SUBCHAPTER 2C ‑ LOCAL GOVERNMENTAL EMPLOYEES'
RETIREMENT SYSTEM
SECTION .0100 ‑ GENERAL PROVISIONS
20 NCAC 02C .0101 GENERAL INFORMATION
General information about the Local Governmental Employees'
Retirement System includes the following:
(1) The chief officer is the Director of the Retirement
Systems;
(2) The mailing address is 325 North Salisbury Street,
Raleigh, North Carolina 27611;
(3) The office is located in the Albemarle Building,
325 North Salisbury Street, Raleigh, North Carolina.
History Note: Authority G.S. 128‑28(g); 150B‑10;
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0102 PURPOSE
20 NCAC 02C .0103 FORMS
History Note: Authority G.S. 128‑28(g); 150A‑10;
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Repealed Eff. March 1, 1985.
SECTION .0200 ‑ ADMINISTRATION
20 NCAC 02C .0201 ACTUARIAL TABLES: RATES AND
ASSUMPTIONS
(a) Actuarial tables and assumptions will be adopted by the
board of trustees after the presentation of the recommendations of the actuary
by including the tables, rates, etc. in the minutes of the board with the
resolution adopting said tables, rates or assumptions.
(b) The director of the retirement systems shall maintain a
file of copies of all resolutions adopting tables, rates or assumptions and the
current version of all tables as amended by the board of trustees. The file
shall be open and readily available to the public during regular office hours.
(c) This Rule includes but is not limited to the following
actuarial tables and assumptions:
(1) interest rate assumptions;
(2) salary increase assumptions;
(3) required contribution rates;
(4) mortality assumptions;
(5) separation and retirement assumptions;
(6) joint and survivor tables;
(7) reserve transfer tables.
(d) Tables, rates and assumptions shall become effective on
the first day of the month following adoption, unless a specific effective date
is included in the adopting resolution. If the specific date is included, the
tables, rates or assumptions shall be effective as provided in the adopting resolution.
History Note: Authority G.S. 128‑27(m); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Amended Eff. August 1, 1981.
20 NCAC 02C .0202 DEATH OF RETIRED MEMBER
During the month a retired member dies, the legal
representative of the deceased shall be entitled to a full check for the month
in which death occurred.
History Note: Authority G.S. 128‑27(m); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0203 DISCLOSURE OF INFORMATION
The director is authorized in his discretion to release
lists of retired personnel to the public local government entities of the State
of North Carolina and to non‑profit public associations and organizations
of retired personnel.
History Note: Authority G.S. 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Amended Eff. March 1, 1985.
20 NCAC 02C .0204 FACILITY OF PAYMENT
The provisions of G.S. 135‑17, Facility of Payment,
are adopted as applicable policy under the local system, as authorized by G.S.
128‑28(g).
History Note: Authority G.S. 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0205 MEDICAL BOARD
The Director of the Retirement Systems and the chairman of
the board of trustees are authorized to increase the membership of the medical
board from three to five physicians with a quorum of three being required at
meetings approving applications for disability retirement.
History Note: Authority G.S. 128‑28(1);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0206 SURVIVOR'S ALTERNATE BENEFIT
With respect to eligibility for the survivor's alternate
benefit, any member who files an acceptable application for retirement while in
service will be deemed "in service" until he has cashed his first retirement
check.
History Note: Authority G.S. 128‑28(a);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0207 DIRECTOR
History Note: Authority G.S. 128‑28(a);
Eff. February 1, 1976;
Repealed Eff. September 21, 1977.
20 NCAC 02C .0208 TRANSFER OF MEMBERSHIP
History Note: Filed as an Emergency Regulation Eff.
October 29, 1979, to be Eff. for a Period of 90 Days
to Expire on January 27, 1980;
Statutory Authority G.S. 128‑28(g);
Repealed Eff. March 1, 1985.
20 NCAC 02C .0209 RETROACTIVE MEMBERSHIP SERVICE
(a) A member omitted from contributing membership through
error may within three years of such omission be allowed membership service,
after clear and convincing evidence of the error is submitted to the director,
by payment of the employee and employer contributions which would have been
paid during the period of time omitted plus interest on both equal to the
average yield of the pension accumulation fund during the period of time
omitted.
(b) A member omitted from contributing membership through
error may after three years of such omission be allowed membership service,
after clear and convincing evidence of the error is submitted to the director,
by payment of the full actuarial liability for the additional service in the
same manner prescribed in 20 NCAC 2C .1500, Delayed Purchase Of Service
Credits.
History Note: Authority G.S. 128‑24(1); 128‑28(g);
Eff. June 1, 1984.
SECTION .0300 ‑ BENEFICIARIES
20 NCAC 02C .0301 DESIGNATION
Any beneficiaries designated, other than the estate of the
member or a trustee named by and acting for the member, must be living persons
at the time the designation is made. If it is desired that the estate be
beneficiary, this should be indicated on the form.
History Note: Authority G.S. 128‑27; 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0302 PRINCIPAL BENEFICIARY
(a) More than one principal beneficiary may be named to
share equally. In the event of the death of any so named, those surviving shall
share equally in the total benefits.
(b) A principal beneficiary may be named with the
stipulation that should he predecease the member, payment of the amount due, if
any, will be made to a designated contingent beneficiary. It is permissible to
name more than one contingent beneficiary. In the event of the death of any so
named, those surviving shall share equally in the total benefits. If more than
one principal beneficiary is named, the naming of a contingent beneficiary or
beneficiaries will not be permitted.
History Note: Authority G.S. 128‑27(g); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0303 NO LIVING BENEFICIARY
If no named beneficiary, whether principal or contingent, is
living at the time of the member's death, payment of the amount due, if any,
will be made to the estate of the member.
History Note: Authority G.S. 128‑27(g); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0304 PAYMENTS TO BENEFICIARIES
Payments to beneficiaries who are minors will be made to a
duly appointed guardian or to the clerk of the superior court in the county
which they reside to the extent that such payment may be authorized by law.
History Note: Authority G.S. 128‑27(g); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0305 STATUS CHANGE
History Note: Authority G.S. 128‑27(g); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Repealed Eff. March 1, 1985.
20 NCAC 02C .0306 BENEFICIARY CHANGE
Prior to retirement, the member has the right at any time,
and from time to time, to change any beneficiaries designated without the
knowledge or consent of the beneficiaries. Any such change must be submitted
to the board of trustees, using the appropriate form.
History Note: Authority G.S. 128‑27(g); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
SECTION .0400 ‑ CONTRIBUTIONS
20 NCAC 02C .0401 CONTRIBUTION RATES
History Note: Filed as an Emergency Amendment [(a)]
Eff. July 1, 1979, to be Eff. for a Period of 120 Days
to Expire on October 29, 1979;
Statutory Authority G.S. 128‑28(o); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Emergency Amendment [(a)] Made Permanent Eff. October 29,
1979;
Repealed Eff. August 1, 1981.
20 NCAC 02C .0402 EMPLOYER'S CONTRIBUTIONS
All units should forward to the retirement system the
employer's contributions monthly at the same time the employee's contributions
are forwarded.
History Note: Authority G.S. 128‑30(g)(1); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0403 REFUNDS
The retirement system will make no refunds of employer
contributions in cases of erroneous employee deductions except those which are
corrected by the employing unit on a subsequent payroll within the calendar
year in which the errors occur. The only exception to this Rule is that an
error occurring in December may be corrected (without loss of the employer
contribution) by submission of a revised payroll with checks for the correct
amount before January 31, of the following year.
History Note: Authority G.S. 128‑30(g); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0404 DUE DATE OF CONTRIBUTIONS
Both the employee and employer contributions are due in the
Raleigh offices of the Retirement System no later than the fifth State
government working day of the month succeeding the month for which the contributions
are required. Contributions received after the fifth State government working
day of the month are delinquent.
History Note: Authority G.S. 128‑28(g); 128‑30(g);
Eff. March 1, 1992.
SECTION .0500 ‑ DISABILITY RETIREMENT
20 NCAC 02C .0501 DISABILITY EXAMINATION
The director is authorized to conduct examinations in
doubtful cases of disability to determine the condition of the disability,
paying the expense of the same from the pension accumulation fund.
History Note: Authority G.S. 128‑27(c); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0502 DISABILITY RETIREMENT REPORTS
When the medical board, subsequent to a disability
retirement, reports that the retired member is engaged in, or is able to engage
in, a gainful occupation, any adjustment required by G.S. 128‑27(e)(1)
will be made prospectively only; and will not relate back so as to require any
refund to the state of payments made during the period before a report is made
indicating changed status.
History Note: Authority G.S. 128‑27(e)(1); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0503 FEES: INDEPENDENT MEDICAL EXAMS‑DISABILITY
RETIREMENTS
Physicians employed upon the recommendations of the Medical
Board to examine and report on special cases of disability retirement
applicants and re‑examination of disability beneficiaries shall be paid
fees commensurate with usual, customary and reasonable charges for such tests,
examinations, procedures and reports as the Medical Board might request; and,
the amounts of such fees shall be predetermined by mutual agreement between the
Director and the physicians so employed, with the advice of the Medical Board
as to the amounts, provided that no fee for any one applicant or beneficiary
shall exceed the sum of one hundred and fifty dollars ($150.00).
History Note: Authority G.S. 128‑27(c); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Amended Eff. August 1, 1981.
20 NCAC 02C .0504 REINSTATEMENT TO ACTIVE SERVICE
When members on disability retirement are reinstated to
active service, no interest shall be allowed on their accounts during the year
of reinstatement.
History Note: Authority G.S. 128‑29(b); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
SECTION .0600 ‑ INVESTMENTS
20 NCAC 02C .0601 STOCK PURCHASE
20 NCAC 02C .0602 INVESTMENT COMMITTEE
20 NCAC 02C .0603 FUNDS OF THE SYSTEM
20 NCAC 02C .0604 EQUITY RESERVE
History Note: Authority G.S. 128‑29; 128‑29.1;
128‑28(g);
Eff. February 1, 1976;
Repealed Eff. September 21, 1977.
SECTION .0700 ‑ LEAVES OF ABSENCE
20 NCAC 02C .0701 EDUCATIONAL LEAVES OF ABSENCE
(a) All members, who request approval to purchase
creditable service and who fulfill all the requirements of law and the rules of
this board, shall be allowed to purchase the service in accordance with the law
and the rules of this board.
(b) Payments to be made for purchases on account of current
leaves shall be submitted on Form 224, Payment of Contributions for a Current
Leave of Absence, which shall be submitted as required by law. If the employer
will make part of the payment, the employer shall submit the total payment. If
the member will make the entire payment, the member shall submit the total
payment. In any case in which the employer continues to make salary payments,
in whole or part, the director may make an agreement with the employer on how
to make the payments which is not inconsistent with the law or the rules of
this board.
(c) Contributions for purchase of service shall not be
accepted unless the member has applied for permission to purchase the service
not later than the due date of the payment for the first month for which credit
is to be purchased. Application after the last day of the first month for
which service is to be purchased and the due date thereof shall be accompanied
by a check in payment of the contribution for said month.
(d) Payment shall be deemed to have been made on the date
received by the board, provided that a payment made by mail which is clearly
postmarked on or before the due date shall be deemed paid when due.
(e) Purchases of service credit for leaves of absence prior
to July 1, 1981 shall be made in the same manner as prescribed in 20 NCAC 2C
.1500, DELAYED PURCHASE OF SERVICE CREDITS.
(f) The governing body of an employer may define prior
service to include educational leaves of absence granted by the employer during
the member's prior service; provided that the leave of absence if begun at the
date of certification of the service would have qualified for current purchase
of service.
History Note: Authority G.S. 128‑28(g); 128‑30(b)(4);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Amended Eff. March 1, 1982.
20 NCAC 02C .0702 LIMITATION
20 NCAC 02C .0703 PRIOR SERVICE CREDIT
History Note: Authority G.S. 128‑30(b)(4); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Repealed Eff. March 1, 1982.
20 NCAC 02C .0704 WORKERS' COMPENSATION LEAVES OF
ABSENCE
(a) All members, who request approval to purchase
creditable service and who fulfill all of the requirements of law and the rules
of the board, shall be allowed to purchase the service in accordance with the
law and rules of the board.
(b) Purchases of creditable service for leaves of absence
prior to July 1, 1983 shall be made in the same manner as prescribed in 20 NCAC
2C .1500 DELAYED PURCHASE OF SERVICE CREDITS. A fee in the amount of twenty‑five
dollars ($25.00) for each payment will be assessed members at the time of
purchase as provided by law.
(c) Purchases of creditable service for leaves of absence
on and after July 1, 1983 shall be paid in the manner prescribed in law equal
to the sum of the total employer and employee percentage rates of contribution
in effect at the time of purchase multiplied by the annual rate of compensation
of the member immediately prior to the leave of absence applied to the period
of the leave commencing on the first day and ending on the last day before
return to service.
(d) Members who had leaves of absence which otherwise met
all requirements of law for purchase as creditable service except that the
leaves of absence interrupted membership in the Teachers' and State Employees'
Retirement System or the Law Enforcement Officers' Retirement System and whose
membership service before and after the leaves of absence has become membership
service in the Local Governmental Employees' Retirement System, may purchase
creditable service as in (b) of this Rule.
(e) Members may purchase creditable service for leaves of
absence only when they have membership service credits immediately prior to and
immediately after the leaves of absence and such membership service is
creditable service at the time of purchase.
History Note: Authority G.S. 128‑26(1); 128‑28(g);
Eff. December 1, 1983;
Amended Eff. August 1, 1988.
SECTION .0800 ‑ MEMBERSHIP
20 NCAC 02C .0801 PARTICIPATION
A unit will not be considered a participant of the Local
Governmental Employees' Retirement System until the first payment of
contributions has been made.
History Note: Authority G.S. 128‑25; 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0802 REGULARLY EMPLOYED
An officer or employee in a regular position, the duties of
which require not less than 1,000 hours of service per year shall be an
employee as defined in G.S. 128‑21(10).
History Note: Authority G.S. 128‑21(10); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0803 TRANSFERRED SERVICE
The term "membership service" as defined in G.S.
128‑21(14) includes service rendered to an employer while a member of
another retirement system, provided that said service was transferred to the
Local Governmental Employees' Retirement System pursuant to G.S. 128‑25.
History Note: Authority G.S. 128‑28(g);
Eff. September 21, 1977;
Amended Eff. March 1, 1985; September 1, 1982.
SECTION .0900 ‑ MILITARY SERVICE (INCHOATE RIGHTS ONLY)
20 NCAC 02C .0901 LEAVE
When a member on military leave has withdrawn all of his
contributions, he will be permitted to pay back the amount withdrawn, restore
his membership and receive credit for the period of his military leave.
History Note: Authority G.S. 128‑27(f); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0902 FEE
A fee in the amount of twenty‑five dollars ($25.00)
for each payment, for obtaining military service credit, will be assessed each
individual at the time of payment to help defray the expense of handling.
History Note: Authority G.S. 128‑26(a); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0903 QUALIFYING FOR CREDIT
In order to qualify to obtain credit for military service,
each individual must pay for the full period of military service for which he
is eligible.
History Note: Authority G.S. 128‑26(a); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0904 COMPUTATION OF COST
The cost of purchasing credit for military service is
calculated as follows:
(1) the monthly compensation the member earned when he
first entered membership; times
(2) the contribution rate at time he first entered membership;
times
(3) the number of months of military service for which
credit is to be purchased; plus
(4) a factor equivalent to interest at the rate of six
and one‑half percent, compounded annually, from the initial year of
membership to the year of payment.
History Note: Authority G.S. 128‑26(a); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0905 CONTRIBUTION RATE
History Note: Authority G.S. 128‑26(a); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Repealed Eff. August 1, 1981.
20 NCAC 02C .0906 CIVIL SERVICE PROGRAM
A member of the Local Governmental Employees' Retirement
System whose employment in this state requires him to participate in the
Federal Civil Service Program in lieu of the social security program shall not
be barred from receiving military service credit for which he is otherwise
eligible in the retirement system despite the fact that he may also receive
credit under civil service for the same period of military service, provided
that he makes the required payment.
History Note: Authority G.S. 128‑26(a); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0907 EXCLUSION
The exclusion, for purchase of service in the Armed Forces
of the United States as it pertains to credit for any other retirement system,
shall not include "service connected disability" benefits received
from the Veterans Administration of the Federal Government except when such
benefits are a supplement to a "longevity retirement" benefit.
History Note: Authority G.S. 128‑26(a); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0908 RECALCULATION OF BENEFITS
For members already retired who avail themselves of the
provisions for obtaining military service credit, any recalculation of benefits
shall be based on the law in effect at the time of the individual's retirement
including the additional service credit and effect shall be given for all
benefit increases subsequent to the date of retirement which shall be a part of
the total cost of providing the additional service credit.
History Note: Authority G.S. 128‑26(a); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0909 CHANGE IN BENEFITS
For members already retired, any change in benefits
resulting from the provisions for obtaining military service credit shall
become effective as of the first of the month following receipt of the required
payment.
History Note: Authority G.S. 128‑26(a); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .0910 EMPLOYER PORTION OF ANNUAL COST
History Note: Authority G.S. 128‑26(a); 128‑28(g);
Eff. February 1, 1976;
Repealed Eff. September 21, 1977.
20 NCAC 02C .0911 PAYMENTS
History Note: Authority G.S. 128‑26(a); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Repealed Eff. March 1, 1985.
20 NCAC 02C .0912 INITIAL PERIOD OF ACTIVE DUTY
The term "initial period of active duty," as used
in G.S. 128‑26(a) is construed as including but not limited to any active
duty in the armed forces of the United States during the periods beginning September
16, 1940 and ending December 31, 1946, and beginning June 27, 1950 and ending
January 31, 1955.
History Note: Authority G.S. 128‑26(a); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
SECTION .1000 ‑ OUT‑OF‑STATE SERVICE
(INCHOATE RIGHTS ONLY)
20 NCAC 02C .1001 FEE
A fee in the amount of twenty‑five dollars ($25.00)
for each payment, for obtaining out‑of‑state service credit, will
be assessed each individual at the time of payment to help defray the expense
of handling.
History Note: Authority G.S. 128‑26(j); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1002 QUALIFYING FOR CREDIT
In order to qualify, each individual must pay for all or
such portion in full years as he desires of out‑of‑state service
for which he is eligible.
History Note: Authority G.S. 128‑26(j); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1003 OTHER GOVERNMENTAL SUBDIVISION
"Other governmental subdivision of the United
States" shall mean a state or territory and its subdivisions but not the
United States Government.
History Note: Authority G.S. 128‑28(g); S.L.
1987, C. 617;
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Amended Eff. August 1, 1988.
20 NCAC 02C .1004 COMPUTATION OF COST
The cost of purchasing credit for out‑of‑state
service is calculated as follows:
(1) the monthly compensation the member earned when he
first entered membership service; times
(2) the employee contribution rate at that time; times
(3) the number of months of out‑of‑state
service for which credit is to be purchased; times
(4) two; plus
(5) a factor equivalent to interest at the rate of six
and one‑half percent, compounded annually, from the year of initial
membership to the year of payment.
History Note: Authority G.S. 128‑26(j); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1005 NO COST TO LOCAL UNITS
History Note: Authority G.S. 128‑26(j); 128‑28(g);
Eff. February 1, 1976;
Repealed Eff. September 21, 1977.
20 NCAC 02C .1006 RECALCULATION OF BENEFITS
For members already retired who avail themselves of the
provisions for obtaining credit for out‑of‑state service, any
recalculation of benefits shall be based on the law in effect at the time of
the individual's retirement including the additional service credit and effect
shall be given for all benefit increases subsequent to the date of retirement
which shall be a part of the total cost of providing the additional service
credit.
History Note: Authority G.S. 128‑26(j); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1007 CHANGE IN BENEFITS
For members already retired, any change in benefits
resulting from the provisions for obtaining credit for out‑of‑state
service shall become effective as of the first of the month following receipt
of the required payment.
History Note: Authority G.S. 128‑26(j); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1008 PAYMENTS
History Note: Authority G.S. 128‑26(j); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Repealed Eff. March 1, 1985.
SECTION .1100 ‑ PRIOR SERVICE
20 NCAC 02C .1101 EMPLOYMENT BY A WATER WORKS
Prior service does not include employment by a water works
owned by a private company.
History Note: Authority G.S. 128‑26; 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1102 NURSES
Nurses employed prior to July 1, 1937, by the City of
Charlotte and paid by the Charlotte Cooperative Nursing Association are
entitled to prior service credit for the services performed during this period,
if funds were turned over to the city and the nurses were paid by a city
voucher and they were under the control and supervision of the city officials.
History Note: Authority G.S. 128‑26; 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
SECTION .1200 ‑ RETIREMENT ALLOWANCES
20 NCAC 02C .1201 SERVICE RETIREMENT
(a) Policemen and firemen who attain age 55 while in
service and are subsequently discharged or leave service without filing
application for service retirement, will be permitted to do so at a later date
since they have a vested right to a retirement allowance.
(b) Benefits will begin at the proper time after the
application is filed and will not be retroactive to the date of separation.
The same rule applies to general employees who attain age 60 while in service
and leave service thereafter without filing application for retirement.
History Note: Authority G.S. 128‑24(4)a.; 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1202 FAILURE TO RESPOND
If a member fails to respond in any way within 90 days after
preliminary option figures and the form entitled "Election of
Benefits" are mailed, the Application for Service, Early or Disability
Retirement will be null and void; the retirement system will not be liable for
any benefits due on account of the voided application and a new application
must be filed establishing a subsequent effective date of retirement. If an
applicant for disability retirement fails to furnish requested additional
medical information within 90 days following such request, the application will
be declared null and void under the same conditions outlined above, unless the
applicant is eligible for early or service retirement in which case the
application will be processed accordingly, using the same effective date as
would have been used had the application for disability retirement been
approved.
History Note: Authority G.S. 128‑27(a); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1203 MEMBERSHIP IN BOTH SYSTEMS
If an employee has been a member of both systems and part of
his service in the two systems was concurrent, his retirement allowance in the
system in which he had the longer service will be calculated so that the sum of
his retirement allowance will not exceed the actuarial equivalent of the
allowance to which he would have been entitled if all of his service had been
in that system.
History Note: Authority G.S. 128‑34; 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1204 AVERAGE FINAL COMPENSATION
The term "consecutive calendar years" is defined
for the purpose of determining retirement allowances as a period of time
consisting of a number of calendar months of creditable service equal to 12
times the number of years specified by statute during which the highest total
compensation was earned, adjusted proportionally to the regular term of annual
employment.
History Note: Authority G.S. 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
SECTION .1300 ‑ VOLUNTARILY WITHDRAWN CONTRIBUTIONS
20 NCAC 02C .1301 FEE
A fee in the amount of twenty‑five dollars ($25.00)
for each payment will be assessed each individual at the time of payment for
voluntarily withdrawn contributions to help defray the expense of handling.
History Note: Authority G.S. 128‑26(i); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1302 QUALIFYING FOR CREDIT
In order to qualify to obtain credit, each individual must
restore all accounts previously withdrawn on a voluntary basis.
History Note: Authority G.S. 128‑26(i); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1303 COMPUTATION OF COST
(a) The cost of repaying voluntarily withdrawn
contributions representing service by a member who left service prior to July
1, 1975 is calculated as follows:
(1) the amount of contributions withdrawn; plus
(2) interest at the rate of six and one‑half
percent, compounded annually from the year of withdrawal to the year of
repayment.
(b) The cost of repaying voluntarily withdrawn
contributions representing service by a member who left service after June 30,
1975 is calculated as double the amount calculated in Paragraph (a) of this
Rule.
History Note: Authority G.S. 128‑26(i); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Amended Eff. June 1, 1984.
20 NCAC 02C .1304 CONTRIBUTION RATE
History Note: Authority G.S. 128‑26(i); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Repealed Eff. August 1, 1981.
20 NCAC 02C .1305 RECALCULATION OF BENEFITS
For members already retired who avail themselves of the
provisions for obtaining credit for voluntarily withdrawn contributions, any
recalculation of benefits shall be based on the law in effect at the time of the
individual's retirement including the additional service credit and effect
shall be given for all benefit increases subsequent to the date of retirement
which shall be a part of the total cost of providing the additional service
credit.
History Note: Authority G.S. 128‑26(i); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1306 CHANGE IN BENEFITS
For members already retired, any change in benefits
resulting from the provisions for obtaining credit for voluntarily withdrawn
contributions shall become effective as of the first of the month following
receipt of the required payment.
History Note: Authority G.S. 128‑26(i); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977.
20 NCAC 02C .1307 EMPLOYER PORTION OF ANNUAL COST
History Note: Authority G.S. 128‑26(i); 128‑28(g);
Eff. February 1, 1976;
Repealed Eff. September 21, 1977.
20 NCAC 02C .1308 PAYMENTS
History Note: Authority G.S. 128‑26(i); 128‑28(g);
Eff. February 1, 1976;
Readopted Eff. September 21, 1977;
Repealed Eff. March 1, 1985.
SECTION .1400 ‑ DELAYED PURCHASE OF SERVICE CREDITS
20 NCAC 02C .1401 APPLICATION OF SECTION
History Note: Filed as an Emergency Regulation Eff.
October 29, 1979, to be Eff. for a Period of 90 Days
to Expire on January 27, 1980;
Statutory Authority G.S. 128‑28(g);
Expired Eff. January 27, 1980.
20 NCAC 02C .1402 ACTUARIAL TABLES
History Note: Filed as an Emergency Regulation Eff.
October 29, 1979, to be Eff. for a Period of 90 Days
to Expire on January 27, 1980;
Statutory Authority G.S. 128‑28(g);
Expired Eff. January 27, 1980.
20 NCAC 02C .1403 APPLICABILITY OF OTHER SECTIONS
History Note: Filed as an Emergency Regulation Eff.
October 29, 1979, to be Eff. for a Period of 90 Days
to Expire on January 27, 1980;
Statutory Authority G.S. 128‑28(g);
Expired Eff. January 27, 1980.
20 NCAC 02C .1404 DEFINITIONS
History Note: Filed as an Emergency Regulation Eff.
October 29, 1979, to be Eff. for a Period of 90 Days
to Expire on January 27, 1980;
Statutory Authority G.S. 128‑28(g);
Expired Eff. January 27, 1980.
20 NCAC 02C .1405 COMPUTATION OF COST
History Note: Filed as an Emergency Regulation Eff.
October 29, 1979, to be Eff. for a Period of 90 Days
to Expire on January 27, 1980;
Statutory Authority G.S. 128‑28(g);
Expired Eff. January 27, 1980.
20 NCAC 02C .1406 EXTENT OF SERVICE TO BE PURCHASED
History Note: Filed as an Emergency Regulation Eff.
October 29, 1979, to be Eff. for a Period of 90 Days
to Expire on January 27, 1980;
Statutory Authority G.S. 128‑28(g);
Expired Eff. January 27, 1980.
SECTION .1500 ‑ DELAYED PURCHASE OF SERVICE CREDITS
20 NCAC 02C .1501 APPLICATION OF SECTION
This Section applies to purchase of creditable service
whenever a statutory provision prescribes that a payment by a member shall
equal the full liability/cost of the service calculated on the basis of the
assumptions used for purposes of the actuarial valuation of the Retirement
System's liabilities, and shall take into account the retirement allowance
arising on account of the additional service credit at the earliest age at
which a member could retire on an unreduced service retirement allowance. An
applicant shall be eligible to purchase creditable service under this Section
only after having met all requirements of eligibility for purchase as defined
by law and on rules duly adopted.
History Note: Authority G.S. 128‑26(k); 128‑28(g);
Eff. December 1, 1981;
Amended Eff. March 1, 1985.
20 NCAC 02C .1502 APPLICABILITY OF OTHER SECTIONS
History Note: Authority G.S. 128‑26(k); 128‑28(g);
Eff. December 1, 1981;
Repealed Eff. March 1, 1985.
20 NCAC 02C .1503 DEFINITIONS
The following words and phrases have the meaning indicated
when used in this Section, unless the context clearly requires another meaning:
(1) "earliest retirement date" is the first
date at which the member could retire with an unreduced allowance,
(2) "nearest age" is the year and whole month
of the age of the member which is closest to the date specified,
(3) "estimated allowance (with purchase)" is
the estimated retirement allowance computed in the normal manner at the earliest
retirement date and the years of service the member would have if the purchase
is made,
(4) "estimated allowance (without purchase)"
is the estimated allowance computed in the normal manner at the earliest
retirement date and the years of service which the member would have at that
time if no purchase is made.
History Note: Authority G.S. 128‑26(k); 128‑28(g);
Eff. December 1, 1981;
Amended Eff. March 1, 1985; June 1, 1982.
20 NCAC 02C .1504 COMPUTATION OF COST
The cost of a delayed purchase of service credit is computed
as follows:
(1) Determine earliest retirement dates;
(2) Determine estimated average final compensation
(with purchase) and (without purchase) by multiplying the total compensation
actually paid for the period for which 12 months' service credit will have been
earned through the current month by the factor determined from the table of
Salary Factors using the member's nearest age on the last day of the current
month and at the earliest retirement date (with purchase) and (without
purchase). Provided that if the member is out of service but not retired, has
passed his 65th birthday, or has 30 years of service credit without the
purchase, the estimated average final compensation will be calculated in the
normal manner for the compensation and service recorded by the Retirement
System;
(3) Determine estimated allowance (with purchase);
(4) Determine required reserve on estimated allowance
(with purchase) by multiplying the estimated allowance (with purchase) by the
reserve factor found in the Table of Reserve Factors for the nearest ages at
purchase date and at earliest retirement date;
(5) Determine estimated allowance (without purchase);
(6) Determine available reserve on estimated allowance
(without purchase) by multiplying the estimated allowance (without purchase) by
the reserve factor for the nearest ages at purchase date and at earliest
retirement date;
(7) The cost of purchasing service credit is the
difference between the required reserve (with purchase) and the available
reserve (without purchase). Provided that if the difference between the
required reserve and the available reserve is zero, the cost of purchasing the
service credit is the estimated average final compensation (with purchase)
times the number of years service purchased, times the statutory service
factor, times the reserve factor for the nearest ages at the last day of the
last month for which the compensation used was recorded and at earliest
retirement date (with purchase).
History Note: Authority G.S. 128‑26(k); 128‑28(g);
Eff. December 1, 1981;
Amended Eff. June 1, 1982.
20 NCAC 02C .1505 EXTENT OF SERVICE TO BE PURCHASED
The extent of a delayed purchase of service credit by a
member is all or such portion in full years as the member elects and for which
he is eligible.
History Note: Authority G.S. 128‑26(k); 128‑28(g);
Eff. December 1, 1981.
20 NCAC 02C .1506 SPECIAL RULE FOR RETIRED APPLICANTS
The cost of a delayed purchase of service credit for a
person currently receiving a retirement allowance is computed as follows:
(1) Determine the estimated allowance (with purchase),
what is the monthly amount that the applicant would be receiving, if he had
retired at his original retirement date for his present option, with his
current creditable service plus the service to be purchased, by using the
factors applicable at his actual retirement date, and including all cost‑of‑living
and special percentage increases which he had actually received since his first
monthly retirement benefits;
(2) Determine the difference between his estimated
allowance (with purchase) and his present monthly retirement benefit;
(3) Determine the cost of purchasing the service credit
by multiplying the difference in monthly benefit by twelve, and then dividing
by the option factor from the Table of Options Factors for his current option,
and then multiplying by the reserve factor from the Table of Reserve Factors
for his current age and retirement age.
History Note: Authority G.S. 128‑26(k); 128‑28(g);
Eff. June 1, 1982;
Amended Eff. March 1, 1985.
SECTION .1600 ‑ PURCHASE OF SERVICE CREDITS FOR
PROBATIONARY REGULAR EMPLOYMENT
20 NCAC 02C .1601 APPLICATION OF SECTION
This Section applies to the purchase of creditable service
by or on behalf of members whose employer has had a personnel policy, commonly
referred to as a waiting period, whereby employees have been considered to be
in a probationary status and not "regularly employed" for a period of
time between date of hire and date of enrollment in the Retirement System;
provided, however, this Section shall apply only in those cases where the
employer has revoked this personnel policy.
History Note: Authority G.S. 128‑21(10); 128‑24(1);
128‑28(g);
Eff. June 1, 1986.
20 NCAC 02C .1602 ELIGIBILITY
A member may acquire the additional creditable service if
employed or formerly employed by an employer who denied membership on account
of a probationary employment policy after such an employer has revoked this
policy. Purchase of the additional creditable service may be allowed at any
time prior to a member's retirement.
History Note: Authority G.S. 128‑21(10); 128‑24(1);
128‑28(g);
Eff. June 1, 1986.
20 NCAC 02C .1603 COMPUTATION OF COST
The cost to purchase creditable service for probationary
regular employment shall equal the full actuarial liability for the additional
service in the same manner prescribed in 20 NCAC 2C .1500, DELAYED PURCHASE OF SERVICE
CREDITS; but in no instance shall the cost be less than the contributions a
member would have made during the probationary employment plus four percent
interest compounded annually. Nothing contained herein shall prevent an
employer from paying all or part of the member's cost; and, to the extent paid
by an employer, payments shall be credited to the pension accumulation fund;
and, to the extent paid by a member, payments shall be credited to the member's
annuity savings fund; provided however, an employer may not discriminate
against any member or group of members in his employ in paying all or any part
of this cost.
History Note: Authority G.S. 128‑21(10); 128‑24(1);
128‑28(g);
Eff. June 1, 1986;
Amended Eff. August 1, 1988.
