20 NCAC 02M .0305. PAYMENT OF INTEREST ON BENEFIT

Interest payable on the monthly contributions of a member where 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 Board of Trustees and, in setting such annual rate of interest, the Board 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 Board 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.

(3)           The interest rate established by resolution of the Boards of Trustees, adopted on January 28, 1988, is 6 1/2 percent.

 

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.