance benefit of the Plan on account of the death ofa participant shall be payable to the surviving spouse of the participant orotherwise to the participant's estate; provided, should a participant instructthe Board of Trustees in writing that he does not wish these benefits to bepaid to his spouse or estate, then the benefits shall be paid to the person orpersons as the participant may name for this purpose. The life insurancebenefits shall be payable only on account of participants in the Plan for sixor more months or, if an actively employed officer, at any time afteremployment if death results from an accident. The accident and sicknessdisability insurance benefits shall be payable to a participant at any timeafter becoming a participant in the Plan.

(f)         Should amounts in the trust fund of the Plan beinsufficient at any time to enable the Boards of Trustees to pay benefits duein full, then an equitable graded percentage of the payment shall be made.

(g)        The provisions of the State and Local Retirement Systemspertaining to administration and management of funds under G.S. 128‑28,G.S. 128‑29, G.S. 135‑6 and G.S. 135‑7 are made applicable tothe Plan.

(h)        Exemption from Garnishment and Attachment. – The right of aparticipant in the Separate Insurance Benefits Plan to the benefits providedunder this Article is nonforfeitable and exempt from levy, sale, andgarnishment. (1985, c. 479, s. 196(t);1987, c. 738, s. 29(p); 1989, c. 792, s. 2.8; 2003‑284, s. 30.19B(b).)