NDAC 82-05-04-04
Actuarial factors - Purchase of service
Cite as N.D. Admin. Code § 82-05-04-04
Whenever the North Dakota Century Code permits a member to purchase service on an actuarially
equivalent basis, the following actuarial assumptions shall be used:
1.
Interest rate - 7.25 percent per year, compounded annually.
2.
Mortality rates - the same table specified in section 82-05-04-02 for nondisabled members.
3.
Retirement - the member will be assumed to retire at the age at which the member is first
eligible for an unreduced retirement benefit. Such unreduced retirement date will be
determined taking into account any purchased service and assuming the member continues in
full-time covered service.
4.
Salary increase rate - Increases are assumed to occur once each year. The following table
shows the increase rates indexed by the member's service (excluding any service being
purchased):
Years From Hire
Percentage
Increase at End of
Year
1
14.80%
2
6.80%
3
6.55%
4-5
6.30%
6-7
5.80%
8-9
5.55%
10-12
5.30%
13-14
5.05%
15-16
4.80%
17-19
4.55%
20-23
4.30%
24-30
4.05%
31 and over
3.80%