Section 88-74.5 - Finalizing of pensions(a) The system shall finalize a retirant's pension benefit within six calendar months following the month of the retirant's retirement when the effective date of retirement is the first day of the month. When the effective date of retirement is December 31, the system shall finalize a retirant's pension benefit within seven calendar months following the month of the retirant's retirement. For pension benefits finalized after the sixth calendar month following the month of the retirant's retirement when the effective date of retirement is on the first day of the month, or the seventh calendar month following the month of the retirant's retirement when the effective date of retirement is December 31, an interest payment amounting to an amount to be established by the board that shall not be less than the ninety day United States treasury bill rate as of the end of the prior year plus one per cent per year shall be paid to the retirant. Interest shall be calculated on the difference between the amount the retirant is entitled to receive from the retirant's retirement date up to the day the payment is made and the amount the retirant was paid, including any refund of member contributions. Beginning January 1, 2004, or the first day of the seventh calendar month following the month of retirement when the effective date of retirement is on the first day of the month, or the first day of the eighth calendar month following the month of retirement when the effective date of retirement is December 31, whichever is the latest, interest payments calculated as simple interest shall be prorated up to the date payment is made; provided that any pension adjustment made after the retirant's pension has once been finalized shall not be subject to any interest payment.
The system shall finalize ordinary and service-connected disability retirements within six calendar months following the month that the member's retirement is approved by the board or the actual retirement date specified by the member, whichever is later.
(b) Any department or agency of the State or counties that fails to comply with the system's request for information shall be subject to a monthly fee for each request as follows: (1) For requests for unused sick leave balances and lump sum vacation payments not reported within ninety days of an employee's retirement; and(2) For requests for payroll or personnel information not reported within thirty days of receipt of request. Beginning January 1, 2004, the system shall assess $10 for each month or fraction thereof that the department or agency fails to provide the system with the requested information for each retiree. All assessments collected shall be deposited to the pension accumulation fund.
Amended by L 2017, c 17,§ 1, eff. 7/1/2017. L 2003, c 134, §1; am L 2006, c 169, §10