20 NCAC 02B .0803. COMPUTATION OF COST

The cost of purchasing credit for military service is calculated as follows: (1) 1/12 of the annualized rate of compensation the member earned when the member first entered membership; multiplied by (2) the employee contribution rate at that time; multiplied by (3) the number of months of military service for which credit is to be purchased; plus (4) a factor equivalent to interest at the rate of six and one-half percent, compounded annually, from the initial year of membership to the year of payment.