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

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

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

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

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

(e)  Other benefits shall be calculated by:

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

(2)           Compute creditable service as follows:

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

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

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

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

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

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

 

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

Eff. December 1, 1981;

Amended Eff. March 1, 1985.