Section 82-05-04-04 - Actuarial factors - Purchase of serviceWhenever 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% |
3-14 | 5.05% |
15-16 | 4.80% |
17-19 | 4.55% |
20-23 | 4.30% |
24-30 | 4.05% |
31 and over | 3.80% |
N.D. Admin Code 82-05-04-04
Effective May 1, 2000; amended effective July 1, 2008.Amended by Administrative Rules Supplement 2016-360, April 2016, effective 4/1/2016.Amended by Administrative Rules Supplement 2021-381, July 2021, effective 7/1/2021.General Authority: NDCC 15-39.1-07
Law Implemented: NDCC 15-39.1-16, 15-39.1-24