North Carolina Administrative Code › Title 20 - STATE TREASURER › Chapter 02 - RETIREMENT SYSTEMS › Subchapter A - DIVISIONAL RULES › Section .0500 - GENERAL PROCEDURES › Section 02A .0503 - DUAL MEMBERSHIP COMPUTATION OF SERVICE AND BENEFITS

Current through Register Vol. 39, No. 2, July 15, 2024
(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 Teachers' and State Employees'
				  Retirement System and the Local Governmental Employees' Retirement System, at
				  the same time, by virtue of the same position.
(b) Eligibility shall be established for the
				  death benefit, survivor's alternate benefit, service, early or disability
				  retirement, or other benefits which are based on creditable or membership
				  service for both systems whenever eligibility is established in either one of
				  the systems.
(c) A statute
				  permitting transfer of membership and prior service shall apply only after the
				  period of dual membership, when a person becomes a member employed fully under
				  a Retirement System to which the membership and prior service may be
				  transferred from one or the other of the systems in which the member had dual
				  membership.
(d) Death benefits for
				  active members shall be allocated pro rata between systems based on the total
				  compensation paid during the period when the member was eligible for dual
				  membership.
(e) Other benefits
				  shall be calculated as follows:
(1) Compute
				  "Average Final Compensation" on the basis of compensation on which the member
				  would have contributed had the member's service not been divided between two
				  retirement systems as a result of dual membership.
(2) Compute creditable service as follows:
(A) the number of months of creditable
				  service the member earned or acquired which were based on compensation for
				  service in only one of the systems; plus
(B) the total of the fractional months earned
				  by the member in each of the systems during periods of dual membership, where
				  the fractional month earned during each month of dual membership is equal to
				  the compensation reported to the system divided by the total compensation
				  reported to all systems.
(C) The
				  fractional months are to be computed as follows. First, identify the total
				  compensation earned by the member in each of the systems during periods of dual
				  membership, as determined in Part (e)(2)(B) of this Rule. Second, add together
				  the total compensation earned by the member in each of the systems during
				  periods of dual membership, as determined in Part (e)(2)(B) of this Rule, to
				  produce a Grand Total. Third, divide the total compensation earned by the
				  member in each of the systems during periods of dual membership, as determined
				  in Part (e)(2)(B) of this Rule, by the Grand Total, as determined in the
				  previous sentence, to produce a factor, carried to the fourth decimal place,
				  known as the Modification Factor, for each system. Fourth, multiply the total
				  of the fractional months, as determined in Part (e)(2)(B) of this Rule, by the
				  Modification Factor for each system, as determined in the previous sentence, to
				  determine the actual creditable service allowed for each system during periods
				  of dual membership.
(3)
				  Compute the annual allowance for a member by multiplying the average final
				  compensation times the creditable service as computed in Subparagraphs (1) and
				  (2) of this Paragraph.
(4) Allocate
				  the benefits to be paid from each system pro rata on share of creditable
				  service in each system as computed in Subparagraph (e)(2) of this
				  Rule.