GENERAL ASSEMBLY OF NORTH CAROLINA
1987 SESSION
CHAPTER 1088
The General Assembly of North Carolina enacts:
Section 1. G.S. 135-4(p1) reads as rewritten:
"(p1) Part-Time Service Credit. -
(1) Notwithstanding any
other provision of this Chapter, upon completion of 10 years five
years of membership service, any member may purchase service previously
rendered as a part-time teacher or employee of the State, except for temporary
or part-time service rendered while a full-time student in pursuit of a degree
or diploma in a degree-granting program. Payment shall be made in a single lump
sum in an amount equal to the full actuarial cost of providing credit for the
service, together with interest and an administrative fee, as determined by the
Board of Trustees on the advice of the Retirement System's actuary.
Notwithstanding the provisions of G.S. 135-4(b), the Board of Trustees shall
fix and determine by appropriate rules and regulations how much service in any
year, as based on compensation, is equivalent to one year of service in
proportion to 'earnable compensation', but in no case shall more than one year
of service be creditable for all service in one year. Service rendered for the
regular school year in any district shall be equivalent to one year's service.
(2) Under all requirements
and conditions set forth in the preceding subdivision of this subsection (p1),
except for the requirement that the completion of 10 years five years
of membership service be subsequent to service rendered as a part-time
teacher or employee of the State, any member with 10 or more years five
or more years of membership service standing to his credit may purchase
additional membership service for service rendered as a part-time teacher or
employee of the State if (i) the member terminates or has terminated employment
in any capacity as a teacher or employee of the State, (ii) the purchase of the
additional membership service causes the member to become eligible to commence
an early or service retirement allowance, and (iii) the member immediately
elects to commence retirement and become a beneficiary."
Sec. 2. G.S. 135-4(s) reads as rewritten:
"(s) Credit at Full Cost for Temporary State Employment. - In addition to the provisions of subsection (p) above, any member may purchase creditable service for State employment when classified as a temporary teacher or employee subject to the conditions that the:
(1) Member was employed by an employer as defined in G.S. 135- 1(11);
(2) Member's temporary employment met all other requirements of G.S. 135-1(10) or (25);
(3) Member has completed 10
years five years or more of membership service;
(4) Member acquires from the employer such certifications of temporary employment as are required by the Board of Trustees; and
(5) Member makes a lump sum payment into the Annuity Savings Fund 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 Retirement System's liabilities and shall take into account the retirement allowance arising on account of the additional service credit commencing at the earliest age at which the member could retire on an unreduced retirement allowance, as determined by the Board of Trustees upon the advice of the actuary, plus an administrative expense fee to be determined by the Board of Trustees.
The provisions of this subsection shall also apply to the purchase of creditable service for State employment when classified as a permanent hourly employee in accordance with G.S. 126-5(c4)."
Sec. 3. G.S.135-4(t) reads as rewritten:
"(t) Credit at Full
Cost for Local Government Employment. - Any member may purchase creditable
service for any employment as an employee, as defined in G.S. 128-21(10), of a
local government employer not creditable in the North Carolina Local
Governmental Employees' Retirement System upon completion of 10 years five
years of membership service by making a lump-sum payment into the Annuity
Savings Fund. The payment by the member shall be 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 Retirement System's liabilities,
taking into account the additional retirement allowance arising on account of
the additional service credits commencing at the earliest age at which the
member could retire with an unreduced retirement allowance, as determined by
the Board of Trustees upon the advice of the actuary plus an administrative
expense fee to be determined by the Board of Trustees."
Sec. 4. G.S.135-4(w) reads as rewritten:
"(w) Credit at Full Cost for
Federal Employment.- Notwithstanding any other provisions of this Chapter,
a member, upon the completion of 10 years five years of
membership service, may purchase creditable service for periods of federal
employment, provided that the member is not receiving any retirement benefits
resulting from this federal employment, and provided that the member is not
vested in the particular federal retirement system to which the member may have
belonged while a federal employee. The member shall purchase this service by
making a lump sum amount payable to the Annuity Savings Fund 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 system's liabilities, and
shall take into account the retirement allowance arising on account of the
additional service credit commencing at the earliest age at which the member
could retire on an unreduced retirement allowance, as determined by the Board
of Trustees upon the advice of the consulting actuary, plus an administrative
fee to be set by the Board of Trustees.
Members may also purchase creditable service for periods of
employment with public community service entities within the State funded
entirely with federal funds, other than the federal government, that are not
covered by the provisions of G.S. 128-21(11) or G.S. 135-1(11), under the same
terms and conditions that are applicable to the purchase of creditable service
for periods of federal employment in accordance with this subsection.
'Public community service entities' as used in this subdivision subsection
shall mean community action, human relations, manpower development, and
community development programs as defined in Articles 19 and 21 of Chapter 160A
and Article 18 of Chapter 153A of the General Statutes and any other similar
programs that the Board of Trustees may adopt."
Sec. 5. G.S. 128-26(o) reads as rewritten:
"(o) Credit at Full Cost
for Federal Employment.- Notwithstanding any other provisions of this Chapter,
a member, upon the completion of 10 years five years of
membership service, may purchase creditable service for periods of federal
employment, provided that the member is not receiving any retirement benefits
resulting from this federal employment, and provided that the member is not
vested in the particular federal retirement system to which the member may have
belonged while a federal employee. The member shall purchase this service
by making a lump sum amount payable to the Annuity Savings Fund equal to the
full liability of the service credits calculated on basis of the assumptions
used for purposes of the actuarial valuation of the system's liabilities, and
shall take into account the retirement allowance arising on account of the
additional service credit commencing at the earliest age at which the member
could retire on an unreduced retirement allowance, as determined by the Board
of Trustees upon the advise of the consulting actuary, plus an administrative
fee to be set by the Board of Trustees. Members may also purchase
creditable service for periods of employment with public community service
entities within the State funded entirely with federal funds, other than the
federal government, than are not covered by the provisions of G.S. 128-21(11)
or G.S. 135-1(11), under the same terms and conditions that are applicable to
the purchase of creditable service for periods of federal employment in
accordance with this subsection. 'Public community service entities' as
used in this subsection shall mean community action, human relations, manpower
development, and community development programs as defined in Articles 19 and
21 of Chapter 160A and Article 18 of Chapter 153A of the General Statutes and
any similar programs that the Board of Trustees may adopt."
Sec. 6. G.S. 128-26 is amended by adding the following subsections to the end to read:
"(p) Part-Time Service Credit.-
(1) Notwithstanding any other provision of this Chapter, upon completion of five years of membership service, any member may purchase service previously rendered as a part-time employee of a participating employer as defined in G.S. 128-21(11), except for temporary or part-time service rendered while a full-time student in pursuit of a degree or diploma in a degree-granting program. Payment shall be made in a single lump sum in an amount equal to the full actuarial cost of providing credit for the service, together with interest and an administrative fee, as determined by the Board of Trustees on the advice of the Retirement System's actuary. Notwithstanding the provisions of G.S. 128-26(b), the Board of Trustees shall fix and determine by appropriate rules and regulations how much service in any year, as based on compensation, is equivalent to one year of service in proportion to 'earnable compensation', but in no case shall more than one year of service be creditable for all service in one year.
(2) Under all requirements and conditions set forth in the preceding subdivision of this subsection, except for the requirement that the completion of five years of membership service be subsequent to service rendered as a part-time employee, any member with five or more years of membership service standing to his credit may purchase additional membership service for service rendered as a part-time employee of an employer as defined in G.S. 128-21(11) if (i) the member terminates or has terminated employment in any capacity as an employee, (ii) the purchase of the additional membership service causes the member to become eligible to commence an early or service retirement allowance, and (iii) the member immediately elects to commence retirement and become a beneficiary.
(q) Credit at Full Cost for Probationary Employment.-Notwithstanding any other provision of this Chapter, a member may purchase creditable service, prior to retirement, for employment with an employer as defined in this Article when considered to be in a probationary or employer imposed waiting period status and thereby not regularly employed, between date of employment and date of membership service with the retirement system, provided that the employer or former employer of such a member has revoked this probationary employment or waiting period policy.
Provided, the member shall purchase this service by making a lump sum amount payable to the Annuity Savings Fund 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 liabilities of the retirement system, and the calculation of the amount payable shall take into account the retirement allowance arising on account of the additional service credit commencing at the earliest age at which the member could retire on an unreduced retirement allowance, as determined by the Board of Trustees upon the advice of the consulting actuary, plus an administrative fee to be set by the Board of Trustees. In no instance shall the amount payable be less than the contributions a member would have made during the employment plus four percent (4%) interest compounded annually.
Nothing contained in this subsection shall prevent an employer from paying all or part of the cost; and, to the extent paid by an employer, payments shall be credited to the Pension Accumulation Fund; and to the extent paid by a member, payments shall be credited to the Annuity Savings Fund; provided, however, an employer may not discriminate against any member or group of members in his employ in paying all or any part of this cost.
(r) Credit at Full Cost for Temporary Local Government Employment.-Notwithstanding any other provisions of this Chapter, any member may purchase creditable service for local government employment when classified as a temporary employee subject to the conditions that:
(1) The member was employed by an employer as defined in G.S. 128-21(11);
(2) The member's temporary employment met all other requirements of G.S. 128-21(10);
(3) The member has completed five years or more of membership service;
(4) The member acquires from the employer such certifications of temporary employment as are required by the Board of Trustees; and
(5) The member makes a lump sum payment into the Annuity Saving Fund 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 retirement system's liabilities, and the calculation of the amount payable shall take into account the retirement allowance arising on account of the additional service credit commencing at the earliest age at which the member could retire on an unreduced retirement allowance, as determined by the Board of Trustees upon the advise of the actuary, plus an administrative fee to be determined by the Board of Trustees.
(s) Credit at Full Cost for Employment Not Otherwise Creditable.-Notwithstanding any other provisions of this Chapter, any member may purchase creditable service for any employment as an employee, as defined in G.S. 128-21(10), of a local government employer not creditable in any other retirement system or plan, upon completion of five years of membership service by making a lump sum payment into the Annuity Savings Fund. The payment by the member shall be 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 retirement system's liabilities, and the calculation of the amount payable shall take into account the additional retirement allowance arising on account of the additional service credits commencing at the earliest age at which the member could retire with an unreduced retirement allowance, as determined by the Board of Trustees upon the advice of the actuary plus an administrative fee to be determined by the Board of Trustees."
Sec. 7. This act is effective upon ratification.
In the General Assembly read three times and ratified this the 8th day of July, 1988.