§ 120-4.27.  Death while in service; fully contributory death benefit for retirees.

(a) The designated beneficiary of a member who dies while in service after completing one year of creditable service shall receive a lump-sum payment of an amount equal to the deceased member's highest annual salary, to a maximum of fifteen thousand dollars ($15,000). For purposes of this death benefit "in service" means currently serving as a member of the North Carolina General Assembly. "In service" also means service in the Uniformed Services, as that term is defined in section 4303(16) of the Uniformed Services Employment and Reemployment Rights Act, Public Law 103-353, if that service begins during the member's term of office. If the participant does not return immediately after that service to employment with a covered 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.

(b) All retired members may elect to participate in a fully contributory death benefit for retirees. All of the following apply to the fully contributory death benefit for retirees:

(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. Elections shall be received by the Board of Trustees prior to the death of the retired member.

(2) Retired members electing to receive a fully contributory death benefit under this subsection shall continuously pay monthly premiums on a fully contributory basis, as determined by the Board of Trustees. Premium payments shall be made through retirement allowance deductions or other methods adopted by the Board of Trustees.

(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 to the beneficiary or beneficiaries designated by the member. If no beneficiary is designated or living, then the death benefit shall be paid to the deceased retired member's legal representative.

(4) A member shall designate a beneficiary or beneficiaries for the death benefit payable under this subsection 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.

(5) The amount of the lump sum fully contributory death benefit payable under this subsection is one of the following:

a. 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).

b. If the death occurred before the first day of the twenty-fifth month of coverage under this subsection, then the amount payable is the sum of the retired member's premium payments made in accordance with this subsection plus interest in an amount to be determined by the Board of Trustees.  (1983, c. 761, s. 238; 1985, c. 400, s. 9; 1987, c. 824, s. 1; 1998-212, s. 28.27(d); 2004-147, s. 4; 2007-496, s. 3; 2009-66, s. 6(d); 2014-112, s. 3(d); 2017-129, s. 2(q); 2022-16, s. 4.1; 2023-105, s. 1.3; 2025-11, s. 8(d).)