Senate Bill 398 Summary

• Repeals existing subsections in felony forfeiture statutes and clarifies that National Guard pension members and Disability Income Plan participants forfeit benefits upon conviction of certain felonies.

• Establishes new statute § 127A-40.1 requiring National Guard members to cease pension eligibility upon felony benefit forfeiture and new statute § 135-103(c) requiring Disability Income Plan participants to cease benefit eligibility upon felony benefit forfeiture, effective immediately upon passage.

• Creates new statute § 135-75.1C prohibiting the Board of Trustees from paying retirement benefits to judges convicted on impeachment or removed from office under G.S. 7A-376(b) for reasons other than physical or mental incapacity, except for return of member contributions plus interest.

• Allows judges whose benefits were forfeited to seek reversal if the conviction or removal is vacated or set aside, requiring repayment of accumulated contributions plus interest compounded annually at 6.5% for reinstatement of service credit.

• Effective January 1, 2020, for judges; immediate effectiveness for National Guard and Disability Income Plan provisions; requires the General Assembly and Supreme Court to notify the State Treasurer and Board of Trustees of any judge convictions on impeachment or removals from office.