A BILL TO BE ENTITLED
AN ACT to modify the formula for the purchase of part‑time service in the teachers' and state employees' retirement system.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 135‑4(p1)(1) reads as rewritten:
"(1)	Notwithstanding any other provision of this Chapter, upon completion of five years of membership service, any member may purchase service previously rendered as a part‑time teacher or employee of an employer as defined in G.S. 135‑1(11) or G.S. 128‑21(11), except for temporary or part‑time service rendered while a full‑time student in pursuit of a degree or diploma in a degree‑granting program. Service may be purchased either in full or in one‑year increments. Payment shall be made in a single lump sum in an amount equal to  twelve percent (12%) of compensation at the time of service plus interest compounded annually at the rate of six and one‑half percent (6.5%) for each calendar year from the year of part‑time service to the year of service purchase, together with  an administrative fee, as determined by the Board of  Trustees. Notwithstanding the provisions of G.S. 135‑4(b), the Board of Trustees shall fix and determine by appropriate rules and regulations how much service in any year, as based on compensation, is equivalent to one year of service in proportion to "earnable compensation", but in no case shall more than one year of service be creditable for all service in one year. Service rendered for the regular school year in any district shall be equivalent to one year's service. For the purpose of computing a one‑year increment for service by employees not in school districts, three‑fourths time or greater shall be considered full‑time. "
SECTION 2.  This act is effective when it becomes law.