State Codes and Statutes

Statutes > North-carolina > Chapter_128 > GS_128-21

Article 3.

Retirement System forCounties, Cities and Towns.

§ 128‑21.  Definitions.

The following words andphrases as used in this Article, unless a different meaning is plainly requiredby the context, shall have the following meanings:

(1)        "Accumulatedcontribution" shall mean the sum of all amounts deducted from thecompensation of a member and credited to his individual account in the annuitysavings fund, together with regular interest thereon, as provided in G.S. 128‑30,subsection (b).

(2)        "Actuarialequivalent" shall mean a benefit of equal value when computed at regularinterest upon the basis of such mortality tables as shall be adopted by theBoard of Trustees.

(3)        "Annuity"shall mean payments for life derived from the accumulated contribution of amember. All annuities shall be payable in equal monthly installments.

(4)        "Annuityreserve" shall mean the present value of all payments to be made onaccount of any annuity or benefit in lieu of any annuity computed at regularinterest upon the basis of such mortality tables as shall be adopted by theBoard of Trustees.

(5)        "Average finalcompensation" shall mean the average annual compensation, not includingany terminal payments for unused sick leave, of a member during the fourconsecutive calendar years of creditable service producing the highest suchaverage; but shall not include any compensation, as determined by the Board ofTrustees, for the reimbursement of expenses or payments for housing or anyother allowances whether or not classified as salary and wages.

(6)        "Beneficiary"shall mean any person in receipt of a pension, an annuity, a retirementallowance or other benefit as provided by this Article.

(7)        "Board ofTrustees" shall mean the Board provided for in G.S. 128‑28 toadminister the Retirement System.

(7a)     a.         "Compensation"shall mean all salaries and wages prior to any reduction pursuant to sections125, 401(k), 403(b), 414(h)(2), and 457 of the Internal Revenue Code, notincluding any terminal payments for unused sick leave, derived from publicfunds which are earned by a member of the Retirement System for service as anemployee in the unit of the Retirement System for which he is performing full‑timework. In addition to the foregoing, "compensation" shall include:

1.         Performance‑basedcompensation (regardless of whether paid in a lump sum, periodic installments,or on a monthly basis);

2.         Conversion ofadditional benefits to salary (additional benefits such as health, life, ordisability plans), so long as the benefits are other than mandated by State lawor regulation;

3.         Payment of taxconsequences for benefits provided by the employer so long as they constitutean adjustment or increase in salary and not a "reimbursement ofexpenses";

4.         Payout of vacationleave so long as such payouts are permitted by applicable law and regulation;

5.         Employeecontributions to eligible deferred compensation plans; and

6.         Effective July 1,2009, payment of military differential wages.

b.         "Compensation"shall not include any payment, as determined by the Board of Trustees, for thereimbursement of expenses or payments for housing or any other allowanceswhether or not classified as salary and wages. Notwithstanding any otherprovision of this Chapter, "compensation" shall not include:

1.         Supplement/allowanceprovided to employee to purchase additional benefits such as health, life, ordisability plans;

2.         Travelsupplement/allowance (nonaccountable allowance plans);

3.         Employercontributions to eligible deferred compensation plans;

4.         Employer‑providedfringe benefits (additional benefits such as health, life, or disabilityplans);

5.         Reimbursement ofuninsured medical expenses;

6.         Reimbursement ofbusiness expenses;

7.         Reimbursement ofmoving expenses;

8.         Reimbursement/paymentof personal expenses;

9.         Incentive paymentsfor early retirement;

10.       Bonuses paid incidentto retirement;

11.       Contractbuyout/severance payments; and

12.       Payouts for unusedsick leave.

c.         In the event anemployer reports as "compensation" payments not specifically includedor excluded as "compensation", such payments shall be"compensation" for retirement purposes only if the employer pays theRetirement System the additional actuarial liability created by such payments.

(8)        "Creditableservice" shall mean the total of "prior service" plus"membership service" plus service, both noncontributory andpurchased, for which credit is allowable as provided in G.S. 128‑26. Inno event, however, shall "creditable service" be deemed"membership service" for the purpose of determining eligibility forbenefits accruing under this Chapter.

(9)        "Earnablecompensation" shall mean the full rate of the compensation that would bepayable to an employee if he worked the full normal working time, including anyallowance of maintenance or in lieu thereof received by the member.

(10)      "Employee"shall mean any person who is regularly employed in the service of and whosesalary or compensation is paid by the employer as defined in subdivision (11)of this section, whether employed or appointed for stated terms or otherwise,except teachers in the public schools and except such employees who hold officeby popular election as are not required to devote a major portion of their timeto the duties of their office. "Employee" also means all full‑time,paid firemen who are employed by any fire department that serves a city orcounty or any part of a city or county and that is supported in whole or inpart by municipal or county funds. "Employee" also includes anyparticipant whose employment is interrupted by reason of service in theUniformed Services, as that term is defined in section 4303(16) of theUniformed Services Employment and Reemployment Rights Act, Public Law 103‑353,if that participant was an employee at the time of the interruption; if theparticipant does not return immediately after that service to employment with acovered employer in this System, then the participant shall be deemed "inservice" until the date on which the participant was first eligible to beseparated or released from his or her involuntary military service. In allcases of doubt the Board of Trustees shall decide who is an employee. On andafter August 1, 2001, a person who is a nonimmigrant alien and who otherwisemeets the requirements of this subdivision shall not be excluded from thedefinition of "employee" solely because the person holds a temporaryor time‑limited visa.

(11)      "Employer"shall mean any county, incorporated city or town, the board of alcoholiccontrol of any county or incorporated city or town, the North Carolina Leagueof Municipalities, and the State Association of County Commissioners."Employer" shall also mean any separate, juristic politicalsubdivision of the State as may be approved by the Board of Trustees upon theadvice of the Attorney General.

(11a)    "Filing"when used in reference to an application for retirement shall mean the receiptof an acceptable application on a form provided by the Retirement System.

(11b)    "Law EnforcementOfficer" means a full‑time paid employee of an employer, who possessesthe power of arrest, who has taken the law enforcement oath administered underthe authority of the State as prescribed by G.S. 11‑11, and who iscertified as a law enforcement officer under the provisions of Chapter 17C ofthe General Statutes or certified as a deputy sheriff under the provisions ofChapter 17E of the General Statutes. "Law enforcement officer" alsomeans the sheriff of the county. The number of paid personnel employed as lawenforcement officers by a law enforcement agency may not exceed the number oflaw enforcement positions approved by the applicable local governing board.

(12)      "Medicalboard" shall mean the board of physicians provided for in G.S. 128‑28,subsection (l).

(13)      "Member"shall mean any person included in the membership of the Retirement System asprovided in G.S. 128‑24.

(14)      "Membershipservice" shall mean service as an employee rendered while a member of theRetirement System.

(15)      "Pension"shall mean payments for life derived from money provided by the employer. Allpensions shall be payable in equal monthly installments.

(16)      "Pensionreserve" shall mean the present value of all payments to be made onaccount of any pension or benefit in lieu of any pension computed at regularinterest upon the basis of such mortality tables as shall be adopted by theBoard of Trustees.

(17)      "Priorservice" shall mean the service of a member rendered before the date hebecomes a member of the System, certified on his prior service certificate andallowable as provided by G.S. 128‑26.

(18)      "Regularinterest" shall mean interest compounded annually at such rate as shall bedetermined by the Board of Trustees in accordance with G.S. 128‑29,subsection (b).

(19)      "Retirement"shall mean withdrawal from active service with a retirement allowance grantedunder the provisions of this Article. In order for a member's retirement tobecome effective in any month, the member must render no service at any timeduring that month.

(20)      "Retirementallowance" shall mean the sum of the annuity and the pension, or anyoptional benefit payable in lieu thereof.

(21)      "RetirementSystem" shall mean the North Carolina Local Governmental Employees'Retirement System as defined in this Article.

(22)      "Service"shall mean service as an employee as described in subdivision (10) of thissection and paid for by the employer as described in subdivision (11) of thissection.

(23)      "Year"shall mean the regular fiscal year beginning July 1, and ending June 30; in thefollowing calendar year unless otherwise defined by regulation of the Board ofTrustees.  (1939,c. 390, s. 1; 1941, c. 357, s. 1; 1943, c. 535; 1945, c. 526, s. 1; 1947, c.833, ss. 1, 2; 1949, c. 231, ss. 1, 2; 1949, c. 1015; 1959, c. 491, ss. 1, 2;1961, c. 515, s. 5; 1965, c. 781; 1971, c. 325, ss. 1‑4; 1975, 2nd Sess.,c. 983, s. 125; 1977, c. 316, ss. 1, 2; 1981, c. 557, ss. 1, 2; 1985, c. 479,s. 196(b); c. 649, s. 3; 1991, c. 51, s. 1; 1991 (Reg. Sess., 1992), c. 762,ss. 1, 2; 1997‑144, s. 1; 1999‑167, ss. 1, 2; 1999‑456, s.37; 2001‑426, s. 1; 2003‑359, ss. 13, 14; 2009‑66, ss. 2(a),6(f), (j).)

State Codes and Statutes

Statutes > North-carolina > Chapter_128 > GS_128-21

Article 3.

Retirement System forCounties, Cities and Towns.

§ 128‑21.  Definitions.

The following words andphrases as used in this Article, unless a different meaning is plainly requiredby the context, shall have the following meanings:

(1)        "Accumulatedcontribution" shall mean the sum of all amounts deducted from thecompensation of a member and credited to his individual account in the annuitysavings fund, together with regular interest thereon, as provided in G.S. 128‑30,subsection (b).

(2)        "Actuarialequivalent" shall mean a benefit of equal value when computed at regularinterest upon the basis of such mortality tables as shall be adopted by theBoard of Trustees.

(3)        "Annuity"shall mean payments for life derived from the accumulated contribution of amember. All annuities shall be payable in equal monthly installments.

(4)        "Annuityreserve" shall mean the present value of all payments to be made onaccount of any annuity or benefit in lieu of any annuity computed at regularinterest upon the basis of such mortality tables as shall be adopted by theBoard of Trustees.

(5)        "Average finalcompensation" shall mean the average annual compensation, not includingany terminal payments for unused sick leave, of a member during the fourconsecutive calendar years of creditable service producing the highest suchaverage; but shall not include any compensation, as determined by the Board ofTrustees, for the reimbursement of expenses or payments for housing or anyother allowances whether or not classified as salary and wages.

(6)        "Beneficiary"shall mean any person in receipt of a pension, an annuity, a retirementallowance or other benefit as provided by this Article.

(7)        "Board ofTrustees" shall mean the Board provided for in G.S. 128‑28 toadminister the Retirement System.

(7a)     a.         "Compensation"shall mean all salaries and wages prior to any reduction pursuant to sections125, 401(k), 403(b), 414(h)(2), and 457 of the Internal Revenue Code, notincluding any terminal payments for unused sick leave, derived from publicfunds which are earned by a member of the Retirement System for service as anemployee in the unit of the Retirement System for which he is performing full‑timework. In addition to the foregoing, "compensation" shall include:

1.         Performance‑basedcompensation (regardless of whether paid in a lump sum, periodic installments,or on a monthly basis);

2.         Conversion ofadditional benefits to salary (additional benefits such as health, life, ordisability plans), so long as the benefits are other than mandated by State lawor regulation;

3.         Payment of taxconsequences for benefits provided by the employer so long as they constitutean adjustment or increase in salary and not a "reimbursement ofexpenses";

4.         Payout of vacationleave so long as such payouts are permitted by applicable law and regulation;

5.         Employeecontributions to eligible deferred compensation plans; and

6.         Effective July 1,2009, payment of military differential wages.

b.         "Compensation"shall not include any payment, as determined by the Board of Trustees, for thereimbursement of expenses or payments for housing or any other allowanceswhether or not classified as salary and wages. Notwithstanding any otherprovision of this Chapter, "compensation" shall not include:

1.         Supplement/allowanceprovided to employee to purchase additional benefits such as health, life, ordisability plans;

2.         Travelsupplement/allowance (nonaccountable allowance plans);

3.         Employercontributions to eligible deferred compensation plans;

4.         Employer‑providedfringe benefits (additional benefits such as health, life, or disabilityplans);

5.         Reimbursement ofuninsured medical expenses;

6.         Reimbursement ofbusiness expenses;

7.         Reimbursement ofmoving expenses;

8.         Reimbursement/paymentof personal expenses;

9.         Incentive paymentsfor early retirement;

10.       Bonuses paid incidentto retirement;

11.       Contractbuyout/severance payments; and

12.       Payouts for unusedsick leave.

c.         In the event anemployer reports as "compensation" payments not specifically includedor excluded as "compensation", such payments shall be"compensation" for retirement purposes only if the employer pays theRetirement System the additional actuarial liability created by such payments.

(8)        "Creditableservice" shall mean the total of "prior service" plus"membership service" plus service, both noncontributory andpurchased, for which credit is allowable as provided in G.S. 128‑26. Inno event, however, shall "creditable service" be deemed"membership service" for the purpose of determining eligibility forbenefits accruing under this Chapter.

(9)        "Earnablecompensation" shall mean the full rate of the compensation that would bepayable to an employee if he worked the full normal working time, including anyallowance of maintenance or in lieu thereof received by the member.

(10)      "Employee"shall mean any person who is regularly employed in the service of and whosesalary or compensation is paid by the employer as defined in subdivision (11)of this section, whether employed or appointed for stated terms or otherwise,except teachers in the public schools and except such employees who hold officeby popular election as are not required to devote a major portion of their timeto the duties of their office. "Employee" also means all full‑time,paid firemen who are employed by any fire department that serves a city orcounty or any part of a city or county and that is supported in whole or inpart by municipal or county funds. "Employee" also includes anyparticipant whose employment is interrupted by reason of service in theUniformed Services, as that term is defined in section 4303(16) of theUniformed Services Employment and Reemployment Rights Act, Public Law 103‑353,if that participant was an employee at the time of the interruption; if theparticipant does not return immediately after that service to employment with acovered employer in this System, then the participant shall be deemed "inservice" until the date on which the participant was first eligible to beseparated or released from his or her involuntary military service. In allcases of doubt the Board of Trustees shall decide who is an employee. On andafter August 1, 2001, a person who is a nonimmigrant alien and who otherwisemeets the requirements of this subdivision shall not be excluded from thedefinition of "employee" solely because the person holds a temporaryor time‑limited visa.

(11)      "Employer"shall mean any county, incorporated city or town, the board of alcoholiccontrol of any county or incorporated city or town, the North Carolina Leagueof Municipalities, and the State Association of County Commissioners."Employer" shall also mean any separate, juristic politicalsubdivision of the State as may be approved by the Board of Trustees upon theadvice of the Attorney General.

(11a)    "Filing"when used in reference to an application for retirement shall mean the receiptof an acceptable application on a form provided by the Retirement System.

(11b)    "Law EnforcementOfficer" means a full‑time paid employee of an employer, who possessesthe power of arrest, who has taken the law enforcement oath administered underthe authority of the State as prescribed by G.S. 11‑11, and who iscertified as a law enforcement officer under the provisions of Chapter 17C ofthe General Statutes or certified as a deputy sheriff under the provisions ofChapter 17E of the General Statutes. "Law enforcement officer" alsomeans the sheriff of the county. The number of paid personnel employed as lawenforcement officers by a law enforcement agency may not exceed the number oflaw enforcement positions approved by the applicable local governing board.

(12)      "Medicalboard" shall mean the board of physicians provided for in G.S. 128‑28,subsection (l).

(13)      "Member"shall mean any person included in the membership of the Retirement System asprovided in G.S. 128‑24.

(14)      "Membershipservice" shall mean service as an employee rendered while a member of theRetirement System.

(15)      "Pension"shall mean payments for life derived from money provided by the employer. Allpensions shall be payable in equal monthly installments.

(16)      "Pensionreserve" shall mean the present value of all payments to be made onaccount of any pension or benefit in lieu of any pension computed at regularinterest upon the basis of such mortality tables as shall be adopted by theBoard of Trustees.

(17)      "Priorservice" shall mean the service of a member rendered before the date hebecomes a member of the System, certified on his prior service certificate andallowable as provided by G.S. 128‑26.

(18)      "Regularinterest" shall mean interest compounded annually at such rate as shall bedetermined by the Board of Trustees in accordance with G.S. 128‑29,subsection (b).

(19)      "Retirement"shall mean withdrawal from active service with a retirement allowance grantedunder the provisions of this Article. In order for a member's retirement tobecome effective in any month, the member must render no service at any timeduring that month.

(20)      "Retirementallowance" shall mean the sum of the annuity and the pension, or anyoptional benefit payable in lieu thereof.

(21)      "RetirementSystem" shall mean the North Carolina Local Governmental Employees'Retirement System as defined in this Article.

(22)      "Service"shall mean service as an employee as described in subdivision (10) of thissection and paid for by the employer as described in subdivision (11) of thissection.

(23)      "Year"shall mean the regular fiscal year beginning July 1, and ending June 30; in thefollowing calendar year unless otherwise defined by regulation of the Board ofTrustees.  (1939,c. 390, s. 1; 1941, c. 357, s. 1; 1943, c. 535; 1945, c. 526, s. 1; 1947, c.833, ss. 1, 2; 1949, c. 231, ss. 1, 2; 1949, c. 1015; 1959, c. 491, ss. 1, 2;1961, c. 515, s. 5; 1965, c. 781; 1971, c. 325, ss. 1‑4; 1975, 2nd Sess.,c. 983, s. 125; 1977, c. 316, ss. 1, 2; 1981, c. 557, ss. 1, 2; 1985, c. 479,s. 196(b); c. 649, s. 3; 1991, c. 51, s. 1; 1991 (Reg. Sess., 1992), c. 762,ss. 1, 2; 1997‑144, s. 1; 1999‑167, ss. 1, 2; 1999‑456, s.37; 2001‑426, s. 1; 2003‑359, ss. 13, 14; 2009‑66, ss. 2(a),6(f), (j).)


State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_128 > GS_128-21

Article 3.

Retirement System forCounties, Cities and Towns.

§ 128‑21.  Definitions.

The following words andphrases as used in this Article, unless a different meaning is plainly requiredby the context, shall have the following meanings:

(1)        "Accumulatedcontribution" shall mean the sum of all amounts deducted from thecompensation of a member and credited to his individual account in the annuitysavings fund, together with regular interest thereon, as provided in G.S. 128‑30,subsection (b).

(2)        "Actuarialequivalent" shall mean a benefit of equal value when computed at regularinterest upon the basis of such mortality tables as shall be adopted by theBoard of Trustees.

(3)        "Annuity"shall mean payments for life derived from the accumulated contribution of amember. All annuities shall be payable in equal monthly installments.

(4)        "Annuityreserve" shall mean the present value of all payments to be made onaccount of any annuity or benefit in lieu of any annuity computed at regularinterest upon the basis of such mortality tables as shall be adopted by theBoard of Trustees.

(5)        "Average finalcompensation" shall mean the average annual compensation, not includingany terminal payments for unused sick leave, of a member during the fourconsecutive calendar years of creditable service producing the highest suchaverage; but shall not include any compensation, as determined by the Board ofTrustees, for the reimbursement of expenses or payments for housing or anyother allowances whether or not classified as salary and wages.

(6)        "Beneficiary"shall mean any person in receipt of a pension, an annuity, a retirementallowance or other benefit as provided by this Article.

(7)        "Board ofTrustees" shall mean the Board provided for in G.S. 128‑28 toadminister the Retirement System.

(7a)     a.         "Compensation"shall mean all salaries and wages prior to any reduction pursuant to sections125, 401(k), 403(b), 414(h)(2), and 457 of the Internal Revenue Code, notincluding any terminal payments for unused sick leave, derived from publicfunds which are earned by a member of the Retirement System for service as anemployee in the unit of the Retirement System for which he is performing full‑timework. In addition to the foregoing, "compensation" shall include:

1.         Performance‑basedcompensation (regardless of whether paid in a lump sum, periodic installments,or on a monthly basis);

2.         Conversion ofadditional benefits to salary (additional benefits such as health, life, ordisability plans), so long as the benefits are other than mandated by State lawor regulation;

3.         Payment of taxconsequences for benefits provided by the employer so long as they constitutean adjustment or increase in salary and not a "reimbursement ofexpenses";

4.         Payout of vacationleave so long as such payouts are permitted by applicable law and regulation;

5.         Employeecontributions to eligible deferred compensation plans; and

6.         Effective July 1,2009, payment of military differential wages.

b.         "Compensation"shall not include any payment, as determined by the Board of Trustees, for thereimbursement of expenses or payments for housing or any other allowanceswhether or not classified as salary and wages. Notwithstanding any otherprovision of this Chapter, "compensation" shall not include:

1.         Supplement/allowanceprovided to employee to purchase additional benefits such as health, life, ordisability plans;

2.         Travelsupplement/allowance (nonaccountable allowance plans);

3.         Employercontributions to eligible deferred compensation plans;

4.         Employer‑providedfringe benefits (additional benefits such as health, life, or disabilityplans);

5.         Reimbursement ofuninsured medical expenses;

6.         Reimbursement ofbusiness expenses;

7.         Reimbursement ofmoving expenses;

8.         Reimbursement/paymentof personal expenses;

9.         Incentive paymentsfor early retirement;

10.       Bonuses paid incidentto retirement;

11.       Contractbuyout/severance payments; and

12.       Payouts for unusedsick leave.

c.         In the event anemployer reports as "compensation" payments not specifically includedor excluded as "compensation", such payments shall be"compensation" for retirement purposes only if the employer pays theRetirement System the additional actuarial liability created by such payments.

(8)        "Creditableservice" shall mean the total of "prior service" plus"membership service" plus service, both noncontributory andpurchased, for which credit is allowable as provided in G.S. 128‑26. Inno event, however, shall "creditable service" be deemed"membership service" for the purpose of determining eligibility forbenefits accruing under this Chapter.

(9)        "Earnablecompensation" shall mean the full rate of the compensation that would bepayable to an employee if he worked the full normal working time, including anyallowance of maintenance or in lieu thereof received by the member.

(10)      "Employee"shall mean any person who is regularly employed in the service of and whosesalary or compensation is paid by the employer as defined in subdivision (11)of this section, whether employed or appointed for stated terms or otherwise,except teachers in the public schools and except such employees who hold officeby popular election as are not required to devote a major portion of their timeto the duties of their office. "Employee" also means all full‑time,paid firemen who are employed by any fire department that serves a city orcounty or any part of a city or county and that is supported in whole or inpart by municipal or county funds. "Employee" also includes anyparticipant whose employment is interrupted by reason of service in theUniformed Services, as that term is defined in section 4303(16) of theUniformed Services Employment and Reemployment Rights Act, Public Law 103‑353,if that participant was an employee at the time of the interruption; if theparticipant does not return immediately after that service to employment with acovered employer in this System, then the participant shall be deemed "inservice" until the date on which the participant was first eligible to beseparated or released from his or her involuntary military service. In allcases of doubt the Board of Trustees shall decide who is an employee. On andafter August 1, 2001, a person who is a nonimmigrant alien and who otherwisemeets the requirements of this subdivision shall not be excluded from thedefinition of "employee" solely because the person holds a temporaryor time‑limited visa.

(11)      "Employer"shall mean any county, incorporated city or town, the board of alcoholiccontrol of any county or incorporated city or town, the North Carolina Leagueof Municipalities, and the State Association of County Commissioners."Employer" shall also mean any separate, juristic politicalsubdivision of the State as may be approved by the Board of Trustees upon theadvice of the Attorney General.

(11a)    "Filing"when used in reference to an application for retirement shall mean the receiptof an acceptable application on a form provided by the Retirement System.

(11b)    "Law EnforcementOfficer" means a full‑time paid employee of an employer, who possessesthe power of arrest, who has taken the law enforcement oath administered underthe authority of the State as prescribed by G.S. 11‑11, and who iscertified as a law enforcement officer under the provisions of Chapter 17C ofthe General Statutes or certified as a deputy sheriff under the provisions ofChapter 17E of the General Statutes. "Law enforcement officer" alsomeans the sheriff of the county. The number of paid personnel employed as lawenforcement officers by a law enforcement agency may not exceed the number oflaw enforcement positions approved by the applicable local governing board.

(12)      "Medicalboard" shall mean the board of physicians provided for in G.S. 128‑28,subsection (l).

(13)      "Member"shall mean any person included in the membership of the Retirement System asprovided in G.S. 128‑24.

(14)      "Membershipservice" shall mean service as an employee rendered while a member of theRetirement System.

(15)      "Pension"shall mean payments for life derived from money provided by the employer. Allpensions shall be payable in equal monthly installments.

(16)      "Pensionreserve" shall mean the present value of all payments to be made onaccount of any pension or benefit in lieu of any pension computed at regularinterest upon the basis of such mortality tables as shall be adopted by theBoard of Trustees.

(17)      "Priorservice" shall mean the service of a member rendered before the date hebecomes a member of the System, certified on his prior service certificate andallowable as provided by G.S. 128‑26.

(18)      "Regularinterest" shall mean interest compounded annually at such rate as shall bedetermined by the Board of Trustees in accordance with G.S. 128‑29,subsection (b).

(19)      "Retirement"shall mean withdrawal from active service with a retirement allowance grantedunder the provisions of this Article. In order for a member's retirement tobecome effective in any month, the member must render no service at any timeduring that month.

(20)      "Retirementallowance" shall mean the sum of the annuity and the pension, or anyoptional benefit payable in lieu thereof.

(21)      "RetirementSystem" shall mean the North Carolina Local Governmental Employees'Retirement System as defined in this Article.

(22)      "Service"shall mean service as an employee as described in subdivision (10) of thissection and paid for by the employer as described in subdivision (11) of thissection.

(23)      "Year"shall mean the regular fiscal year beginning July 1, and ending June 30; in thefollowing calendar year unless otherwise defined by regulation of the Board ofTrustees.  (1939,c. 390, s. 1; 1941, c. 357, s. 1; 1943, c. 535; 1945, c. 526, s. 1; 1947, c.833, ss. 1, 2; 1949, c. 231, ss. 1, 2; 1949, c. 1015; 1959, c. 491, ss. 1, 2;1961, c. 515, s. 5; 1965, c. 781; 1971, c. 325, ss. 1‑4; 1975, 2nd Sess.,c. 983, s. 125; 1977, c. 316, ss. 1, 2; 1981, c. 557, ss. 1, 2; 1985, c. 479,s. 196(b); c. 649, s. 3; 1991, c. 51, s. 1; 1991 (Reg. Sess., 1992), c. 762,ss. 1, 2; 1997‑144, s. 1; 1999‑167, ss. 1, 2; 1999‑456, s.37; 2001‑426, s. 1; 2003‑359, ss. 13, 14; 2009‑66, ss. 2(a),6(f), (j).)