Senate Bill 491 - Summary

• Revises G.S. 50-20.1 to expand distribution methods for vested and nonvested pension, retirement, and deferred compensation benefits in equitable distribution proceedings.

• Adds new subsection (d1) establishing separate rules for defined contribution plans and IRAs, requiring courts to determine marital portion based on contributions and earnings during marriage rather than using the employment-time fraction method.

• Clarifies that awards of pension and retirement benefits include cost-of-living adjustments and similar enhancements to the participant's benefit accrued by the date of separation.

• Creates presumption that "separate interest" approach shall be used for dividing benefits when permitted by the plan, and allows courts to award survivor annuity protection to nonparticipant spouses.

• Becomes effective October 1, 2019, and applies to distributions on or after that date.