CHAPTER 02 – RETIREMENT SYSTEMS

 

SUBCHAPTER 02A - DIVISIONAL RULES

 

SECTION .0100 - organizational rules

 

20 NCAC 02A .0101         ORGANIZATION: AUTHORITY

The retirement systems division provides the staffing for the administration of the following agencies. The agencies and the statutory authority of each are:

(1)           Teachers' and State Employees' Retirement System of North Carolina ‑‑ G.S. 135, Article 1;

(2)           North Carolina Local Governmental Employees' Retirement System ‑‑ G.S. 128, Article 3;

(3)           Public Employees' Social Security Agency ‑‑ G.S. 135, Article 2;

(4)           Legislative Retirement System of North Carolina ‑‑ G.S. 120‑4, Article 1A;

(5)           Consolidated Judicial Retirement System of N.C. ‑‑ G.S. 135, Article 4;

(6)           Supplemental Retirement Income Plan of North Carolina ‑‑ G.S. 135, Article 5;

(7)           Disability Income Plan of North Carolina ‑‑ G.S. 135, Article 6;

(8)           Firemen's and Rescue Squad Workers' Pension Fund ‑‑ G.S. 58, Article 86;

(9)           Register of Deeds' Supplemental Pension Fund ‑‑ G.S. 161, Article 3.

 

History Note:        Authority G.S. 128‑28(g); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 1, 1993; August 1, 1988; April 1, 1985; October 1, 1983;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 21, 2018.

 

20 NCAC 02A .0102         EXERCISE OF AUTHORITY

All of the above named agencies, with the exception of the N.C. Public Employees' Social Security Agency, exercise their prescribed statutory powers independently of the State Treasurer. However, those functions such as planning, organizing, staffing, directing, coordinating, reporting and budgeting are performed under the direction and supervision of the State Treasurer. In the case of the N.C. Public Employees' Social Security Agency, all its prescribed statutory authority, powers, duties and functions, including rule‑making, are vested in the State Treasurer.

 

History Note:        Authority G.S. 135‑6(f); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 29, 1979;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 21, 2018.

 

20 NCAC 02A .0103         DELEGATION OF AUTHORITY TO DIRECTOR

Whenever the statutes specify that the board of trustees itself will make specific findings in specific matters relating to specific persons, the director may make the decisions administratively in accordance with law and the rules, regulations and previous decisions of this board.  Appeals may be made from the decision of the director under the same procedures used for contested cases.

 

History Note:        Authority G.S. 135‑6(f); 128‑28(g);

Eff. September 21, 1977;

Amended Eff. October 29, 1979.

 

20 NCAC 02A .0104         EXERCISE OF EMPLOYER OPTIONS

No election of an optional element of a retirement system shall be considered effective by the retirement system unless a duly certified copy of the minutes of the governing board of the employer is received and the terms under which the option is elected do not discriminate in favor of the more highly compensated employees.

 

History Note:        Authority G.S. 135‑6(f); 128‑28(g);

Eff. November 9, 1979.

 

20 NCAC 02A .0105         REPAYMENT FOR RIGHT TO RETIRE

 

History Note:        Authority G.S. 128‑27(a)(4); 128‑28(g); 135‑5(a)(3); 135‑6(f); 135‑57(d);

Eff. December 1, 1983;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

SECTION .0200 ‑ RULE‑MAKING PROCEDURES

 

20 NCAC 02A .0201         ESTABLISHMENT OF PROCEDURAL RIGHTS

The rules in 20 NCAC 1F .0100 establish rule‑making procedures for the Retirement Systems Division. All correspondence with the Retirement Systems Division shall be addressed to:

Director of the Retirement Systems

Albemarle Building

325 North Salisbury Street

Raleigh, North Carolina 27603.

 

History Note:        Authority G.S. 135‑6(f); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 1, 1993; October 29, 1979;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 21, 2018.

 

20 NCAC 02A .0202         DEFINITIONS

The following definitions apply to rule‑making in 20 NCAC 1F .0100:

(1)           The "Division" is the Retirement Systems Division and includes the agencies enumerated in 20 NCAC 2A .0101.

(2)           The "Chief Officer" is the Director of the Retirement Systems.

 

History Note:        Authority G.S. 135‑6(f); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 1, 1993; October 29, 1979;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 21, 2018.

 

SECTION .0300 ‑ DECLARATORY RULINGS

 

 

20 NCAC 02A .0301         ESTABLISHMENT OF PROCEDURAL RIGHTS

The rules in 20 NCAC 1F .0200 establish declaratory ruling procedures for the Retirement Systems Division.

 

History Note:        Authority G.S. 135‑6(f); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 1, 1993.

 

20 NCAC 02A .0302         DEFINITIONS

The following definitions apply to declaratory rulings in 20 NCAC 1F .0200:

(1)           The "Division" is the Retirement Systems Division;

(2)           The "Chief Officer" is the Director of the Retirement Systems.

 

History Note:        Authority G.S. 135‑6(f); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 1, 1993;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 21, 2018.

 

20 NCAC 02A .0303         RECONSIDERATION OF DECLARATORY RULINGS

(a)  Whenever the director of the retirement systems has issued a declaratory ruling pursuant to this Section, the petitioner may, at his option, request that the ruling be reconsidered by the appropriate governing board in a letter mailed or delivered to the director of the retirement systems within 10 days of the receipt of such declaratory ruling.  In the event the petitioner requests reconsideration by the appropriate governing board, the petitioner shall be entitled to appear concerning the ruling before the appropriate governing board at a regularly scheduled meeting.  The governing board in question shall reconsider the ruling and may readopt the same ruling or adopt a different ruling.

(b)  In the event the petitioner does not request reconsideration by the appropriate governing board as provided in (a) of this Rule, the declaratory ruling issued by the director of the retirement systems shall be considered the final declaratory ruling of the said governing board.

 

History Note:        Authority G.S. 135‑6(f); 128‑28(g);

Eff. October 29, 1979.

 

SECTION .0400 ‑ CONTESTED CASE PROCEDURES

 

 

20 NCAC 02A .0401         ESTABLISHMENT OF PROCEDURAL RIGHTS

The rules in 20 NCAC 1F .0300 establish contested case procedures for the Retirement Systems Division, with following amendments:

(1)           Informal resolution of the problem begins when a person calls, writes, or visits the state retirement system's office and describes the problem to a counselor/field representative;

(2)           If the problem is not resolved during this initial contact, the person will be referred to the administrator of the appropriate section;

(3)           If the problem is not resolved at this level, the person may discuss it with the Assistant Director of the Retirement Systems;

(4)           If the aggrieved person is dissatisfied at this point, he may discuss his difficulty with the Director of the Retirement Systems.

 

History Note:        Authority G.S. 150B‑23; 135‑6(f); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 1, 1993.

 

20 NCAC 02A .0402         DEFINITIONS

20 NCAC 02A .0403         HEARING OFFICERS

 

History Note:        Authority G.S. 135‑6(f); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 1, 1993; October 1, 1983; December 1, 1982; October 29, 1979;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

SECTION .0500 ‑ GENERAL PROCEDURES

 

 

20 NCAC 02A .0501         GENERAL GUIDELINES

20 NCAC 02A .0502         RETIRING PROCEDURES

 

History Note:        Authority G.S. 135‑6(f); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 29, 1979;

Repealed Eff. March 1, 1985.

 

20 NCAC 02A .0503         DUAL MEMBERSHIP ‑ COMPUTATION OF SERVICE AND BENEFITS

(a)  This Rule applies to any individual case in which the member had one or more periods of dual membership in those rare cases which are permitted by law.  Dual membership means membership in two systems, at the same time, by virtue of the same position.

(b)  Eligibility shall be established for the death benefit, survivor's alternate benefit, service, early or disability retirement or other benefits which are based on creditable membership service for both systems whenever eligibility is established in either one of the systems.

(c)  A statute permitting transfer of membership and prior service shall apply when a person becomes a member of a retirement system to which the membership and prior service may be transferred from one or the other of the systems in which the member had dual membership.  This shall apply only where the member is paid under only one retirement system for services rendered subsequent to the last day of service in a position in which the member had dual membership.

(d)  Death benefit shall be limited to twenty thousand dollars ($20,000) and shall be allocated pro rata between systems based on the total compensation paid during the eligibility period.

(e)  Other benefits shall be calculated by:

(1)           Compute "Average Final Compensation" on the basis of compensation on which the member would have contributed had he not been earning "split" service as an employee with dual membership.

(2)           Compute creditable service as follows:

(A)          the number of months of creditable service the member earned or acquired which were based on compensation for service in only one of the systems; plus

(B)          the total of the fractional months earned by the member in each of the systems during periods of dual membership; where

(C)          the fractional months during periods of dual membership is equal to the same fraction of a month that the compensation reported to the system bears to the total compensation reported to all systems.

(3)           Compute the annual allowance for a member by multiplying the average final compensation times the creditable service as computed in Subparagraphs (1) and (2) of this Paragraph.

(4)           Allocate the benefits to be paid from each system pro rata on share of creditable service in each system as computed in (d)(2) of this Rule.

(f)  This Rule shall apply to any individual case in which a member with dual membership commenced retirement with one retirement system prior to the effective date of this Rule and continued in service under the other retirement system.  In such cases, the retirement allowance of the member from the system with which he first retired shall be recomputed in accordance with this Rule and paid retroactively to the effective date of this Rule.

 

History Note:        Authority G.S. 128‑28(g); 135‑6(f);

Eff. December 1, 1981;

Amended Eff. March 1, 1985.

 

20 NCAC 02A .0504         DIRECT DEPOSIT OF MONTHLY BENEFIT PAYMENTS

(a)  This Rule applies to any individual case in which a beneficiary's monthly benefit was paid via electronic funds transfer (EFT) or direct deposit, when such EFT was suspended by the Division in error.  This Rule does not apply to any individual case involving a delay by this Division to initiate an EFT or a change in an existing EFT arrangement requested by a beneficiary.

(b)  The Division may reimburse non‑sufficient fund charges incurred by a beneficiary due to the suspension in error of an existing EFT arrangement when the beneficiary was not properly notified of the suspension of such arrangement and upon receipt of satisfactory proof that such charges were incurred.

(c)  Any other bad check service charges or fees imposed by any financial institution or merchant may be reimbursed at the discretion of the Division Director upon receipt of satisfactory proof that such charges were incurred.

(d)  Any such reimbursement of NSF or bad check service charges shall be paid from the Pension Accumulation Fund of the Retirement System in which the beneficiary is in receipt of a benefit.

 

History Note:        Authority G.S. 128‑28(g); 135‑6(f); 135‑52; 135‑102(c);

Eff. March 1, 1992.

 

SECTION .0600 ‑ INVESTMENTS

 

 

20 NCAC 02A .0601         INVESTMENT OF FUNDS

20 NCAC 02A .0602         INVESTMENT COMMITTEE

 

History Note:        Authority G.S. 135‑6(f); 128‑28(g);

Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

 

SUBCHAPTER 02B ‑ TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM

 

SECTION .0100 ‑ GENERAL PROVISIONS

 

20 NCAC 02B .0101          GENERAL INFORMATION

The following is general information about the Teachers' and State Employees' Retirement System:

(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. 135‑6(f); 150B‑10;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 21, 2018.

 

20 NCAC 02B .0102          PURPOSES

20 NCAC 02B .0103          FORMS

 

History Note:        Authority G.S. 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

SECTION .0200 ‑ ADMINISTRATION

 

 

20 NCAC 02B .0201          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. 135‑6(f); 135‑1(5);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0202          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. 135‑6(m); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. August 1, 1981.

 

20 NCAC 02B .0203          OFFICIAL MORTALITY TABLE

20 NCAC 02B .0204          ACTUARIAL CALCULATIONS

20 NCAC 02B .0205          RECOMMENDATIONS OF ACTUARY

20 NCAC 02B .0206          ACTUARIAL VALUATIONS

20 NCAC 02B .0207          RESERVE TRANSFER

 

History Note:        Authority G.S. 135‑6(f); 135‑6(m); 135‑6(n); 135‑6(o); 135‑18.1;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. August 1, 1981.

 

20 NCAC 02B .0208          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 the death occurred.

 

History Note:        Authority G.S. 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0209          DISCLOSURE OF INFORMATION

 

History Note:        Authority G.S. 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. March 1, 1985;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02B .0210          MEDICAL BOARD

In accordance with the authority contained in G.S. 135‑6(k) membership of the medical board is increased from three to five physicians with a quorum of three being required at meetings approving applications for disability retirement.

 

History Note:        Authority G.S. 135‑6(k); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0211          OPTIONAL RETIREMENT PROGRAM

An individual who is employed by a state university at a rank or in a position which does not qualify him for participation in the optional retirement program, as provided by G.S. 135‑5.1, and who later is reclassified to the rank of instructor or above shall be permitted to exercise the option of electing to withdraw from Teachers' and State Employees' Retirement System and to begin participation in the optional retirement program as though he were a new employee.

 

History Note:        Authority G.S. 135‑5.1; 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0212          SURVIVOR'S ALTERNATE BENEFIT

 

History Note:        Authority G.S. 135‑19; 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02B .0213          DISABILITY RETIREMENT ALLOWANCE DEFINED

A member shall be deemed to have been "entitled to receive a disability retirement allowance" if a proper application for disability retirement allowance was received before his death, if he had five or more years of creditable service, if the medical board, after a medical examination of such member pursuant to G.S. 135‑5(c), shall certify that such member was mentally or physically incapacitated for the further performance of duty, that such incapacity was incurred at the time of active employment and was continuous thereafter, that such incapacity was likely to be permanent, and that such member should be or should have been retired, and if all other requirements for disability retirement pursuant to G.S. 135‑5(c) had been met except that the member need not live to the actual date of retirement.

 

History Note:        Authority G.S. 135‑5(1)(3);

Eff. October 29, 1979.

 

20 NCAC 02B .0214          RETROACTIVE MEMBERSHIP SERVICE

 

History Note:        Authority G.S. 135‑3(1); 135‑6(f);

Eff. June 1, 1984;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

SECTION .0300 ‑ BENEFICIARIES

 

 

20 NCAC 02B .0301          DESIGNATION

Any beneficiaries designated, other than the estate of a 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. 135‑5(g); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0302          PRINCIPAL BENEFICIARY

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.

 

History Note:        Authority G.S. 135‑5(g); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0303          CONTINGENT BENEFICIARY

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. 135‑5(g); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0304          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. 135‑5(g); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0305          BENEFICIARY WHO IS A MINOR

Payments to beneficiaries who are minors will be made to a duly appointed guardian or to the clerk of superior court in the county in which they reside to the extent that such payment may be authorized by law.

 

History Note:        Authority G.S. 135‑5(g); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0306          CHANGE IN STATUS

 

History Note:        Authority G.S. 135‑5(g); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

20 NCAC 02B .0307          CHANGE IN BENEFICIARY

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.

 

History Note:        Authority G.S. 135‑5(g); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0308          SPECIAL RULE: BENEFICIARY BEFORE JULY 1, 1967

In the event of the death of a person who became a member before July 1, 1967, the return of a member's contributions shall be paid to such person as the member intended to receive his return of contributions and whom he designated as beneficiary for the death benefit as if the member had properly designated such person for the return of contributions if the following conditions are met:

(1)           the member had properly designated one person for the death benefit at a time when there were separate forms for designation of beneficiary for return of contributions and designation of beneficiary for the death benefit;

(2)           the person designated as beneficiary for the death benefit is living at the time of the member's death;

(3)           any previously designated beneficiary for the return of contributions who is living at the time of the member's death or, if such previously designated beneficiary dies between the time of the member's death and the time of determination of payment of the return of accumulated contributions, the legatee(s), heirs at law, successors or assigns of such beneficiary, waives all claims to or interest in the return of the member's contributions;

(4)           the member did not designate any other person for the return of contributions after making a designation of beneficiary for the death benefit; and

(5)           clear and convincing evidence is presented to the retirement system showing that the member thought he had or intended to have designated for the return of contributions the same person whom he designated as beneficiary for the death benefit.

In such cases, the beneficiary shall be entitled to receive the survivor's alternate benefit pursuant to G.S. 135‑5(m) to the same extent that he would have been entitled to receive the survivor's alternate benefit under G.S. 135‑5(m) if the member had actually designated such beneficiary for the return of contributions in a duly executed and filed form for the designation of beneficiary for return of contributions.

 

History Note:        Authority G.S. 135‑5(m);

Eff. October 29, 1979.

 

SECTION .0400 ‑ EMPLOYER CONTRIBUTIONS

 

 

20 NCAC 02B .0401          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. 135‑8(f); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0402          FORWARDING OF EMPLOYER 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. 135‑8(f)(1); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0403          CONTRIBUTION RATE

 

History Note:        Authority G.S. 135‑6(f); 135‑6(m);

Eff. September 21, 1977;

Repealed Eff. August 1, 1981.

 

20 NCAC 02B .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. 135‑6(f); 135‑8(f);

Eff. March 1, 1992.

 

SECTION .0500 ‑ TYPES OF RETIREMENT

 

 

20 NCAC 02B .0501          DISABILITY RETIREMENT EXAMINATION

The director is authorized to conduct examination 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. 135‑5(c); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .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. 135‑5(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. 135‑5(e)(1); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .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. 135‑6(f); 135‑6(k);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. August 1, 1981.

 

20 NCAC 02B .0504          INTEREST CREDITS

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. 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0505          EARLY RETIREMENT

20 NCAC 02B .0506          SERVICE RETIREMENT

20 NCAC 02B .0507          PERSONNEL EMPLOYED

 

History Note:        Authority G.S. 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

20 NCAC 02B .0508          FAILURE TO RESPOND

 

History Note:        Authority G.S. 135‑5(a)(1); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

Pursuant to G.S. 150B-33(b)(9), Administrative Law Judge Melissa Owens Lassiter declared Rule 20 NCAC 02B .0508 void as applied in Burton L. Russell v. Department of State Treasurer, Retirement Systems Division (03 DST 1715);

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02B .0509          RETIREMENT ALLOWANCE

 

History Note:        Authority G.S. 135‑18.1; 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. December 1, 1981.

 

20 NCAC 02B .0510          PENSIONS

Payment of a full month's benefit shall be made for the month in which death occurs, regardless of the date, with no further benefits to be paid thereafter.

 

History Note:        Authority G.S. 135‑14; 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

SECTION .0600 ‑ INVESTMENTS

 

 

20 NCAC 02B .0601          STOCK

20 NCAC 02B .0602          AUTHORIZATION

20 NCAC 02B .0603          VALUATION EQUITY RESERVE

 

History Note:        Authority G.S. 135‑7.2; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

SECTION .0700 ‑ LEAVES OF ABSENCE

 

20 NCAC 02B .0701          EDUCATIONAL 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 the rules of the board.

(b)  Payments to be made for purchases on account of current leave of absence 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 the monthly contributions equal to the normal and accrued liability contribution, 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 the 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.  Applications 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 2B .1200, DELAYED PURCHASE OF SERVICE CREDITS.

(f)  A member, who is currently making contributions to purchase service for an educational leave of absence, and whose position before the leave of absence was paid on a less than 12‑month basis, shall make the payment in the month after the regularly scheduled due date for payment of salary and shall earn service credits for said contributions in the same manner as he would if he was currently being employed in that last position.

 

History Note:        Authority G.S. 135‑6(f); 135‑8(b)(5);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. March 1, 1982.

 

20 NCAC 02B .0702          REQUESTS TO CONTRIBUTE

20 NCAC 02B .0703          MANDATORY LEAVE OF ABSENCE

20 NCAC 02B .0704          MEMBER AGE SIXTY‑FIVE

20 NCAC 02B .0705          LIMITATION

 

History Note:        Authority G.S. 135‑8(b)(5); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 1982.

 

20 NCAC 02B .0706          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 2B .1200 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 Local Governmental 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 Teachers' and State 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. 135‑4(r); 135‑6(f);

Eff. December 1, 1983;

Amended Eff. August 1, 1988.

 

SECTION .0800 ‑ MILITARY SERVICE (INCHOATE RIGHTS ONLY)

 

 

20 NCAC 02B .0801          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 to help defray the expense of handling.

 

History Note:        Authority G.S. 135‑4(f)(6); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0802          QUALIFYING FOR CREDIT

In order to qualify, each individual must pay for the full period of military service for which he is eligible.

 

History Note:        Authority G.S. 135‑4(f)(6); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0803          COMPUTATION OF COST

The cost of purchasing credit for military service is calculated as follows:

(1)           1/12 of the annualized rate of compensation the member earned when he first entered membership; times

(2)           the employee contribution rate at that time; 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. 135‑4(f); 135‑6(f);

Eff. February 1, 1976;

Readopted September 21, 1977.

 

20 NCAC 02B .0804          CIVIL SERVICE PARTICIPATION

A member of the Teachers' and State 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 systems 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. 135‑4(f)(6); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0805          SERVICE CONNECTED DISABILITY

The exclusion, for purchase of service in the Armed Forces of the United States as it pertains to credit in any other retirement system, shall not include "service connected disability" benefits received from the Veteran's Administration of the Federal Government except when such benefits are a supplement of a "longevity retirement" benefit.

 

History Note:        Authority G.S. 135‑4(f)(6); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0806          RECALCULATION OF BENEFITS

For members already retired who avail themselves of these provisions, 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. 135‑4(f)(6); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0807          CHANGE IN BENEFITS

For members already retired, any change in benefits resulting from these provisions shall become effective as of the first of the month following receipt of the required payment.

 

History Note:        Authority G.S. 135‑4(f)(6); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0808          EMPLOYER PORTION OF ANNUAL COST

20 NCAC 02B .0809          PAYMENTS

 

History Note:        Authority G.S. 135‑4(f)(6); 135‑6(f);

Eff. February 1, 1976;

Readopted September 21, 1977;

Repealed Eff. March 1, 1985.

 

20 NCAC 02B .0810          RESTORING MEMBERSHIP

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. 135‑4(f); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0811          INITIAL PERIOD OF ACTIVE DUTY

 

History Note:        Authority G.S. 135‑4(f); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

SECTION .0900 ‑ OUT‑OF‑STATE SERVICE (INCHOATE RIGHTS ONLY)

 

 

20 NCAC 02B .0901          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 to help defray the expense of handling out‑of‑state service credit.

 

History Note:        Authority G.S. 135‑4(l); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0902          QUALIFYING FOR CREDIT

In order to qualify for out‑of‑state service credit, 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. 135‑4(l); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0903          DEFINITION

"Other governmental subdivisions of the United States," as used in G.S. 135‑4(l), shall mean a state or territory and its subdivisions but not the United States government, except as specifically provided by statute.

 

History Note:        Authority G.S. 135‑4(l); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0904          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; 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 initial year of membership to the year of payment.

 

History Note:        Authority G.S. 135‑4(l); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0905          RECALCULATION OF BENEFITS

For members already retired who avail themselves of the provisions 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. 135‑4(l); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0906          CHANGE IN BENEFITS

For members already retired, any change in benefits resulting from the provisions 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. 135‑4(l); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .0907          COST TO EMPLOYER

 

History Note:        Authority G.S. 135‑4(l); 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

20 NCAC 02B .0908          PAYMENTS

 

History Note:        Authority G.S. 135‑4(l); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

SECTION .1000 ‑ PRIOR SERVICE

 

20 NCAC 02B .1001          PUBLIC SCHOOL TEACHERS

 

History Note:        Authority G.S. 135‑4;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02B .1002          SERVICE UNDER WPA

 

History Note:        Authority G.S. 135‑4;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

20 NCAC 02B .1003          PRIOR SERVICE WITH GENERAL ASSEMBLY

(a)  Employees eligible under S.L. 1979, Ch. 698 to purchase such service may make application to purchase prior service as a full‑time employee of the General Assembly for which membership credit was not previously allowed.

(b)  The Legislative Services Officer shall certify to the retirement system that the applicant was a full‑time employee during the period for which the application is made.  The said certification shall also certify the total hours and salary paid in each month.  Provided, however, if the Legislative Services Officer certified that the monthly data is not available, he may certify the data in the form in which it is available.

(c)  If earnings and service are certified on a monthly basis, compute the required contributions and earned service in the same manner as would have been calculated if paid at that time.

(d)  If earnings and service are not certified on a monthly basis, compute the required contribution at the highest rate in effect during the period for which certified.  Allow one month of service for each 20 days.  To the extent possible, integrate periods of service to be purchased with intervening periods of membership service.

(e)  Fractional months of service for multiple service period being certified shall be added together to determine the total allowable service.  Remaining fractional months in excess of one‑half shall be considered to be a full month.

(f)  Regular interest, as provided for in G.S. 135‑7(b), shall be calculated and charged through the year of purchase.

(g)  An administrative fee of $25.00 shall be collected at the time application is made to purchase service.

(h)  No person shall purchase less than the total service for which they are eligible.

 

History Note:        Authority G.S. 135‑4(j1); 135‑6(f);

Eff. October 29, 1979.

 

20 NCAC 02B .1004          TEMPORARY SERVICE PURCHASE

(a)  A member eligible under G.S. 135‑4(p) to purchase service for temporary State employment shall make the application on Form 222, Application to Purchase Service Credits for Full‑Time Temporary State Employment.  Employer certification of temporary State employment and the compensation received for such service shall be made on Form 222‑A, Employer Certification of Full‑Time Temporary Service, and shall accompany the application.

(b)  Temporary State employment means employment under which the member would have been unconditionally required to make contributions at the time of employment if not classified at the time of employment as a "temporary" employee.

(c)  Since the actual cost to fund the liability created on account of the purchase has a direct relationship to the purchasing member's current level of compensation, the employer cost will be computed on the member's level of compensation at the time of purchase.  The employer cost, therefore, shall be equal to the total employee and employer rates of contribution at the member's level of compensation at the time of purchase and for the period of service being purchased, less the required member contribution.

(d)  No purchases shall be allowed for 36 months or less.

 

History Note:        Authority G.S. 135‑4(p); 135‑6(f);

Eff. March 1, 1982;

Amended Eff. March 1, 1985; September 1, 1982.

 

20 NCAC 02B .1005          TEMPORARY SERVICE PURCHASE: FULL ACTUARIAL LIABILITY

(a)  All members, who request approval to purchase creditable service for temporary state employment 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 temporary state employment shall be made in the same manner as prescribed in 20 NCAC 2B .1200 DELAYED PURCHASE OF SERVICE CREDITS.

(c)  Members requesting approval to purchase creditable service shall make application on and acquire certification from the employer of the temporary employment on Form 222‑B, Application to Purchase Temporary State Employment.

(d)  The phrase "temporary employment" as used in G.S. 135‑4(s)(2) shall mean a period of continuous temporary employment prior to membership, except when multiple periods of temporary employment were interrupted by less than 90 calendar days or by the number of days between consecutive academic/school years.

(e)  The phrase "completed 10 years or more of membership service" as used in G.S. 135‑4(q)(3) shall mean membership service completed after the temporary state employment.

(f)  A fee in the amount of twenty‑five dollars ($25.00) for each payment shall be assessed members at the time of purchase as provided by law.

 

History Note:        Authority G.S. 135‑4(s); 135‑6(f);

Eff. December 1, 1983;

Amended Eff. August 1, 1988; September 1, 1984.

 

20 NCAC 02B .1006          PART‑TIME SERVICE PURCHASE: FULL ACTUARIAL LIABILITY

(a)  Members requesting approval to purchase creditable service shall make application on and acquire certification from the employer of the part‑time employment on the form designated for this purpose.

(b)  The phrase "part‑time" as used in G.S. 135‑4(pl) shall refer to duties performed on less than a full‑time basis.

(c)  The phrase "completed 10 years or more of membership service" as used in G.S. 135‑4(pl) shall mean membership service completed after the "part‑time" state employment.

(d)  The amount of part‑time service to be purchased shall be computed as follows:

(1)           Determine the ratio of the actual gross compensation earned as a part‑time employee (numerator) to the gross compensation that would have been earned as a full‑time employee (denominator);

(2)           Apply the ratio (quotient) determined in (1) of this Paragraph to the period of service rendered in months.

(e)  Purchases of creditable service for part‑time state employment shall be made in the same manner as prescribed in 20 NCAC 2B .1200.

(f)  A fee in the amount of twenty‑five dollars ($25.00) for each payment shall be assessed members at the time of purchase as provided by law.

 

History Note:        Authority G.S. 135‑4(pl); 135‑6(f);

Eff. March 1, 1985.

 

20 NCAC 02B .1007          LOCAL GOVERNMENT SERVICE PURCHASE: FULL ACTUARIAL LIABILITY

(a)  Members requesting approval to purchase creditable service shall make application on and acquire certification from the employer, of the local government employment on the form designated for this purpose.

(b)  The phrase "local government employment" shall mean service while regularly employed as defined in 20 NCAC 2C .0802.

(c)  The phrase "local government employer" shall mean a local governmental entity as defined in G.S. 128‑21(11).

(d)  The phrase "upon completion of 10 years of membership service" as used in G.S. 135‑4(t) shall mean membership service completed after the local governmental employment.

(e)  Purchases of creditable service for local government employment shall be made in the same amount as prescribed in 20 NCAC 2B .1200.

(f)  A fee in the amount of twenty‑five dollars ($25.00) for each payment shall be assessed members at the time of purchase as provided by law.

 

History Note:        Authority G.S. 135‑4(t); 135‑6(f);

Eff. March 1, 1985.

 

SECTION .1100 ‑ VOLUNTARILY WITHDRAWN CONTRIBUTIONS

 

 

20 NCAC 02B .1101          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. 135‑4(k); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .1102          QUALIFICATION

In order to qualify for service credit, each individual must restore all accounts previously withdrawn on a voluntary basis.

 

History Note:        Authority G.S. 135‑4(k); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .1103          COMPUTATION OF COST

 

History Note:        Authority G.S. 135‑4(k); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. June 1, 1984;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02B .1104          RECALCULATION OF BENEFITS

For members already retired who avail themselves of these provisions, 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. 135‑4(k); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977.

 

20 NCAC 02B .1105          CHANGE IN BENEFITS

 

History Note:        Authority G.S. 135‑4(k); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02B .1106          EMPLOYER COST

20 NCAC 02B .1107          PAYMENTS

 

History Note:        Authority G.S. 135‑4(m); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

20 NCAC 02B .1108          WILDLIFE PROTECTORS

 

History Note:        Authority G.S. 135‑6(f);

Eff. March 1, 1985;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

SECTION .1200 ‑ DELAYED PURCHASE OF SERVICE CREDITS

 

20 NCAC 02B .1201          APPLICATION OF SECTION

 

History Note:        Authority G.S. 135‑6(f);

Eff. October 29, 1979;

Amended Eff. March 1, 1985;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02B .1202          ACTUARIAL TABLES

 

History Note:        Authority G.S. 135‑6(f);

Eff. October 29, 1979;

Repealed Eff. August 1, 1981.

 

20 NCAC 02B .1203          APPLICABILITY OF OTHER SECTIONS

 

History Note:        Authority G.S. 135‑6(f);

Eff. October 29, 1979;

Repealed Eff. March 1, 1985.

 

20 NCAC 02B .1204          DEFINITIONS

The following words and phrases have the meanings indicated when used in this Section, unless the context clearly requires another meaning:

(1)           "earliest retirement date" is the first date at which the applicant could retire with an unreduced benefit;

(2)           "nearest age" is 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 applicant 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 applicant would have at that time if no purchase is made.

 

History Note:        Authority G.S. 135‑6(f);

Eff. October 29, 1979;

Amended Eff. March 1, 1985; June 1, 1982.

 

20 NCAC 02B .1205          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. 135‑6(f);

Eff. October 29, 1979;

Amended Eff. June 1, 1982.

 

20 NCAC 02B .1206          SERVICE AS COURT REPORTER

 

History Note:        Authority G.S. 135‑6(f);

Eff. October 29, 1979;

Repealed Eff. March 1, 1985.

 

20 NCAC 02B .1207          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 has 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 Option 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. 135‑6(f); 135‑4(m);

Eff. March 1, 1982;

Amended Eff. March 1, 1985.

 

 

 

SUBCHAPTER 02C ‑ 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;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 21, 2018.

 

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

 

History Note:        Authority G.S. 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. March 1, 1985;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

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

 

History Note:        Authority G.S. 128‑28(a);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

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

 

History Note:        Authority G.S. 128‑24(1); 128‑28(g);

Eff. June 1, 1984;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

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.

 

20 NCAC 02C .0405         ANTI-PENSION SPIKING CONTRIBUTION-BASED BENEFIT CAP FACTOR (LGERS)

The contribution-based benefit cap factor for the Local Governmental Employees' Retirement System is 4.7.

 

History Note:        Authority G.S. 128-26(y); 128-27(a3); 128-28(g);

Eff. May 1, 2018.

 

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

 

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;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

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

20 NCAC 02C .0802         REGULARLY EMPLOYED

 

History Note:        Authority G.S. 128-21(10); 128‑25; 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02C .0803         TRANSFERRED SERVICE

 

History Note:        Authority G.S. 128‑28(g);

Eff. September 21, 1977;

Amended Eff. March 1, 1985; September 1, 1982;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

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

 

History Note:        Authority G.S. 128‑26(a); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

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

 

History Note:        Authority G.S. 128‑26(a); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

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

20 NCAC 02C .1102         NURSES

 

History Note:        Authority G.S. 128‑26; 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

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

20 NCAC 02C .1203         MEMBERSHIP IN BOTH SYSTEMS

 

History Note:        Authority G.S. 128‑27(a); 128‑28(g); 128‑34;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

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

 

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;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

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

20 NCAC 02C .1306         CHANGE IN BENEFITS

 

History Note:        Authority G.S. 128‑26(i); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

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

20 NCAC 02C .1602         ELIGIBILITY

20 NCAC 02C .1603         COMPUTATION OF COST

 

History Note:        Authority G.S. 128‑21(10); 128‑24(1); 128‑28(g);

Eff. June 1, 1986;

Amended Eff. August 1, 1988;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

 

 

SUBCHAPTER 2D –DISABILITY SALARY CONTINUATION PLAN

 

SECTION .0100 ‑ GENERAL PROVISIONS

 

20 NCAC 02D .0101         GENERAL INFORMATION

 

History Note:        Authority G.S. 135‑6(f); 135‑32; 135‑34;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. December 1, 1982; October 29, 1979;

Repealed Eff. August 1, 1988.

 

20 NCAC 02D .0102         PURPOSES: FUNCTIONS: AND DUTIES

20 NCAC 02D .0103         AUTHORITY TO APPOINT ADVISORY COMMITTEE

 

History Note:        Authority G.S. 135‑6(f); 135‑33;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. December 1, 1982.

 

SECTION .0200 ‑ DISABILITY SALARY CONTINUATION PLAN

 

 

20 NCAC 02D .0201         DEFINITIONS

20 NCAC 02D .0202         MEMBERSHIP

20 NCAC 02D .0203         CONTRIBUTIONS

20 NCAC 02D .0204         BENEFITS

20 NCAC 02D .0205         REHABILITATION

20 NCAC 02D .0206         PHYSICAL EXAMINATION

20 NCAC 02D .0207         PAYMENT OF CLAIMS

20 NCAC 02D .0208         ASSIGNMENT

20 NCAC 02D .0209         MANAGEMENT OF FUNDS

 

History Note:        Authority G.S. 135‑34; 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 29, 1979;

Repealed Eff. August 1, 1988.

 

20 NCAC 02D .0210         TERMINATION OF THE PLAN

 

History Note:        Authority G.S. 135‑34; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

20 NCAC 02D .0211         AGREEMENT

20 NCAC 02D .0212         EMPLOYEE DISABILITY FUND

20 NCAC 02D .0213         FORMS

20 NCAC 02D .0214         INSTRUCTIONS FOR USE OF FORMS

 

History Note:        Authority G.S. 135‑34; 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. August 1, 1988.

 

SECTION .0300 ‑ HOSPITAL AND MEDICAL CARE BENEFITS

 

 

20 NCAC 02D .0301         CONTRACT

20 NCAC 02D .0302         PROGRAM PROVISIONS

 

History Note:        Authority G.S. 135‑6(f); 135‑33;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 29, 1979; July 1, 1978;

Repealed Eff. December 1, 1982.

 

20 NCAC 02D .0303         EFFECTIVE DATES

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

20 NCAC 02D .0304         CONTRIBUTION RATE

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. July 1, 1978.

 

20 NCAC 02D .0305         TYPES OF COVERAGE

20 NCAC 02D .0306         SPLIT CONTRACT

 

History Note:        Authority G.S. 135‑6(f); 135‑33;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. December 1, 1982.

 

20 NCAC 02D .0307         SUPPLEMENTARY PLANS

20 NCAC 02D .0308         RETIREMENT

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

20 NCAC 02D .0309         PAYMENT

20 NCAC 02D .0310         ELIGIBILITY

 

History Note:        Authority G.S. 135‑6(f); 135‑33; 135‑33.1; 135‑36;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 29, 1979;

Repealed Eff. December 1, 1982.

 

20 NCAC 02D .0311         OPEN ENROLLMENT

20 NCAC 02D .0312         AGENT

20 NCAC 02D .0313         CHANGES: BENEFIT PLANS

20 NCAC 02D .0314         ENROLLMENT AND ADMINISTRATION

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

20 NCAC 02D .0315         FILING OF CLAIMS

20 NCAC 02D .0316         CHANGES IN FAMILY STATUS

20 NCAC 02D .0317         SEPARATION FROM SERVICE

20 NCAC 02D .0318         LEAVE OF ABSENCE

 

History Note:        Authority G.S. 135‑6(f); 135‑33;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. December 1, 1982.

 

20 NCAC 02D .0319         DOCUMENTS ATTACHED

20 NCAC 02D .0320         TERMINATION

20 NCAC 02D .0321         TERMINATION OF CERTIFICATES

20 NCAC 02D .0322         PREVIOUS CONTRACT

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

SECTION .0400 ‑ EXPERIENCE RATING AGREEMENT

 

 

20 NCAC 02D .0401         BENEFIT ADMINISTRATION

20 NCAC 02D .0402         RETENTION

20 NCAC 02D .0403         INCURRED CLAIMS EXPENSE

20 NCAC 02D .0404         PROJECTED EXPENSE RATIO

20 NCAC 02D .0405         STABILIZATION RESERVES

20 NCAC 02D .0406         RATING PROCEDURES

20 NCAC 02D .0407         ACCOUNTING

20 NCAC 02D .0408         AGREEMENT INTENT

20 NCAC 02D .0409         ANNUAL REPORTS

20 NCAC 02D .0410         RETENTION

20 NCAC 02D .0411         INCOME AND CLAIMS EXPERIENCE

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

SECTION .0500 ‑ COORDINATION OF BENEFITS

 

 

20 NCAC 02D .0501         BENEFITS PROVISION

20 NCAC 02D .0502         DEFINITIONS

20 NCAC 02D .0503         EFFECT ON BENEFITS

20 NCAC 02D .0504         IMPLEMENTATION

20 NCAC 02D .0505         FACILITY OF PAYMENT

20 NCAC 02D .0506         RIGHT OF RECOVERY

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

SECTION .0600 ‑ INPATIENT HOSPITAL BENEFITS

 

 

20 NCAC 02D .0601         DAYS AVAILABLE

20 NCAC 02D .0602         BENEFITS IN CONTRACTING HOSPITALS

20 NCAC 02D .0603         BENEFITS: NONCONTRACTING HOSPITALS

20 NCAC 02D .0604         BENEFITS IN OUT‑OF‑STATE HOSPITALS

20 NCAC 02D .0605         GENERAL PROVISIONS

20 NCAC 02D .0606         SKILLED NURSING FACILITY

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

SECTION .0700 ‑ OUTPATIENT BENEFITS

 

 

20 NCAC 02D .0701         BENEFIT PROVISION

20 NCAC 02D .0702         ACCIDENTAL INJURY

20 NCAC 02D .0703         MEDICAL EMERGENCIES

20 NCAC 02D .0704         HOSPITAL OPERATIONS

20 NCAC 02D .0705         RADIATION THERAPY

20 NCAC 02D .0706         PATHOLOGICAL EXAMINATION

20 NCAC 02D .0707         TESTS AND PROCEDURES

20 NCAC 02D .0708         GENERAL PROVISIONS

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

SECTION .0800 ‑ SURGICAL BENEFITS

 

 

20 NCAC 02D .0801         SCOPE OF SERVICES

20 NCAC 02D .0802         BASIS OF BENEFIT ALLOWANCES

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

SECTION .0900 ‑ INPATIENT MEDICAL BENEFITS

 

 

20 NCAC 02D .0901         SCOPE OF SERVICES

20 NCAC 02D .0902         DURATION OF BENEFITS

20 NCAC 02D .0903         BASIS OF BENEFIT ALLOWANCES

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

SECTION .1000 ‑ MAJOR MEDICAL BENEFITS

 

 

20 NCAC 02D .1001         MAXIMUM BENEFITS

20 NCAC 02D .1002         DEDUCTIBLE AMOUNTS

20 NCAC 02D .1003         BENEFIT PERIOD

20 NCAC 02D .1004         BENEFITS

20 NCAC 02D .1005         LIMITATIONS AND EXCLUSIONS FOR MAJOR MEDICAL BENEFITS

20 NCAC 02D .1006         GENERAL PROVISIONS

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

SECTION .1100 ‑ TERMS AND CONDITIONS

 

 

20 NCAC 02D .1101         DEFINITIONS

20 NCAC 02D .1102         MATERNITY PROVISIONS

20 NCAC 02D .1103         EXCLUSION: BASIC AND MAJOR MEDICAL BENEFITS

20 NCAC 02D .1104         MISREPRESENTATION

20 NCAC 02D .1105         TERMINATION OF GROUP COVERAGE

20 NCAC 02D .1106         MODIFICATION

20 NCAC 02D .1107         TERMINATION UPON DEATH

20 NCAC 02D .1108         TERMINATION UPON MARRIAGE: AGE LIMIT

20 NCAC 02D .1109         TERMINATION WITHOUT CLAIM PREJUDICE

20 NCAC 02D .1110         CONVERSION FROM GROUP TO NONGROUP COVERAGE

20 NCAC 02D .1111         NONGROUP TO GROUP COVERAGE

20 NCAC 02D .1112         COVERAGE CHANGE APPLICATION

20 NCAC 02D .1113         EXTENDED MATERNITY BENEFITS

20 NCAC 02D .1114         GENERAL PROVISIONS

20 NCAC 02D .1115         WAITING PERIODS

 

History Note:        Authority G.S. 135‑33; 135‑6(f);

Eff. February 1, 1976;

Repealed Eff. September 21, 1977.

 

 

 

SUBCHAPTER 2E ‑ N.C. PUBLIC EMPLOYEES' SOCIAL SECURITY AGENCY

 

 

20 NCAC 02E .01              GENERAL INFORMATION

20 NCAC 02E .02              PURPOSES: FUNCTIONS: DUTIES

20 NCAC 02E .03              EXTENSION OF SOCIAL SECURITY COVERAGE

20 NCAC 02E .04              PROCEDURES IN SECURING COVERAGE

20 NCAC 02E .05              FORMS

 

History Note:        Authority G.S. 135‑25;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

20 NCAC 02E .06              POLITICAL SUBDIVISION LIABILITY

20 NCAC 02E .07              DUE DATE

 

History Note:        Authority G.S. 135‑25;

Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

 

 

SUBCHAPTER 2F ‑ CONSOLIDATED JUDICIAL RETIREMENT SYSTEM OF NORTH CAROLINA

 

20 NCAC 02F .0101          GENERAL INFORMATION

The following is general information about the Consolidated Judicial Retirement System:

(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. 135‑54; 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. March 1, 1985.

 

20 NCAC 02F .0102          PURPOSES: FUNCTIONS: AND DUTIES

20 NCAC 02F .0103          FORMS

 

History Note:        Authority G.S. 135‑54; 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

20 NCAC 02F .0104          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. 135‑69; 135‑6(f);

Eff. September 21, 1977;

Amended Eff. August 1, 1981.

 

20 NCAC 02F .0105          SERVICE AS SUPERIOR COURT SOLICITOR OR DISTRICT ATTORNEY

 

History Note:        Authority G.S. 135‑56(a); 135‑6(f);

Eff. September 21, 1977;

Amended Eff. March 1, 1985;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02F .0106          RETIREMENT BENEFITS FOR DISTRICT COURT SERVICE

 

History Note:        Authority G.S. 135‑66; 135‑6(f);

Eff. May 31, 1978;

Repealed Eff. March 1, 1985.

 

20 NCAC 02F .0107          FINAL COMPENSATION FOR THREE‑FOURTHS LIMITATION

For the sole purpose of calculating the "three‑fourths limitation of his final compensation" under G.S. 135‑58(a) for a member whose final state service was not as a member of this system, the phrase "final compensation" shall mean the rate of compensation established for the last position held by the member applicable to this system on the last day of his actual state or local governmental service.

 

History Note:        Authority G.S. 135‑6(f); 135‑58(a);

Eff. June 1, 1984.

 

20 NCAC 02F .0108          FULL ACTUARIAL COST

"Full cost of the service credits" will be calculated in substantially the same manner as in 20 NCAC 2B .1200 using the tables, rates, assumptions, etc. adopted by the board for the Consolidated Judicial Retirement System.

 

History Note:        Authority G.S. 135‑52; 135‑6(f);

Eff. March 1, 1985.

 

 

 

SUBCHAPTER 2G ‑ UNIFORM SOLICITORIAL RETIREMENT SYSTEM

 

20 NCAC 02G .0101         GENERAL INFORMATION

20 NCAC 02G .0102         PURPOSES: FUNCTIONS: AND DUTIES

20 NCAC 02G .0103         FORMS

 

History Note:        Authority G.S. 135‑78; 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

20 NCAC 02G .0104         ACTUARIAL TABLES: RATES AND ASSUMPTIONS

 

History Note:        Authority G.S. 135‑78; 135‑6(f);

Eff. September 21, 1977;

Amended Eff. August 1, 1981;

Repealed Eff. March 1, 1985.

 

 

 

SUBCHAPTER 2H ‑ UNIFORM CLERKS OF SUPERIOR COURT RETIREMENT SYSTEM

 

20 NCAC 02H .0101         GENERAL INFORMATION

20 NCAC 02H .0102         PURPOSES: FUNCTIONS: DUTIES

20 NCAC 02H .0103         FORMS

 

History Note:        Authority G.S. 135‑85; 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

20 NCAC 02H .0104         ACTUARIAL TABLES: RATES AND ASSUMPTIONS

 

History Note:        Filed as an Emergency Amendment Eff. July 1, 1979, to be Eff. for a Period of 120 Days to Expire on October 29, 1979;

Authority G.S. 135‑85; 135‑6(f);

Eff. September 21, 1977;

Emergency Amendment Made Permanent Eff. October 29, 1979;

Amended Eff. August 1, 1981;

Repealed Eff. March 1, 1985.

 

 

 

SUBCHAPTER 2I ‑ THE LEGISLATIVE RETIREMENT FUND

 

20 NCAC 02I .0101           GENERAL INFORMATION

20 NCAC 02I .0102           PURPOSES: FUNCTIONS: AND DUTIES

20 NCAC 02I .0103           FORMS

 

History Note:        Authority G.S. 220‑4.2; 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 1985.

 

 

 

SUBCHAPTER 2J ‑ LAW ENFORCEMENT OFFICERS' BENEFIT AND RETIREMENT FUND

 

 

SECTION .0100 ‑ ORGANIZATION OF THE FUND

 

 

20 NCAC 02J .0101          GENERAL INFORMATION

20 NCAC 02J .0102          GENERAL PURPOSE

20 NCAC 02J .0103          SUBDIVISIONS

20 NCAC 02J .0104          ADMINISTRATION AND FUNCTION

20 NCAC 02J .0105          BOARD OF COMMISSIONERS MEMBERSHIP

 

History Note:        Authority G.S. 143‑166(d);

Eff. February 1, 1976;

Readopted Eff. October 13, 1977;

Amended Eff. January 19, 1979;

Repealed Eff. August 1, 1983.

 

SECTION .0200 ‑ GENERAL PROVISIONS

 

 

20 NCAC 02J .0201          DEFINITIONS

20 NCAC 02J .0202          PERSONNEL INELIGIBLE FOR MEMBERSHIP

20 NCAC 02J .0203          PROCUREMENT OF FORMS

20 NCAC 02J .0204          MEDICAL ADVISORS

20 NCAC 02J .0205          COMMUNICATION WITH BOARD CHAIRMAN

20 NCAC 02J .0206          STATUS OF RULES

20 NCAC 02J .0207          DUTIES OF ACTUARY

 

History Note:        Authority G.S. 143‑166(d);

Eff. February 1, 1976;

Readopted Eff. October 13, 1977;

Amended Eff. September 1, 1982; January 19, 1979;

Repealed Eff. August 1, 1983.

 

20 NCAC 02J .0208          ACTUARIAL TABLES: RATES AND ASSUMPTIONS

 

History Note:        Authority G.S. 143‑166(d);

Eff. August 1, 1981;

Repealed Eff. August 1, 1983.

 

SECTION .0300 ‑ ADMINISTRATIVE RULEMAKING PROCEDURES

 

 

20 NCAC 02J .0301          RULEMAKING PROCEDURES

 

History Note:        Authority G.S. 143‑166(d),(s); 150A‑16;

Eff. February 1, 1976;

Readopted Eff. October 13, 1977;

Amended Eff. January 19, 1979;

Repealed Eff. August 1, 1983.

 

20 NCAC 02J .0302          NOTICE OF RULEMAKING

20 NCAC 02J .0303          RULEMAKING HEARINGS

20 NCAC 02J .0304          DECLARATORY RULINGS

 

History Note:        Authority G.S. 143‑166(d),(s); 150A‑12; 150A‑11; 150A‑17;

Eff. February 1, 1976;

Readopted Eff. October 13, 1977;

Repealed Eff. January 19, 1979.

 

SECTION .0400 ‑ ADMINISTRATIVE ADJUDICATORY PROCEDURES

 

 

20 NCAC 02J .0401          DECLARATORY AND CONTESTED CASE PROCEDURES

 

History Note:        Authority G.S. 143‑166(d),(s); 150A‑2(2);

Eff. February 1, 1976;

Readopted Eff. October 13, 1977;

Amended Eff. January 19, 1979;

Repealed Eff. August 1, 1983.

 

20 NCAC 02J .0402          SPECIFIC RULE FOR A HEARING

20 NCAC 02J .0403          REQUEST FOR A HEARING

20 NCAC 02J .0404          GRANTING HEARING REQUEST

20 NCAC 02J .0405          WAIVER OF RIGHT TO A HEARING

20 NCAC 02J .0406          NOTICE OF A HEARING

20 NCAC 02J .0407          INTERVENTION IN THE HEARING

20 NCAC 02J .0408          WHO SHALL HEAR CONTESTED CASES

20 NCAC 02J .0409          PLACE OF THE HEARING

20 NCAC 02J .0410          HEARING OFFICERS

20 NCAC 02J .0411          FAILURE TO APPEAR AT THE HEARING

20 NCAC 02J .0412          WRITTEN ANSWERS TO A HEARING NOTICE

20 NCAC 02J .0413          PRE‑HEARING CONFERENCE

20 NCAC 02J .0414          SIMPLIFICATION OF ISSUES

20 NCAC 02J .0415          SUBPOENAS

 

History Note:        Authority G.S. 143‑166(d),(s); 150A‑20, ‑23, ‑24, ‑25, ‑27, ‑31,

‑32, ‑33(5), ‑37; 1A, Rule 24;

Eff. February 1, 1976;

Readopted Eff. October 13, 1977;

Repealed Eff. January 19, 1979.

 

SECTION .0500 ‑ RETIREMENT FUND REGULATIONS

 

 

20 NCAC 02J .0501          MEMBERSHIP

20 NCAC 02J .0502          REGULAR CONTRIBUTIONS

20 NCAC 02J .0503          SPECIAL CONTRIBUTIONS

20 NCAC 02J .0504          CONTRIBUTIONS TRANSFERRED FROM OTHER SYSTEMS

20 NCAC 02J .0505          RETURN OF REGULAR CONTRIBUTIONS

20 NCAC 02J .0506          RETURN OF SPECIAL CONTRIBUTIONS

20 NCAC 02J .0507          CREDITABLE SERVICE

20 NCAC 02J .0508          BASIC SERVICE RETIREMENT ALLOWANCE BENEFIT

20 NCAC 02J .0509          BASIC DISABILITY RETIREMENT ALLOWANCE BENEFIT

20 NCAC 02J .0510          RE‑EXAMINATION OF DISABLED RETIRED BENEFICIARIES

20 NCAC 02J .0511          SPECIAL RETIREMENT ALLOWANCE

20 NCAC 02J .0512          MINIMUM AND MAXIMUM ANNUAL RETIREMENT ALLOWANCE

20 NCAC 02J .0513          ALTERNATIVES FOR RECEIVING RETIREMENT ALLOWANCE

20 NCAC 02J .0514          RESTORATION OF RETIRED MEMBERS TO ACTIVE SERVICE

20 NCAC 02J .0515          ESCROW FUNDS

20 NCAC 02J .0516          ACCIDENTAL DEATH BENEFIT TO SURVIVORS OF OFFICERS

20 NCAC 02J .0517          METHOD OF FINANCING

20 NCAC 02J .0518          ERRORS

 

History Note:        Authority G.S. 143‑166(d);

Eff. February 1, 1976;

Readopted Eff. October 13, 1977;

Amended Eff. September 1, 1983; March 1, 1982; January 19, 1983; October 29, 1979;

Repealed Eff. August 1, 1983.

 

20 NCAC 02J .0519          INCREASES IN BENEFITS PAID TO BENEFICIARIES

 

History Note:        Authority G.S. 143‑166(i);

Eff. February 19, 1979;

Repealed Eff. August 1, 1983.

 

20 NCAC 02J .0520          REQUIRED EMPLOYER CONTRIBUTION

 

History Note:        Filed as an Emergency Amendment Eff. April 22, 1980 For a Period of 120 Days to Expire

on August 20, 1980;

Filed as an Emergency Regulation Eff. July 1, 1979, For a Period of 120 Days to Expire on

October 29, 1979;

Statutory Authority G.S. 143‑166(i);

Made Permanent Eff. October 29, 1979;

Amended Eff. August 1, 1981;

Repealed Eff. August 1, 1983.

 

SECTION .0600 ‑ SEPARATE BENEFIT FUND REGULATIONS

 

 

20 NCAC 02J .0601          PARTICIPATION

20 NCAC 02J .0602          BENEFITS

 

History Note:        Authority G.S. 143‑166(t);

Eff. February 1, 1976;

Amended Eff. September 5, 1977;

Readopted Eff. October 13, 1977;

Amended Eff. December 1, 1982; September 1, 1982; August 1, 1981;

Repealed Eff. August 1, 1983.

 

 

 

SUBCHAPTER 2K ‑ LAW ENFORCEMENT OFFICERS' RETIREMENT SYSTEM

 

 

SECTION .0100 ‑ GENERAL INFORMATION

 

 

20 NCAC 02K .0101         GENERAL INFORMATION

 

History Note:        Authority G.S. 143‑166;

Eff. August 1, 1983;

Repealed Eff. January 1, 1986.

 

20 NCAC 02K .0102         PURPOSES

 

History Note:        Authority G.S. 143‑166(d);

Eff. August 1, 1983;

Repealed Eff. April 1, 1985.

 

20 NCAC 02K .0103         DEFINITIONS

 

History Note:        Authority G.S. 143‑166; 143‑66.03;

Eff. August 1, 1983;

Amended Eff. April 1, 1985;

Repealed Eff. January 1, 1986.

 

20 NCAC 02K .0104         FORMS

 

History Note:        Authority G.S. 143‑166(d);

Eff. August 1, 1983;

Repealed Eff. April 1, 1985.

 

SECTION .0200 ‑ ADMINISTRATION

 

 

20 NCAC 02K .0201         DUTIES OF ACTUARY

20 NCAC 02K .0202         ACTUARIAL TABLES: RATES AND ASSUMPTIONS

20 NCAC 02K .0203         MEDICAL ADVISERS

20 NCAC 02K .0204         PROCEDURAL RIGHTS

 

History Note:        Authority G.S. 143‑166; 143‑166.03;

Eff. August 1, 1983;

Repealed Eff. January 1, 1986.

 

SECTION .0300 ‑ MEMBERSHIP

 

 

20 NCAC 02K .0301         PERSONS ELIGIBLE FOR MEMBERSHIP

 

History Note:        Authority G.S. 143‑166;

Eff. August 1, 1983;

Amended Eff. April 1, 1985; March 1, 1984;

Repealed Eff. January 1, 1986.

 

20 NCAC 02K .0302         PERSONS INELIGIBLE FOR MEMBERSHIP

 

History Note:        Authority G.S. 143‑166(m);

Eff. August 1, 1983;

Repealed Eff. April 1, 1985.

 

20 NCAC 02K .0303         CESSATION OF MEMBERSHIP

20 NCAC 02K .0304         TRANSFER OF EMPLOYMENT

 

History Note:        Authority G.S. 143‑166;

Eff. August 1, 1983;

Repealed Eff. January 1, 1986.

 

SECTION .0400 ‑ CREDITABLE SERVICE

 

 

20 NCAC 02K .0401         MEMBERSHIP SERVICE

20 NCAC 02K .0402         PRIOR SERVICE

20 NCAC 02K .0403         MILITARY SERVICE

 

History Note:        Authority G.S. 143‑166;

Eff. August 1, 1983;

Repealed Eff. January 1, 1986.

 

SECTION .0500 ‑ PURCHASE OF SERVICE CREDITS

 

 

20 NCAC 02K .0501         FEE

20 NCAC 02K .0502         ELIGIBILITY FOR PURCHASING SERVICE CREDITS

20 NCAC 02K .0503         COST OF PURCHASING SERVICE CREDITS

20 NCAC 02K .0504         DELAYED PURCHASE OF SERVICE CREDITS

 

History Note:        Authority G.S. 143‑166;

Eff. August 1, 1983;

Repealed Eff. January 1, 1986.

 

20 NCAC 02K .0505         WORKERS' COMPENSATION LEAVES OF ABSENCE

 

History Note:        Authority G.S. 143‑166;

Eff. December 1, 1983;

Repealed Eff. January 1, 1986.

 

SECTION .0600 ‑ BENEFITS

 

 

20 NCAC 02K .0601         DATE OF EARLY: SERVICES/DISABILITY RETIREMENT ALLOWANCES

20 NCAC 02K .0602         RETURN OF REGULAR CONTRIBUTIONS UPON DEATH OF A MEMBER

20 NCAC 02K .0603         SPECIAL ANNUITY ACCOUNT BENEFITS

20 NCAC 02K .0604         MINIMUM AND MAXIMUM TOTAL ANNUAL RETIREMENT ALLOWANCE

20 NCAC 02K .0605         ALTERNATIVES FOR RECEIVING RETIREMENT ALLOWANCE

20 NCAC 02K .0606         SURVIVOR'S ALTERNATE BENEFIT

20 NCAC 02K .0607         RETURN OF CONTRIBUTIONS AFTER RETIREMENT

20 NCAC 02K .0608         RESTORATION TO ACTIVE SERVICE AFTER DISABILITY RETIREMENT

20 NCAC 02K .0609         RESTORATION TO ACTIVE SERVICE AFTER SERVICE RETIREMENT

 

History Note:        Authority G.S. 143‑166;

Eff. August 1, 1983;

Amended Eff. June 1, 1984;

Repealed Eff. January 1, 1986.

 

SECTION .0700 ‑ METHOD OF FINANCING

 

 

20 NCAC 02K .0701         GENERAL PROVISIONS

20 NCAC 02K .0702         ANNUITY SAVINGS FUND

20 NCAC 02K .0703         SPECIAL ANNUITY SAVINGS FUND

20 NCAC 02K .0704         PENSION ACCUMULATION FUND

20 NCAC 02K .0705         CALCULATION OF CONTRIBUTION RATES

20 NCAC 02K .0706         INTEREST

20 NCAC 02K .0707         DEATH OF RETIRED MEMBER

20 NCAC 02K .0708         MINOR BENEFICIARIES

 

History Note:        Authority G.S. 143‑166; 143‑166.03;

Eff. August 1, 1983;

Amended Eff. April 1, 1985; June 1, 1984;

Repealed Eff. January 1, 1986.

 

 

 

SUBCHAPTER 2L ‑ SEPARATE INSURANCE BENEFIT PLAN FOR STATE         AND LOCAL GOVERNMENTAL LAW ENFORCEMENT OFFICERS

 

 

 

SECTION .0100 ‑ GENERAL PROVISIONS

 

 

20 NCAC 02L .0101          GENERAL INFORMATION

The following is general information about the Law Enforcement Officers' Separate Benefit Plan:

(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. 143‑166.60;

Eff. August 1, 1983.

 

20 NCAC 02L .0102          PURPOSES

 

History Note:        Authority G.S. 143‑166.04;

Eff. August 1, 1983;

Repealed Eff. April 1, 1985.

 

20 NCAC 02L .0103          DEFINITIONS

The following words as used in this Subchapter, unless a different meaning is clearly required by the context, shall have the following meanings:

(1)           "Employer" shall mean the State of North Carolina and any city, town, county or other political subdivision thereof.

(2)           "Officer" shall mean a law enforcement officer as defined in G.S. 143‑166.30(a)(4) and G.S. 143‑166.50(a)(3).

(3)           "Officer Trainee" shall mean a cadet or officer trainee who is a full‑time employee enrolled in training schools or academies of the state and any political subdivision thereof and who will become an officer at the completion of the training.

(4)           "Participant" shall mean an officer or officer trainee who has established eligibility for benefits under the Separate Benefit Plan and who has obtained written approval for such eligibility.

(5)           "Separate Benefit Plan" shall mean the employee welfare benefit plan created in G.S. 143‑166.60.

(6)           "Service" shall mean service as an officer for which compensation is paid.

 

History Note:        Authority G.S. 143‑166.60;

Eff. August 1, 1983;

Amended Eff. August 1, 1988; April 1, 1985.

 

20 NCAC 02L .0104          FORMS

 

History Note:        Authority G.S. 143‑166.04;

Eff. August 1, 1983;

Repealed Eff. April 1, 1985.

 

20 NCAC 02L .0105          PROCEDURAL RIGHTS

 

History Note:        Authority G.S. 143‑166.60; 150B‑12; 150B‑23;

Eff. August 1, 1983;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

SECTION .0200 ‑ PARTICIPATION

 

20 NCAC 02L .0201          ACTIVE MEMBERS

 

History Note:        Authority G.S. 143‑166.60;

Eff. August 1, 1983;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02L .0202          RETIRED MEMBERS

(a)  If a participant ceases to be an officer, his participation shall be continued provided that such participant has had at least 20 years creditable service, and provided further, that such retirement is a bona fide separation from all law enforcement work in the state.

(b)  If a participant retires on account of a disability that resulted from bodily injuries sustained or from extreme physical exercise or from extreme physical activity experienced in the course and scope of his official duties as a law enforcement officer and while in the discharge of his official duty or duties, his participation shall be continued so long as such incapacity continues, provided that:

(1)           the disability retirement occurs within 12 months from the date on which the injuries or extreme exercise occurred; that

(2)           the injury or the condition resulting from extreme exercise or activity was reported to and treated by a licensed physician within 10 days of the occurrence; and that

(3)           medical reports acceptable to the medical board clearly show that the participant is mentally or physically totally incapacitated for the further performance of duty, that such disability is likely to be permanent, and that such participant should be retired.

Final certification of disability shall be made by the medical board serving the Law Enforcement Officers' Retirement System.

(c)  If a participant with five or more years creditable service retires on account of an ordinary disability, his participation shall be continued so long as such incapacity continues, provided that medical reports acceptable to the medical board clearly show that the participant is mentally or physically totally incapacitated for the further performance of duty, that such disability is likely to be permanent, and that such participant should be retired.  Final certification of disability shall be made by the medical board serving the Law Enforcement Officers' Retirement System.

(d)  If a participant with more than one but less than five years of creditable service ceases to be employed as a law enforcement officer because of an ordinary disability and expires within one year from the date on which his employment terminated, he shall have paid to his designated beneficiary, or if no designated beneficiary survives him to his estate the death benefit then paid on account of the death of a retired participant, provided that medical reports acceptable to the medical board clearly show that the disability did not exist at the time of acceptance of the officer as a participant and that the cause of death was a direct result of the mental or physical condition on which the termination of employment was based.

 

History Note:        Authority G.S. 143‑166.60;

Eff. August 1, 1983.

 

20 NCAC 02L .0203          INACTIVE MEMBERS

20 NCAC 02L .0204          DETERMINATION OF MEMBERSHIP

 

History Note:        Authority G.S. 143‑166.60;

Eff. August 1, 1983;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

SECTION .0300 ‑ BENEFITS

 

20 NCAC 02L .0301          DEATH BENEFITS

 

History Note:        Authority G.S. 143‑166.60;

Eff. August 1, 1983;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02L .0302          ACCIDENT AND HOSPITAL BENEFITS

Accident and hospital benefits shall be available in fixed amounts on and after 12:01 a.m., October 1, 1966, as set forth in a group policy approved by the board with monthly premiums on such policy being paid out of funds held by the separate benefit plan, providing that:

(1)           the claimant has been accepted and is a participant in the separate benefit plan at the time of an accident or illness;

(2)           in case of accident or illness the participant shall file a claim with the insuring company on forms provided by the insurer;

(3)           all claims shall be handled between the participant and the insurer.

 

History Note:        Authority G.S. 143‑166.60;

Eff. August 1, 1983.

 

 

 

SUBCHAPTER 2M ‑ CONTRIBUTORY DEATH BENEFIT FOR RETIRED MEMBERS

 

 

SECTION .0100 ‑ DEFINITIONS AND GENERAL PROVISIONS

 

 

20 NCAC 02M .0101        DEFINITIONS

The following definitions apply to the Contributory Death Benefit for Retired Members:

(1)           "Retired member" shall mean a former teacher, employee or official in receipt of a monthly retirement allowance or who has a terminated retirement allowance resulting from reemployment or an optional payment selection (Option 4) from the Teachers' and State Employees' Retirement System, Local Governmental Employees' Retirement System, Consolidated Judicial Retirement System, Legislative Retirement System or Legislative Retirement Fund; however, retired member shall not mean any beneficiary in receipt of a monthly retirement allowance by reason of the death of a retired member or former teacher, employee or official.

(2)           "Member" shall mean a retired member of the Teachers' and State Employees' Retirement System, Local Governmental Employees' Retirement System, Consolidated Judicial Retirement System, Legislative Retirement System or Legislative Retirement Fund who has elected coverage and who makes continuous contributions under the Contributory Death Benefit for Retired Members.

(3)           "Surviving spouse" shall mean a living person who is legally married to a member covered under the Contributory Death Benefit for Retired Members at the date of death of the member.

(4)           "Legal representative" shall mean the administrator or executor of the estate of a member or the collector of funds for the estate of the member.

(5)           "Retirement system" shall mean the Teachers' and State Employees' Retirement System, Local Governmental Employees' Retirement System, Consolidated Judicial Retirement System, Legislative Retirement System or Legislative Retirement Fund.

(6)           "Board of Trustees" of the Contributory Death Benefit for Retired Members shall mean the Board of Trustees of the Teachers' and State Employees' Retirement System and the Local Governmental Employees' Retirement System.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0102        AGENCY AND AUTHORITY OF DIRECTOR

(a)  The agency acting on behalf of the Board of Trustees of the Contributory Death Benefit for Retired Members is the Department of State Treasurer, Retirement Systems Division, 325 North Salisbury Street, Raleigh, North Carolina 27611.

(b)  The Director of the Retirement Systems Division shall make decisions administratively as it relates to the Contributory Death Benefit for Retired Members in accordance with the statutes and rules and regulations adopted by the Board of Trustees and previous decisions of the Board of Trustees.  Appeals may be made from the decisions of the director under the same procedures used for contested cases.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0103        CONTRIBUTORY DEATH BENEFIT TRUST FOR RETIRED MEMBERS

(a)  A trust entitled the Contributory Death Benefit Trust for Retired Members shall be established for the purpose of collecting all member contributions, investment of contributions, and payment of benefits and expenses.

(b)  Funds deposited in the Contributory Death Benefit Trust Retired Members shall be invested in accordance with law and all investment earnings shall accrue to the Contributory Death Benefit Trust for Retired Members.

(c)  The funds in the Contributory Death Benefit Trust for Retired Members shall be used for the sole purpose of paying the benefits and expenses of the Contributory Death Benefit for Retired Members.

(d)  Members of the Contributory Death Benefit for Retired Members do not gain any rights or interest in the earnings on the investments in the Contributory Death Benefit Trust for Retired Members nor share in any gains or losses resulting from the mortality experience for the trust beyond the benefits set forth.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0104        TIME AND DATE

"Date and time" shall be the equivalent date and time for Raleigh, North Carolina, where and when it becomes necessary to establish a date and time for payment of benefits, payment or collection of contributions, effective dates of coverage and cancellation, and other matters related to the Contributory Death Benefit for Retired Members.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(12); 128‑28(g); 135‑5(1);

135‑6(f); 135‑64(g);

Eff. April 1, 1989.

 

SECTION .0200 ‑ ELECTION AND CANCELLATION OF COVERAGE

 

 

20 NCAC 02M .0201        ELIGIBILITY TO ELECT COVERAGE

(a)  A retired member in receipt of a monthly retirement allowance as a former teacher, employee or official of more than one of the retirement systems is eligible to elect coverage under each retirement system from which the member receives a retirement benefit; however, if a retired member is receiving more than one retirement benefit from the same retirement system, he may elect coverage only on the basis of one retirement benefit.

(b)  A former teacher, employee or official in receipt of disability benefits from the Disability Income Plan of North Carolina is not in receipt of a retirement allowance and is not eligible to elect coverage under the Contributory Death Benefit for Retired Members until such time as the disability benefit is converted to an unreduced service retirement allowance.

 

History Note:        Authority G.S.  120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0202        WHEN FIRST ELIGIBLE

A retired member's eligibility to make an election for coverage is based on the following:

(1)           If retired on or before June 1, 1988, the words "when first eligible" to make an election for coverage will mean 60 days from July 1, 1988 or no later than September 1, 1988.

(2)           If retiring on or after July 1, 1988, the words "when first eligible" to make an election for coverage will mean 60 days from the effective date of retirement under the retirement system.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0203        FORM OF ELECTION

A retired member's election must be made on a Notice of Election form as provided by the Retirement Systems Division or in lieu thereof by written notice clearly stating the election of the retired member and providing all information necessary for the determination of rates and payment of benefits.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0204        EFFECTIVE DATE OF COVERAGE

Coverage under the Contributory Death Benefit for Retired Members is not to be delayed beyond the 60 days from the effective date of retirement or if retired prior to July 1, 1988, not beyond September 1, 1988 and shall become effective:

(1)           the first of the month in which election of coverage is made provided that the election is received by the Retirement Systems Division by the 15th of a month but not earlier than July 1, 1988, or

(2)           the first of the month following the month in which the election of coverage is made if the election is received by the Retirement Systems Division after the 15th of a month but not earlier than July 1, 1988.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0205        CANCELLATION OF COVERAGE

Cancellation of coverage under the Contributory Death Benefit for Retired Members shall be:

(1)           By written notice of cancellation of coverage to the Board of Trustees with cancellation of coverage becoming effective :

(a)           the first day of the month in which the member's written notice of cancellation is received and no contribution will be due in that month if written notice of cancellation is received in the offices of the Retirement Systems Division between the first and the tenth of a month.

(b)           the first day of the month following the month in which written notice of cancellation is received with contributions due for the month in which written notice is received if the written notice of cancellation is received in the offices of the Retirement Systems Division after the tenth of a month.

(2)           By non‑payment of monthly contributions if payment for any month is not received in the offices of the Retirement Systems Division by the 25th of the month following the month for which the contribution is due and payable with coverage to be cancelled automatically effective the first day of the month for which the contribution was due and payable.

(3)           By death of a member.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0206        REINSTATEMENT

Upon cancellation of coverage, coverage cannot be reinstated nor can a retired member reapply for coverage.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

SECTION .0300 ‑  CONTRIBUTIONS AND BENEFITS

 

20 NCAC 02M .0301        CONTRIBUTION RATES

(a)  The monthly contribution rates shall be established by resolution of the Boards of Trustees as recommended by the consulting actuary.  The consulting actuary in making a recommended schedule of monthly contribution rates shall take into consideration mortality experience, selection experience, actuarial interest rate assumption which may be different from the interest rate assumption used in the valuation of the liabilities of the retirement system, administrative and investment costs, and such other factors as may be appropriate in establishing such schedule of monthly contribution rates.

(b)  The schedule of monthly contribution rates established by resolution of the Boards of Trustees adopted on March 19, 1988, is as follows:

 

Age at                                                                                           Monthly Rate

Effective Date                                                                                        For Life

 

Less than 50                                                                                                     $8

50                                                                                                                         8

51                                                                                                                         9

52                                                                                                                       10

53                                                                                                                       10

54                                                                                                                       11

55                                                                                                                       12

56                                                                                                                       12

57                                                                                                                       13

58                                                                                                                       14

59                                                                                                                       15

60                                                                                                                       16

61                                                                                                                       17

62                                                                                                                       18

63                                                                                                                       20

64                                                                                                                       21

65                                                                                                                       22

66                                                                                                                       24

67                                                                                                                       26

68                                                                                                                       27

69                                                                                                                       29

70                                                                                                                       31

71                                                                                                                       33

72                                                                                                                       35

73                                                                                                                       38

74                                                                                                                       40

75                                                                                                                       43

76                                                                                                                       46

77                                                                                                                       49

78                                                                                                                       52

79                                                                                                                       56

80                                                                                                                       59

81                                                                                                                       63

82                                                                                                                       67

83                                                                                                                       71

84                                                                                                                       75

85                                                                                                                       80

86                                                                                                                       84

87                                                                                                                       89

88                                                                                                                       94

89                                                                                                                       99

90                                                                                                                     105

91                                                                                                                     110

92                                                                                                                     115

93                                                                                                                     120

94                                                                                                                     125

95                                                                                                                     130

96                                                                                                                     140

97                                                                                                                     150

98                                                                                                                     160

99                                                                                                                     170

100 and over                                                                                                  200

 

The schedule of monthly contribution rates shall be applicable for members electing coverage effective on or after July 1, 1988 and shall remain in effect until such resolution, as duly adopted by the Boards of Trustees, revises such schedule of monthly contribution rates.

(c)  The Boards of Trustees may from time to time revise by resolution the schedule of monthly contribution rates as may be recommended by the consulting actuary for teachers, employees and officials retiring and electing an effective date of coverage after the effective date of the revision.  Such revision may be, but is not required to be, applicable to members electing coverage prior to the effective date of the revision provided that such revised rates shall not be greater than the rates in effect at the effective date of coverage for those members electing an effective date of coverage prior to the effective date of the revision.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(12); 128‑28(g); 135‑5(1); 135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0302        MEMBER CONTRIBUTION

(a)  The monthly contribution rate paid by a member shall be based on the member's nearest age as of the effective date of coverage and the applicable rates as of that date as set by the Boards of Trustees and will remain the same as long as the coverage is in effect.

(b)  Any misstatement as to the age of the member which causes the contribution of the member to have been paid at a higher or lower rate during the period of the coverage of the member not paid or refunded prior to the death of the member will result in any underpayment of contributions being offset against the death benefit and any overpayment of contributions being paid to the surviving spouse or legal representative for the correct age of the member.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0303        PAYMENT OF CONTRIBUTION

(a)  The monthly contributions of members covered under the Contributory Death Benefit for Retired Members are to be paid monthly to the Contributory Death Benefit Trust for Retired Members beginning in the month in which coverage becomes effective and shall continue each month thereafter.

(b)  Payment of the monthly contributions shall be deducted from a member's net monthly retirement allowance from the retirement system if member's net monthly retirement allowance, after other required deductions, is sufficient to cover the cost of the contribution; however, if the net monthly retirement allowance from the retirement system is not sufficient to cover the cost of the contribution, the Retirement Systems Division shall provide the member a Notice of Contribution Due within ten days after the determination of insufficiency with payment of monthly contributions due not later than the 25th of the month following the determination of insufficiency, and thereafter a Notice of Contribution Due shall be provided between the first and the fifth of each month with payment due on or before the 25th of that month.

(c)  The contribution due for the month in which the member's death occurs is to be paid from the final monthly retirement benefit due in the month of death, or by payment from the member's surviving spouse or legal representative; provided that, if member's death occurs during the 24‑month period from the effective date of coverage, the deduction and/or payment of the contribution for the month in which death occurs may be waived.

(d)  Once coverage is elected, the required monthly contribution must be paid in order to maintain coverage regardless of any condition which might occur that would terminate or diminish the retirement benefit the retired member is receiving such as reemployment and the reduction or termination of retirement benefits by reason of an optional payment plan selected by the retired member at retirement.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0304        AMOUNT OF BENEFIT PAYABLE

(a)  If the member's death occurs on or after the first day of the month following the 24th month of coverage for which the member has paid the required contributions, the amount of the benefit payable shall be five thousand dollars ($5,000.00).

(b)  If the member's death occurs prior to the first day of the month following the 24th month of coverage for which the member has made the required contributions, the amount of the benefit payable shall be the total of the monthly contributions made by the member plus interest as set by the Board of Trustees.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0305        PAYMENT OF INTEREST ON BENEFIT

Interest payable on the monthly contributions of a member where member's death occurs prior to the first day of the month following the 24th month of coverage:

(1)           The annual rate of interest shall be set from time to time by resolution of the Board of Trustees and, in setting such annual rate of interest, the Board of Trustees may take into consideration the actuarial interest rate assumption, yields realized and anticipated on short‑term investments, cost of investing and administration, and such other factors affecting interest rates as may be appropriate.

(2)           Such interest as set by the Board of Trustees shall be computed on each monthly payment from the end of the month in which the monthly payment is paid and on the balance of the monthly contributions and interest at the beginning of the calendar year to the end of the month in which the member dies.

(3)           The interest rate established by resolution of the Boards of Trustees, adopted on January 28, 1988, is 6 1/2 percent.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0306        PAYMENT OF BENEFIT

Upon the death of a member, a certified death certificate and such other documentation as deemed necessary in order to initiate payment of the death benefit is to be furnished by the member's spouse or legal representative if not survived by a spouse.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0307        BENEFITS PAYABLE AFTER CANCELLATION

Should death of a former member occur on or after the effective date of cancellation of coverage, benefits under the Contributory Death Benefit for Retired Members shall not be due and payable.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

20 NCAC 02M .0308        REFUNDS

(a)  No refund of contributions or interest shall be made if coverage is cancelled by reason of non‑payment of contributions or if written notice of cancellation is received 90 or more days after the effective date of coverage.

(b)  Refund of contributions without interest may be made if coverage is cancelled by written notice of cancellation received prior to 90 days after the effective date of coverage.

 

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128‑28(g); 135‑5(l);

135‑6(f); 135‑64(g);

Eff. February 1, 1989.

 

 

 

SUBCHAPTER 2N ‑ FIREMEN'S AND RESCUE SQUAD WORKERS' PENSION FUND

 

 

SECTION .0100 ‑ ORGANIZATION OF THE FUND

 

 

20 NCAC 02N .0101         LOCATION

20 NCAC 02N .0102         GENERAL PURPOSE

20 NCAC 02N .0103         ADMINISTRATION AND FUNCTION

20 NCAC 02N .0104         BOARD OF TRUSTEES MEMBERSHIP

 

History Note:        Authority G.S. 118‑21; 118‑19; 143A‑27;

Eff. February 1, 1976;

Repealed Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993.

 

20 NCAC 02N .0105         DEFINITIONS

 

History Note:        Authority G.S. 58‑86‑10;

Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993;

Amended Eff. October 1, 1993;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02N .0106         OFFICE OF THE DIRECTOR

The Office of the Director is located in the Albemarle Building, 325 North Salisbury Street, Raleigh, North Carolina and the mailing address is 325 North Salisbury Street, Raleigh, North Carolina 27603‑1385. Office hours are from 8 a.m. to 5 p.m., Mondays ‑ Fridays, except legal holidays.

 

History Note:        Authority G.S. 58‑86‑10;

Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993;

Amended Eff. October 1, 1993;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. October 21, 2018.

 

20 NCAC 02N .0107         BOARD OF TRUSTEES

 

History Note:        Authority G.S. 58‑86‑10;

Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993;

Amended Eff. October 1, 1993;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02N .0108         DIVISIONAL RULES

The following rules are hereby incorporated by reference including subsequent amendments to the rules:

(1)           Rules .0101; Organization, Authority; .0102, Exercise of Authority; .0103, Delegation of Authority to Director; of 20 NCAC 2A.

(2)           Sections .0200, Rule‑Making Procedures; .0300, Declaratory Rulings; .0400, Contested Case Procedures; of 20 NCAC 2A.

(3)           Rule .0504, Direct Deposit of Monthly Benefits; of 20 NCAC 2A.

 

History Note:        Authority G.S. 58‑86‑10; 150B‑21.6;

Eff. October 1, 1993.

 

SECTION .0200 ‑ GENERAL PROVISIONS

 

 

20 NCAC 02N .0201         DEFINITIONS

20 NCAC 02N .0202         SECRETARY'S BOND

20 NCAC 02N .0203         PROCUREMENT OF FORMS

20 NCAC 02N .0204         ANNUAL FIREMEN CERTIFICATION

20 NCAC 02N .0205         COMMUNICATION WITH BOARD CHAIRMAN

 

History Note:        Authority G.S. 118‑20; 118‑21; 118‑23;

Eff. February 1, 1976;

Repealed Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993.

 

20 NCAC 02N .0206         ELIGIBLE FIREMEN

20 NCAC 02N .0207         ELIGIBLE RESCUE SQUAD WORKERS

 

History Note:        Authority G.S. 58‑86‑10; 58‑86‑25; 58‑86‑30;

Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993;

Amended Eff. December 1, 1993;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02N .0208         APPLYING FOR MEMBERSHIP

(a)  Only eligible firemen or eligible rescue squad workers may join the pension fund.  In order to join the pension fund they must complete the application for membership and return it to the office of the director.

(b)  Applications for membership may be obtained from the office of the director at the address shown in Rule .0106 of this Subchapter.  The application asks for general information, including the applicant's name, address, social security number, fire department or rescue squad, and his or her length of service with that department or squad.

(c)  After receipt of a completed application, the director shall determine if the applicant is an eligible fireman or an eligible rescue squad worker.  The director shall notify the applicant in writing of the determination.

(d)  If the director determines that the applicant is eligible to join the pension fund and after the director has received the monthly payment required by G.S. 58‑86‑35 or 58‑86‑40, the director shall enroll the applicant in the pension fund and issue the applicant a membership identification card which contains the member's register number.

 

History Note:        Authority G.S. 58‑86‑10; 58‑86‑35; 58‑86‑40;

Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993;

Amended Eff. December 1, 1993.

 

20 NCAC 02N .0209         PRIOR SERVICE CREDIT

20 NCAC 02N .0210         ANNUAL CERTIFICATION OF FIREMEN

20 NCAC 02N .0211         ANNUAL CERTIFICATION OF RESCUE SQUAD WORKERS

20 NCAC 02N .0212         MONTHLY PAYMENTS

20 NCAC 02N .0213         DELINQUENT MONTHLY PAYMENTS

20 NCAC 02N .0214         LEAVES OF ABSENCE

 

History Note:        Authority G.S. 58‑86‑10; 58‑86‑30; 58-86-35; 58-86-40; 58‑86‑45; 58‑86‑75; 58‑86‑85;

Eff. June 1, 1988;

Recodified from 03 NCAC 03 Eff. May 1, 1993;

Amended Eff. December 1, 1993; October 1, 1993;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02N .0215         MILITARY SERVICE

(a)  Any member who enters the armed forces may take a military leave of absence as provided by Paragraph (b) of this Rule, continue to receive service credit as provided by Paragraph (c) of this Rule, or withdraw from he pension fund and seek a refund under Rule .0216 of this Section.

(b)  To take a military leave of absence a member must provide written notice to the office of the director that he or she is taking such leave.  The member shall specify in the notice the branch of the armed forces the member is entering and the expected dates of entry and discharge.  The notice must be delivered to the office of the director no later than six months after the member ceases service as an eligible fireman or an eligible rescue squad worker, whichever is applicable, or the member will be deemed to have withdrawn from the pension fund.  No member may remain on military leave of absence for more than one normal draft or enlistment period, whichever is applicable.  Any member who has taken a military leave of absence must commence service as either an eligible fireman or an eligible rescue squad worker within six months after the expiration of a normal draft or enlistment period, whichever is applicable or within six months after the member's discharge if that occurs earlier, or the member will be deemed to have withdrawn from the pension fund.  The provisions of Rule .0214(c) of this Section are applicable to members on military leaves of absence.

(c)  Any member who enters the armed forces may continue to receive service credit if he notifies the office of the director in writing of his or her intent to do so and if he or she continues to make monthly payments required by G.S. 58‑86‑35 or 58‑86‑40.  Credit for time served in the armed forces is limited to one normal draft or enlistment period, whichever is applicable.

 

History Note:        Authority G.S. 58‑86‑10;

Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993;

Amended Eff. December 1, 1993.

 

20 NCAC 02N .0216         REFUNDS

20 NCAC 02N .0217         APPLICATIONS FOR DISABILITY BENEFITS

 

History Note:        Authority G.S. 58‑86‑10; 58‑86‑60;

Eff. June 1, 1988;

Recodified from 03 NCAC 03 Eff. May 1, 1993;

Amended Eff. December 1, 1993;

Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

 

20 NCAC 02N .0218         RETIREMENT BENEFITS

(a)  In order to receive retirement benefits under G.S. 58‑86‑55 a member must submit to the office of the director an application for service retirement and the certification of retirement form.  The applications and certifications will be processed at the end of the month; therefore, the application and certification must be filed with the office of the director at least 30 days prior to the last day worked if the applicant is to receive retirement benefits by the first of the month following his retirement.

(b)  The application for service retirement is used to determine when benefits commence and the amount of benefits.  The signature of the applicant must be notarized.  The application asks for personal identification information including the member's name, his register number, age and designated beneficiary.

(c)  The certification of retirement form asks the retiring member's fire chief or rescue squad captain to certify the date of retirement.  The form asks for personal identification information such as the retiree's name, last date of employment, and the chief's or captain's certification of retirement.

(d)  A member who has met all the requirements for receipt of a pension as set out in G.S. 55‑86‑55, and whose 20 years of service as an "eligible fireman" or "eligible rescue squad worker" were rendered exclusively through volunteer service, shall be deemed to be terminated and retired and therefore eligible to receive the monthly pension provided by G.S. 58‑86‑55 regardless of any capacity in which he/she may be employed or reemployed, including salaried positions as firemen or rescue squad workers.

(e)  The forms described in Paragraphs (b) and (c) of this Rule may be obtained from the office of the director at the address shown in Rule .0106 of this Subchapter.

 

History Note:        Authority G.S. 58‑86‑10; 58‑86‑55;

Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993;

Amended Eff. December 1, 1993.

 

20 NCAC 02N .0219         REFUNDS OF DECEASED MEMBERS' PAYMENTS

In order to receive the lump sum payment for deceased members provided by G.S. 58‑86‑60(2) and (3) the person or persons entitled to such payment must file with the office of the director a death certificate and a letter requesting the payment.  The amount of the payment will be determined in accordance with G.S. 58‑86‑60 and no interest will be paid on the monthly payments.

 

History Note:        Authority G.S. 58‑86‑10; 58‑86‑60;

Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993;

Amended Eff. December 1, 1993.

 

SECTION .0300 ‑ ADMINISTRATIVE RULEMAKING PROCEDURES

 

 

20 NCAC 02N .0301         PETITIONS FOR RULEMAKING

20 NCAC 02N .0302         NOTICE OF RULEMAKING

20 NCAC 02N .0303         RULEMAKING HEARINGS

20 NCAC 02N .0304         DECLARATORY RULINGS

 

History Note:        Authority G.S. 118‑21; 150A‑11; 150A‑12; 150A‑16; 150A‑17;

Eff. February 1, 1976;

Repealed Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993.

 

20 NCAC 02N .0305         PETITIONS FOR RULE‑MAKING

20 NCAC 02N .0306         DECISION ON PETITION

20 NCAC 02N .0307         NOTICE OF RULE-MAKING

20 NCAC 02N .0308         ARGUMENTS

20 NCAC 02N .0309         REQUEST FOR ORAL PRESENTATIONS

20 NCAC 02N .0310         WRITTEN STATEMENT

20 NCAC 02N .0311         REQUEST FOR STATEMENT OF FINAL DECISION

20 NCAC 02N .0312         RECORD OF RULE‑MAKING

20 NCAC 02N .0313         DECLARATORY RULINGS

 

History Note:        Authority G.S. 118‑35; 150B-11(1); 150B‑12; 150B-12(e); 150B-16; 150B-17;

Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993;

Repealed Eff. October 1, 1993.

 

SECTION .0400 ‑ ADMINISTRATIVE ADJUDICATORY PROCEDURES

 

 

20 NCAC 02N .0401         GENERAL RULE FOR A HEARING

20 NCAC 02N .0402         SPECIFIC RULE FOR A HEARING

20 NCAC 02N .0403         REQUEST FOR A HEARING

20 NCAC 02N .0404         GRANTING HEARING REQUEST

20 NCAC 02N .0405         WAIVER OF RIGHT TO A HEARING

20 NCAC 02N .0406         NOTICE OF A HEARING

20 NCAC 02N .0407         INTERVENTION IN THE HEARING

20 NCAC 02N .0408         WHO SHALL HEAR CONTESTED CASES

20 NCAC 02N .0409         PLACE OF THE HEARING

20 NCAC 02N .0410         HEARING OFFICERS

20 NCAC 02N .0411         FAILURE TO APPEAR AT THE HEARING

20 NCAC 02N .0412         WRITTEN ANSWERS TO A HEARING NOTICE

20 NCAC 02N .0413         PRE‑HEARING CONFERENCE

20 NCAC 02N .0414         SIMPLIFICATION OF ISSUES

20 NCAC 02N .0415         SUBPOENAS

 

History Note:        Authority G.S. 118‑21; 150A‑2(2); 150A‑23; 150A‑24; 150A‑25(a); 150A‑27;

150A‑31; 150A‑32; 150A‑33(2); 150A‑33(5); 150A‑37; 1A‑1, Rule 24;

Eff. February 1, 1976;

Repealed Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993.

 

SECTION .0500 ‑ PENSION FUND REGULATIONS

 

 

20 NCAC 02N .0501         MEMBERSHIP ELIGIBILITY

20 NCAC 02N .0502         MEMBERSHIP STATUS IN THE FUND

20 NCAC 02N .0503         PAYMENT OF CONTRIBUTIONS IN ADVANCE

20 NCAC 02N .0504         PAYMENT OF MONTHLY CONTRIBUTIONS

20 NCAC 02N .0505         DELINQUENT CONTRIBUTIONS

20 NCAC 02N .0506         REFUND OF CONTRIBUTIONS

20 NCAC 02N .0507         SERVICE CREDIT TIME

20 NCAC 02N .0508         RETIREMENT AND RECEIPT OF BENEFITS

 

History Note:        Authority G.S. 118‑21; 118‑23; 118‑24; 118‑25; 118‑26; 118‑29;

Eff. February 1, 1976;

Repealed Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993.

 

 

 

SUBCHAPTER 02o – DISABILITY INCOME PLAN OF NORTH CAROLINA

 

SECTION .0100 – GENERAL ADMINISTRATION

 

20 NCAC 02O .0101         SCOPE

20 NCAC 02O .0102         SHORT-TERM DISABILITY

20 NCAC 02O .0103         LONG-TERM DISABILITY

 

History Note:        Authority G.S. 135-101(6); 135-102(c); 135-105(a);

Eff. April 1, 2004;

Repealed Eff. January 1, 2005.