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.