North Carolina Administrative Code

20 NCAC 02B .0305 BENEFICIARY WHO IS A MINOR (a) Payments to beneficiaries who are minors will be made to an appointed guardian or to the clerk of superior court in the county in which the beneficiary resides to the extent that such payment is authorized by law. (b) In the event …

20 NCAC 02B .0306 CHANGE IN STATUS History Note: Authority G.S. 135-5(g); 135-6(f); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. March 1, 1985.

20 NCAC 02B .0307 CHANGE IN BENEFICIARY Prior to retirement, the member may, at any time, change any beneficiaries designated for the return of accumulated contributions under the provisions of G.S. 135-5(f) or the death benefit for active members under the provisions of G.S. 135…

20 NCAC 02B .0308 SPECIAL RULE: BENEFICIARY BEFORE JULY 1, 1967 In the event of the death of a person who became a member before July 1, 1967, the return of a member's contributions shall be paid to such person as the member intended to receive the return of contributions and who…

SECTION .0400 - EMPLOYER CONTRIBUTIONS 20 NCAC 02B .0401 REFUNDS (a) The Retirement System will make no refunds of employer contributions paid into the pension accumulation fund by the employer in the amount equal to a percentage of the actual compensation of each member in cases…

20 NCAC 02B .0402 FORWARDING OF EMPLOYER CONTRIBUTIONS All units shall forward to the Retirement System the employer's contributions monthly at the same time the employee's contributions are forwarded. History Note: Authority G.S. 135-6(f); 135-8(f); Eff. February 1, 1976; Readop…

20 NCAC 02B .0403 CONTRIBUTION RATE History Note: Authority G.S. 135-6(f); 135-6(m); Eff. September 21, 1977; Repealed Eff. August 1, 1981.

20 NCAC 02B .0404 DUE DATE OF CONTRIBUTIONS Both the employee and employer contributions are due in the Raleigh office of the Retirement System no later than the fifth State government working day of the month succeeding the month for which the contributions are required. Contrib…

20 NCAC 02B .0405 ANTI-PENSION SPIKING CONTRIBUTION-BASED BENEFIT CAP FACTOR (TSERS) History Note: Authority G.S. 135-4(jj); 135-5(a3); 135-6(f); Eff. March 21, 2019; Repealed Eff. March 1, 2023.

SECTION .0500 - TYPES OF RETIREMENT 20 NCAC 02B .0501 DISABILITY RETIREMENT EXAMINATION The Medical Board is authorized to conduct an examination in doubtful cases of disability to determine whether the member continues to be eligible for a disability retirement pursuant to G.S. …

20 NCAC 02B .0502 DISABILITY RETIREMENT REPORTS When the Medical Board, subsequent to a disability retirement, reports that the retired member is engaged in or is able to engage in a gainful occupation, any adjustment required by G.S. 135-5(e)(1) will be made prospectively only a…

20 NCAC 02B .0503 FEES: INDEPENDENT MEDICAL EXAMS-DISABILITY RETIREMENTS History Note: Authority G.S. 135-6(f); 135-6(k); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Amended Eff. August 1, 1981; Repealed Eff. March 1, 2023.

20 NCAC 02B .0504 INTEREST CREDITS When members on disability retirement are reinstated to active service, no interest shall be allowed on their accounts during the year of reinstatement. History Note: Authority G.S. 135-6(f); Eff. February 1, 1976; Readopted Eff. March 1, 2023; …

20 NCAC 02B .0508 FAILURE TO RESPOND History Note: Authority G.S. 135-5(a)(1); 135-6(f); Eff. February 1, 1976; Readopted Eff. September 21, 1977. Pursuant to G.S. 150B-33(b)(9), Administrative Law Judge Melissa Owens Lassiter declared Rule 20 NCAC 02B .0508 void as applied in Bu…

20 NCAC 02B .0509 RETIREMENT ALLOWANCE History Note: Authority G.S. 135-18.1; 135-6(f); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. December 1, 1981.

20 NCAC 02B .0510 PENSIONS Payment of a full month's benefit shall be made for the month in which death occurs, regardless of the date, with no further benefits to be paid thereafter. History Note: Authority G.S. 135-6(f); Eff. February 1, 1976; Readopted Eff. March 1, 2023; Sept…

SECTION .0700 - LEAVES OF ABSENCE 20 NCAC 02B .0701 EDUCATIONAL LEAVES OF ABSENCE (a) For the purposes of G.S. 135-8(b)(5), "stipend" shall mean a fixed sum of money paid periodically for services and to defray the cost of travel, housing, meals, or other expenses resulting from …

20 NCAC 02B .0706 WORKERS' COMPENSATION LEAVES OF ABSENCE (a) Purchases of creditable service for leaves of absence prior to July 1, 1983 shall be made in the same manner as prescribed in 20 NCAC 02B .1200, as then effective. (b) Purchases of creditable service for leaves of abse…

SECTION .0800 - MILITARY SERVICE (INCHOATE RIGHTS ONLY) 20 NCAC 02B .0801 FEE History Note: Authority G.S. 135-4(f)(6); 135-6(f); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. March 1, 2023.

20 NCAC 02B .0802 QUALIFYING FOR CREDIT In order to qualify, each individual must pay for the full period of military service for which the member is eligible. History Note: Authority G.S. 135-4(f)(6); 135-6(f); S.L. 1981, C. 636; Eff. February 1, 1976; Readopted Eff. March 1, 20…

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 …

20 NCAC 02B .0804 CIVIL SERVICE PARTICIPATION A member of the Teachers' and State Employees' Retirement System whose employment in this State requires the member to participate in the Federal Civil Service Program in lieu of the Social Security program shall not be barred from re…

20 NCAC 02B .0805 SERVICE CONNECTED DISABILITY The exclusion for purchase of service in the Armed Forces of the United States as it pertains to credit in any other retirement system shall not include "service connected disability" benefits received from the Veteran's Administrati…

20 NCAC 02B .0806 RECALCULATION OF BENEFITS For members already retired who purchase service under G.S. 135-4(f)(6), any recalculation of benefits shall be based on the law in effect at the time of the individual's retirement. The calculation of both the benefit and the cost of t…

20 NCAC 02B .0807 CHANGE IN BENEFITS For members already retired, any change in benefits resulting from the purchase of credit pursuant to this Section shall become effective as of the first of the month following receipt of the required payment. History Note: Authority G.S. 135-…

20 NCAC 02B .0810 RESTORING MEMBERSHIP When a member on military leave has withdrawn all of the member's contributions, the member shall be permitted to pay back the amount withdrawn, to the extent permitted by law, restore membership, and receive credit for the associated period…

20 NCAC 02B .0811 INITIAL PERIOD OF ACTIVE DUTY History Note: Authority G.S. 135-4(f); 135-6(f); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

SECTION .0900 - OUT-OF-STATE SERVICE (INCHOATE RIGHTS ONLY) 20 NCAC 02B .0901 FEE History Note: Authority G.S. 135-4(l); 135-6(f); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. March 1, 2023.

20 NCAC 02B .0902 QUALIFYING FOR CREDIT In order to qualify for out-of-state service credit, each individual must pay for all or such portion of the member's out-of-state service period in full years as the member desires of out-of-state service for which the member is eligible. …

20 NCAC 02B .0903 DEFINITION "Other governmental subdivision of the United States," as used in G.S. 135-4(l), means a state or territory and its subdivisions but not the United States government, except as specifically provided by statute. History Note: Authority G.S. 135-4(l); 1…

20 NCAC 02B .0904 COMPUTATION OF COST The cost of purchasing credit for out-of-state service is calculated as follows: (1) the monthly compensation the member earned when the member first entered membership; multiplied by (2) the employee contribution rate at that time; multiplie…

20 NCAC 02B .0905 RECALCULATION OF BENEFITS For members already retired who purchase service under G.S. 135-4(l), as repealed by Session Law 1981-636, s. 1, where the text of the repealed statutory provision may be found in the Editor's Note to G.S. 135-4 in the 2021 Edition of t…

20 NCAC 02B .0906 CHANGE IN BENEFITS For members already retired, any change in benefits resulting from the provisions for out-of-state service shall become effective as of the first of the month following receipt of the required payment. History Note: Authority G.S. 135-4(l); 13…

20 NCAC 02B .0907 COST TO EMPLOYER History Note: Authority G.S. 135-4(l); 135-6(f); Eff. February 1, 1976; Repealed Eff. September 21, 1977.

20 NCAC 02B .0908 PAYMENTS History Note: Authority G.S. 135-4(l); 135-6(f); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. March 1, 1985.

SECTION .1000 - PRIOR SERVICE 20 NCAC 02B .1001 PUBLIC SCHOOL TEACHERS History Note: Authority G.S. 135-4; Eff. February 1, 1976; Readopted Eff. September 21, 1977; Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

20 NCAC 02B .1002 SERVICE UNDER WPA History Note: Authority G.S. 135-4; Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. March 1, 1985.

20 NCAC 02B .1003 PRIOR SERVICE WITH GENERAL ASSEMBLY History Note: Authority G.S. 135-4(j1); 135-6(f); Eff. October 29, 1979; Repealed Eff. March 1, 2023.

20 NCAC 02B .1004 TEMPORARY SERVICE PURCHASE (INCHOATE RIGHTS ONLY) (a) A member eligible under G.S. 135-4(p) to purchase service for temporary State employment shall apply for the purchase. Employer certification of temporary State employment and the compensation received for su…

20 NCAC 02B .1005 TEMPORARY SERVICE PURCHASE: FULL ACTUARIAL LIABILITY History Note: Authority G.S. 135-4(s); 135-6(f); Eff. December 1, 1983; Amended Eff. August 1, 1988; September 1, 1984; Repealed Eff. March 1, 2023.

20 NCAC 02B .1006 PART-TIME SERVICE PURCHASE: FULL ACTUARIAL LIABILITY "Part-time" as used in G.S. 135-4(p2) means duties performed on less than a full-time basis as classified by the employer. History Note: Authority G.S. 135-4(p2); 135-6(f); Eff. March 1, 1985; Readopted Eff. M…

20 NCAC 02B .1007 LOCAL GOVERNMENT SERVICE PURCHASE: FULL ACTUARIAL LIABILITY History Note: Authority G.S. 135-4(t); 135-6(f); Eff. March 1, 1985; Repealed Eff. March 1, 2023.

20 NCAC 02B .1103 COMPUTATION OF COST History Note: Authority G.S. 135-4(k); 135-6(f); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Amended Eff. June 1, 1984; Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

20 NCAC 02B .1104 RECALCULATION OF BENEFITS History Note: Authority G.S. 135-4(k); 135-6(f); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. March 1, 2023.

20 NCAC 02B .1105 CHANGE IN BENEFITS History Note: Authority G.S. 135-4(k); 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 .1108 WILDLIFE PROTECTORS History Note: Authority G.S. 135-6(f); Eff. March 1, 1985; Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

SECTION .1200 - DELAYED PURCHASE OF SERVICE CREDITS 20 NCAC 02B .1201 APPLICATION OF SECTION History Note: Authority G.S. 135-6(f); Eff. October 29, 1979; Amended Eff. March 1, 1985; Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

20 NCAC 02B .1202 ACTUARIAL TABLES History Note: Authority G.S. 135-6(f); Eff. October 29, 1979; Repealed Eff. August 1, 1981.

20 NCAC 02B .1203 APPLICABILITY OF OTHER SECTIONS History Note: Authority G.S. 135-6(f); Eff. October 29, 1979; Repealed Eff. March 1, 1985.

20 NCAC 02B .1206 SERVICE AS COURT REPORTER History Note: Authority G.S. 135-6(f); Eff. October 29, 1979; Repealed Eff. March 1, 1985.