The membership of thisRetirement System shall be composed as follows:
(1) All employeesentering or reentering the service of a participating employer after the dateof participation in the Retirement System of the employer. On and after July 1,1965, new extension service employees excluded from coverage under Title II ofthe Social Security Act in the employ of a county participating in the LocalGovernmental Employees' Retirement System are hereby excluded fromparticipation in the Teachers' and State Employees' Retirement System to theextent of that part of their compensation derived from a county; provided thaton and after July 1, 1965, new extension service employees excluded fromcoverage under Title II of the Social Security Act who are required to accept afederal Civil Service appointment may elect in writing on a form acceptable tothe Retirement System, to be excluded from the Teachers' and State Employees'Retirement System and the local Retirement System. At such time as CooperativeAgricultural Extension Service Employees excluded from coverage under Title IIof the Social Security Act become covered by Title II of the Social SecurityAct, such employees shall no longer be covered by the provisions of thissection, provided no accrued rights of these employees under this section priorto coverage by Title II of the Social Security Act shall be diminished.
(1a) Should any member inany period of eight consecutive years after becoming a member be absent fromservice more than seven years, or should he withdraw his accumulatedcontributions or should he become a beneficiary or die, he shall thereuponcease to be a member; provided that on and after July 1, 1971, a member shallcease to be a member only if he withdraws his accumulated contributions, orbecomes a beneficiary, or dies.
(2) All persons who areemployees of a participating county, city, or town except those who shallnotify the Board of Trustees in writing, on or before 90 days following thedate of participation in the Retirement System by such county, city or town:Provided, further, that employees of county social services and healthdepartments whose compensation is derived from federal, State, and local fundsmay be members of the North Carolina Local Governmental Employees' RetirementSystem to the full extent of their compensation. Any member on or after July 1,1969, may deposit in the annuity savings fund by a single payment thecontributions plus interest which would have been credited to his account had henot signed a nonelection blank, and be entitled to such membership servicecredits and any prior service credits which became void upon execution of suchnonelection blank; provided that the employer will pay the appropriate matchingcontributions.
(3) Effective January 1,1955, there shall be three classes of members, to be designated Class A, ClassB and Class C respectively. Each member who is an employee of a Class Aemployer shall be a Class A member; each member who is an employee of a Class Bemployer shall be a Class B member; and each member who is an employee of aClass C employer shall be a Class C member.
(3a) Repealed by SessionLaws 1981 (Regular Session, 1982), c. 1396, s. 1.
(4) The provisions ofthis subdivision (4) shall apply to any member whose retirement becameeffective prior to July 1, 1965, and became entitled to benefits hereunder inaccordance with the provisions hereof. Such benefits shall be computed inaccordance with the provisions of G.S. 128‑27(b1) as in effect at thedate of such separation from service.
a. Notwithstanding anyother provision of this Chapter, any member who separates from service prior tothe time he shall have attained the age of 60 years, or if a uniformedpoliceman or fireman prior to the time he shall have attained the age of 55years, for any reason other than death or retirement for disability as providedin G.S. 128‑27(c), after completing 20 or more years of creditableservice, and who leaves his total accumulated contributions in the RetirementSystem, shall have the right to retire on a deferred retirement allowance uponthe date he shall have attained the age of 60 years, or if a uniformedpoliceman or fireman upon the date he shall have attained the age of 55 years;provided that such member may retire only upon electronic submission or writtenapplication to the Board of Trustees setting forth at what time, not less than30 days nor more than 120 days next following the date of filing suchapplication, he desires to be retired. Such deferred retirement allowance shallbe computed in accordance with the provisions of G.S. 128‑27(b),paragraphs (1), (2) and (3).
b. In lieu of thebenefits provided in paragraph a of this subdivision (4), any member whoseparates from service prior to the time he shall have attained the age of 60years, or if a uniformed policeman or fireman prior to the time he shall haveattained the age of 55 years, for any reason other than death or retirement fordisability as provided in G.S. 128‑27(c), after completing 30 or more yearsof creditable service, and who leaves his total accumulated contributions inthe Retirement System, may elect to retire on an early retirement allowance;provided that such a member may so retire only upon electronic submission orwritten application to the Board of Trustees setting forth at what time, notless than 30 days nor more than 120 days next following the date of filing suchapplication, he desires to be retired; provided further that such applicationshall be duly filed within 60 days following the date of such separation. Suchearly retirement allowance so elected shall be the actuarial equivalent of thedeferred retirement allowance otherwise payable at the attainment of age 60years, or if a uniformed policeman or fireman at the attainment of age 55years, upon proper application therefor.
c. Should an employeewho retired on an early or service retirement allowance be restored to serviceprior to the time he shall have attained the age of 62 years, or if a uniformedpoliceman or fireman prior to the time he shall have attained the age of 55years, his allowance shall cease, he shall again become a member of theRetirement System, and he shall contribute thereafter at the uniformcontribution rate for his class member. Upon his subsequent retirement, heshall be entitled to an allowance not less than the allowance described in 1below reduced by the amount in 2 below.
1. The allowance towhich he would have been entitled if he were retiring for the first time,calculated on the basis of his total creditable service represented by the sumof his creditable service at the time of his first retirement, and hiscreditable service after he was restored to service.
2. The actuarialequivalent of the retirement benefits he previously received.
d. Should an employeewho retired on an early or service retirement allowance be restored to serviceafter the attainment of the age of 62 years, his retirement allowance shall bereduced to the extent necessary (if any) so that the sum of the retirementallowance at the time of retirement and earnings from employment by a unit ofthe Retirement System for any year (beginning January 1 and ending December 31)will not exceed the member's compensation received for the 12 months of serviceprior to retirement. Provided, however, that under no circumstances will themember's retirement allowance be reduced below the amount of his annuity asdefined in G.S. 128‑21(3).
(5) The provisions ofthis subdivision (5) shall apply to any member whose membership is terminated onor after July 1, 1965, and who becomes entitled to benefits hereunder inaccordance with the provisions hereof.
a. Notwithstanding anyother provision of this Chapter, any member who separates from service prior tothe attainment of the age of 60 years for any reason other than death orretirement for disability as provided in G.S. 128‑27(c), after completing15 or more years of creditable service, and who leaves his total accumulatedcontributions in said System shall have the right to retire on a deferredretirement allowance upon attaining the age of 60 years; provided that suchmember may retire only upon electronic submission or written application to theBoard of Trustees setting forth at what time, not less than one day nor morethan 120 days subsequent to the execution and filing thereof, he desires to beretired; and further provided that in the case of a member who so separatesfrom service on or after July 1, 1967, the aforestated requirement of 15 ormore years of creditable service shall be reduced to 12 or more years ofcreditable service; and further provided that in the case of a member who soseparates from service on or after July 1, 1971, or whose account is active onJuly 1, 1971, the aforestated requirement of 12 or more years of creditableservice shall be reduced to five or more years of creditable service. Suchdeferred retirement allowance shall be computed in accordance with the serviceretirement provisions of this Article pertaining to a member who is not a lawenforcement officer or eligible former law enforcement officer.
b. In lieu of thebenefits provided in paragraph a of this subdivision, any member who separatesfrom service prior to the attainment of the age of 60 years, for any reasonother than death or retirement for disability as provided in G.S. 128‑27(c),after completing 20 or more years of creditable service, and who leaves histotal accumulated contributions in said System may elect to retire on an earlyretirement allowance upon attaining the age of 50 years or at any timethereafter; provided that such member may so retire only upon electronicsubmission or written application to the Board of Trustees setting forth atwhat time, not less than one day nor more than 120 days subsequent to theexecution and filing thereof, he desires to be retired. Such early retirementallowance so elected shall be equal to the deferred retirement allowanceotherwise payable at the attainment of the age of 60 years reduced by thepercentage thereof indicated below.
AgeatPercentage
RetirementReduction
59 7
58 14
57 20
56 25
55 30
54 35
53 39
52 43
51 46
50 50
b1. In lieu of thebenefits provided in paragraphs a and b of this subdivision, any member who isa law enforcement officer at the time of separation from service prior to theattainment of the age of 50 years, for any reason other than death ordisability as provided in this Article, after completing 15 or more years ofcreditable service in this capacity immediately prior to separation fromservice, and who leaves his total accumulated contributions in this System, mayelect to retire on a deferred early retirement allowance upon attaining the ageof 50 years or at any time thereafter; provided, that the member may commenceretirement only upon electronic submission or written application to the Boardof Trustees setting forth at what time, as of the first day of a calendarmonth, not less than one day nor more than 120 days subsequent to the executionand filing thereof, he desires to commence retirement. The deferred earlyretirement allowance shall be computed in accordance with the serviceretirement provisions of this Article pertaining to law enforcement officers.
b2. In lieu of thebenefits provided in paragraphs a and b of this subdivision, any member who isa law enforcement officer at the time of separation from service prior to theattainment of the age of 55 years, for any reason other than death ordisability as provided in this Article, after completing five or more years ofcreditable service in this capacity immediately prior to separation fromservice, and who leaves his total accumulated contributions in this System mayelect to retire on a deferred service retirement allowance upon attaining theage of 55 years or at any time thereafter; provided, that the member maycommence retirement only upon electronic submission or written application tothe Board of Trustees setting forth at what time, as of the first day of acalendar month not less than one day nor more than 120 days subsequent to theexecution and filing thereof, he desires to commence retirement. The deferredservice retirement allowance shall be computed in accordance with the serviceretirement provisions of this Article pertaining to law enforcement officers.
b3. Deferred retirementallowance of members retiring on or after July 1, 1995. In lieu of thebenefits provided in paragraphs a. and b. of this subdivision, any member whoseparates from service prior to attainment of age 60 years, after completing 20or more years of creditable service, and who leaves his total accumulatedcontributions in said System, may elect to retire on a deferred retirementallowance upon attaining the age of 50 years or any time thereafter; providedthat such member may so retire only upon electronic submission or writtenapplication to the Board of Trustees setting forth at what time, not less thanone day nor more than 120 days subsequent to the execution and filing thereof,he desires to be retired. Such deferred retirement allowance shall be computedin accordance with the service retirement provisions of this Article pertainingto a member who is not a law enforcement officer or an eligible former lawenforcement officer.
c. Should a beneficiarywho retired on an early or service retirement allowance be reemployed by, orotherwise engaged to perform services for, an employer participating in theRetirement System on a part‑time, temporary, interim, or on fee‑for‑servicebasis, whether contractual or otherwise, and if such beneficiary earns anamount during the 12‑month period immediately following the effectivedate of retirement or in any calendar year which exceeds fifty percent (50%) ofthe reported compensation, excluding terminal payments, during the 12 months ofservice preceding the effective date of retirement, or twenty thousand dollars($20,000), whichever is greater, as hereinafter indexed, then the retirementallowance shall be suspended as of the first day of the month following themonth in which the reemployment earnings exceed the amount above, for thebalance of the calendar year, except when the reemployment earnings exceed theamount above in the month of December, in which case the retirement allowanceshall not be suspended. The retirement allowance of the beneficiary shall bereinstated as of January 1 of each year following suspension. The amount thatmay be earned before suspension shall be increased on January 1 of each year bythe ratio of the Consumer Price Index to the Index one year earlier, calculatedto the nearest tenth of a percent (1/10 of 1%).
c1. Within 90 days of theend of each month in which a beneficiary is reemployed under the provisions ofsub‑subdivision c. of this subdivision, each employer shall provide areport for that month on each reemployed beneficiary, including the terms ofthe reemployment, the date of the reemployment, and the amount of the monthlycompensation. If such a report is not received within the required 90 days, theBoard shall assess the employer with a penalty of ten percent (10%) of thecompensation of the unreported reemployed beneficiaries during the months forwhich the employer did not report the reemployed beneficiaries, with a minimumpenalty of twenty‑five dollars ($25.00).
d. Should a beneficiarywho retired on an early or service retirement allowance be restored to serviceas an employee, then the retirement allowance shall cease as of the first dayof the month following the month in which the beneficiary is restored toservice and the beneficiary shall become a member of the Retirement System andshall contribute thereafter as allowed by law at the uniform contributionpayable by all members.
Uponhis subsequent retirement, he shall be paid a retirement allowance determinedas follows:
1. For a member whoearns at least three years' membership service after restoration to service,the retirement allowance shall be computed on the basis of his compensation andservice before and after the period of prior retirement without restriction;provided, that if the prior allowance was based on a social security levelingpayment option, the allowance shall be adjusted actuarially for the differencebetween the amount received under the optional payment and what would have beenpaid if the retirement allowance had been paid without optional modification.
2. For a member whodoes not earn three years' membership service after restoration to service, theretirement allowance shall be equal to the sum of the retirement allowance towhich he would have been entitled had he not been restored to service, withoutmodification of the election of an optional allowance previously made, and theretirement allowance that results from service earned since being restored toservice; provided, that if the prior retirement allowance was based on a socialsecurity leveling payment option, the prior allowance shall be adjustedactuarially for the difference between the amount that would have been paid foreach month had the payment not been suspended and what would have been paid ifthe retirement allowance had been paid without optional modification.
(5a) Notwithstanding theprovisions of paragraphs c and d of the subdivision (5) to the contrary, abeneficiary who was a beneficiary retired on an early or service retirementwith the Law Enforcement Officers' Retirement System at the time of thetransfer of law enforcement officers employed by a participating employer andbeneficiaries last employed by a participating employer to this RetirementSystem on January 1, 1986, and who also was a contributing member of thisRetirement System on January 1, 1986, shall continue to be paid his retirementallowance without restriction and may continue as a member of this RetirementSystem with all the rights and privileges appendant to membership. Anybeneficiary who retired on an early or service retirement allowance as anemployee of any participating employer under the Law Enforcement Officers'Retirement System and becomes employed as an employee by an employerparticipating in the Retirement System after January 1, 1986, becomes subjectto the provisions of G.S. 128‑24(5)c. and G.S. 128‑24(5)d. on andafter January 1, 1989.
(6) Employees of asending agency participating in an intergovernmental exchange of personnelunder the provisions of Article 10 of Chapter 126 shall remain members entitledto all benefits of the System provided that the requirements of Article 10 ofChapter 126 are met; provided further, that a member may retain membershipstatus while serving as an assigned employee or employee on leave under theprovisions of Article 10 of Chapter 126 for purposes of receiving the deathbenefit regardless of whether he and his employer are contributing to hisaccount during the exchange period except that no duplicate benefits shall bepaid. (1939, c.390, s. 4; 1941, c. 357, s. 3; 1949, cc. 1011, 1013; 1951, c. 274, s. 2; 1955,c. 1153, s. 2; 1957, c. 854; 1959, c. 491, s. 4; 1961, c. 515, s. 1; 1965, c.781; 1967, c. 978, ss. 1, 2; 1969, c. 442, ss. 1‑5, 7; c. 982; 1971, c.325, ss. 6‑8; c. 326, ss. 1, 2; 1973, c. 243, s. 1; 1977, c. 783, s. 2;1981, c. 979, s. 2; 1981 (Reg. Sess., 1982), c. 1396, ss. 1, 2; 1983, c. 556,ss. 1, 2; 1983 (Reg. Sess., 1984), c. 1106, ss. 1, 2; 1985, c. 479, s. 196(d)‑(g);c. 649, s. 2; 1987, c. 513, s. 1; c. 738, s. 38(a); 1993 (Reg. Sess., 1994), c.769, ss. 7.30(a), 7.31(a), (b); 1995, c. 507, s. 7.22(d); 2002‑126, s.28.13(b); 2007‑431, s. 10; 2009‑66, ss. 3(g), (h), 8(b), 12(e),(f).)
The membership of thisRetirement System shall be composed as follows:
(1) All employeesentering or reentering the service of a participating employer after the dateof participation in the Retirement System of the employer. On and after July 1,1965, new extension service employees excluded from coverage under Title II ofthe Social Security Act in the employ of a county participating in the LocalGovernmental Employees' Retirement System are hereby excluded fromparticipation in the Teachers' and State Employees' Retirement System to theextent of that part of their compensation derived from a county; provided thaton and after July 1, 1965, new extension service employees excluded fromcoverage under Title II of the Social Security Act who are required to accept afederal Civil Service appointment may elect in writing on a form acceptable tothe Retirement System, to be excluded from the Teachers' and State Employees'Retirement System and the local Retirement System. At such time as CooperativeAgricultural Extension Service Employees excluded from coverage under Title IIof the Social Security Act become covered by Title II of the Social SecurityAct, such employees shall no longer be covered by the provisions of thissection, provided no accrued rights of these employees under this section priorto coverage by Title II of the Social Security Act shall be diminished.
(1a) Should any member inany period of eight consecutive years after becoming a member be absent fromservice more than seven years, or should he withdraw his accumulatedcontributions or should he become a beneficiary or die, he shall thereuponcease to be a member; provided that on and after July 1, 1971, a member shallcease to be a member only if he withdraws his accumulated contributions, orbecomes a beneficiary, or dies.
(2) All persons who areemployees of a participating county, city, or town except those who shallnotify the Board of Trustees in writing, on or before 90 days following thedate of participation in the Retirement System by such county, city or town:Provided, further, that employees of county social services and healthdepartments whose compensation is derived from federal, State, and local fundsmay be members of the North Carolina Local Governmental Employees' RetirementSystem to the full extent of their compensation. Any member on or after July 1,1969, may deposit in the annuity savings fund by a single payment thecontributions plus interest which would have been credited to his account had henot signed a nonelection blank, and be entitled to such membership servicecredits and any prior service credits which became void upon execution of suchnonelection blank; provided that the employer will pay the appropriate matchingcontributions.
(3) Effective January 1,1955, there shall be three classes of members, to be designated Class A, ClassB and Class C respectively. Each member who is an employee of a Class Aemployer shall be a Class A member; each member who is an employee of a Class Bemployer shall be a Class B member; and each member who is an employee of aClass C employer shall be a Class C member.
(3a) Repealed by SessionLaws 1981 (Regular Session, 1982), c. 1396, s. 1.
(4) The provisions ofthis subdivision (4) shall apply to any member whose retirement becameeffective prior to July 1, 1965, and became entitled to benefits hereunder inaccordance with the provisions hereof. Such benefits shall be computed inaccordance with the provisions of G.S. 128‑27(b1) as in effect at thedate of such separation from service.
a. Notwithstanding anyother provision of this Chapter, any member who separates from service prior tothe time he shall have attained the age of 60 years, or if a uniformedpoliceman or fireman prior to the time he shall have attained the age of 55years, for any reason other than death or retirement for disability as providedin G.S. 128‑27(c), after completing 20 or more years of creditableservice, and who leaves his total accumulated contributions in the RetirementSystem, shall have the right to retire on a deferred retirement allowance uponthe date he shall have attained the age of 60 years, or if a uniformedpoliceman or fireman upon the date he shall have attained the age of 55 years;provided that such member may retire only upon electronic submission or writtenapplication to the Board of Trustees setting forth at what time, not less than30 days nor more than 120 days next following the date of filing suchapplication, he desires to be retired. Such deferred retirement allowance shallbe computed in accordance with the provisions of G.S. 128‑27(b),paragraphs (1), (2) and (3).
b. In lieu of thebenefits provided in paragraph a of this subdivision (4), any member whoseparates from service prior to the time he shall have attained the age of 60years, or if a uniformed policeman or fireman prior to the time he shall haveattained the age of 55 years, for any reason other than death or retirement fordisability as provided in G.S. 128‑27(c), after completing 30 or more yearsof creditable service, and who leaves his total accumulated contributions inthe Retirement System, may elect to retire on an early retirement allowance;provided that such a member may so retire only upon electronic submission orwritten application to the Board of Trustees setting forth at what time, notless than 30 days nor more than 120 days next following the date of filing suchapplication, he desires to be retired; provided further that such applicationshall be duly filed within 60 days following the date of such separation. Suchearly retirement allowance so elected shall be the actuarial equivalent of thedeferred retirement allowance otherwise payable at the attainment of age 60years, or if a uniformed policeman or fireman at the attainment of age 55years, upon proper application therefor.
c. Should an employeewho retired on an early or service retirement allowance be restored to serviceprior to the time he shall have attained the age of 62 years, or if a uniformedpoliceman or fireman prior to the time he shall have attained the age of 55years, his allowance shall cease, he shall again become a member of theRetirement System, and he shall contribute thereafter at the uniformcontribution rate for his class member. Upon his subsequent retirement, heshall be entitled to an allowance not less than the allowance described in 1below reduced by the amount in 2 below.
1. The allowance towhich he would have been entitled if he were retiring for the first time,calculated on the basis of his total creditable service represented by the sumof his creditable service at the time of his first retirement, and hiscreditable service after he was restored to service.
2. The actuarialequivalent of the retirement benefits he previously received.
d. Should an employeewho retired on an early or service retirement allowance be restored to serviceafter the attainment of the age of 62 years, his retirement allowance shall bereduced to the extent necessary (if any) so that the sum of the retirementallowance at the time of retirement and earnings from employment by a unit ofthe Retirement System for any year (beginning January 1 and ending December 31)will not exceed the member's compensation received for the 12 months of serviceprior to retirement. Provided, however, that under no circumstances will themember's retirement allowance be reduced below the amount of his annuity asdefined in G.S. 128‑21(3).
(5) The provisions ofthis subdivision (5) shall apply to any member whose membership is terminated onor after July 1, 1965, and who becomes entitled to benefits hereunder inaccordance with the provisions hereof.
a. Notwithstanding anyother provision of this Chapter, any member who separates from service prior tothe attainment of the age of 60 years for any reason other than death orretirement for disability as provided in G.S. 128‑27(c), after completing15 or more years of creditable service, and who leaves his total accumulatedcontributions in said System shall have the right to retire on a deferredretirement allowance upon attaining the age of 60 years; provided that suchmember may retire only upon electronic submission or written application to theBoard of Trustees setting forth at what time, not less than one day nor morethan 120 days subsequent to the execution and filing thereof, he desires to beretired; and further provided that in the case of a member who so separatesfrom service on or after July 1, 1967, the aforestated requirement of 15 ormore years of creditable service shall be reduced to 12 or more years ofcreditable service; and further provided that in the case of a member who soseparates from service on or after July 1, 1971, or whose account is active onJuly 1, 1971, the aforestated requirement of 12 or more years of creditableservice shall be reduced to five or more years of creditable service. Suchdeferred retirement allowance shall be computed in accordance with the serviceretirement provisions of this Article pertaining to a member who is not a lawenforcement officer or eligible former law enforcement officer.
b. In lieu of thebenefits provided in paragraph a of this subdivision, any member who separatesfrom service prior to the attainment of the age of 60 years, for any reasonother than death or retirement for disability as provided in G.S. 128‑27(c),after completing 20 or more years of creditable service, and who leaves histotal accumulated contributions in said System may elect to retire on an earlyretirement allowance upon attaining the age of 50 years or at any timethereafter; provided that such member may so retire only upon electronicsubmission or written application to the Board of Trustees setting forth atwhat time, not less than one day nor more than 120 days subsequent to theexecution and filing thereof, he desires to be retired. Such early retirementallowance so elected shall be equal to the deferred retirement allowanceotherwise payable at the attainment of the age of 60 years reduced by thepercentage thereof indicated below.
AgeatPercentage
RetirementReduction
59 7
58 14
57 20
56 25
55 30
54 35
53 39
52 43
51 46
50 50
b1. In lieu of thebenefits provided in paragraphs a and b of this subdivision, any member who isa law enforcement officer at the time of separation from service prior to theattainment of the age of 50 years, for any reason other than death ordisability as provided in this Article, after completing 15 or more years ofcreditable service in this capacity immediately prior to separation fromservice, and who leaves his total accumulated contributions in this System, mayelect to retire on a deferred early retirement allowance upon attaining the ageof 50 years or at any time thereafter; provided, that the member may commenceretirement only upon electronic submission or written application to the Boardof Trustees setting forth at what time, as of the first day of a calendarmonth, not less than one day nor more than 120 days subsequent to the executionand filing thereof, he desires to commence retirement. The deferred earlyretirement allowance shall be computed in accordance with the serviceretirement provisions of this Article pertaining to law enforcement officers.
b2. In lieu of thebenefits provided in paragraphs a and b of this subdivision, any member who isa law enforcement officer at the time of separation from service prior to theattainment of the age of 55 years, for any reason other than death ordisability as provided in this Article, after completing five or more years ofcreditable service in this capacity immediately prior to separation fromservice, and who leaves his total accumulated contributions in this System mayelect to retire on a deferred service retirement allowance upon attaining theage of 55 years or at any time thereafter; provided, that the member maycommence retirement only upon electronic submission or written application tothe Board of Trustees setting forth at what time, as of the first day of acalendar month not less than one day nor more than 120 days subsequent to theexecution and filing thereof, he desires to commence retirement. The deferredservice retirement allowance shall be computed in accordance with the serviceretirement provisions of this Article pertaining to law enforcement officers.
b3. Deferred retirementallowance of members retiring on or after July 1, 1995. In lieu of thebenefits provided in paragraphs a. and b. of this subdivision, any member whoseparates from service prior to attainment of age 60 years, after completing 20or more years of creditable service, and who leaves his total accumulatedcontributions in said System, may elect to retire on a deferred retirementallowance upon attaining the age of 50 years or any time thereafter; providedthat such member may so retire only upon electronic submission or writtenapplication to the Board of Trustees setting forth at what time, not less thanone day nor more than 120 days subsequent to the execution and filing thereof,he desires to be retired. Such deferred retirement allowance shall be computedin accordance with the service retirement provisions of this Article pertainingto a member who is not a law enforcement officer or an eligible former lawenforcement officer.
c. Should a beneficiarywho retired on an early or service retirement allowance be reemployed by, orotherwise engaged to perform services for, an employer participating in theRetirement System on a part‑time, temporary, interim, or on fee‑for‑servicebasis, whether contractual or otherwise, and if such beneficiary earns anamount during the 12‑month period immediately following the effectivedate of retirement or in any calendar year which exceeds fifty percent (50%) ofthe reported compensation, excluding terminal payments, during the 12 months ofservice preceding the effective date of retirement, or twenty thousand dollars($20,000), whichever is greater, as hereinafter indexed, then the retirementallowance shall be suspended as of the first day of the month following themonth in which the reemployment earnings exceed the amount above, for thebalance of the calendar year, except when the reemployment earnings exceed theamount above in the month of December, in which case the retirement allowanceshall not be suspended. The retirement allowance of the beneficiary shall bereinstated as of January 1 of each year following suspension. The amount thatmay be earned before suspension shall be increased on January 1 of each year bythe ratio of the Consumer Price Index to the Index one year earlier, calculatedto the nearest tenth of a percent (1/10 of 1%).
c1. Within 90 days of theend of each month in which a beneficiary is reemployed under the provisions ofsub‑subdivision c. of this subdivision, each employer shall provide areport for that month on each reemployed beneficiary, including the terms ofthe reemployment, the date of the reemployment, and the amount of the monthlycompensation. If such a report is not received within the required 90 days, theBoard shall assess the employer with a penalty of ten percent (10%) of thecompensation of the unreported reemployed beneficiaries during the months forwhich the employer did not report the reemployed beneficiaries, with a minimumpenalty of twenty‑five dollars ($25.00).
d. Should a beneficiarywho retired on an early or service retirement allowance be restored to serviceas an employee, then the retirement allowance shall cease as of the first dayof the month following the month in which the beneficiary is restored toservice and the beneficiary shall become a member of the Retirement System andshall contribute thereafter as allowed by law at the uniform contributionpayable by all members.
Uponhis subsequent retirement, he shall be paid a retirement allowance determinedas follows:
1. For a member whoearns at least three years' membership service after restoration to service,the retirement allowance shall be computed on the basis of his compensation andservice before and after the period of prior retirement without restriction;provided, that if the prior allowance was based on a social security levelingpayment option, the allowance shall be adjusted actuarially for the differencebetween the amount received under the optional payment and what would have beenpaid if the retirement allowance had been paid without optional modification.
2. For a member whodoes not earn three years' membership service after restoration to service, theretirement allowance shall be equal to the sum of the retirement allowance towhich he would have been entitled had he not been restored to service, withoutmodification of the election of an optional allowance previously made, and theretirement allowance that results from service earned since being restored toservice; provided, that if the prior retirement allowance was based on a socialsecurity leveling payment option, the prior allowance shall be adjustedactuarially for the difference between the amount that would have been paid foreach month had the payment not been suspended and what would have been paid ifthe retirement allowance had been paid without optional modification.
(5a) Notwithstanding theprovisions of paragraphs c and d of the subdivision (5) to the contrary, abeneficiary who was a beneficiary retired on an early or service retirementwith the Law Enforcement Officers' Retirement System at the time of thetransfer of law enforcement officers employed by a participating employer andbeneficiaries last employed by a participating employer to this RetirementSystem on January 1, 1986, and who also was a contributing member of thisRetirement System on January 1, 1986, shall continue to be paid his retirementallowance without restriction and may continue as a member of this RetirementSystem with all the rights and privileges appendant to membership. Anybeneficiary who retired on an early or service retirement allowance as anemployee of any participating employer under the Law Enforcement Officers'Retirement System and becomes employed as an employee by an employerparticipating in the Retirement System after January 1, 1986, becomes subjectto the provisions of G.S. 128‑24(5)c. and G.S. 128‑24(5)d. on andafter January 1, 1989.
(6) Employees of asending agency participating in an intergovernmental exchange of personnelunder the provisions of Article 10 of Chapter 126 shall remain members entitledto all benefits of the System provided that the requirements of Article 10 ofChapter 126 are met; provided further, that a member may retain membershipstatus while serving as an assigned employee or employee on leave under theprovisions of Article 10 of Chapter 126 for purposes of receiving the deathbenefit regardless of whether he and his employer are contributing to hisaccount during the exchange period except that no duplicate benefits shall bepaid. (1939, c.390, s. 4; 1941, c. 357, s. 3; 1949, cc. 1011, 1013; 1951, c. 274, s. 2; 1955,c. 1153, s. 2; 1957, c. 854; 1959, c. 491, s. 4; 1961, c. 515, s. 1; 1965, c.781; 1967, c. 978, ss. 1, 2; 1969, c. 442, ss. 1‑5, 7; c. 982; 1971, c.325, ss. 6‑8; c. 326, ss. 1, 2; 1973, c. 243, s. 1; 1977, c. 783, s. 2;1981, c. 979, s. 2; 1981 (Reg. Sess., 1982), c. 1396, ss. 1, 2; 1983, c. 556,ss. 1, 2; 1983 (Reg. Sess., 1984), c. 1106, ss. 1, 2; 1985, c. 479, s. 196(d)‑(g);c. 649, s. 2; 1987, c. 513, s. 1; c. 738, s. 38(a); 1993 (Reg. Sess., 1994), c.769, ss. 7.30(a), 7.31(a), (b); 1995, c. 507, s. 7.22(d); 2002‑126, s.28.13(b); 2007‑431, s. 10; 2009‑66, ss. 3(g), (h), 8(b), 12(e),(f).)
The membership of thisRetirement System shall be composed as follows:
(1) All employeesentering or reentering the service of a participating employer after the dateof participation in the Retirement System of the employer. On and after July 1,1965, new extension service employees excluded from coverage under Title II ofthe Social Security Act in the employ of a county participating in the LocalGovernmental Employees' Retirement System are hereby excluded fromparticipation in the Teachers' and State Employees' Retirement System to theextent of that part of their compensation derived from a county; provided thaton and after July 1, 1965, new extension service employees excluded fromcoverage under Title II of the Social Security Act who are required to accept afederal Civil Service appointment may elect in writing on a form acceptable tothe Retirement System, to be excluded from the Teachers' and State Employees'Retirement System and the local Retirement System. At such time as CooperativeAgricultural Extension Service Employees excluded from coverage under Title IIof the Social Security Act become covered by Title II of the Social SecurityAct, such employees shall no longer be covered by the provisions of thissection, provided no accrued rights of these employees under this section priorto coverage by Title II of the Social Security Act shall be diminished.
(1a) Should any member inany period of eight consecutive years after becoming a member be absent fromservice more than seven years, or should he withdraw his accumulatedcontributions or should he become a beneficiary or die, he shall thereuponcease to be a member; provided that on and after July 1, 1971, a member shallcease to be a member only if he withdraws his accumulated contributions, orbecomes a beneficiary, or dies.
(2) All persons who areemployees of a participating county, city, or town except those who shallnotify the Board of Trustees in writing, on or before 90 days following thedate of participation in the Retirement System by such county, city or town:Provided, further, that employees of county social services and healthdepartments whose compensation is derived from federal, State, and local fundsmay be members of the North Carolina Local Governmental Employees' RetirementSystem to the full extent of their compensation. Any member on or after July 1,1969, may deposit in the annuity savings fund by a single payment thecontributions plus interest which would have been credited to his account had henot signed a nonelection blank, and be entitled to such membership servicecredits and any prior service credits which became void upon execution of suchnonelection blank; provided that the employer will pay the appropriate matchingcontributions.
(3) Effective January 1,1955, there shall be three classes of members, to be designated Class A, ClassB and Class C respectively. Each member who is an employee of a Class Aemployer shall be a Class A member; each member who is an employee of a Class Bemployer shall be a Class B member; and each member who is an employee of aClass C employer shall be a Class C member.
(3a) Repealed by SessionLaws 1981 (Regular Session, 1982), c. 1396, s. 1.
(4) The provisions ofthis subdivision (4) shall apply to any member whose retirement becameeffective prior to July 1, 1965, and became entitled to benefits hereunder inaccordance with the provisions hereof. Such benefits shall be computed inaccordance with the provisions of G.S. 128‑27(b1) as in effect at thedate of such separation from service.
a. Notwithstanding anyother provision of this Chapter, any member who separates from service prior tothe time he shall have attained the age of 60 years, or if a uniformedpoliceman or fireman prior to the time he shall have attained the age of 55years, for any reason other than death or retirement for disability as providedin G.S. 128‑27(c), after completing 20 or more years of creditableservice, and who leaves his total accumulated contributions in the RetirementSystem, shall have the right to retire on a deferred retirement allowance uponthe date he shall have attained the age of 60 years, or if a uniformedpoliceman or fireman upon the date he shall have attained the age of 55 years;provided that such member may retire only upon electronic submission or writtenapplication to the Board of Trustees setting forth at what time, not less than30 days nor more than 120 days next following the date of filing suchapplication, he desires to be retired. Such deferred retirement allowance shallbe computed in accordance with the provisions of G.S. 128‑27(b),paragraphs (1), (2) and (3).
b. In lieu of thebenefits provided in paragraph a of this subdivision (4), any member whoseparates from service prior to the time he shall have attained the age of 60years, or if a uniformed policeman or fireman prior to the time he shall haveattained the age of 55 years, for any reason other than death or retirement fordisability as provided in G.S. 128‑27(c), after completing 30 or more yearsof creditable service, and who leaves his total accumulated contributions inthe Retirement System, may elect to retire on an early retirement allowance;provided that such a member may so retire only upon electronic submission orwritten application to the Board of Trustees setting forth at what time, notless than 30 days nor more than 120 days next following the date of filing suchapplication, he desires to be retired; provided further that such applicationshall be duly filed within 60 days following the date of such separation. Suchearly retirement allowance so elected shall be the actuarial equivalent of thedeferred retirement allowance otherwise payable at the attainment of age 60years, or if a uniformed policeman or fireman at the attainment of age 55years, upon proper application therefor.
c. Should an employeewho retired on an early or service retirement allowance be restored to serviceprior to the time he shall have attained the age of 62 years, or if a uniformedpoliceman or fireman prior to the time he shall have attained the age of 55years, his allowance shall cease, he shall again become a member of theRetirement System, and he shall contribute thereafter at the uniformcontribution rate for his class member. Upon his subsequent retirement, heshall be entitled to an allowance not less than the allowance described in 1below reduced by the amount in 2 below.
1. The allowance towhich he would have been entitled if he were retiring for the first time,calculated on the basis of his total creditable service represented by the sumof his creditable service at the time of his first retirement, and hiscreditable service after he was restored to service.
2. The actuarialequivalent of the retirement benefits he previously received.
d. Should an employeewho retired on an early or service retirement allowance be restored to serviceafter the attainment of the age of 62 years, his retirement allowance shall bereduced to the extent necessary (if any) so that the sum of the retirementallowance at the time of retirement and earnings from employment by a unit ofthe Retirement System for any year (beginning January 1 and ending December 31)will not exceed the member's compensation received for the 12 months of serviceprior to retirement. Provided, however, that under no circumstances will themember's retirement allowance be reduced below the amount of his annuity asdefined in G.S. 128‑21(3).
(5) The provisions ofthis subdivision (5) shall apply to any member whose membership is terminated onor after July 1, 1965, and who becomes entitled to benefits hereunder inaccordance with the provisions hereof.
a. Notwithstanding anyother provision of this Chapter, any member who separates from service prior tothe attainment of the age of 60 years for any reason other than death orretirement for disability as provided in G.S. 128‑27(c), after completing15 or more years of creditable service, and who leaves his total accumulatedcontributions in said System shall have the right to retire on a deferredretirement allowance upon attaining the age of 60 years; provided that suchmember may retire only upon electronic submission or written application to theBoard of Trustees setting forth at what time, not less than one day nor morethan 120 days subsequent to the execution and filing thereof, he desires to beretired; and further provided that in the case of a member who so separatesfrom service on or after July 1, 1967, the aforestated requirement of 15 ormore years of creditable service shall be reduced to 12 or more years ofcreditable service; and further provided that in the case of a member who soseparates from service on or after July 1, 1971, or whose account is active onJuly 1, 1971, the aforestated requirement of 12 or more years of creditableservice shall be reduced to five or more years of creditable service. Suchdeferred retirement allowance shall be computed in accordance with the serviceretirement provisions of this Article pertaining to a member who is not a lawenforcement officer or eligible former law enforcement officer.
b. In lieu of thebenefits provided in paragraph a of this subdivision, any member who separatesfrom service prior to the attainment of the age of 60 years, for any reasonother than death or retirement for disability as provided in G.S. 128‑27(c),after completing 20 or more years of creditable service, and who leaves histotal accumulated contributions in said System may elect to retire on an earlyretirement allowance upon attaining the age of 50 years or at any timethereafter; provided that such member may so retire only upon electronicsubmission or written application to the Board of Trustees setting forth atwhat time, not less than one day nor more than 120 days subsequent to theexecution and filing thereof, he desires to be retired. Such early retirementallowance so elected shall be equal to the deferred retirement allowanceotherwise payable at the attainment of the age of 60 years reduced by thepercentage thereof indicated below.
AgeatPercentage
RetirementReduction
59 7
58 14
57 20
56 25
55 30
54 35
53 39
52 43
51 46
50 50
b1. In lieu of thebenefits provided in paragraphs a and b of this subdivision, any member who isa law enforcement officer at the time of separation from service prior to theattainment of the age of 50 years, for any reason other than death ordisability as provided in this Article, after completing 15 or more years ofcreditable service in this capacity immediately prior to separation fromservice, and who leaves his total accumulated contributions in this System, mayelect to retire on a deferred early retirement allowance upon attaining the ageof 50 years or at any time thereafter; provided, that the member may commenceretirement only upon electronic submission or written application to the Boardof Trustees setting forth at what time, as of the first day of a calendarmonth, not less than one day nor more than 120 days subsequent to the executionand filing thereof, he desires to commence retirement. The deferred earlyretirement allowance shall be computed in accordance with the serviceretirement provisions of this Article pertaining to law enforcement officers.
b2. In lieu of thebenefits provided in paragraphs a and b of this subdivision, any member who isa law enforcement officer at the time of separation from service prior to theattainment of the age of 55 years, for any reason other than death ordisability as provided in this Article, after completing five or more years ofcreditable service in this capacity immediately prior to separation fromservice, and who leaves his total accumulated contributions in this System mayelect to retire on a deferred service retirement allowance upon attaining theage of 55 years or at any time thereafter; provided, that the member maycommence retirement only upon electronic submission or written application tothe Board of Trustees setting forth at what time, as of the first day of acalendar month not less than one day nor more than 120 days subsequent to theexecution and filing thereof, he desires to commence retirement. The deferredservice retirement allowance shall be computed in accordance with the serviceretirement provisions of this Article pertaining to law enforcement officers.
b3. Deferred retirementallowance of members retiring on or after July 1, 1995. In lieu of thebenefits provided in paragraphs a. and b. of this subdivision, any member whoseparates from service prior to attainment of age 60 years, after completing 20or more years of creditable service, and who leaves his total accumulatedcontributions in said System, may elect to retire on a deferred retirementallowance upon attaining the age of 50 years or any time thereafter; providedthat such member may so retire only upon electronic submission or writtenapplication to the Board of Trustees setting forth at what time, not less thanone day nor more than 120 days subsequent to the execution and filing thereof,he desires to be retired. Such deferred retirement allowance shall be computedin accordance with the service retirement provisions of this Article pertainingto a member who is not a law enforcement officer or an eligible former lawenforcement officer.
c. Should a beneficiarywho retired on an early or service retirement allowance be reemployed by, orotherwise engaged to perform services for, an employer participating in theRetirement System on a part‑time, temporary, interim, or on fee‑for‑servicebasis, whether contractual or otherwise, and if such beneficiary earns anamount during the 12‑month period immediately following the effectivedate of retirement or in any calendar year which exceeds fifty percent (50%) ofthe reported compensation, excluding terminal payments, during the 12 months ofservice preceding the effective date of retirement, or twenty thousand dollars($20,000), whichever is greater, as hereinafter indexed, then the retirementallowance shall be suspended as of the first day of the month following themonth in which the reemployment earnings exceed the amount above, for thebalance of the calendar year, except when the reemployment earnings exceed theamount above in the month of December, in which case the retirement allowanceshall not be suspended. The retirement allowance of the beneficiary shall bereinstated as of January 1 of each year following suspension. The amount thatmay be earned before suspension shall be increased on January 1 of each year bythe ratio of the Consumer Price Index to the Index one year earlier, calculatedto the nearest tenth of a percent (1/10 of 1%).
c1. Within 90 days of theend of each month in which a beneficiary is reemployed under the provisions ofsub‑subdivision c. of this subdivision, each employer shall provide areport for that month on each reemployed beneficiary, including the terms ofthe reemployment, the date of the reemployment, and the amount of the monthlycompensation. If such a report is not received within the required 90 days, theBoard shall assess the employer with a penalty of ten percent (10%) of thecompensation of the unreported reemployed beneficiaries during the months forwhich the employer did not report the reemployed beneficiaries, with a minimumpenalty of twenty‑five dollars ($25.00).
d. Should a beneficiarywho retired on an early or service retirement allowance be restored to serviceas an employee, then the retirement allowance shall cease as of the first dayof the month following the month in which the beneficiary is restored toservice and the beneficiary shall become a member of the Retirement System andshall contribute thereafter as allowed by law at the uniform contributionpayable by all members.
Uponhis subsequent retirement, he shall be paid a retirement allowance determinedas follows:
1. For a member whoearns at least three years' membership service after restoration to service,the retirement allowance shall be computed on the basis of his compensation andservice before and after the period of prior retirement without restriction;provided, that if the prior allowance was based on a social security levelingpayment option, the allowance shall be adjusted actuarially for the differencebetween the amount received under the optional payment and what would have beenpaid if the retirement allowance had been paid without optional modification.
2. For a member whodoes not earn three years' membership service after restoration to service, theretirement allowance shall be equal to the sum of the retirement allowance towhich he would have been entitled had he not been restored to service, withoutmodification of the election of an optional allowance previously made, and theretirement allowance that results from service earned since being restored toservice; provided, that if the prior retirement allowance was based on a socialsecurity leveling payment option, the prior allowance shall be adjustedactuarially for the difference between the amount that would have been paid foreach month had the payment not been suspended and what would have been paid ifthe retirement allowance had been paid without optional modification.
(5a) Notwithstanding theprovisions of paragraphs c and d of the subdivision (5) to the contrary, abeneficiary who was a beneficiary retired on an early or service retirementwith the Law Enforcement Officers' Retirement System at the time of thetransfer of law enforcement officers employed by a participating employer andbeneficiaries last employed by a participating employer to this RetirementSystem on January 1, 1986, and who also was a contributing member of thisRetirement System on January 1, 1986, shall continue to be paid his retirementallowance without restriction and may continue as a member of this RetirementSystem with all the rights and privileges appendant to membership. Anybeneficiary who retired on an early or service retirement allowance as anemployee of any participating employer under the Law Enforcement Officers'Retirement System and becomes employed as an employee by an employerparticipating in the Retirement System after January 1, 1986, becomes subjectto the provisions of G.S. 128‑24(5)c. and G.S. 128‑24(5)d. on andafter January 1, 1989.
(6) Employees of asending agency participating in an intergovernmental exchange of personnelunder the provisions of Article 10 of Chapter 126 shall remain members entitledto all benefits of the System provided that the requirements of Article 10 ofChapter 126 are met; provided further, that a member may retain membershipstatus while serving as an assigned employee or employee on leave under theprovisions of Article 10 of Chapter 126 for purposes of receiving the deathbenefit regardless of whether he and his employer are contributing to hisaccount during the exchange period except that no duplicate benefits shall bepaid. (1939, c.390, s. 4; 1941, c. 357, s. 3; 1949, cc. 1011, 1013; 1951, c. 274, s. 2; 1955,c. 1153, s. 2; 1957, c. 854; 1959, c. 491, s. 4; 1961, c. 515, s. 1; 1965, c.781; 1967, c. 978, ss. 1, 2; 1969, c. 442, ss. 1‑5, 7; c. 982; 1971, c.325, ss. 6‑8; c. 326, ss. 1, 2; 1973, c. 243, s. 1; 1977, c. 783, s. 2;1981, c. 979, s. 2; 1981 (Reg. Sess., 1982), c. 1396, ss. 1, 2; 1983, c. 556,ss. 1, 2; 1983 (Reg. Sess., 1984), c. 1106, ss. 1, 2; 1985, c. 479, s. 196(d)‑(g);c. 649, s. 2; 1987, c. 513, s. 1; c. 738, s. 38(a); 1993 (Reg. Sess., 1994), c.769, ss. 7.30(a), 7.31(a), (b); 1995, c. 507, s. 7.22(d); 2002‑126, s.28.13(b); 2007‑431, s. 10; 2009‑66, ss. 3(g), (h), 8(b), 12(e),(f).)
