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.