CHAPTER 02 – RETIREMENT SYSTEMS

SUBCHAPTER 02A - DIVISIONAL RULES

SECTION .0100 - organizational rules

20 NCAC 02A .0101         ORGANIZATION: AUTHORITY

The Retirement Systems Division of the Department of State Treasurer provides the staffing for the administration of the following agencies where either the Board of Trustees of the Teachers' and State Employees' Retirement System or the Board of Trustees of the Local Governmental Employees' Retirement System is a rulemaking body. 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)           Legislative Retirement System of North Carolina ‑‑ G.S. 120, Article 1A;

(4)           Consolidated Judicial Retirement System of North Carolina ‑‑ G.S. 135, Article 4;

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

(6)           Firefighters' and Rescue Squad Workers' Pension Fund ‑‑ G.S. 58, Article 86;

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

(8)           National Guard Pension Fund – G.S. 127A, Article 3.

History Note:        Authority G.S. 58-86-10; 120-4.9; 127A-40(f); 128‑28(g); 135‑6(f); 135-52; 135-102; 161-50.1(b);

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;

Amended Eff. March 1, 2023.

20 NCAC 02A .0102         EXERCISE OF AUTHORITY

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

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;

Repealed Eff. March 1, 2023.

20 NCAC 02A .0103         DELEGATION OF AUTHORITY TO DIRECTOR

Whenever the statutes under Article 58 of G.S. 86, Article 1A of G.S. 120, Article 3 of G.S. 127A, Article 3 of G.S. 128, Articles 1, 4, or 6 of G.S. 135, or Article 3 of G.S. 161 specify that the Board of Trustees will make specific findings in specific matters relating to specific persons, the Director of the Retirement Systems Division may make the decisions 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 procedures used for contested cases as provided under Section .0400 of this Subchapter.

History Note:        Authority G.S. 128‑28(g); 128-28(h); 135‑6(f); 135-6(g); 150B-22;

Eff. September 21, 1977;

Amended Eff. October 29, 1979;

Readopted Eff. March 1, 2023.

20 NCAC 02A .0104         EXERCISE OF EMPLOYER OPTIONS

When an employer elects to participate in an optional element of a retirement system, the election shall not be considered effective by the Retirement System unless the employer provides the Retirement Systems Division with a certified copy of the minutes of the governing board of the employer and the terms under which the option is elected do not discriminate in favor of the more highly compensated employees. The terms "discriminate" and "highly compensated employee" have the same meanings as under 26 CFR of the Internal Revenue Code. The Internal Revenue Code Title 26 CFR is hereby incorporated by reference, including subsequent amendments and editions, and is available online, at no cost, at https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1?toc=1.

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

Eff. November 9, 1979;

Readopted Eff. March 1, 2023.

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 01F .0100 establish rule‑making procedures for the Retirement Systems Division of the Department of State Treasurer.

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; October 29, 1979;

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

Amended Eff. March 1, 2023; September 1, 2019.

20 NCAC 02A .0202         DEFINITIONS

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; October 29, 1979;

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

Repealed Eff. March 1, 2023.

SECTION .0300 ‑ DECLARATORY RULINGS

20 NCAC 02A .0301         ESTABLISHMENT OF PROCEDURAL RIGHTS

The rules in 20 NCAC 01F .0200 establish declaratory ruling procedures for the Retirement Systems Division of the Department of State Treasurer, with the following exception. All requests for declaratory rulings from the Retirement Systems Division shall be in writing and mailed to the attention of the Director at the following address:

Director of the Retirement Systems Division

Department of State Treasurer

3200 Atlantic Avenue

Raleigh, North Carolina 27604.

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;

Readopted Eff. March 1, 2023.

20 NCAC 02A .0302         DEFINITIONS

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;

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

Repealed Eff. March 1, 2023.

20 NCAC 02A .0303         RECONSIDERATION OF DECLARATORY RULINGS

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

Eff. October 29, 1979;

Repealed Eff. March 1, 2023.

SECTION .0400 ‑ CONTESTED CASE PROCEDURES

20 NCAC 02A .0401         ESTABLISHMENT OF PROCEDURAL RIGHTS

(a)  Article 3 of G.S. 150B establishes contested case procedures for the Retirement Systems Division of the Department of State Treasurer. All correspondence with the Retirement Systems Division shall be addressed to:

Director of the Retirement Systems Division

Department of State Treasurer

3200 Atlantic Avenue

Raleigh, North Carolina 27604.

(b)  Informal resolution of a dispute as described in G.S. 150B-22(a) begins when a person calls, writes, or visits the Retirement Systems Division's Member Services section and describes the dispute to a representative.

(c)  If the dispute is not resolved during this initial contact, the person may request a review of the Division's decision or action in writing to the Director of the Retirement Systems Division at the address in Paragraph (a) of this Rule.

(d)  The Director of the Retirement Systems Division, or the Director's designee, shall issue an agency decision in writing, which shall document the dispute for any contested case under G.S. 150B-22(b) and serve as the "agency decision" for purposes of G.S. 150B-23(f).

History Note:        Authority G.S. 128‑28(g); 135‑6(f); 150B-22; 150B‑23;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. October 1, 1993;

Readopted Eff. March 1, 2023.

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 both the Teachers' and State Employees' Retirement System and the Local Governmental Employees' Retirement System, 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 or 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 only after the period of dual membership, when a person becomes a member employed fully under 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.

(d)  Death benefits for active members shall be allocated pro rata between systems based on the total compensation paid during the period when the member was eligible for dual membership.

(e)  Other benefits shall be calculated as follows:

(1)           Compute "Average Final Compensation" on the basis of compensation on which the member would have contributed had the member's service not been divided between two retirement systems as a result of 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 the fractional month earned during each month of dual membership is equal to the compensation reported to the system divided by the total compensation reported to all systems.

(C)          The fractional months are to be computed as follows. First, identify the total compensation earned by the member in each of the systems during periods of dual membership, as determined in Part (e)(2)(B) of this Rule. Second, add together the total compensation earned by the member in each of the systems during periods of dual membership, as determined in Part (e)(2)(B) of this Rule, to produce a Grand Total. Third, divide the total compensation earned by the member in each of the systems during periods of dual membership, as determined in Part (e)(2)(B) of this Rule, by the Grand Total, as determined in the previous sentence, to produce a factor, carried to the fourth decimal place, known as the Modification Factor, for each system. Fourth, multiply the total of the fractional months, as determined in Part (e)(2)(B) of this Rule, by the Modification Factor for each system, as determined in the previous sentence, to determine the actual creditable service allowed for each system during periods of dual membership.

(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 Subparagraph (e)(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 original effective date of this Rule, December 1, 1981, and continued in service under the other Retirement System. In such cases, the retirement allowance of the member from the system with which the member first retired shall be recomputed in accordance with this Rule and paid retroactively to the original effective date of this Rule.

History Note:        Authority G.S. 128‑28(g); 128-34(b); 135‑6(f); 135-18.1(a);

Eff. December 1, 1981;

Amended Eff. March 1, 2023; 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 the 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 shall 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 notified of the suspension of the arrangement and upon receipt of proof that the 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 proof that the charges were incurred.

(d)  Any reimbursement of non-sufficient fund 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. 58-86-10; 120-4.9; 127A-40(f); 128‑28(g); 135‑6(f); 135‑52; 135‑102(c); 161-50.1(b);

Eff. March 1, 1992;

Readopted Eff. March 1, 2023.

20 NCAC 02A .0505         ADMINISTRATIVE FEES FOR SERVICE PURCHASES

(a)  This Rule applies to the purchase of creditable service whenever a statutory provision prescribes that the calculation of the amount payable shall include an administrative fee to be set by the Board.

(b)  An administrative fee in the amount of twenty-five dollars ($25.00) for each payment shall be assessed, as provided by law, against members at the time of purchase.

History Note:        Authority G.S. 58-86-45; 120-4.15; 120-4.16; 128-26; 128-28(g); 135-4; 135‑6(f); 135-56;

Eff. March 1, 2023.

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 Director is the Director of the Retirement Systems Division;

(2)           The mailing address and physical address is Retirement Systems Division, Department of State Treasurer, 3200 Atlantic Avenue, Raleigh, North Carolina 27604.

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

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;

Amended Eff. March 1, 2023; September 1, 2019.

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

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

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. August 1, 1981;

Repealed Eff March 1, 2023.

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 consists of five physicians, with a quorum of three required at meetings approving applications for disability retirement.

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

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 ineligible for participation in the Optional Retirement Program, as provided by G.S. 135‑5.1, and who later is reclassified to an eligible rank or position shall be permitted to elect to withdraw from the Teachers' and State Employees' Retirement System and to begin participation in the Optional Retirement Program as though the individual were a new employee.

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

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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

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

Eff. October 29, 1979;

Repealed Eff. March 1, 2023.

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.

20 NCAC 02B .0215          TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM OVERPAYMENT SAFE HARBOR

(a)  The Board of Trustees determines that the following causes of overpayments are not entirely due to administrative error on the part of the Retirement Systems Division:

(1)           The beneficiary received, but did not repay to the Retirement System or the Disability Income Plan of North Carolina, a benefit from the Social Security Administration, the U.S. Department of Veterans Affairs, other federal agency payments, Workers' Compensation, or the State's military disability program under G.S. 127A-108, where such benefits are required by law to be offset from benefits paid by the Retirement System or the Disability Income Plan of North Carolina, or where repayment of such benefits was agreed upon as a condition of approval for benefits from the Retirement System or the Disability Income Plan of North Carolina.

(2)           The beneficiary, the beneficiary's employer, or the beneficiary's authorized agent submitted any information on an official form to the Retirement Systems Division, either on paper or electronically, that differed from the information ultimately used to determine the eligibility for, or amount of, benefits due.

(3)           The Retirement Systems Division requested information necessary to initiate or continue the payment of benefits, by sending a letter to the mailing address that the beneficiary, the beneficiary's employer, or the beneficiary's authorized agent placed on file with the Retirement Systems Division, allowing at least three weeks between the date of the letter and the date for a response to be received, and the Retirement Systems Division did not receive a response by the time requested.

(4)           A State or local government agency reported information to the Retirement Systems Division, including employment status, dates of service, or amounts of compensation, which changed the eligibility for, or amount of, benefits due to the beneficiary.

(5)           The beneficiary experienced a forfeiture of creditable service for having been convicted of a felony under the provisions of G.S. 135-18.10, G.S. 135-18.10A, G.S. 135-75.1, or G.S. 135-75.1A .

(b)  The Retirement Systems Division may initiate a review of the facts and circumstances related to the origin of any overpayment from the Retirement System or the Disability Income Plan of North Carolina, with the purpose of determining if the overpayment was entirely due to administrative error on the part of the Retirement Systems Division and therefore eligible for the alternate repayment terms of G.S. 135-9(c1). The Director of the Retirement Systems Division shall, upon receipt of a written request by a beneficiary, beneficiary's employer, or the beneficiary's authorized agent, initiate such a review. If the Director determines the overpayment is not entirely due to administrative error on the part of the Retirement Systems Division, the Retirement Systems Division shall issue a letter to the requestor setting forth the reason or reasons for the denial. The Director shall make determinations on such requests pursuant to the authority provided under 20 NCAC 02A .0103.

History Note:        Authority G.S. 135-6(f); 135-9(c1);

Eff. July 1, 2024.

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); 135-5(l); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02B .0302          PRINCIPAL BENEFICIARY

(a)  More than one principal beneficiary may be designated for the return of accumulated contributions under the provisions of G.S. 135-5(f) to share equally. In the event of the death of any so designated principal beneficiary for the return of accumulated contributions, those surviving principal beneficiaries shall share equally in the total benefits. However, if there is only one living designated principal beneficiary for the return of accumulated contributions at the member's death and the member has met all other requirements under the provisions of G.S. 135-5(m), the designated principal beneficiary may elect to receive the alternative benefit under the provisions of G.S. 135-5(m).

(b)  More than one principal beneficiary may be designated for the death benefit of an active member or a retired member under the provisions of G.S. 135-5(l) to share equally. In the event of the death of any so designated principal beneficiary for the death benefit of an active member or retired member, those surviving principal beneficiaries shall share equally in the total benefits.

(c)  More than one principal beneficiary may be designated for the guaranteed refund under the provisions of G.S. 135-5(g1) to share equally. In the event of the death of any so designated principal beneficiary for the guaranteed refund, those surviving principal beneficiaries shall share equally in the total benefits.

History Note:        Authority G.S. 135-5(f); 135‑5(g); 135-5(g1); 135-5(l); 135-5(m); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02B .0303          CONTINGENT BENEFICIARY

(a)  The following shall apply to designating a contingent beneficiary for the return of accumulated contributions under the provisions of G.S. 135-5(f):

(1)           A principal beneficiary may be designated for the return of accumulated contributions with the stipulation that should the principal beneficiary predecease the member, payment of the amount due, if any, shall be made to the designated contingent beneficiary or beneficiaries for the return of accumulated contributions.

(2)           If more than one principal beneficiary is designated for the return of accumulated contributions, payment of the amount due, if any, shall be paid to any surviving principal beneficiaries designated for the return of accumulated contributions, sharing equally in the total benefits payable, and shall not be paid to any contingent beneficiary.

(3)           It is permissible to designate more than one contingent beneficiary for the return of accumulated contributions. Payment of the amount due, if any, shall be paid to the surviving contingent beneficiaries designated for the return of accumulated contributions, sharing equally in the total benefits, only in the event that there is no surviving principal beneficiary designated for the return of accumulated contributions.

(b)  The following shall apply to designating a contingent beneficiary for the death benefit under the provisions of G.S. 135-5(l):

(1)           A principal beneficiary may be designated for the death benefit of an active member or retired member with the stipulation that should the principal beneficiary predecease the member, payment of the amount due, if any, shall be made to the designated contingent beneficiary or beneficiaries for the death benefit.

(2)           If more than one principal beneficiary is designated for the death benefit, payment of the amount due, if any, shall be paid to any surviving principal beneficiaries designated for the death benefit, sharing equally in the total benefits payable, and shall not be paid to any contingent beneficiary.

(3)           It is permissible to designate more than one contingent beneficiary for the death benefit. Payment of the amount due, if any, shall be paid to the surviving contingent beneficiaries designated for the death benefit, sharing equally in the total benefits, only in the event that there is no surviving principal beneficiary designated for the death benefit.

(c)  The following shall apply to designating a contingent beneficiary for the guaranteed refund under the provisions of G.S. 135-5(g1):

(1)           A principal beneficiary may be designated for the guaranteed refund with the stipulation that should the principal beneficiary predecease the member, payment of the amount due, if any, shall be made to the designated contingent beneficiary or beneficiaries for the guaranteed refund.

(2)           If more than one principal beneficiary is designated for the guaranteed refund, payment of the amount due, if any, shall be paid to any surviving principal beneficiaries designated for the guaranteed refund, sharing equally in the total benefits payable, and shall not be paid to any contingent beneficiary.

(3)           It is permissible to designate more than one contingent beneficiary for the guaranteed refund. Payment of the amount due, if any, shall be paid to the surviving contingent beneficiaries designated for the guaranteed refund, sharing equally in the total benefits, only in the event that there is no surviving principal beneficiary designated for the guaranteed refund.

History Note:        Authority G.S. 135-5(f); 135‑5(g); 135-5(g1); 135-5(l); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02B .0304          NO LIVING BENEFICIARY

If no designated 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 administrator or executor of the estate or the collector of funds for the estate of the member.

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

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02B .0305          BENEFICIARY WHO IS A MINOR

(a)  Payments to beneficiaries who are minors will be made to an appointed guardian or to the clerk of superior court in the county in which the beneficiary resides to the extent that such payment is authorized by law.

(b)  In the event that the appointed guardian or the clerk of superior court in the county in which the beneficiary resides is unwilling or unable to accept payment on behalf of the minor beneficiary payment may be made to a custodian in accordance with Chapter 33A of the North Carolina General Statutes, entitled North Carolina Uniform Transfers to Minors Act.

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

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 may, at any time, change any beneficiaries designated for the return of accumulated contributions under the provisions of G.S. 135-5(f) or the death benefit for active members under the provisions of G.S. 135-5(l). A retired member may, at any time, change any beneficiaries designated for:

(1)           The guaranteed refund under the provisions of G.S. 135-5(g1) until such time as the funds have been depleted;

(2)           The death benefit for active members under the provisions of G.S. 135-5(l) provided the change is submitted within 180 calendar days after the member's last day of active service; or

(3)           The death benefit for retired members under the provisions of G.S. 135-5(l).

The member shall submit any such change to the Board of Trustees using the form approved by the Board of Trustees for designation of the beneficiary for that purpose.

History Note:        Authority G.S. 135-5(f); 135‑5(g); 135-5(g1); 135-5(l); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 the return of contributions and whom the member designated as beneficiary for the death benefit as if the member had designated such person for the return of contributions if all of the following conditions are met:

(1)           the member had 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 or legatees, 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 Division showing that the member thought the member had or intended to have designated for the return of contributions the same person whom the member 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 the beneficiary 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(f); 135‑5(m);135-6(f);

Eff. October 29, 1979;

Readopted Eff. March 1, 2023.

SECTION .0400 ‑ EMPLOYER CONTRIBUTIONS

20 NCAC 02B .0401          REFUNDS

(a)  The Retirement System will make no refunds of employer contributions paid into the pension accumulation fund by the employer in the amount equal to a percentage of the actual compensation of each member 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.

(b)  Notwithstanding Paragraph (a) of this Rule, an error occurring in December may be corrected, and the associated employer contribution be refunded in the form of a credit toward future required employer contributions, by the employer's submission of a revised payroll report for the correct amount before January 31 of the following year.

(c)  If an employer makes an additional contribution to the pension accumulation fund as a result of the contribution-based benefit cap and the Retirement System receives information which alters the calculation of the retirement benefit used to determine the contribution under the provisions of G.S. 135-8(f)(2)f., any contribution not required based on the new information will be refunded to the employer in the form of a credit toward future required employer contributions.

History Note:        Authority G.S. 135-2; 135‑6(f); 135‑8(f);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02B .0402          FORWARDING OF EMPLOYER CONTRIBUTIONS

All units shall 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. 135‑6(f); 135-8(f);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 office 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;

Readopted Eff. March 1, 2023.

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

History Note:        Authority G.S. 135-4(jj); 135-5(a3); 135-6(f);

Eff. March 21, 2019;

Repealed Eff. March 1, 2023.

SECTION .0500 ‑ TYPES OF RETIREMENT

20 NCAC 02B .0501          DISABILITY RETIREMENT EXAMINATION

The Medical Board is authorized to conduct an examination in doubtful cases of disability to determine whether the member continues to be eligible for a disability retirement pursuant to G.S. 135-5(c), paying the expense of the same from the Pension Accumulation Fund.

History Note:        Authority G.S. 135-2; 135‑5(c); 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 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. March 1, 2023; September 21, 1977.

20 NCAC 02B .0503          FEES: INDEPENDENT MEDICAL EXAMS‑DISABILITY RETIREMENTS

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;

Repealed Eff. March 1, 2023.

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. March 1, 2023; 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. 135‑6(f);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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)  For the purposes of G.S. 135-8(b)(5), "stipend" shall mean a fixed sum of money paid periodically for services and to defray the cost of travel, housing, meals, or other expenses resulting from participation in a full-time degree program.

(b)  If the employer makes the monthly employer contribution equal to the normal and accrued liability contribution, the employer shall submit the total employer payment to the Retirement System.

(c)  If the member makes the entire payment, the member shall submit the total employer and employee contribution to the Retirement System.

(d)  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 the contributions in the same manner the member would if the member 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;

Readopted Eff. March 1, 2023.

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)  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 02B .1200, as then effective.

(b)  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.

(c)  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 Paragraph (b) of this Rule.

(d)  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;

Readopted Eff. March 1, 2023.

SECTION .0800 ‑ MILITARY SERVICE (INCHOATE RIGHTS ONLY)

20 NCAC 02B .0801          FEE

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

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 2023.

20 NCAC 02B .0802          QUALIFYING FOR CREDIT

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

History Note:        Authority G.S. 135‑4(f)(6); 135‑6(f); S.L. 1981, C. 636;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 the member first entered membership; multiplied by

(2)           the employee contribution rate at that time; multiplied by

(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); S.L. 1981, C. 636;

Eff. February 1, 1976;

Readopted September 21, 1977;

Amended Eff. March 1, 2023.

20 NCAC 02B .0804          CIVIL SERVICE PARTICIPATION

A member of the Teachers' and State Employees' Retirement System whose employment in this State requires the member 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 the member is otherwise eligible in the Retirement System, despite the fact that the member may also receive credit under the Federal Civil Service Program for the same period of military service, provided that the member makes the required payment.

History Note:        Authority G.S. 135‑4(f)(6); 135‑6(f); S.L. 1981, C. 636;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 military longevity retirement ("retired pay") benefit. The term "service connected disability" has the same meaning as used in Title 38, Chapter 11 of the United States Code which is hereby incorporated by reference, including subsequent additions and amendments, and is available online, at no cost, at https://uscode.house.gov/browse/prelim@title38/part2&edition=prelim. The term "retired pay" has the same meaning as used in Title 10, Chapter 71 of the United States Code which is hereby incorporated by reference, including subsequent additions and amendments, and is available online, at no cost, at https://uscode.house.gov/browse/prelim@title10/subtitleA/part2/chapter71&edition=prelim.

History Note:        Authority G.S. 135‑4(f)(6); 135‑6(f); S.L. 1981, C. 636;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02B .0806          RECALCULATION OF BENEFITS

For members already retired who purchase service under G.S. 135-4(f)(6), any recalculation of benefits shall be based on the law in effect at the time of the individual's retirement. The calculation of both the benefit and the cost of the credit shall include the effects of the additional service credit resulting from the purchase and all benefit increases subsequent to the date of retirement.

History Note:        Authority G.S. 135‑4(f)(6); 135‑6(f); S.L. 1981, C. 636;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02B .0807          CHANGE IN BENEFITS

For members already retired, any change in benefits resulting from the purchase of credit pursuant to this Section 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); S.L. 1981, C. 636;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 the member's contributions, the member shall be permitted to pay back the amount withdrawn, to the extent permitted by law, restore membership, and receive credit for the associated period of military leave.

History Note:        Authority G.S. 135‑4(f); 135-4(k1); 135‑6(f); S.L. 1981, C. 636;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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

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

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 2023.

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 of the member's out-of-state service period in full years as the member desires of out‑of‑state service for which the member is eligible.

History Note:        Authority G.S. 135‑4(l); 135‑6(f); S.L. 1981, C. 636;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02B .0903          DEFINITION

"Other governmental subdivision of the United States," as used in G.S. 135‑4(l), means 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); S.L. 1981, C. 636;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 the member first entered membership; multiplied by

(2)           the employee contribution rate at that time; multiplied by

(3)           the number of months of out‑of‑state service for which credit is to be purchased; multiplied by

(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); S.L. 1981, C. 636;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02B .0905          RECALCULATION OF BENEFITS

For members already retired who purchase service under G.S. 135-4(l), as repealed by Session Law 1981-636, s. 1, where the text of the repealed statutory provision may be found in the Editor's Note to G.S. 135-4 in the 2021 Edition of the General Statutes of North Carolina, any recalculation of benefits shall be based on the law in effect at the time of the individual's retirement. The calculation of both the benefit and the cost of the credit shall include the effects of the additional service credit resulting from the purchase and all benefit increases subsequent to the date of retirement.

History Note:        Authority G.S. 135‑4(l); 135‑6(f); S.L. 1981, C. 636;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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); S.L. 1981, C. 636;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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

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

Eff. October 29, 1979;

Repealed Eff. March 1, 2023.

20 NCAC 02B .1004          TEMPORARY SERVICE PURCHASE (INCHOATE RIGHTS ONLY)

(a)  A member eligible under G.S. 135‑4(p) to purchase service for temporary State employment shall apply for the purchase. Employer certification of temporary State employment and the compensation received for such service shall accompany the application. The application shall include: the member's Member Identification Number; last employer under the Retirement System; and the member's signature and signature date. For each temporary position for which the member desires to purchase credit, the application shall identify the government employer, position title, start date, end date, and the member's last name while working in the position. The employer' s certification shall include the position title, start and end date of the eligible period, number of months in the annual contract to perform services, beginning and ending months of the annual contract period for retirement service purposes, and the name, position, employer, email address, telephone number, signature, and signature date of the employer contact certifying the information.

(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)  The employer cost, 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.

History Note:        Authority G.S. 135‑4(p); 135‑6(f); S.L. 2020-29;

Eff. March 1, 1982;

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

Readopted Eff. March 1, 2023.

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

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

Eff. December 1, 1983;

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

Repealed Eff. March 1, 2023.

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

"Part-time" as used in G.S. 135-4(p2) means duties performed on less than a full‑time basis as classified by the employer.

History Note:        Authority G.S. 135‑4(p2); 135‑6(f);

Eff. March 1, 1985;

Readopted Eff. March 1, 2023.

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

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

Eff. March 1, 1985;

Repealed Eff. March 1, 2023.

SECTION .1100 ‑ VOLUNTARILY WITHDRAWN CONTRIBUTIONS

20 NCAC 02B .1101          FEE

20 NCAC 02B .1102          QUALIFICATION

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

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 2023.

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

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

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 2023.

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

20 NCAC 02B .1205          COMPUTATION OF COST

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

Eff. October 29, 1979;

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

Repealed Eff. March 1, 2023.

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

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

Eff. March 1, 1982;

Amended Eff. March 1, 1985;

Repealed Eff. March 1, 2023.

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 Director is the Director of the Retirement Systems Division;

(2)           The mailing address and physical address is Retirement Systems Division, 3200 Atlantic Avenue, Raleigh, North Carolina 27604.

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

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;

Amended Eff. March 1, 2023; September 1, 2019.

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

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;

Repealed Eff. March 1, 2023.

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

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

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 2023.

20 NCAC 02C .0205         MEDICAL BOARD

In accordance with the authority contained in G.S. 128-28(l), membership of the Medical Board consists of five physicians, with a quorum of three required at meetings approving applications for disability retirement.

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

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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.

20 NCAC 02C .0210         DEFINITIONS

(a)  "Surety" means a written agreement, constituting both a resolution and an "acknowledgement and acceptance letter" as described in Rule .0211 of this Section, given for the fulfillment and guarantee of the withdrawal payment to cease participation in the Retirement System under G.S. 128-30(i).

(b)  "Estimated Withdrawal Liability" means the withdrawal liability under the terms of G.S. 128-30(i) estimated by the Division's consulting actuary. The estimate shall be prepared under the assumption that the participating employer will cease participation 10 years after initial participation.

(c)  "Non-taxing authority" ("NTA") means as an otherwise eligible employer that is not a taxing unit, as defined by G.S. 105-273(16).

History Note:        Authority G.S. 128-23(i);

Eff. October 1, 2023.

20 NCAC 02C .0211         SURETY FOR NON-TAXING AUTHORITY PARTICIPATION

(a)  An NTA shall provide surety to the Board establishing any withdrawal liability the NTA may incur will be paid by submitting a resolution adopted by the NTA's governing body stating the NTA is maintaining an amount equal to or greater than the Estimated Withdrawal Liability in a secure financial instrument and will maintain the funds in such an instrument, including any other secure financial instrument, throughout its participation in the Retirement System. A secure financial instrument may include: an escrow account, a letter of credit, a bond, a deed of trust, or a deposit in the Ancillary Governmental Participant Investment Program (AGPIP) under G.S. 147-69.3 to the extent such an investment by the NTA is permitted by the Internal Revenue Code and State law.

(b)  Any NTA submitting a resolution required under Paragraph (a) of this Rule must also submit to the Division an "acknowledgement and acceptance letter" signed by a person or persons authorized to act on behalf of the NTA. The letter must acknowledge the specific amount of the Estimated Withdrawal Liability; acknowledge that the actual amount of the withdrawal liability, if incurred, will differ from the Estimated Withdrawal Liability; accept the obligation to pay the actual withdrawal liability, if incurred; and attest that the entity has reviewed the withdrawal-related requirements of G.S. 128-30(i).

History Note:        Authority G.S. 128-23(i);

Eff. October 1, 2023.

20 NCAC 02C .0212         LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM OVERPAYMENT SAFE HARBOR

(a)  The Board of Trustees determines that the following causes of overpayments are not entirely due to administrative error on the part of the Retirement Systems Division:

(1)           The beneficiary received, but did not repay to the Retirement System, a benefit from the Social Security Administration, the U.S. Department of Veterans Affairs, other federal agency payments, Workers' Compensation, or the State's military disability program under G.S. 127A-108, where such benefits are required by law to be offset from Retirement System benefits, or where repayment of such benefits was agreed upon as a condition of approval for benefits from the Retirement System.

(2)           The beneficiary, the beneficiary's employer, or the beneficiary's authorized agent submitted information on an official form to the Retirement Systems Division, either on paper or electronically, that differed from the information ultimately used to determine the eligibility for, or amount of, benefits due.

(3)           The Retirement Systems Division requested information necessary to initiate or continue the payment of benefits, by sending a letter to the mailing address that the beneficiary, the beneficiary's employer, or the beneficiary's authorized agent on file with the Retirement Systems Division, allowing at least three weeks between the date of the letter and the date for a response to be received, and the Retirement Systems Division did not receive a response by the time requested.

(4)           A State or local government agency reported information to the Retirement Systems Division, including employment status, dates of service, or amounts of compensation, which changed the eligibility for, or amount of, benefits due to the beneficiary.

(5)           The beneficiary experienced a forfeiture of creditable service for having been convicted of a felony under the provisions of G.S. 128-38.4 or G.S. 128-38.4A.

(b)  The Retirement Systems Division may initiate a review of the facts and circumstances related to the origin of any overpayment from the Retirement System, with the purpose of determining if the overpayment was entirely due to administrative error on the part of the Retirement Systems Division and therefore eligible for the alternate repayment terms of G.S. 128-31(c1). The Director of the Retirement Systems Division shall, upon receipt of a written request by a beneficiary, beneficiary's employer, or the beneficiary's authorized agent, initiate such a review. If the Director determines the overpayment is not entirely due to administrative error on the part of the Retirement Systems Division, the Retirement Systems Division shall issue a letter to the requestor setting forth the reason or reasons for the denial. The Director shall make determinations on such requests pursuant to the authority provided under 20 NCAC 02A .0103.

History Note:        Authority G.S. 128-28(g); 128-31(c1);

Eff. July 1, 2024.

SECTION .0300 ‑ BENEFICIARIES

20 NCAC 02C .0301         DESIGNATION

Any beneficiary designated, other than the estate of the member or a trustee named by and acting for the member, must be a living person 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. March 1, 2023; September 21, 1977.

20 NCAC 02C .0302         PRINCIPAL BENEFICIARY

(a)  More than one principal beneficiary may be designated for the return of accumulated contributions under the provisions of G.S. 128-27(f) to share equally. In the event of the death of any so designated principal beneficiary for the return of accumulated contributions, those surviving principal beneficiaries shall share equally in the total benefits. However, if there is only one living designated principal beneficiary for the return of accumulated contributions at the member's death and the member has met all other requirements under the provisions of G.S. 128-27(m), the designated principal beneficiary may elect to receive the alternative benefit under the provisions of G.S. 128-27(m).

(b)  More than one principal beneficiary may be designated for the death benefit of an active member or a retired member under the provisions of G.S. 128-27(l), 128-27(l1), or 128-27(l6) to share equally. In the event of the death of any so designated principal beneficiary for the death benefit of an active member or retired member, those surviving principal beneficiaries shall share equally in the total benefits.

(c)  More than one principal beneficiary may be designated for the guaranteed refund under the provisions of G.S. 128-27(g1) to share equally. In the event of the death of any so designated principal beneficiary for the guaranteed refund, those surviving principal beneficiaries shall share equally in the total benefits.

History Note:        Authority G.S. 128-27(f); 128-27(g1); 128-27(l); 128-27(l1); 128-27(l6); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02C .0303         NO LIVING BENEFICIARY

If no designated 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 administrator or executor of the estate or the collector of funds for the estate of the member.

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

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02C .0304         PAYMENTS TO BENEFICIARIES

(a)  Payments to beneficiaries who are minors will be made to an appointed guardian or to the clerk of the superior court in the county which the beneficiary resides to the extent that such payment is authorized by law.

(b)  In the event that the appointed guardian or the clerk of superior court in the county in which the beneficiary resides is unwilling or unable to accept payment on behalf of the minor beneficiary, payment may be made to a custodian in accordance with Chapter 33A of the North Carolina General Statutes, entitled North Carolina Uniform Transfers to Minors Act.

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

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 may, at any time, change any beneficiaries designated for the return of accumulated contributions under the provisions of G.S. 128-27(f) or the death benefit for active members under the provisions of G.S. 128-27(l) or 128-27(l1) A retired member may, at any time, change any beneficiaries designated for:

(1)           The guaranteed refund under the provisions of G.S. 128-27(g1) until such time as the funds have been depleted;

(2)           The death benefit for active members under the provisions of G.S. 128-27(l) or 128-27(l1) provided the change is submitted within 180 calendar days after the member's last active day of service; or

(3)           The death benefit for retired members under the provisions of G.S. 128-27(l6).

The member shall submit any such change to the Board of Trustees using the form approved by the Board of Trustees for designation of the beneficiary for that purpose.

History Note:        Authority G.S. 128‑27(g); 128-27(g1); 128-27(l); 128-27(l1); 128-27(l6); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02C .0307         CONTINGENT BENEFICIARY

(a)  The following shall apply to designating a contingent beneficiary for the return of accumulated contributions under the provisions of G.S. 128-27(f):

(1)           A principal beneficiary may be designated for the return of accumulated contributions with the stipulation that should the principal beneficiary predecease the member, payment of the amount due, if any, shall be made to the designated contingent beneficiary or beneficiaries for the return of accumulated contributions.

(2)           If more than one principal beneficiary is designated for the return of accumulated contributions, payment of the amount due, if any, shall be paid to any surviving principal beneficiaries designated for the return of accumulated contributions, sharing equally in the total benefits payable, and shall not be paid to any contingent beneficiary.

(3)           It is permissible to designate more than one contingent beneficiary for the return of accumulated contributions. Payment of the amount due, if any, shall be paid to the surviving contingent beneficiaries designated for the return of accumulated contributions, sharing equally in the total benefits, only in the event that there is no surviving principal beneficiary designated for the return of accumulated contributions.

(b)  The following shall apply to designating a contingent beneficiary for the death benefit under the provisions of G.S. 128-27(l), 128-27(l1), or 128-27(l6):

(1)           A principal beneficiary may be designated for the death benefit of an active member or retired member with the stipulation that should the principal beneficiary predecease the member, payment of the amount due, if any, shall be made to the designated contingent beneficiary or beneficiaries for the death benefit.

(2)           If more than one principal beneficiary is designated for the death benefit, payment of the amount due, if any, shall be paid to any surviving principal beneficiaries designated for the death benefit, sharing equally in the total benefits payable, and shall not be paid to any contingent beneficiary.

(3)           It is permissible to designate more than one contingent beneficiary for the death benefit. Payment of the amount due, if any, shall be paid to the surviving contingent beneficiaries designated for the death benefit, sharing equally in the total benefits, only in the event that there is no surviving principal beneficiary designated for the death benefit.

(c)  The following shall apply to designating a contingent beneficiary for the guaranteed refund under the provisions of G.S. 128-27(g1):

(1)           A principal beneficiary may be designated for the guaranteed refund with the stipulation that should the principal beneficiary predecease the member, payment of the amount due, if any, shall be made to the designated contingent beneficiary or beneficiaries for the guaranteed refund.

(2)           If more than one principal beneficiary is designated for the guaranteed refund, payment of the amount due, if any, shall be paid to any surviving principal beneficiaries designated for the guaranteed refund, sharing equally in the total benefits payable, and shall not be paid to any contingent beneficiary.

(3)           It is permissible to designate more than one contingent beneficiary for the guaranteed refund. Payment of the amount due, if any, shall be paid to the surviving contingent beneficiaries designated for the guaranteed refund, sharing equally in the total benefits, only in the event that there is no surviving principal beneficiary designated for the guaranteed refund.

History Note:        Authority G.S. 128-27(f); 128-27(g1); 128-27(l); 128-27(l1); 128-27(l6); 128‑28(g);

Eff. March 1, 2023.

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 shall 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. 128-28(g); 128‑30(g)(1);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02C .0403         REFUNDS

(a)  The Retirement System will make no refunds of employer contributions, paid into the Pension Accumulation Fund by the employer in the amount equal to a percentage of the actual compensation of each member, 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.

(b)  Notwithstanding Paragraph (a) of this Rule, an error occurring in December may be corrected, and the associated employer contribution be refunded in the form of a credit toward future required employer contributions, by the employer's submission of a revised payroll report for the correct amount before January 31 of the following year.

(c)  If an employer makes an additional contribution to the pension accumulation fund as a result of the contribution-based benefit cap and the Retirement System receives information which alters the calculation of the retirement benefit used to determine the contribution under the provisions of G.S. 128-30(g)(2)b., any contribution not required based on the new information will be refunded to the employer in the form of a credit toward future required employer contributions.

History Note:        Authority G.S. 128-22; 128-28(g); 128‑30(g);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02C .0404         DUE DATE OF CONTRIBUTIONS

Both the employee and employer contributions are due in the Raleigh office 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;

Readopted Eff. March 1, 2023.

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

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

Eff. May 1, 2018;

Repealed Eff. March 1, 2023.

SECTION .0500 ‑ DISABILITY RETIREMENT

20 NCAC 02C .0501         DISABILITY EXAMINATION

The Medical Board is authorized to conduct an examination in doubtful cases of disability to determine whether the member continues to be eligible for a disability retirement pursuant to G.S. 128-27(c), paying the expense of the same from the Pension Accumulation Fund.

History Note:        Authority G.S. 128-22; 128‑27(c); 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 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. March 1, 2023; September 21, 1977.

20 NCAC 02C .0503         FEES: INDEPENDENT MEDICAL EXAMS‑DISABILITY RETIREMENTS

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;

Repealed Eff. March 1, 2023.

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. 128-28(g); 128‑29(b);

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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)  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 02C .1500, as then effective.

(b)  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 Paragraph (a) of this Rule.

(c)  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;

Readopted Eff. March 1, 2023.

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 the member's contributions, the member shall be permitted to pay back the amount withdrawn, to the extent permitted by law, restore membership, and receive credit for the associated period of military leave.

History Note:        Authority G.S. 128-26(i1); 128‑27(f); 128‑28(g); S.L. 1987, C. 617;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02C .0902         FEE

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

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 2023.

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 the member first entered membership; multiplied by

(2)           the contribution rate at the time the member first entered membership; multiplied by

(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); S.L. 1987, C. 617;

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. March 1, 2023.

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 the member 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 the member is otherwise eligible in the Retirement System despite the fact that the member may also receive credit under the Federal Civil Service Program for the same period of military service, provided that the member makes the required payment.

History Note:        Authority G.S. 128‑26(a); 128‑28(g); S.L. 1987, C. 617;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 military longevity retirement ("retired pay") benefit. The term "service-connected disability" has the same meaning as used in Title 38, Chapter 11 of the United States Code which is hereby incorporated by reference, including subsequent additions and amendments, and is available online, at no cost, at https://uscode.house.gov/browse/prelim@title38/part2&edition=prelim. The term "retired pay" has the same meaning as used in Title 10, Chapter 71 of the United States Code which is hereby incorporated by reference, including subsequent additions and amendments, and is available online, at no cost, at https://uscode.house.gov/browse/prelim@title10/subtitleA/part2/chapter71&edition=prelim.

History Note:        Authority G.S. 128‑26(a); 128‑28(g); S.L. 1987, C. 617;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02C .0908         RECALCULATION OF BENEFITS

For members already retired who obtain military service credit, any recalculation of benefits shall be based on the law in effect at the time of the individual's retirement. The calculation of both the benefit and the cost of the credit shall include the effects of the additional service credit resulting from the purchase and all benefit increases subsequent to the date of retirement.

History Note:        Authority G.S. 128‑26(a); 128‑28(g); S.L. 1987, C. 617;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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. March 1, 2023; 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

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

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 2023.

20 NCAC 02C .1002         QUALIFYING FOR CREDIT

In order to qualify, each individual must pay for all or such portion in full years as the member desires of out‑of‑state service for which the member is eligible.

History Note:        Authority G.S. 128‑26(j); 128‑28(g); S.L. 1987, C. 617;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; September 21, 1977.

20 NCAC 02C .1003         OTHER GOVERNMENTAL SUBDIVISION

"Other governmental subdivision of the United States" means 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;

Readopted Eff. March 1, 2023.

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 the member first entered membership service; multiplied by

(2)           the employee contribution rate at that time; multiplied by

(3)           the number of months of out‑of‑state service for which credit is to be purchased; multiplied by

(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); S.L. 1987, C. 617;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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 purchase service under G.S. 128-26(j), as repealed by Session Law 1987-617, s. 3, where the text of the repealed statutory provision may be found in the Editor's Note to G.S. 128-26 in the 2021 Edition of the General Statutes of North Carolina, any recalculation of benefits shall be based on the law in effect at the time of the individual's retirement. The calculation of both the benefit and the cost of the credit shall include the effects of the additional service credit resulting from the purchase and all benefit increases subsequent to the date of retirement.

History Note:        Authority G.S. 128‑26(j); 128‑28(g); S.L. 1987, C. 617;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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); S.L. 1987, C. 617;

Eff. February 1, 1976;

Readopted Eff. March 1, 2023; 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

History Note:        Authority G.S. 128‑24(4)a.; 128‑28(g);

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 2023.

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

20 NCAC 02C .1302         QUALIFYING FOR CREDIT

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

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Repealed Eff. March 1, 2023.

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

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

Eff. December 1, 1981;

Amended Eff. March 1, 1985;

Repealed Eff. March 1, 2023.

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

20 NCAC 02C .1504         COMPUTATION OF COST

20 NCAC 02C .1505         EXTENT OF SERVICE TO BE PURCHASED

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

Eff. December 1, 1981;

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

Repealed Eff. March 1, 2023.

20 NCAC 02C .1506         SPECIAL RULE FOR RETIRED APPLICANTS

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

Eff. June 1, 1982;

Amended Eff. March 1, 1985;

Repealed Eff. March 1, 2023.

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 02F ‑ 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)           For purposes of this Subchapter, "Director" means the Director of the Retirement Systems Division;

(2)           The mailing address and physical address is Retirement Systems Division, Department of State Treasurer, 3200 Atlantic Avenue, Raleigh, North Carolina 27604.

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

Eff. February 1, 1976;

Readopted Eff. September 21, 1977;

Amended Eff. March 1, 1985;

Amended Eff. September 1, 2019;

Readopted Eff. March 1, 2023.

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

History Note:        Authority G.S. 135‑69; 135‑6(f);

Eff. September 21, 1977;

Amended Eff. August 1, 1981;

Repealed Eff. March 1, 2023.

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 the member's final compensation under G.S. 135-58(a6) 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.

History Note:        Authority G.S. 135‑6(f); 135-58(a6);

Eff. June 1, 1984;

Readopted Eff. March 1, 2023.

20 NCAC 02F .0108          FULL ACTUARIAL COST

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

Eff. March 1, 1985;

Repealed Eff. March 1, 2023.

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 02L ‑ 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 Separate Insurance Benefit Plan for State and Local Governmental Law Enforcement Officers':

(1)           For purposes of this Subchapter, "Director" means the Director of the Retirement Systems Division;

(2)           The mailing address and physical address is Retirement Systems Division, Department of State Treasurer, 3200 Atlantic Avenue, Raleigh, North Carolina 27604.

History Note:        Authority G.S. 128-28(g); 135-6(f); 143-166.60(b); 143-166.60(d);

Eff. August 1, 1983;

Amended Eff. September 1, 2019;

Readopted Eff. March 1, 2023.

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)           "Officer" shall mean a law enforcement officer as defined in G.S. 128-21(11d) and G.S. 135-1(11c).

(2)           "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.

(3)           "Participant" shall mean an Officer or Officer Trainee.

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

(5)           "Service" shall mean service as an Officer for which compensation is paid.

History Note:        Authority G.S. 128-28(g); 135-6(f); 143-166.60(b); 143-166.60(d);

Eff. August 1, 1983;

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

Readopted Eff. March 1, 2023.

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

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

Eff. August 1, 1983;

Repealed Eff. March 1, 2023.

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

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

Eff. August 1, 1983;

Repealed Eff. March 1, 2023.

SUBCHAPTER 02M ‑ 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 from the Teachers' and State Employees' Retirement System, Local Governmental Employees' Retirement System, Consolidated Judicial Retirement System, or Legislative Retirement System; 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, or Legislative Retirement System.

(6)           "Boards of Trustees" shall mean the Boards of Trustees of the Teachers' and State Employees' Retirement System and the Local Governmental Employees' Retirement System, each acting in accordance with the provisions of G.S. 128-28(f1) and G.S. 135-6(e1).

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128-27(l3); 128-27(l4); 128-27(l5); 128-27(l6); 128‑28(g); 135‑5(l); 135‑6(f); 135‑64(g);

Eff. February 1, 1989;

Amended Eff. March 1, 2023.

20 NCAC 02M .0102        AGENCY AND AUTHORITY OF DIRECTOR

(a)  The mailing address for the Contributory Death Benefit for Retired Members is the Retirement Systems Division, Department of State Treasurer, 3200 Atlantic Avenue, Raleigh, North Carolina 27604.

(b)  The Director of the Retirement Systems Division shall make decisions as it relates to the Contributory Death Benefit for Retired Members in accordance with the statutes and rules and regulations adopted by the Boards of Trustees and previous decisions of the Boards of Trustees. Appeals may be made from the decisions of the Director under the procedures used for contested cases as provided under Section .0400 of Title 20, Chapter 02, Subchapter A.

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128-27(l3); 128-27(l4); 128-27(l5); 128-27(l6); 128‑28(g); 135‑5(l); 135‑6(f); 135‑64(g);

Eff. February 1, 1989;

Amended Eff. March 1, 2023; September 1, 2019.

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

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;

Repealed Eff. March 1, 2023.

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, the member may elect coverage only on the basis of one retirement benefit from that Retirement System.

(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 a service retirement allowance.

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128-27(l3); 128-27(l4); 128-27(l5); 128-27(l6); 128‑28(g); 135‑5(l); 135‑6(f); 135‑64(g);

Eff. February 1, 1989;

Amended Eff. March 1, 2023.

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); 128-27(l3); 128-27(l4); 128-27(l5); 128-27(l6); 128‑28(g); 135‑5(l); 135‑6(f); 135‑64(g);

Eff. February 1, 1989;

Amended Eff. March 1, 2023.

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 under Rule .0205 of this Section, 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); 128-27(l3); 128-27(l4); 128-27(l5); 128-27(l6); 128‑28(g); 135‑5(l); 135‑6(f); 135‑64(g);

Eff. February 1, 1989;

Amended Eff. March 1, 2023.

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 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); 128-27(l3); 128-27(l4); 128-27(l5); 128-27(l6); 128‑28(g); 135‑5(1); 135‑6(f); 135‑64(g);

Eff. February 1, 1989;

Amended Eff. March 1, 2023.

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 greater or lesser 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 following:

(1)           the person or persons designated by the member;

(2)           if the member has not designated a beneficiary, to the surviving spouse; or

(3)           if the member is not survived by a designated beneficiary or spouse, to the legal representative.

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128-27(l3); 128-27(l4); 128-27(l5); 128-27(l6); 128‑28(g); 135‑5(l); 135‑6(f); 135‑64(g);

Eff. February 1, 1989;

Amended Eff. March 1, 2023.

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, such as for taxes and garnishments, 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 or payment of the contribution for the month in which death occurs shall be waived if it has not been received by the Retirement Systems Division before the Retirement Systems Division issues the return of contributions.

(d)  Once coverage is elected, the member shall pay the required monthly contribution 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 or the reduction or termination of retirement benefits by reason of an optional form of retirement allowance selected by the retired member at retirement.

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128-27(l3); 128-27(l4); 128-27(l5); 128-27(l6); 128‑28(g); 135‑5(l); 135‑6(f); 135‑64(g);

Eff. February 1, 1989;

Amended Eff. March 1, 2023.

20 NCAC 02M .0304        AMOUNT OF BENEFIT 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;

Repealed Eff. March 1, 2023.

20 NCAC 02M .0305        PAYMENT OF INTEREST ON BENEFIT

The following shall apply to interest payable on the monthly contributions of a member where the 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 Boards of Trustees and, in setting such annual rate of interest, the Boards 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 Boards 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.

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128-27(l3); 128-27(l4); 128-27(l5); 128-27(l6); 128‑28(g); 135‑5(l); 135‑6(f); 135‑64(g);

Eff. February 1, 1989;

Amended Eff. March 1, 2023.

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 shall not be payable.

History Note:        Authority G.S. 120‑4.10; 120‑4.27; 128‑27(l2); 128-27(l3); 128-27(l4); 128-27(l5); 128-27(l6); 128‑28(g); 135‑5(l); 135‑6(f); 135‑64(g);

Eff. February 1, 1989;

Amended Eff. March 1, 2023.

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 02N – FIREFIGHTERS' 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 mailing and physical address of the Office of the Director of the Retirement Systems Division is Retirement Systems Division, Department of State Treasurer, 3200 Atlantic Avenue, Raleigh, North Carolina 27604. Office hours are from 8 a.m. to 5 p.m., Mondays ‑ Fridays, except State 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;

Amended Eff. March 1, 2023; September 1, 2019.

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 20 NCAC 02A .0101, .0102, and .0103;

(2)           Sections 20 NCAC 02A .0200, .0300, and .0400; and

(3)           Rule 20 NCAC 02A .0504.

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

Eff. October 1, 1993;

Readopted Eff. March 1, 2023.

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 firefighters 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, date of birth, phone number, email address, gender, fire department or rescue squad, his or her first employment date with that department or squad, and requires a signature by an authorized representative of the fire department or rescue squad.

(c)  After the Director has received and approved the application and 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.

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;

Readopted Eff. March 1, 2023.

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 the pension fund and seek a refund.

(b)  To take a military leave of absence a member shall provide written notice to the office of the Director that the member 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 member shall deliver the notice to the office of the Director no later than six months after the member ceases service as an eligible firefighter 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 shall commence service as either an eligible firefighter 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 else the member will be deemed to have withdrawn from the pension fund.

(c)  Any member who enters the armed forces shall continue to receive service credit if the member notifies the office of the Director in writing of the member's intent to do so and if the member 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 03 NCAC 03 Eff. May 1, 1993;

Amended Eff. December 1, 1993;

Readopted Eff. March 1, 2023.

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

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;

Repealed Eff. March 1, 2023.

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 shall 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, accordingly, 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;

Readopted Eff. March 1, 2023.

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.

20 NCAC 02O .0104         SHORT-TERM DISABILITY AND EXTENDED SHORT-TERM DISABILITY APPROVALS

(a)  Only the Medical Board described in G.S. 135-6(k) shall have the authority to determine under G.S. 135-105(f) that an applicant is ineligible for benefits, or to determine under G.S. 135-105(g) that the beneficiary's disability is not temporary and likely to end within the extended period of short-term disability benefits.

(b)  The following positions or entities shall have the authority to approve short-term and extended short-term disability benefits on behalf of the Retirement Systems Division:

(1)           Director of the Retirement Systems Division;

(2)           Director of Operations;

(3)           Disability Benefits Processing Manager;

(4)           Disability Benefits Processing Supervisor;

(5)           Clinical Reviewer; or

(6)           Medical Board described in G.S. 135-6(k).

(c)  The Director of the Retirement Systems Division may designate additional positions to have the authority to approve, but not deny, short-term and extended short-term disability benefits.

(d)  Only the Medical Board may approve applications for short-term or extended-short-term disability benefits from individuals who have been employed at the Department of State Treasurer within the 365 days preceding the date of disability indicated on the individual's application for benefits.

History Note:        Authority G.S. 135-6(f); 135-105(f); 135-105(g);

Eff. July 1, 2024.

20 NCAC 02O .0105         SHORT-TERM DISABILITY NOTIFICATION DATE

(a)  "Date of submission" means the date indicated on the Retirement Systems Division's hand-stamped postal mark if the submission is by mail or in person, the timestamp if the submission is by email, or the transmission date if the submission is by facsimile transmission.

(b)  "Notifications made" pursuant to G.S. 135-105(d) means the submission of a written request for reimbursement by an employer.

(c)  "Submission" means the act of presenting a document to the Retirement Systems Division for processing, consideration, or determination through one of the following methods:

(1)           Mail to the mailing address in Rule 20 NCAC 02B .0101;

(2)           Electronic mail (email);

(3)           Facsimile transmission; or

(4)           In person at the physical address in Rule 20 NCAC 02B .0101.

History Note:        Authority G.S. 135-6(f); 135-105(d);

Eff. July 1, 2024.

20 NCAC 02O .0106         EXTENDED SHORT-TERM DISABILITY APPLICATION DATE

(a)  "Date of submission" means the date indicated on the Retirement Systems Division's hand-stamped postal mark if the submission is by mail or in person, the timestamp if the submission is by email, or the transmission date if the submission is by facsimile transmission.

(b)  "Makes an application" pursuant to G.S. 135-105(g) means submission, in a method prescribed by Paragraph (c) of this Rule, of the following information:

(1)           Full name;

(2)           Mailing address;

(3)           Email address;

(4)           Telephone number;

(5)           Date of birth;

(6)           Member identification number assigned by the Retirement Systems Division;

(7)           Last four digits of Social Security Number;

(8)           Current or most recent employer;

(9)           Employer contact name; and

(10)         Signed and dated acknowledgement that the member has been receiving short-term benefits from the Disability Income Plan of North Carolina; is applying for extended short-term benefits; certifies that the illness did not result from active participation in a riot or actual or attempted commission of a terrorist act, felony, or intentional self-inflicted injury; authorizes health care providers to release to the Retirement Systems Division any medical records or other information about the disability; understands that a copy of such authorization will be as valid as the original; understands that the member, or the member's physician on the member's behalf, is to furnish the medical information to the Retirement Systems Division at no cost; and understands that the member cannot withdraw contributions from the Retirement System while receiving benefits under the Disability Income Plan of North Carolina.

(c)  "Submission" means the action of presenting a document to the Retirement Systems Division for processing, consideration, or determination through one of the following methods:

(1)           Mail to the mailing address in Rule 20 NCAC 02B .0101;

(2)           Electronic mail (email);

(3)           Facsimile transmission; or

(4)           In person at the physical address in Rule 20 NCAC 02B .0101.

History Note:        Authority G.S. 135-6(f); 135-105(g);

Eff. July 1, 2024.