N.D. Admin. Code 82-03-01-05

Current through Supplement No. 394, October, 2024

Section 82-03-01-05 - Purchase of benefit service credit

A teacher may purchase additional eligible benefit service credit in accordance with the following:

1. Out-of-state teaching service at a public, private, or parochial school must be verified by the out-of-state employer or retirement system, or both, where the service was earned.

2. Military service must be verified by submitting military service discharge documents.

3. Professional education organization service must be certified by the teacher's participating employer.

4. Legislative service must be certified by the teacher's participating employer and must indicate the number of uncompensated days and salary information as required by the fund.

5. Government agency service as an administrator or teacher must be verified by the federal agency which employed the teacher.

6. Leave of absence from teaching service must be verified by the employer who granted such leave.

7. Nonpublic teaching service at a North Dakota private or parochial school must be verified by the employer or the retirement system, or both, where the service was earned.

In all cases, the purchase cost must be on an actuarial equivalent basis determined by applying the actuarial factors adopted by the board.

The cost may be paid in a lump sum or in installments. Installments may be made monthly, quarterly, semiannually, or annually for up to five years. Interest is charged on the unpaid balance at the actuarial assumption rate for investment earnings.

If a teacher retires prior to full payment of the purchase amount, service credit will be granted in proportion to the actual principal payments made, or the teacher may elect to make a lump sum payment to complete the purchase or elect to have the payments included in a refund of the account balance.

If a teacher passes away prior to full payment of the purchase amount, service credit will be granted in proportion to the actual principal payments made or the designated beneficiary may elect to make a lump sum payment to complete the purchase or elect to have the payments included in a refund of the account balance.

N.D. Admin Code 82-03-01-05

Effective September 1, 1990; amended effective May 1, 1992; April 1, 1994; May 1, 1998; May 1, 2000.

General Authority: NDCC 15-39.1-07

Law Implemented: NDCC 15-39.1-24