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.