20 NCAC 02N .0209. PRIOR SERVICE CREDIT

Eligible prior service not purchased under the provisions of G.S. 58‑86‑45(b) may be purchased under the provisions of G.S. 58‑86‑45(a1) by payment of a lump sum amount equal to the full liability of the service credits calculated on the basis of the assumptions used for purposes of the actuarial valuation of the Pension Fund's liabilities and shall take into account the retirement allowance arising on account of the additional service credit at the earliest age at which the applicant could retire on a retirement allowance.

(1)           Eligible applicants who desire to purchase credit for service under the provisions of G.S. 58‑86‑45(al) shall make application and acquire certification (as necessary) from the eligible fire department or rescue squad on a form designated for this purpose.

(2)           The phrase "fireman or rescue squad worker" as used in G.S. 58‑86‑45(al) shall mean any person who is or was an eligible fireman or eligible rescue squad worker as defined and provided by G.S. 58‑86‑25 and G.S. 58‑86‑30.

(3)           The phrase "periods of service" as used in G.S. 58‑86‑45(al) shall mean service as an eligible fireman or eligible rescue squad worker as defined and provided by G.S. 58‑86‑25 and G.S. 58‑86‑30.

(4)           The phrase "not otherwise creditable" as used in G.S. 58‑86‑45(al) shall refer to eligible service as defined and provided by G.S. 58‑86‑25 and G.S. 58‑86‑30 for which retirement credit is not currently established in the Pension Fund.

(5)           The cost to purchase creditable service hereunder shall be computed as follows:

(a)           determine amount of service to be purchased;

(b)           determine nearest age of applicant, which for the purposes of this Rule is the year and whole month of the age of the member;

(c)           determine if an applicant is currently a contributing member of the Pension Fund;

(d)           if applicant is currently a contributing member of the Pension Fund, multiply the cost per year of service (as provided by the Pension Fund's consulting actuary) at the applicant's nearest age times the amount of service to be purchased; however, the cost shall not exceed the cost as provided under Subitem (5)(e) of this Rule for an applicant the same age who is not currently a contributing member;

(e)           if applicant is not currently a contributing member of the Pension Fund, obtain the lump sum amount at the applicant's nearest age by referring to the present value cost as provided by the Pension Fund's consulting actuary;

(f)            the amount of service to be purchased in a single transaction shall be all eligible service, as defined and provided by G.S. 58‑86‑25 and G.S. 58‑86‑30, or such portion in full years as the applicant may elect;

(g)           a fee in the amount of twenty‑five dollars ($25.00) for each payment shall be assessed members at the time of purchase as provided by law.

 

History Note:        Authority G.S. 58‑86‑10; 58‑86‑45;

Eff. June 1, 1988;

Recodified from 3 NCAC 3 Eff. May 1, 1993;

Amended Eff. December 1, 1993.