North Carolina Administrative Code

20 NCAC 02B .1207 SPECIAL RULE FOR RETIRED APPLICANTS History Note: Authority G.S. 135-4(m); 135-6(f); Eff. March 1, 1982; Amended Eff. March 1, 1985; Repealed Eff. March 1, 2023.

SUBCHAPTER 02C - LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM SECTION .0100 - GENERAL PROVISIONS 20 NCAC 02C .0101 GENERAL INFORMATION General information about the Local Governmental Employees' Retirement System includes the following: (1) The Director is the Director of the …

SECTION .0200 - ADMINISTRATION 20 NCAC 02C .0201 ACTUARIAL TABLES: RATES AND ASSUMPTIONS History Note: Authority G.S. 128-27(m); 128-28(g); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Amended Eff. August 1, 1981; Repealed Eff. March 1, 2023.

20 NCAC 02C .0202 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 death occurred. History Note: Authority G.S. 128-27(m); 128-28(g); Eff. February 1, 1976; Readopted …

20 NCAC 02C .0203 DISCLOSURE OF INFORMATION History Note: Authority G.S. 128-28(g); 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 02C .0204 FACILITY OF PAYMENT History Note: Authority G.S. 128-28(g); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. March 1, 2023.

20 NCAC 02C .0205 MEDICAL BOARD In accordance with the authority contained in G.S. 128-28(l), 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. 12…

20 NCAC 02C .0206 SURVIVOR'S ALTERNATE BENEFIT History Note: Authority G.S. 128-28(a); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

20 NCAC 02C .0207 DIRECTOR History Note: Authority G.S. 128-28(a); Eff. February 1, 1976; Repealed Eff. September 21, 1977.

20 NCAC 02C .0208 TRANSFER OF MEMBERSHIP History Note: Filed as an Emergency Regulation Eff. October 29, 1979, to be Eff. for a Period of 90 Days to Expire on January 27, 1980; Statutory Authority G.S. 128-28(g); Repealed Eff. March 1, 1985.

20 NCAC 02C .0209 RETROACTIVE MEMBERSHIP SERVICE History Note: Authority G.S. 128-24(1); 128-28(g); Eff. June 1, 1984; Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

20 NCAC 02C .0210 DEFINITIONS (a) "Surety" means a written agreement, constituting both a resolution and an "acknowledgement and acceptance letter" as described in Rule .0211 of this Section, given for the fulfillment and guarantee of the withdrawal payment to cease participation…

20 NCAC 02C .0211 SURETY FOR NON-TAXING AUTHORITY PARTICIPATION (a) An NTA shall provide surety to the Board establishing any withdrawal liability the NTA may incur will be paid by submitting a resolution adopted by the NTA's governing body stating the NTA is maintaining an amoun…

20 NCAC 02C .0212 LOCAL GOVERNMENTAL 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 beneficiar…

20 NCAC 02C .0213 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 Local Governmental Employees' Retirement System. (2) The date the pos…

SECTION .0300 - BENEFICIARIES 20 NCAC 02C .0301 DESIGNATION Any beneficiary designated, other than the estate of the member or a trustee named by and acting for the member, must be a living person at the time the designation is made. If it is desired that the estate be beneficiar…

20 NCAC 02C .0302 PRINCIPAL BENEFICIARY (a) More than one principal beneficiary may be designated for the return of accumulated contributions under the provisions of G.S. 128-27(f) to share equally. In the event of the death of any so designated principal beneficiary for the retu…

20 NCAC 02C .0303 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…

20 NCAC 02C .0304 PAYMENTS TO BENEFICIARIES (a) Payments to beneficiaries who are minors will be made to an appointed guardian or to the clerk of the superior court in the county which the beneficiary resides to the extent that such payment is authorized by law. (b) In the event …

20 NCAC 02C .0305 STATUS CHANGE History Note: Authority G.S. 128-27(g); 128-28(g); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. March 1, 1985.

20 NCAC 02C .0306 BENEFICIARY CHANGE 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. 128-27(f) or the death benefit for active members under the provisions of G.S. 128-2…

20 NCAC 02C .0307 CONTINGENT BENEFICIARY (a) The following shall apply to designating a contingent beneficiary for the return of accumulated contributions under the provisions of G.S. 128-27(f): (1) A principal beneficiary may be designated for the return of accumulated contribut…

SECTION .0400 - CONTRIBUTIONS 20 NCAC 02C .0401 CONTRIBUTION RATES History Note: Filed as an Emergency Amendment [(a)] Eff. July 1, 1979, to be Eff. for a Period of 120 Days to Expire on October 29, 1979; Statutory Authority G.S. 128-28(o); 128-28(g); Eff. February 1, 1976; Reado…

20 NCAC 02C .0402 EMPLOYER'S 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. 128-28(g); 128-30(g)(1); Eff. February 1, 1976; Readopted Eff…

20 NCAC 02C .0403 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 of erroneous employee deductions exc…

20 NCAC 02C .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 02C .0405 ANTI-PENSION SPIKING CONTRIBUTION-BASED BENEFIT CAP FACTOR (LGERS) History Note: Authority G.S. 128-26(y); 128-27(a3); 128-28(g); Eff. May 1, 2018; Repealed Eff. March 1, 2023.

SECTION .0500 - DISABILITY RETIREMENT 20 NCAC 02C .0501 DISABILITY 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. 128-27(c)…

20 NCAC 02C .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. 128-27(e)(1) will be made prospectively only …

20 NCAC 02C .0503 FEES: INDEPENDENT MEDICAL EXAMS-DISABILITY RETIREMENTS History Note: Authority G.S. 128-27(c); 128-28(g); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Amended Eff. August 1, 1981; Repealed Eff. March 1, 2023.

20 NCAC 02C .0504 REINSTATEMENT TO ACTIVE SERVICE 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. 128-28(g); 128-29(b); Eff. February 1, 1976; Rea…

20 NCAC 02C .0505 LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM DISABILITY RETIREMENT REEXAMINATION A beneficiary in receipt of disability retirement benefits under G.S. 128-27(c), who has submitted to the Retirement System a letter from the Social Security Administration confi…

SECTION .0700 - LEAVES OF ABSENCE 20 NCAC 02C .0701 EDUCATIONAL LEAVES OF ABSENCE History Note: Authority G.S. 128-28(g); 128-30(b)(4); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Amended Eff. March 1, 1982; Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

20 NCAC 02C .0704 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 02C .1500, as then effective. (b) Members who had leaves of absence which otherwise …

20 NCAC 02C .0803 TRANSFERRED SERVICE History Note: Authority G.S. 128-28(g); Eff. September 21, 1977; Amended Eff. March 1, 1985; September 1, 1982; Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

SECTION .0900 - MILITARY SERVICE (INCHOATE RIGHTS ONLY) 20 NCAC 02C .0901 LEAVE 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…

20 NCAC 02C .0902 FEE History Note: Authority G.S. 128-26(a); 128-28(g); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. March 1, 2023.

20 NCAC 02C .0903 QUALIFYING FOR CREDIT History Note: Authority G.S. 128-26(a); 128-28(g); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

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

20 NCAC 02C .0905 CONTRIBUTION RATE History Note: Authority G.S. 128-26(a); 128-28(g); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. August 1, 1981.

20 NCAC 02C .0906 CIVIL SERVICE PROGRAM A member of the Local Governmental 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 receiving…

20 NCAC 02C .0907 EXCLUSION The exclusion for purchase of service in the Armed Forces of the United States as it pertains to credit for any other retirement system shall not include "service-connected disability" benefits received from the Veterans Administration of the Federal G…

20 NCAC 02C .0908 RECALCULATION OF BENEFITS For members already retired who obtain military service credit, 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 the credit…

20 NCAC 02C .0909 CHANGE IN BENEFITS For members already retired, any change in benefits resulting from the provisions for obtaining military service credit shall become effective as of the first of the month following receipt of the required payment. History Note: Authority G.S.…

20 NCAC 02C .0910 EMPLOYER PORTION OF ANNUAL COST History Note: Authority G.S. 128-26(a); 128-28(g); Eff. February 1, 1976; Repealed Eff. September 21, 1977.

20 NCAC 02C .0911 PAYMENTS History Note: Authority G.S. 128-26(a); 128-28(g); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. March 1, 1985.

20 NCAC 02C .0912 INITIAL PERIOD OF ACTIVE DUTY History Note: Authority G.S. 128-26(a); 128-28(g); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Expired Eff. November 1, 2018 pursuant to G.S. 150B-21.3A.

SECTION .1000 - OUT-OF-STATE SERVICE (INCHOATE RIGHTS ONLY) 20 NCAC 02C .1001 FEE History Note: Authority G.S. 128-26(j); 128-28(g); Eff. February 1, 1976; Readopted Eff. September 21, 1977; Repealed Eff. March 1, 2023.

20 NCAC 02C .1002 QUALIFYING FOR CREDIT In order to qualify, each individual must pay for all or such portion in full years as the member desires of out-of-state service for which the member is eligible. History Note: Authority G.S. 128-26(j); 128-28(g); S.L. 1987, C. 617; Eff. F…

20 NCAC 02C .1003 OTHER GOVERNMENTAL SUBDIVISION "Other governmental subdivision of the United States" means a state or territory and its subdivisions but not the United States Government. History Note: Authority G.S. 128-28(g); S.L. 1987, C. 617; Eff. February 1, 1976; Readopted…