GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1991
CHAPTER 1017
The General Assembly of North Carolina enacts:
Section 1. G.S. 128-26(k) reads as rewritten:
"(k) All Notwithstanding
any language to the contrary of any provision of this section, or of any
repealed provision of this section that was repealed with the inchoate and
accrued rights preserved, all repayments and purchases of service credits,
allowed under the provisions of this section, section or of any
repealed provision of this section that was repealed with inchoate and accrued
rights preserved, must be made within three years after the member first
becomes eligible to make such repayments and purchases. Any member who
does not repay or purchase service credits within said three years after first
eligibility to make such repayments and purchases may, under the same
conditions as are otherwise required, repay or purchase service credits
provided that the repayment or purchase equals the full cost of the service
credits calculated on the basis of the assumptions used for purchases of the
actuarial valuation of the System's liabilities and shall take into account the
additional retirement allowance arising on account of such additional service
credit commencing at the earliest age at which such member could retire on an
unreduced retirement allowance as determined by the Board of Trustees upon the
advice of the consulting actuary. Notwithstanding the foregoing
provisions of this subsection that provide for the purchase of service credits,
the terms 'full cost', 'full liability', and 'full actuarial cost' include
assumed annual post-retirement allowance increases, as determined by the Board
of Trustees, from the earliest age at which a member could retire on an
unreduced service allowance."
Sec. 2. G.S. 135-4(m) reads as rewritten:
"(m) All Notwithstanding
any language to the contrary of any provision of this section, or of any
repealed provision of this section that was repealed with the inchoate and
accrued rights preserved, all repayments and purchases of service credits,
allowed under the provisions of this section, section or of any
repealed provision of this section that was repealed with inchoate and accrued
rights preserved, must be made within three years after the member first
becomes eligible to make such repayments and purchases. Any member who does not
repay or purchase service credits within said three years after first
eligibility to make such repayments and purchases may, under the same
conditions as are otherwise required, repay or purchase service credits
provided that the repayment or purchase equals the full cost of the service
credits calculated on the basis of the assumptions used for purposes of the
actuarial valuation of the system's liabilities and shall take into account the
additional retirement allowance arising on account of such additional service
credit commencing at the earliest age at which such member could retire on an
unreduced retirement allowance as determined by the Board of Trustees upon the
advice of the consulting actuary. Notwithstanding the foregoing
provisions of this subsection that provide for the purchase of service credits,
the terms 'full cost', 'full liability', and 'full actuarial cost' include
assumed annual post-retirement allowance increases, as determined by the Board
of Trustees, from the earliest age at which a member could retire on an
unreduced service allowance."
Sec. 3. This act is effective on and after July 1, 1979.
In the General Assembly read three times and ratified this the 23rd day of July, 1992.
James C. Gardner
President of the Senate
Daniel Blue, Jr.
Speaker of the House of Representatives