§ 120-4.21. Service retirement benefits. - North Carolina Statutes

§ 120‑4.21.  Serviceretirement benefits.

(a)        Eligibility;Application. – Any member may retire with full benefits who has reached 65years of age with five years of creditable service. Any member may retire withreduced benefits who has reached the age of 50 years with 20 years ofcreditable service or 60 years with five years of creditable service. Themember shall make electronic submission or written application to the Board ofTrustees to retire on a service retirement allowance on the first day of theparticular calendar month he designates. The designated date shall be no lessthan one day nor more than 120 days from the filing of the application. Duringthis period of notification, a member may separate from service withoutforfeiting his retirement benefits.

(b)        Computation. – Uponretirement from service in accordance with subsection (a) of this sectionbefore July 1, 1990, a member shall receive a service retirement allowancecomputed as follows:

(1)        For a member whoseretirement date occurs on or after his 65th birthday and upon completion offive years of creditable service, four percent (4%) of his "highest annualsalary," multiplied by the number of years of creditable service.

(2)        For a member whoseretirement date occurs on or after his 60th and before his 65th birthday andupon completion of five years of creditable service, computation as insubdivision (1) of this subsection, reduced by one‑fourth of one percent(¼ of 1%) for each month his retirement date precedes his 65th birthday.

(b1)      Computation. – Uponretirement from service in accordance with subsection (a) of this section on orafter July 1, 1990, but before February 1, 1995, a member shall receive aservice retirement allowance computed as follows:

(1)        For a member whoseretirement date occurs on or after his 65th birthday and upon completion offive years of creditable service, four and two‑hundredths percent (4.02%)of his "highest annual salary," multiplied by the number of years ofcreditable service.

(2)        For a member whoseretirement date occurs on or after his 60th and before his 65th birthday andupon completion of five years of creditable service, computation as insubdivision (1) of this subsection, reduced by one‑fourth of one percent(¼ of 1%) for each month his retirement date precedes his 65th birthday.

(b2)      Computation. – Uponretirement from service in accordance with subsection (a) of this section on orafter February 1, 1995, a member shall receive a service retirement allowancecomputed as follows:

(1)        For a member whoseretirement date occurs on or after his 65th birthday and upon completion offive years of creditable service, four and two‑hundredths percent (4.02%)of his "highest annual salary", multiplied by the number of years ofcreditable service.

(2)        For a member whoseretirement date occurs on or after his 60th and before his 65th birthday andupon completion of five years of creditable service, computation as insubdivision (1) of this subsection, reduced by one‑fourth of one percent(¼ of 1%) for each month his retirement date precedes his 65th birthday.

(3)        For a member whoseretirement date occurs on or after his 50th birthday and before his 60thbirthday and upon completion of 20 years of creditable service, computation asin subdivision (2) of this subsection, reduced by the same percentage asprovided for in Article 1 of Chapter 135 of the General Statutes.

(c)        LimitationsApplicable to Members Retiring Before September 1, 2005. – In no event shallany member receive a service retirement allowance greater than seventy‑fivepercent (75%) of his "highest annual salary".

(d)        LimitationsApplicable to Members Retiring on or After September 1, 2005. – In no eventshall any member receive a service retirement allowance greater than seventy‑fivepercent (75%) of  the member's "highest annual salary" nor shall amember receive any service retirement allowance whatsoever while employed in aposition that makes the member a contributing member of either the Teachers'and State Employees' Retirement System or the Consolidated Judicial RetirementSystem. If the member should become a member of either of these systems,payment of the member's service retirement allowance shall be suspended untilthe member withdraws from membership in that system.  (1993 (Reg. Sess., 1994), c.769, s. 7.30(p); 2001‑424, s. 32.30(b); 2005‑276, s. 29.30A(j);2006‑226, ss. 23(a), (b); 2007‑431, s. 3; 2009‑66, s. 12(k).)