North Carolina Administrative Code

CHAPTER 01 - DEPARTMENTAL RULES SUBCHAPTER 01A - ORGANIZATIONAL RULES 20 NCAC 01A .0101 GENERAL INFORMATION The following is general information about the Department of State Treasurer: (1) The chief officer is the State Treasurer; (2) The mailing address is 3200 Atlantic Avenue,…

20 NCAC 01A .0102 PURPOSES: FUNCTIONS: DUTIES OF THE STATE TREASURER (a) The State Treasurer is responsible for the receipt, custody, and disbursement of all state funds and must see to their security and make certain that funds are available to meet all obligations of the state …

20 NCAC 01A .0103 ORGANIZATIONAL STRUCTURE History Note: Authority G.S. 143A-31; Eff. February 1, 1976; Readopted Eff. September 15, 1977; Amended Eff. December 1, 1982; Repealed Eff. July 1, 1987.

SECTION .0400 - BANKING OPERATIONS 20 NCAC 01C .0401 PROCESSING OF WARRANTS History Note: Authority G.S. 143A-31; Eff. September 15, 1977; Repealed Eff. March 1, 1985.

20 NCAC 01C .0402 DISBURSING ACCOUNTS (a) Disbursing accounts are maintained in a manner similar to regular checking accounts in commercial banks. (b) All agencies for whom a disbursing account has been established are required to reconcile the monthly statements of the disbursin…

20 NCAC 01C .0403 RECORDS MAINTAINED ON MICROFILM History Note: Authority G.S. 143A-31; Eff. September 15, 1977; Repealed Eff. March 1, 1985.

20 NCAC 01C .0404 PROCEDURES FOR DEMAND DEPOSIT ACCOUNTS OF STATE FUNDS (a) The State Treasurer or his authorized representative are the only persons authorized to designate a financial institution as the depository for a state agency. The criteria for designation of a depository…

20 NCAC 01E .0103 INVESTMENTS OF FUND BALANCES AND TRUST FUNDS History Note: Authority G.S. 147-69.1; 143A-31; Eff. February 1, 1976; Repealed Eff. September 15, 1977.

20 NCAC 01E .0104 NEGOTIATED SALE OF BONDS AND NOTES History Note: Authority G.S. 143A-31; Eff. September 15, 1977; Expired Eff. May 1, 2016 pursuant to G.S. 150B-21.3A.

SUBCHAPTER 01F - PROCEDURAL RIGHTS SECTION .0100 - RULE-MAKING PROCEDURES 20 NCAC 01F .0101 ESTABLISHMENT OF PROCEDURAL RIGHTS The following rule-making procedures are established for the Department of State Treasurer and are applicable to each division within the department unle…

20 NCAC 01F .0102 CORRESPONDENCE History Note: Authority G.S. 143A-31; Eff. February 1, 1976; Readopted Eff. September 15, 1977; Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 5, 2016; Repealed Eff. December 1, 2021.

20 NCAC 01F .0111 PETITION FOR RULEMAKING (a) All petitions requesting the adoption, amendment, or repeal of a rule shall be in writing and mailed to the attention of the Rulemaking Coordinator at the address specified in Rule 20 NCAC 01A .0101. (b) The petition for rulemaking sh…

SECTION .0200 - DECLARATORY RULINGS 20 NCAC 01F .0201 ESTABLISHMENT OF PROCEDURAL RIGHTS The following declaratory ruling procedures are established for the Department of State Treasurer and are applicable to each division within the department, unless a division has set out diff…

20 NCAC 01F .0202 REQUESTS FOR RULING History Note: Authority G.S. 150B-17; Eff. February 1, 1976; Readopted Eff. September 15, 1977; Expired Eff. May 1, 2016 pursuant to G.S. 150B-21.3A.

20 NCAC 01F .0207 RULING PROCEDURES History Note: Authority G.S. 150B-17; Eff. February 1, 1976; Readopted Eff. September 15, 1977; Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 5, 2016; Repealed Eff. December 1, 2021.

20 NCAC 01F .0208 DECLARATORY RULINGS (a) All requests for declaratory rulings shall be in writing and mailed to the attention of the Rulemaking Coordinator at the address specified in Rule 20 NCAC 01A .0101. (b) The request for declaratory ruling shall: (1) contain the name and …

SECTION .0300 - CONTESTED CASE PROCEDURES 20 NCAC 01F .0301 PROCEDURES FOR CONTESTED CASES History Note: Authority G.S. 143A-31; Eff. February 1, 1976; Readopted Eff. September 15, 1977; Amended Eff. August 1, 1988; Expired Eff. May 1, 2016 pursuant to G.S. 150B-21.3A.

20 NCAC 01G .0207 VOLUNTARY DEPOSITS FOR INVESTMENTS History Note: Authority G.S. 147-69.3(b),(j); Eff. June 1, 1986; Repealed Eff. February 1, 2015.

20 NCAC 01G .0409 REBALANCING OF OWNERSHIP History Note: Authority G.S. 147-69.3; Eff. February 1, 1982; Repealed Eff. February 1, 2015.

20 NCAC 01G .0508 REBALANCING OF OWNERSHIP History Note: Authority G.S. 147-69.3; Eff. December 1, 1987; Repealed Eff. February 1, 2015.

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 agen…

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, 2…

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 s…

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 certifi…

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); …

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. Octobe…

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…

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; Repeal…

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…

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 Teach…

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 no…

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 administ…

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 Reti…

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 …

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 .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. Sep…

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…

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…

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 beneficia…

20 NCAC 02B .0216 EVIDENCE REQUIRED FOR INACTIVE EMPLOYER EXTENSION REQUEST "Clear and Convincing Evidence" includes all of the following: (1) Job description of all vacant positions requiring membership in the Teachers' and State Employees' Retirement System. (2) The date the po…

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…

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 retur…

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 contributi…

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 est…