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TEACHERS’ AND STATE EMPLOYEES’RETIREMENT SYSTEM
Department of State TreasurerRaleigh, NC
Revised January 2017
YOUR RETIREMENT BENEFITS
MemberHandbook
teachers’ and state employees’ retirement system
january 2017
Welcome to the North Carolina Teachers’ and State Employees’ Retirement System!
The Teachers’ and State Employees’ Retirement System (TSERS), as well as other state and local retirement systems and plans, is administered by the Department of State Treasurer for North Carolina public employees. Col-lectively, these plans are referred to as the North Carolina Total Retirement Plans.
As a member of TSERS, you should be fully informed about your options. We are committed to providing you with relevant information intended to help you make informed decisions about your financial future. I encourage
you to become familiar with this booklet outlining the benefits that are available to you as a member of TSERS.
Many financial experts suggest that individuals will need a monthly income in retirement equal to 80% of their pre-retirement pay. When planning for a secure retirement, I encourage you to consider not only your TSERS benefits, but also your Social Security benefits and your personal savings (including saving through the NC 401(k)/NC 457 Plans, and the NC 403(b) Programs).
I also encourage you to visit our website, www.MyNCRetirement.com, for retirement resources, and to access ORBIT, your safe and secure online access to your personal retirement account information. You can also contact the North Carolina Total Retirement Plans at the number below if you have additional questions. Our customer service representatives can assist with the status of an application or answer questions about retirement, disability and death benefits.
Thank you for your service to the people of North Carolina.
Sincerely,
Dale Folwell, CPA
1-877-627-3287 Toll-free
N.C. DEPARTMENT OF STATE TREASURER RETIREMENT SYSTEMS DIVISION
STEPHEN C. TOOLEEXECUTIVE DIRECTOR
DALE R. FOLWELL, CPASTATE TREASURER OF NORTH CAROLINA
Contents Page
Section 1: About Your Retirement System . . . . . . . . .4Section 2: Membership in TSERS . . . . . . . . . . . . . . . . .5Section 3: Qualifying for Benefits . . . . . . . . . . . . . . . .6 Vesting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 ServiceRetirement(UnreducedBenefits) . . . . . . . . 6 EarlyRetirement(ReducedBenefits) . . . . . . . . . . . . 6 VestedDeferredBenefit . . . . . . . . . . . . . . . . . . . . . . 6 RefundofContributions . . . . . . . . . . . . . . . . . . . . . . 7 ReciprocityBetweenRetirementSystems . . . . . . . . 7 TransferringService&Contributions BetweenSystems . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 RequiredDistributionsAfterAge701/2 . . . . . . . . . 8Section 4: How Your Benefit is Calculated . . . . . . . . .9 RetirementFormula . . . . . . . . . . . . . . . . . . . . . . . . . . 9 ServiceRetirementCalculationExample . . . . . . . . . 9 EarlyRetirementCalculationExample . . . . . . . . . . 10 EarlyRetirementReductionPercentages . . . . . . . . 11 ExamplesofMonthlyBenefitsPaid . . . . . . . . . . . . 12 BenefitLimitations . . . . . . . . . . . . . . . . . . . . . . . . . . 12Section 5: Your Benefit Payment Options . . . . . . . . .14 ExampleofPaymentOptions . . . . . . . . . . . . . . . . . 17Section 6: Adding to Your Creditable Service . . . . . .18Section 7: Death Benefits . . . . . . . . . . . . . . . . . . . . .22 ActiveEmployeeDeathBenefits . . . . . . . . . . . . . . . 22 RetireeDeathBenefits . . . . . . . . . . . . . . . . . . . . . . . 23
Contents Page
DISCLAIMER: The availability and amount of all ben-efits you might be eligible to receive is governed by North Carolina law. The information provided in this handbook cannot alter, modify or otherwise change the controlling North Carolina law or other governing legal documents in any way, nor can any right accrue to you by reason of any information provided or omission of information provided herein. In the event of a conflict between this information and North Carolina law, North Carolina law governs.
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Table of Contents
Section 8: Initiating Your Retirement Benefits . . . . 24 RetirementApplicationProcess . . . . . . . . . . . . . . 24 YourFirstMonthlyBenefit . . . . . . . . . . . . . . . . . . . 25 Post-RetirementIncreases . . . . . . . . . . . . . . . . . . . 25Section 9: NC 401(k) and NC 457 Transfer Benefit .26Section 10: Income Tax . . . . . . . . . . . . . . . . . . . . . .27 RetirementBenefits . . . . . . . . . . . . . . . . . . . . . . . . 27 Refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 DeathBenefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Section 11: Health Coverage in Retirement . . . . . .30 StateHealthPlan . . . . . . . . . . . . . . . . . . . . . . . . . . 30 OptionalSupplementalInsurance . . . . . . . . . . . . . 30Section 12: Return to Work After Retirement . . . .31Section 13: Disability Benefits . . . . . . . . . . . . . . . . .34 DisabilityIncomePlanofNorthCarolina(DIPNC) 34 TSERSDisabilityRetirementBenefits . . . . . . . . . . 36Section 14: Administration & Funding . . . . . . . . . .37Section 15: Resources & Contacts . . . . . . . . . . . . . .40 ORBIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 ContactUs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Section 16: Glossary of Terms . . . . . . . . . . . . . . . . .42
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TheTeachers’andStateEmployees’RetirementSystem(TS-ERS)isadefinedbenefitplanqualifiedunderSection401(a)oftheInternalRevenueCode.Definedbenefitplansuseaformulatocalculatemonthlyretirementbenefitsonceeligi-bilityrequirementshavebeenmet.ThishandbookexplainsTSERSbenefiteligibilityrequirementsandtheformulausedtocalculatebenefits.Termsandphrasesinbold type are definedinSection16–GlossaryofTerms.
You, the state of North Carolina, and the investment earnings on total contribu-tionspaythecostofprovidingyourretirementbenefits.
Yourshareofthecostiscurrently6%ofyourcompensation,andisautomati-callydeductedfromyourpaycheck.Yourcompensationincludesalleligiblesalariesandwages,asdefinedbystatute,paidtoyoufrompublicfunds,earnedatyourcoveredjobwhileworkingforthestate.
Thestatebasesitscontributionsoncalculationspreparedbyanactuary. The statecontributionratefromJanuary1,2017toJune30,2017,is16.54%ofallmembers’salariestopayforthebenefitsforyouandothermembers.
SinceJuly1,1982,yourcontributionshavebeentax-deferred.Thismeansyourcontributionsaredeductedfromyourpaybeforetaxesarecalculated,andyoupaytaxesonthemwhenyoubeginreceivingmonthlyretirementbenefitsorifyouelectarefundofyourcontributions.Thus,yourcurrenttaxableincomeisloweredandtheamountofannualtaxesyoupayislessthanifyoumadecon-tributionsafterpayingtaxes.See pages 27 and 28formoreinformationaboutyourtaxliabilityonbenefits.
ContributionstoTSERSareinvestedbytheDepartmentofStateTreasurerandthesefundsareprotectedbytheConstitutionofNorthCarolinafrombeingusedforanypurposeotherthanretirementsystembenefitsandexpenses.
ORBITisasecuresitethatallowsyoutoviewyourpersonalaccountinformation,downloadretirementforms,andaccessretirementresources24hoursaday,7daysaweek.TologintoyourpersonalORBITaccount,gotoourwebsiteatwww.MyNCRetirement.com, click on the ORBITiconandfollowthelog-ininstructions.See page 40formoreinformationaboutORBIT.
You and the state share the cost of providing your TSERS benefits.
Section 1: About Your Retirement System
View your account infor-mation and download forms in ORBIT.
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You become a TSERS member on your hire date if you are:
• Apermanentfull-timeteacheroremployeeofastate-supportedboardofeducationorcommunitycollege.
• Apermanentemployeeofthestate(oranyofitsagencies,departments,bureaus,orinstitutions)andworkatleast30hoursperweekfor9months per year .
• ApermanentemployeeofacharterschoolthatparticipatesinTSERS,andyouworkatleast30hoursperweekfor9monthsperyear.
YoumayjoinanoptionalretirementprograminsteadofTSERSifyouare:
• Afacultymember,administrator,orothereligibleemployeeatastateinstitutionofhighereducation
• AneligibleemployeeofUNCHealthCare • Acommunitycollegepresident
IfyouareanAgriculturalExtensionServiceemployeeandamemberoftheFederalEmployees’RetirementSystem,youmaynotjoinTSERS.Contactyouremployer for more details about the alternate systems .
● Designating Beneficiaries
AfteryouremployerenrollsyouinTSERS,youshouldnamebeneficiary(ies)toreceiveareturnofyourretirementcontributionsandadeathbenefit,shouldyoudiebeforeretirement.Todesignatebeneficiaries,complete:
• Form2RC(DesignatingBeneficiary(ies)forRetirementSystemReturnofContributions)
• Form2DB(DesignatingBeneficiary(ies)fortheDeathBenefit)
● Forfeiting Eligibility for Criminal Offenses
EffectiveJuly1,2007,electedgovernmentofficialswillforfeittheirrighttoamonthlybenefitfromTSERSifconvictedofcertainstateorfederalof-fensesinvolvingpubliccorruption.
EffectiveDecember1,2012,ifyouwerenot vested as of December 1, 2012, and are convicted of a state or federal felony directly related to your employ-mentwhileinserviceunderTSERS,youareprohibitedfromreceivinganyretirementbenefitotherthanareturnofyourcontributionsplusinterest.Ifyou were vested as of December 1, 2012, you are prohibited from receiving anyretirementbenefitforservicerenderedafterDecember1,2012,otherthanareturnofyourcontributionsplusinterestfortheperiodofserviceafterDecember1,2012.
Membership in TSERS is automatic for eligible employees.
To designate beneficia-ries, complete Forms 2RC and 2DB found in ORBIT.
Section 2: Membership in TSERS
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Section 3: Qualifying for BenefitsVesting
You become vested in TSERS once you have completed a minimum of 5 years ofmembershipservice.Thismeansthatyouareeligibletoapplyforlifetimemonthlyretirementbenefitsbasedontheretirementformulaineffectatthetimeofyourretirementandtheageandservicerequirementsdescribedinthishandbookprovidedyoudonotwithdrawyourcontributions.Youmayalsobeeligibleforretireehealthcoverage.See page 30formoreinformationonhealthcoverage .
Service Retirement (Unreduced Benefits)
Youmayretirewithanunreducedserviceretirementbenefitafteryou: • Reach age 65 and complete 5 years of membership service • Reach age 60 and complete 25 years of creditable service • Complete 30 years of creditable service at any age
Early Retirement (Reduced Benefits)
Youmayretireearlywithareducedretirementbenefitafteryou: • Reach age 50 and complete 20 years of creditable service • Reach age 60 and complete 5 years of membership service
Yourearlyretirementbenefitiscalculatedusingthesameformulaasaserviceretirementbenefitmultipliedbyareductionpercentagebasedonyourageand/orserviceatearlyretirement.Becauseyourbenefitmaybepaidoveralongerperiodoftimethanifyouhadwaiteduntilbeingeligibleforservicere-tirement,yourbenefitwillbereduced.Thetablesonpage 11showtheeffectsthesereductionswouldhaveonyourbenefit.
Vested Deferred Benefit
IfyouleaveTSERSforanyreasonotherthanretirementordeath,youcanei-therreceivearefundofyourcontributionsandinterest,orleaveyourcontribu-tionsinTSERSandkeepallthecreditableserviceyouearnedtothatdate.
Youmaybeentitledtoapplytoreceiveadeferredbenefitatalaterdateonceyoumeeteligibilityrequirementsafteryouhavecompleted5yearsofmember-shipserviceprovidedyoudonotwithdrawyourcontributions.Yourbenefitiscalculatedusingtheformulaineffectonyourretirementdate.Itisbasedonyouraveragefinalcompensationandyearsofcreditableserviceatthattime.See page 30forinformationregardingretireehealthcoverage.
See page 41 for defini-tions of membership and creditable service.
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Refund of Contributions
IfyouleaveTSERSbeforeyouhave 5 years of membership service, the only payment you can receive is a refund of your contributionsandinterest.
Statelawprohibitsusfrommaking a refund earlier than 60daysafteryouleavecoveredemployment.Onceyoureceivearefundofyourcontributions,youwaiveanyrightstoyourformeremployer’scontributionsoranyotherben-efitfromTSERS,includingpossiblecoveragethroughtheStateHealthPlan.
Setbystatelaw,theinterestcreditedonyourcontributionsandpaidwitharefundis4%compoundedannuallyonyourprior-yearendingbalance.
Toreceivearefund,completeForm5(WithdrawingYourRetirementServiceCreditandContributions).
Reciprocity Between Retirement Systems
AnycredityoumayhaveinthefollowingRetirementSystemsmaybecountedalongwithyourcreditinTSERSinordertodetermineyoureligibilityforare-ducedorunreducedbenefit:
• Legislative(LRS) • ConsolidatedJudicial(CJRS) • LocalGovernmentalEmployees’(LGERS)
However,onlyyourcreditableserviceinTSERSisusedincomputingtheamountofyourbenefitinTSERS.Creditableserviceinanyothersystemisusedtocomputebenefitsfromthatsystem.
Inaddition,anyservicecredityouhaveintheOptionalRetirementProgrammay be added to your creditable service in TSERS in order to determine eligibil-ityforbenefitsfromTSERS.
Transferring Service & Contributions Between Systems
YoucantransferyourcontributionsandcreditableservicebetweenTSERSandLGERSaslongasyouareaneligiblememberofthesystemtowhichyouaretransferring,donotreceivearefundofyourcontributionsfromthesystemfromwhichyouaretransferring,andfileForm5TR(TransferringServiceandContributionsBetweenSystems).
Credit in other North Car-olina retirement systems may be counted along with your TSERS credit to determine retirement eligibility.
To receive a refund, com-plete Form 5, found in ORBIT.
To request a Form 5TR, please contact our office.
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Transferredcreditableservicecountstowardyoureligibilityforamonthlybene-fitandisusedtocomputetheamountofyourbenefit.Overlappingtransferredservicecannotbecountedtwiceforthesametimeperiod.
AtransfercanaffectyoureligibilityforretireegroupcoverageundertheStateHealthPlan.FormoreinformationabouttheStateHealthPlan,see page 30 .
Aftercompleting5yearsofmembershipserviceinTSERS,youmaytransfercontributionsandcreditableservicefromCJRSandLRStoTSERS.Contactusforadditionalinformationandinstructions.
Required Distributions After Age 70 1/2
Inmostcases,TSERSisrequiredtopaybenefitstonon-retiredmemberswithopenTSERSaccountsbyApril1oftheyearfollowingtheyearinwhichthememberreachesage701/2orceasestobeanemployee,whicheverislater.Memberswhoarevested(5ormoreyearsofmembershipservice)whofailtocompletetheretirementprocesswillreceiveamonthlyretirementbenefitbasedontheMaximumAllowance.Non-vestedmemberswhofailtocompletearefundapplicationwillreceivearefundoftheircontributionsandinterest.
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Section 4: How Your Benefit is CalculatedRetirement Formula
Your annual benefit =
1.82% of average final compensation
X
years and months of creditable service
Average final compensation is the average of your salary during your four highest-paidyearsinarow.Ifyourfourhighest-paidyearsinarowincludeafi-nalpaymentforunusedvacationleaveand/orproratedlongevity,youraveragefinalcompensationmaybeincreasedbytheextrapayment(s).Finalpayments,ifany,forunusedsickleaveorreimbursementsforexpensesarenotincludableinyouraveragefinalcompensation.
Creditable serviceisthetotalofallservicecreditthatcountstowardretire-ment.Itincludesmembershipserviceforanyperiodduringwhichyoucontrib-utetoTSERS,providedyouhavenotwithdrawnyourcontributions.Italsoin-cludes credit for eligible purchased service and eligible unused sick leave that is convertedtocreditableserviceatretirement.Seepages18-21 for more details .
Service Retirement Calculation Example
AssumeemployeeMaryBensonworksfor10monthsperyearandretiresatage60with32yearsand2monthsofcreditableserviceandanaveragefinalcompensationof$40,954.BecauseMaryhasmorethan30yearsofcreditableserviceatretirement,shereceivesherbasicbenefitofabout$24,000ayear(about$2,000monthly)fortherestofherlifeunderthemaxi-mumallowance.Monthlypaymentswouldstopatherdeath.Inaddition,MarymayalsobeeligibleforSocialSecuritybenefitsasearlyasage62.
ThefollowingtableshowshowwecalculateMary’sbenefit.Usethespacesintheright-handcolumntofillinyourfiguresforanestimateofyourbenefit.
You can create your own retirement estimate by logging into your person-al ORBIT account.
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At Service Retirement Mary You
Step 1Addyoursalaryduringyour4 $39,988 $highest-paidyearsinarow. 40,484 41,350 + 41,994 $163,816 $
Step 2Divide Step 1 by 4 to get $40,954 $ averagefinalcompensation.
Step 3MultiplyStep2by.0182to $40,954 $apply formula . x.0182 x.0182 $745 .36 $
Step 4Determine creditable service 32 .2 years(seepages18-21).
Step 5MultiplyStep3byStep4 $745.36 $to determine your annual x32.2 xretirementbenefit. $24,000.59 $
Step 6Divide Step 5 by 12 to get $2,000 .05 $monthly maximum allowance.
Early Retirement Calculation Example
AssumeemployeeFredWiseworks12monthsperyearandretiresatage61with24yearsand3monthsofcreditableserviceandanaveragefinalcompensationof$40,954.
Hereishowwecalculatehisbenefit:
$ 40,954 (averagefinalcompensation) x .0182 $ 745 .36 x 24.25 (creditableservice) $ 18, 074 .98
Nowapplytheearlyretirementreductionpercent-age from the chart on page 11 .
$ 18,074 .98 x .88 (percentageatage61) $ 15,905 .98
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Fredreceivesabenefitunderthemaximumallowanceofabout$15,905ayear(about$1,325monthly).Hispaymentwillstartatage61andcontinuefortherest of his life .
Assume,however,thatFredisage59insteadofage61.With24.25yearsofcreditableservice,hisearlyserviceretirementreductionpercentageis0.80insteadof0.88.Inthiscase,Fredreceivesabenefitunderthemaximumallow-anceofabout$14,460ayear(about$1,205amonth).Hispaymentwillstartatage59andcontinuefortherestofhislife.Inaddition,FredmayalsobeeligibleforSocialSecuritybenefitsasearlyasage62.
Early Retirement Reduction Percentages
Ifyouarebetweenages60and65,withlessthan25yearsofcreditableservice,yourearlyserviceretirementbenefitwillbereducedtothefollowingpercentages.
If you are You receive this this age when percentage of payments start your benefit 64 97% 63 94% 62 91% 61 88% 60 85%
Ifyouarebetweenbirthdayswhenpaymentsstart,thereductionwillbead-justedproportionately.
Ifyouarebetweenages50and59,withfewerthan30yearsofcreditableservice,yourearlyretirementwillbereducedtothepercentagesshowninthetablebelow.
Age 29 28 27 26 25 24 23 22 21 20
59 95% 90% 85% 80% 80% 80% 80% 80% 80% 80%58 95% 90% 85% 80% 75% 75% 75% 75% 75% 75%57 95% 90% 85% 80% 75% 70% 70% 70% 70% 70%56 95% 90% 85% 80% 75% 70% 65% 65% 65% 65%55 95% 90% 85% 80% 75% 70% 65% 60% 60% 60%54 95% 90% 85% 80% 75% 70% 65% 60% 55% 55%53 95% 90% 85% 80% 75% 70% 65% 60% 55% 52%52 95% 90% 85% 80% 75% 70% 65% 60% 55% 50%51 95% 90% 85% 80% 75% 70% 65% 60% 55% 50%50 95% 90% 85% 80% 75% 70% 65% 60% 55% 50%
Creditable Service
Early retirement benefits are calculated using the same formula as a ser-vice retirement benefit multiplied by a reduction percentage based on your age and/or service at early retirement.
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Examples of Benefits Paid
Thefollowingchartshowstheapproximatemonthlybenefitpaidunderthemaximumallowanceatvarioussalarylevels,dependingonageandcreditableservice.Theseareonlyexamples.Yourownbenefitiscalculatedindividuallyanddependsonyourage,creditableservice,andaveragefinalcompensation.
Monthly Retirement Benefit Under Maximum Allowance
Aver
age
Fina
l Com
pens
ation
Age 50 55 60 N/A N/AService 20 28 25 30 40
$80,000 $1,213 $3,057 $3,033 $3,640 $,4,85370,000 1,061 2,675 2,654 3,185 4,24660,000 910 2,293 2,275 2,730 3,64055,000 834 2,102 2,085 2,502 3,33650,000 758 1,911 1,895 2,275 3,03345,000 682 1,719 1,706 2,047 2,73040,000 606 1,528 1,516 1,820 2,42635,000 530 1,337 1,327 1,592 2,12330,000 455 1,146 1,137 1,365 1,82025,000 379 955 947 1,137 1,516
Benefit Limitations
Occasionally,aretireemaybesubjecttothebenefitlimitationsdescribedbelow:
● Contribution-Based Benefit Cap
IfyouretireonandafterJanuary1,2015,withanaveragefinalcompensation(AFC)of$100,000orhigher,youmayfallunderacontribution-basedbenefitcap.Thiscapwascreatedtocontrolthepracticeof“pen-sionspiking,”inwhichyourcompensationsignificantlyincreasesinyour4-yearAFCperiodtocreateabenefitwhichissignificantlygreaterthanyourcontributionswouldfund.Ifyourretirementallowancehasbeencappedandissubjecttoanadjustment,TSERSwillnotifyyouandyouremployerandwillprovideastatementofthecostoftheadditionalcontributionrequiredtopayforyourbenefitinexcessofthecap.IfyouwerefirsthiredbeforeJanuary1,2015,yourlastemployerwillberequiredtopaytheadditionalamount.IfyouwerefirsthiredonorafterJanuary1,2015,youremployermaychoosewhetherornottopaythisadditionalcontribution;ifyouremployerchoosesnottopay,youmaychooseeithertopaytheamountoryoumayacceptabenefitreducedtothebenefitcap.
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● IRC Section 415(b) Annual Pension Benefit Limit
Ifyouareahighlycompensatedemployee(i.e.,generallyearningmorethan$180,000annually),yourTSERSbenefitsmaybesubjecttotheIn-ternalRevenueCode(IRC)section415(b)annualpensionbenefitlimit.In2013,theGeneralAssemblyenactedlegislationwhichestablishedaQuali-fiedExcessBenefitArrangement(QEBA)fundtopaythepartofahighlycompensatedretiree’sretirementallowancethatwouldotherwisebepay-ableexceptforthislimitation.Duetosunsetlegislation,QEBAwillnotbeavailableforanyemployeewhobecameaTSERSmemberonorafterJanu-ary1,2015.ThismeansthatTSERSretirementbenefitsforanyemployeewhobecameaTSERSmemberonorafterJanuary1,2015,willbesubjecttotheIRClimit.
IfyoubecameaTSERSmemberbeforeJanuary1,2015,youareeligibletoparticipateinQEBA.ThelastTSERSemployerisrequiredtoreimburseQEBAfortheamountpaidtoaretireefromQEBAforanyTSERSmemberwhoretiresonorafterAugust1,2016.Eachcalendaryear,thereimburse-mentamountwillbecalculatedandaninvoicewillbesenttotheemployer.Iftheemployerdoesnotpaythefullamountwithin60calendardaysoftheinvoice,theemployerwillbeassesseda1%penaltyforeachmonth,orfractionthereof,thepaymentismadebeyondtheduedate.Pleaseseethefact sheetonourwebsiteformoreinformation.
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Section 5: Your Benefit Payment OptionsAtretirement,youmustelectoneofthepaymentoptionsdescribedbelow.Onaverage,thepaymentoptionsaremathematicallyequaltooneanother.Thatis,eachoptioniscalculatedsothatitstotalvalueisthesameasthevalueoftheotheroptionsifyouandthebeneficiaryyouname(ifany)toreceiveamonthlypaymentafteryourdeathliveyourexpectedlifespans.
First,decidewhetheryouneedapaymentoptionthatprovidesamonthlybenefittoabeneficiaryafteryourdeath.Ifyoudonotselectsuchanoption,allofyourretirementbenefitswillbeusedtoprovideyouwithalifetimemonthlypayment that stops at your death .
Yourchoiceofpaymentoptionsispersonalandshouldtakeintoaccountyourneedsduringretirementandtheneedsofadependent,ifany,afteryourdeath.Neitherthepaymentplanselectedbyaco-workernortheoneselectedbythelargestnumberofretireesshouldhaveanyeffectonyourpersonaldecision.
Youcannotchangeyourselectedpaymentoptiononceyoucashyourfirstretirementcheckorafterthe25thofthemonthfollowingthemonthyourfirstcheckismailed(whicheverisearlier)exceptunderoneofthefollowingtwoconditions:
• Ifyouselectanoptionthatprovidesamonthlybenefittoyourspouseasabeneficiaryafteryourdeath(Option2,3,6-2,or6-3)andlaterbecomedivorced from that spouse .
• IfyouarerehiredinapositioncoveredbyTSERSandcontributetoyournewaccountforatleast3years.
Your retirement benefit comes with a Guaranteed Refund. This means thatshouldyouandyourmonthlysurvivorbeneficiary(ifany)bothdiebeforethetotalofallmonthlypaymentsequalstheamountofyourcontributionsandinter-est,thebalanceofyourcontributionsandinterestwillbepaidinonelumpsumtoanotherbeneficiary(ies).
TheGuaranteedRefundalsocoversanypurchasesyoumadeforadditionalcred-itableserviceafterretirement.YoumaynameoneormorebeneficiariesfortheGuaranteedRefund,andyoumaychangethisbeneficiary(ies)asoftenasyoulike.However,thebeneficiaryyouchoosefortheGuaranteedRefundcannotbethesameasyourmonthlysurvivorbeneficiary.
Choose your payment option carefully; you can change it only under spe-cific circumstances.
All payment options include the Guaranteed Refund.
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● Maximum Allowance
Whenyouretirewithaserviceretirementbenefit,yourbasicbenefitisthemaximumallowanceand is calculated under the formula on page 9.Ifyouretireearly,yourmaximumallowanceiscalculatedusingthesameformula,whichisthenreducedforearlyretirement.Ineithercase,youwillreceiveyourmaximumallowanceforaslongasyoulive.Allmonthlypaymentsstopatyourdeath.
● Option 2: 100% Joint & Survivor
• You receive reduced monthly payments for life . • Afteryoudie,yourmonthlysurvivorbeneficiaryreceivesthesame
amount monthly for life .
● Option 3: 50% Joint & Survivor
• You receive reduced monthly payments for life . • Afteryoudie,1/2ofyourpaymentcontinuestoyourmonthlysurvivorbeneficiaryforlife.
● Option 4: Social Security Leveling
• Youreceivelargermonthlypaymentsthanyouwouldotherwisebeen-titledtoreceiveuntilyouareeligibleforSocialSecurityatage62.
• BeginningthemonthfollowingthemonthofinitialentitlementforSocialSecurityage62benefits,yourmonthlypaymentswillbereducedtoanamountthatislessthanwhatyouwouldotherwisebeentitledtoreceive.Nevertheless,yourreducedretirementpaymentsafterage62,plusyourallowancefromtheSocialSecurityAdministration,shouldbeapproximatelythesameamountastheinflatedpaymentyoureceivedfrom TSERS before age 62 .
• Theactualamountofyourretirementpaymentsbothbeforeandafterage62willbebasedontheestimateofbenefitsyouprovidetousfromtheSocialSecurityAdministrationbeforeyourretirement.
• Allmonthlypaymentsstopatyourdeath.
Thereductioninyourmonthlyretirementpaymentsafterage62allowsustorecovertheinflatedamountsyoureceivedbeforeage62.Therefore,onaverage,theinflatedamountsyoureceivebeforeage62,togetherwiththereducedamountsyoureceiveafterage62,areequalinvaluetotheotherpaymentoptionsoveryourlifeexpectancy.
The Maximum Allowance and Option 4 provide monthly benefits that stop at your death, with no monthly survivor ben-eficiary.
Options 2, 3, 6-2, and 6-3 provide a monthly benefit to your survivor benefi-ciary after your death.
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ContacttheSocialSecurityAdministrationforinformationonapplyingforbenefitsandthedatethatyourfirstage62SocialSecuritybenefitwillbepaidtoyou.YourTSERSbenefitunderOption4willbereducedinthemonthfollowingthemonthofinitialentitlementforSocialSecurityage62benefits.
Anypercentageincreaseyouaregrantedinyourretirementbenefitbeforeage62willbeappliedtotheinflatedbenefityouarereceivingatthattime.However,whenyoureachage62,yourretirementbenefitwillbereducedtotheoriginalamountpromisedafterage62plusthepercentageincreases(notthedollaramountofincreases)grantedbeforeage62.
● Option 6–2: Modified Joint & Survivor (combination Maximum Al-lowance and Option 2)
• You receive reduced monthly payments for life . • Afteryoudie,yourmonthlysurvivorbeneficiaryreceivesthesame
amount monthly for life . • However,ifyourbeneficiarydiesbeforeyoudo,yourmonthlypaymentsincreasetotheamountpayableunderthemaximumallowance.
● Option 6–3: Modified Joint & Survivor (combination Maximum Al-lowance and Option 3)
• You receive reduced monthly payments for life . • Afteryoudie,1/2ofyourpaymentcontinuestoyourmonthlysurvivorbeneficiaryforlife.
• However,ifyourbeneficiarydiesbeforeyoudo,yourmonthlypaymentsareincreasedtotheamountpayableunderthemaximumallowance.
UnderOptions2,3,6-2,and6-3,youmaynameonlyonebeneficiarytoreceiveamonthlysurvivorbenefitafteryourdeath.Youmaynotchangeyoursurvivorbeneficiaryafteryouretireexceptunderoneofthefollowingcircumstances:
• Ifyounamedyourspouseassurvivorbeneficiaryatthetimeofretirementand later become divorced from that spouse .
• IfyoureturntoemploymentcoveredunderTSERSandcontributetoanewretirementaccountforatleast3years.
• IfyouchoseOption2or3atretirement,anddesignatedyourspouseassurvivorbeneficiary,andthisspousediesbeforeyou,andyouremarry,youmayrequesttonominateyournewspouseasyourbeneficiarywithin90daysofyourremarriageunderthesameoptionyouchoseatretirement.YoumustfilethisredesignationwithTSERSwithin120daysofyourremar-riage.Yournewbenefitwillbereducedonthebasisofyourageandtheageofyourspouseatthetimeofthechange.Thebenefitpayabletoyouwillbethebenefityoureceivedbeforethedeathofyourpreviousspouse,additionallyreducedtocoveryournewspouseasbeneficiary.
You can change your monthly survivor benefi-ciary under Options 2, 3, 6-2, and 6-3 only under specific circumstances.
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Example of Payment Options
AssumeJohnMurphyhasearnedaserviceretirementbenefitunderthemaxi-mumallowanceof$2,000amonth.Hewantstosharehisbenefitwithhiswife,Pam,whois51whenJohnretiresat57after30yearsandthreemonthsofcred-itableservice.ThetablebelowshowshowmuchJohnandPamwouldreceivemonthlyundereachpaymentoption.
Theseareonlyexamples.Yourownbenefitiscalculatedindividuallyandtheac-tualamountsofyourpaymentoptionsarebasedonmanyfactors,suchasyourage,yourbeneficiary’sage,andwhenpaymentsstart.
Payment Option To John To Pam After John’s Death
Maximum Allowance $2,000 monthly $0 .00
Option 2 $1,834 .60 monthly $1,834 .60 monthly
Option 3 $1,913 .80 monthly $956 .90 monthly
Option 4* $2,650 .90 up to age 62, $1,650.90thereafter $0 .00
Option 6-2$1,822.60monthly;ifPamdiesbeforeJohn, he receives $2,000 monthly thereaf-ter
$1,822 .60 monthly
Option 6-3$1,907.20monthly;ifPamdiesbeforeJohn, he receives $2,000 monthly thereaf-ter
$953 .60 monthly
*AssumesJohn’sprimarySocialSecuritybenefitis$1,000amonthatage62.
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Section 6: Adding to Your Creditable ServiceYourbenefitatretirementisbased,inpart,onyourcreditable service . Creditable service includes your yearsandmonthsofmembershipserviceinwhichyoucontributed to TSERS and may also include sick leave credit, military service credit, and certain types of pur-chasedservicecredit,whicharedescribedbelow.
● Sick Leave
Unusedsickleave,includingeligiblesickleaveconvertedfromexcessvacation,canbeconvertedtoadditionalretirementservicecreditatthetimeofyourretirementifallofthefollowingcondi-tionsaremet:
• Yoursickleavewasearnedunderadulyadoptedsickleavepolicy. • Youwouldreceivefullsalarywhenusingthesickleaveifabsentfromworkbecauseofillness.
• Youhavenot,andwillnot,receiveanycompensationforthissickleave .
• YourlastdayofservicewithyourlastparticipatingTSERSemployeriswithin5yearsbeforeyourTSERSeffectivedateofretirement.
Whenyouretire,youareallowed1monthofcreditforeach20daysofunusedsickleave.Foranypartof20daysleftover,1additionalmonthisal-lowedprovidedtheremainingportionisatleast1hour.
Asickleave“day”isdeterminedbyyouremployer’ssickleaveaccrualpolicyandmayormaynotbeequalto8hours.Forexample,assumeJohnSmithearns 1 day of sick leave per month under his employer’s sick leave accrual policywhileworkinganextendedshiftof12hoursperdayandheaccrues12hoursofsickleaveeachmonth.Whenhisemployercertifieshisunusedsickleaveonhisretirementapplication(Form6),foreach12hoursofeligibleunused sick leave, his employer should report 1 day of unused sick leave, ratherthan1.5days.Inanotherexample,assumeMaryBrownearns1dayofsickleavepermonthwhileworking7.5hoursperdayandaccrues7.5hoursofsickleaveeachmonth.WhenheremployercertifiesherunusedsickleaveonherForm6,foreach7.5hoursofeligibleunusedsickleave,heremployershould report 1 day of unused sick leave .
Sick leave is used to increase your creditable service, but it cannot be used to meettheminimumqualificationsforadeferredbenefitortheSurvivor’sAl-ternateBenefit.Youmayuseyoursickleavetocomplete30yearsofservice
On your retirement appli-cation (Form 6), your last employer will certify the amount of your unused sick leave.
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regardless of age, 25 years ofserviceafterage60,and20yearsofserviceafterage 50 . Sick leave does not counttowardeligibilityforretireehealthcoverage.
● Military Service
YourperiodsofactivedutyintheU.S.militaryuptothetimeyouwerefirsteligibleforadischargethatisnotdishonorablecountascreditableserviceatnocosttoyouifyouwereateacherorstateemployeewhenyouenteredactivedutyandyoureturnedtoTSERSemploymentunderoneofthefollowingcircumstances:
• Within2yearsafteryourearliestdischargedate. • Atanytimeafteryourdischargeandyoucompleteatleast10yearsofadditionalserviceasacontributingmember.
Your TSERS employer is required to pay the employer and employee contri-butionsforthefullperiodyouwereinactivedutyifyouwereaTSERSmem-berimmediatelybeforeyouractive-dutymilitaryserviceandyoureturntoTSERSmembershipservicewithin2yearsafteryourmilitaryduty.
Ifyouareineligibleforfreecreditundertheserules,youmaybeeligibletobuycreditforyourfirstperiodpluslaterrequiredperiodsofactivedutybymakingalump-sumpayment.
To be eligible to purchase military service credit, you must have contributed toTSERSfor5years.Yourcostwillbeequaltothefullactuarialliabilitiescreatedfromtheadditionalcreditpurchased.
Ifyourmilitaryserviceiscreditableinanotherretirementsystem,generallyyouwillnotbeeligibletopurchasecreditinTSERS.
● Withdrawn Service
IfyouhaveeverreceivedarefundofyourcontributionsfromTSERS,LGERS,ortheformerLawEnforcementOfficers’RetirementSystem,youmaybeeli-gibletopurchase,withalump-sumpayment,inTSERS,theamountofcredit-ableserviceyoulostwhenyoureceivedyourrefund.
Beforeyouareeligibletopayforthisservice,youmustberehiredandcontributetoTSERSfor5yearsorhaveacombinationof5yearsofcurrentmembershipserviceinCJRS,LRS,LGERS,orTSERS.
To purchase retirement service credit, you will need to complete the ap-propriate purchase form found in ORBIT.
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Yourcost,whichmustbepaidinalumpsum,willbeequaltotheamountofcontributionswithdrawnplusinterestat6.5%compoundedannuallyfromtheyearofwithdrawaltotheyearofrepayment.Inaddition,youwillpaya$25administrativefee.
● Purchasing Other Withdrawn Service
IfyoueverreceivedarefundofyourcontributionsfromCJRS,LRS,orLG-ERS,youmaybeeligibletomakealump-sumpaymenttopurchasetheamountofwithdrawncreditableserviceinthesystemfromwhichitwaswithdrawn.
Beforeyouareeligibletopayforthisservice,youmusthave5yearsofcurrentmembershipserviceinTSERSorinCJRS,LRS,orLGERS,orhaveacombinationof5yearsofmembershipserviceinanyofthesesystems.Thistype of purchased service may be used to determine your eligibility for benefitsinTSERS.However,onlyyourcreditableserviceinTSERSwillbeusedincomputingtheamountofyourTSERSbenefit.Creditableserviceinanyothersystemwillbeusedtocomputebenefitsfromthatsystem.
EligiblewithdrawnserviceyoupurchaseinLGERSorTSERScountsascredit-ableservice,notmembershipservice.TSERSwithdrawnservicepurchasedinTSERSdoesnotcounttowardthe5-yearmembershipservicerequire-mentforeligibilityforcoverageundertheStateHealthPlanasaTSERSretiree.
Yourcost,whichmustbepaidinalumpsum,willbecalculatedusingthewithdrawnservicepurchaseprovisionsinthesystemfromwhichyouarepurchasing the service credit .
● Other Types of Service Purchases
Inadditiontowithdrawnserviceandmilitaryservicepurchases,youmaybeeligibletopurchasecreditforthefollowingtypesofservice:
• Out-of-StateService • TemporaryLocalandStateService • EducationalLeave • ProbationaryorWaitingPeriodService • Workers’CompensationLeave • Part-TimeLocalandStateService • ServicewithaLocalGovernment • ServicewiththeFederalGovernment • Federally-fundedPublicCommunityServiceinNC • OmittedService • ServiceasaMemberofaCharterSchool
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• WithdrawnUniversityofNorthCarolinaOptionalRetirementProgramService
• ExtendedIllnessLeave • ParentalLeave
Fordetailedinformationabouttheeligibilityrequirementsforpurchasingcredit-ableservice,pleaseseetheapplicablepurchaseformfoundinORBIT.
● Rollovers to Purchase Retirement Credit
Wewillacceptpre-taxmoneyfromaneligibleretirementplanoraneligibleIRAviarolloverorin-serviceplan-to-plantransfertopurchasecreditableservice.Formoreinformationandinstructions,seeForm398(UsingaDis-tributionofTax-ShelteredSavingstoPurchaseRetirementCredit),availableinORBIT.
You may roll over funds from other eligible retire-ment plans or IRAs to purchase credible service.
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Section 7: Death BenefitsActive Employee Death Benefits
AlthoughTSERS’primarypurposeistoprovideretirementincome,werecog-nizethatsomeemployeeswillnotlivetoenjoytheirretirementbenefits.Forthatreason,TSERSprotectsyourbeneficiary(ies)shouldyoudiebeforeretiringwiththedeathbenefitsdescribedbelow.
● Return of Contributions
Afteryourdeath,yourbeneficiarywillreceiveareturnofyourcontribu-tionsplusinterestat4%compoundedannuallyonyourprior-yearendingbalance,throughyourdateofdeath.Thisisalump-sumpayment.Ifyoumeetcertaineligibilityrequirements,amonthlySurvivor’sAlternateBen-efitmaybepaidtoyourbeneficiaryinsteadofareturnofcontributionsifyouhaveonlyoneeligiblebeneficiarylivingatthetimeofyourdeath.
● Lump-Sum Death Benefit for Active Employees
Ifyoudiewhilestillinactiveserviceafter1yearasacontributingmember,yourbeneficiarywillreceivealump-sumpaymentequaltoyourhighestsalaryfor12consecutivemonthsduringthe24monthsbeforeyoudie.Thelump-sumpaymentwillbeatleast$25,000butnomorethan$50,000andisalsopaidifyoudiewithin180daysofyourlastdayofservice.Thedeathbenefitisinadditiontoanyotherbenefitstowhichyourbeneficiary(ies)maybeentitled.Forthisdeathbenefit,youmaynamethesameoradif-ferentbeneficiary(ies)thantheone(s)younamedtoreceivethereturnofcontributions.
● Survivor’s Alternate Benefit
Providedyouhavenotretired,themonthlySurvivor’sAlternateBenefitmaybepayableifyouhaveonlyoneeligiblebeneficiaryforthereturnofyourcontributionslivingatthetimeofyourdeathandyoudiewhileinac-tiveserviceorwithin180daysofyourlastdayofserviceaftermeetingoneofthefollowingconditions:
• Youcomplete20yearsofcreditableservice(notincludingcreditforunusedsickleave)regardlessofage.
• Youreachage60with5yearsofmembershipservice.
ThiseligiblebeneficiarymaychoosetoreceivealifetimemonthlySurvivor’sAlternateBenefitinsteadofareturnofyourcontributions.
As an active employee, keep your beneficiary des-ignations up to date using Form 2RC and 2DB found in ORBIT.
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TheSurvivor’sAlternateBenefitdoesnotapplyifyouhave2ormoreeli-giblebeneficiariesforthereturnofcontributionslivingatthetimeofyourdeath,orifyourestateorlivingtrustisyoureligiblebeneficiaryatthetimeofyourdeath,orifyouhaveretired.
Thislifetimemonthlybenefitequalstheamountyouwouldhavebeenen-titledtoreceiveunderOption2hadyousurvivedandretiredonthefirstofthemonthfollowingyourdeath.
IfyoudonotwantyourbeneficiarytoreceivetheSurvivor’sAlternateBen-efit,youmustnotifytheRetirementSysteminwriting.
Retiree Death Benefits
Ifyoudiewithin180daysofyourlastdayofservice,andmeetalleligibilityrequire-ments,thelump-sumdeathbenefitforactiveemployeesdescribedonpage 22willbepayable.Otherretireedeathbenefitsmayalsobepayableasdescribedbelow.
● Guaranteed Refund
UndertheGuaranteedRefundprovision,ifyouandyourmonthlysurvi-vorbeneficiary(ifany)bothdiebeforethetotalofallmonthlypaymentsequalstheamountofyourcontributionsandinterest,thebalanceofyourcontributionsandinterestwillbepaidinonelumpsumtoanotherbeneficiary(ies).TheGuaranteedRefundisprovidedundereachretirementpaymentoption.
● Optional $10,000 Contributory Death Benefit
Ifyouenrolledintheoptional$10,000ContributoryDeathBenefitforRe-tiredMembersandyourdeathoccursonorafterthefirstdayofthemonthfollowingthe24thmonthofcoverage,alump-sumpaymentof$10,000willbepaidtoyourdesignatedbeneficiary(ies).Ifnobeneficiaryhasbeendesignated,thebenefitwillbepaidtoyourspouse,orlegalrepresentativeifyouarenotsurvivedbyaspouse.Ifyourdeathoccursbeforethefirstdayofthemonthfollowingthe24thmonthofcoverage,theamountpayablewillbeequaltoyourpremiumsplusinterest.
● Continuation of Monthly Benefits under Survivor Options
Ifyouelectedoneofthesurvivoroptions(Options2,3,6-2and6-3),yoursurvivorbeneficiarywillreceiveamonthlylifetimebenefitafteryourdeath.
ItisaClass1Misdemeanortofraudulentlyreceivetheretirementbenefitofadeceasedretireeorbeneficiaryfortwomonthsorlongeraftertherecipient’s death .
You may change your Contributory Death Benefit beneficiary by completing Form 333BEN found in ORBIT.
As a retiree, you may change your Guaranteed Refund beneficiary by completing a Form 336 found in ORBIT.
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Section 8: Initiating Your Retirement BenefitsOnceyoudecidetoretireandmeettheeligibilityrequirementsformonthlybenefits,youmustfollowcertainstepstobeginyourretirementprocess.
Tobelegallyretired,youmustendyouremployment,liveuntilyoureffectivedateofretirement,andgenerallynotperformanyworkforaTSERSemployeratanytimeduringthe6monthsimmediatelyfollowingyoureffectivedateofretirement(exceptasaschoolboardmember,amemberofaboardoftrusteesofacommunitycollegeorofanyconstituentinstitutionoftheUniversityofNorthCarolina,oranunpaidbonafidevolunteer).
Generally,ifyoudiebeforeyoureffectiveretirementdate,yourbeneficiaryisineligibleforamonthlyretirementallowance,basedonyourretirementac-count,exceptasprovidedundertheSurvivor’sAlternateBenefit.
Retirement Application Process
Beforeyoubegintheretirementprocess,weencourageyoutodiscussyourretirementplanswithyourfamilyandyouremployer’sbenefitscoordinator.
Monthlyretirementbenefitsareeffectivethefirstdayofanymonth.Youmustsign,date,andfileyourretirementapplication(Form6)atleast1dayandnotmorethan120daysbeforeyoureffectivedateofretirement.
About120to90daysbeforeyourplannedretirementdate,completeForm6(ClaimingYourMonthlyRetirementBenefit),availablefromyouremployerorinORBIT.Theformhasadditionaldetailedinformationabouttheretirementprocess .
IfyoucontributetoTSERSduringthe6monthsbeforeyoureffectivedateofretirement(oryouarecurrentlyoutofservice,butyourlastdayofservicewithyourlastparticipatingTSERSemployeriswithin5yearsbeforeyoureffectivedateofretirement,andyouhadunusedsickleave),youremployershouldcom-pletetheemployercertificationsection(SectionH)onyourForm6beforetheform is sent to us .
IfyouwantanestimateofyourbenefitunderOption4,youmustalsosendusanestimatefromtheSocialSecurityAdministration(SSA)ofyourage62SocialSecuritybenefit.RequestthisestimatefromSSAwithin2yearsbeforeyouref-fectiveretirementdate.
Begin the retirement pro-cess 120-90 days before your planned retirement date.
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OncewereceiveyourForm6,wewillsendyouanacknowledgmentletterthatincludesinstructionsaboutthenextstepsintheretirementprocess.Wewillalso send you:
• Form170(AuthorizingDirectDeposit) • Form333(ChoosingtheContributoryDeathBenefitforRetiredMem-
bers),whichincludesinformationaboutthecostandcoverageprovisionsoftheoptional$10,000ContributoryDeathBenefitforRetiredMembers.Toenroll,youmustmakeyourelectionwithin60daysoftheeffectivedateofyourretirement.
• Form333BEN(DesignatingBeneficiary(ies)fortheContributoryDeathBenefitforRetiredMembers)
Later,wewillsendyouanestimateofthemaximumallowanceandtheotherpaymentoptions,ifapplicable.Alongwiththeestimate,youwillreceive:
• Form6E(ChoosingYourRetirementPaymentOption) • Form290(ChoosingIncomeTaxWithholdingPreferences) • Form336(DesignatingBeneficiary(ies)fortheGuaranteedRefundasa
Retiree)
WewillalsosendyouinformationaboutenrollmentintheretireegroupoftheStateHealthPlan.
Your First Monthly Benefit
Yourfirstmonthlyretirementbenefitwillbemailedtoyou.Thereafter,ourpolicyistodirectlydeposityourmonthlybenefitintoyourbankaccountonthe25thdayofeachmonth.InDecember,yourbenefitwillbedepositedonthe20th.IfthepaydatefallsonaSaturday,Sunday,orholiday,yourdepositwillbemadeonthelastworkdaybeforethepaydate.Directdepositisfast,auto-matic,andfree.
Post-retirement Increases
Post-retirementincreasesarenotguaranteed.However,yourbenefitmaybeincreasedperiodicallyafterretirementtohelpyoukeepupwiththecostofliving.IncreasesdependonchangesintheConsumerPriceIndexandtheavail-ability of funds .
Cost-of-livingincreasesareusuallyfiguredasapercentageincreaseinyourmonthlybenefit,whichbecomesapermanentpartofyourmonthlybenefit,underallpaymentplans,andthemonthlybenefittobepaidtoyourbenefi-ciaryafteryourdeathunderOptions2,3,6-2,and6-3.(See page 16 regarding increasesunderOption4.)
Your first benefit payment will be mailed; thereafter, directly deposited into your bank account.
Your benefit cannot be paid until we receive a properly completed Form 6E.
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Section 9: NC 401(k)/NC 457 Transfer BenefitAtorfollowingretire-ment, you can make a one-timetransferofanyportionofyoureli-giblecontributions,notincludingRothcontributionsandearnings,fromyourNC401(k)Planand/orNC457PlantoTSERSandreceiveanadditionalmonthlylifetimebenefit.Oncetransferred,thedecisionisirrevocable,andyoucannotaccessthefundsexceptasthemonthlybenefitwithdrawal.
Allowancesareavailablebothwithandwithoutcost-of-livingincreases.Thereisaone-timefeeof$100.Visitwww.MyNCRetirement.comforadditionalinfor-mationabouttheTransferBenefit.YouwillalsofindaTransferBenefitEstima-torandtherequiredformsinORBIT.
For information about the supplemental retirement plans, visit the NC Total Retirement Plans page on our website.
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Section 10: Income TaxSinceJuly1,1982,yourcontributionshavebeentax-deferred.Thismeansyourcontributionsaredeductedfromyourpaybeforetaxesarecalculated,andyoupaytaxesonthemwhenyoubeginreceivingmonthlyretirementbenefitsorifyouelectarefundofyourcontributions.Thefollowingisabriefoutlineofcur-renttaxlawsastheyapplytoTSERSbenefits.However,becausetaxlawsoftenchange,werecommendyouconsultyourtaxadvisorformoredetails.
Retirement Benefits
Afteryouretire,eachyearbyJanuary31wewillsendyouForm1099-R,whichissimilartoFormW-2(StatementofIncomeandTaxWithheld),whichyoureceivedannuallywhileyouwereemployed.The1099-Rshowstheamountofyourretirementbenefits,thetaxableportion(ifany)ofthosebenefits,theamountoftaxwithheld(ifany),andotherrelatedinformation.WealsosendcopiestotheInternalRevenueServiceandtheNorthCarolinaDepartmentofRevenue.Therefore,youshouldreportyourretirementbenefitsonyourfed-eralandNorthCarolinataxreturnsregardlessofwhetheryouoweanyincometax.
● Federal Income Tax
Partofyourretirementbenefitmaynotbesubjecttofederalincometaxbecausethetaxwaswithheldwhileyouwereworking.Includedinthenon-taxablepartofyourretirementbenefitsarecontributionsyoumadebeforeJuly1,1982,andanynon-rolloverservicepurchasesyoumade.
Allorpartofyourretirementbenefitmaybesubjecttofederalincometaxbecauseitwasnotpreviouslytaxed.IncludedinthetaxablepartofyourretirementbenefitsarecontributionsyoumadeafterJuly1,1982,anyroll-overservicepurchases,andallbenefitspaidfromtheemployercontribu-tionsandinvestmentearnings.
Underfederallaw,themajorityofeachretirementbenefitissubjecttofed-eralincometax.Althoughyouwillnotpaytaxesagainonanycontributionsforwhichyouhavealreadypaidtax,youmayexcludeonlyasmallportionofyourpreviouslytaxedcontributionseachmonththroughoutaperiodoftimespecifiedbythefederalgovernment.
● North Carolina Income Tax
IfyouareaNorthCarolinaresidentandhavemaintained5ormoreyearsofretirementservicecreditasofAugust12,1989,yourTSERSretirementben-efitisnotsubjecttoNorthCarolinaincometax.Ifyoudonothave5years
The Retirement System will mail you a 1099-R each year after retire-ment.
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ofmaintainedretirementservicecreditasofAugust12,1989,thetaxableportionofyourretirementbenefitissubjecttoNorthCarolinaincometax.
IfyouarenotaresidentofNorthCarolina,youmaynotoweNorthCaro-linaincometaxonyourTSERSretirementbenefit.However,youmayowestateincometaxinthestatewhereyoulive.Contactyourtaxadvisor,theNorth Carolina Department of Revenue, or the Department of Revenue in yourresidentstateforinformationrelativetoyoursituation.NCRetirementSystemscanwithholdonlyNorthCarolinaincometax.Wecannotwithholdanyotherstate’sincometaxfromyourmonthlybenefit.
Refunds
ByJanuary31oftheyearfollowingtheyearyoureceivedarefund,wewillsendyouForm1099-Rshowingtheamountofyourrefund,thetaxableportion,theamountoftaxwithheld(ifany),andotherrelatedinformation.WewillalsosendcopiestotheInternalRevenueServiceandNorthCarolinaDepartment of Revenue .
● Federal Income Tax
YoupaynofederalincometaxontheamountyoucontributedbeforeJuly1,1982.However,theamountyoucontributeafterJuly1,1982,issubjecttofederalincometax.Also,anyinterestyourcontributionsearnedbeforeandafterJuly1,1982,issubjecttofederalincometax.
FederalincometaxlawsrequirewithholdingfromthetaxableportionofyourrefundunlessthatportionofyourrefundisdirectlyrolledovertoaneligibleIRAoreligibleemployerretirementplanthatwillacceptyourrollover.IfyoudonotrolloverthetaxableportionofyourrefunddirectlytoaneligibleIRAoreligibleemployerplanthatwillacceptyourrollover,wewillwithhold20%ofthetaxableportionofyourrefundforfederalincometaxpurposes.Withholdingismandatoryunlessthetaxableportionofyourrefund is directly rolled over .
Inadditiontoincometax,youmayowea10%excisetaxonthetaxableportionofarefundreceivedbeforeyourdeath,disability,orreachingage59½.Youcandefertheincometaxandavoidthe10%excisetaxbyrollingoverthetaxableportionofyourrefundtoaneligibleIRAoreligibleem-ployerplan.ConsulttheInternalRevenueService,yourattorney,oryouraccountantforinformationrelativetoyoursituation.
A 1099-R will be mailed to you by January 31 of the year following the year you received a refund.
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● North Carolina Income Tax
IfyouareaNorthCarolinaresidentandhavemaintained5ormoreyearsofretirementservicecreditasofAugust12,1989,yourrefundofTSERScon-tributionsisnotsubjecttoNorthCarolinaincometax.Ifyoudonothave5yearsofmaintainedretirementservicecreditasofAugust12,1989,thetax-ableportionofyourrefundissubjecttoNorthCarolinaincometax.
Death Benefits
Generally,yourbeneficiarypaysnoincometaxonthelump-sumdeathbenefitforactiveemployeesorthe$10,000ContributoryDeathBenefitforRetirees,whicharetreatedaslifeinsurancebenefitsfortaxpurposes.
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Section 11: Health Coverage in RetirementState Health Plan
YouareeligibleforcoverageundertheretireegroupoftheStateHealthPlanifyoucontributedtoTSERSforatleast5years(excludingcreditforunusedsickleaveorcredittransferredfromLGERS)whileemployedasateacherorstateemployee.Thecost,ifany,isdeterminedbytwofactors:(1)whenyoubeganstateemploymentand(2)whichhealthcoverageyouselect.
TSERSwithdrawnserviceyoupurchasedinTSERSdoesnotcounttowardthe5-yearmembershipservicerequirementforStateHealthPlancoverageasaTSERSretiree.
Undercurrentlaw,ifyouwerefirsthiredbeforeOctober1,2006,andretirewith5ormoreyearsofTSERSmembershipservice,thestatewillpayforyourindividualcoverageunderthenon-contributoryplanatretirement(currently70/30orMedicareAdvantageBase).
Basedontheconditionsdescribedabove,ifyouwerefirsthiredonorafterOctober1,2006,inordertoreceiveindividualcoverageatnocost,youmustretirewith20ormoreyearsofretirementservicecredit.Ifyouhave10butfewerthan20yearsofretirementservicecredit,youwillhavetopay50%ofthecostforyourcoverage.Ifyouhave5butfewerthan10years,youwillhaveto pay the full cost for your coverage .
Inallcases,ifyouchoosecoverageforyourdependents,youmustpaythefullcost of dependent coverage .
Foradditionalinformation,see“GuidanceonStateHealthPlanChangesEffec-tiveOctober1,2006”onourwebsiteatwww.MyNCRetirement.com .
Yourcoveragebeginsonthefirstdayofthemonthfollowingyoureffectivedateofretirement.Forexample,ifyoureffectivedateofretirementisJanuary1,2017,yourcoverageintheretireegroupplanwillbeginonFebruary1,2017.
Whenyou(oryourcovereddependents)becomeeligibleforMedicare,youmustelectbothPartsA(Hospital)andB(Medical)inordertomaintainthesamelevelofcoverageyoureceivedbeforeretirement.
Optional Supplemental Insurance
OptionalsupplementalinsurancecoverageisavailabletoretireesandbenefitrecipientsthroughPierceInsuranceAgency.Piercewillmailinformationtoyouafteryourfirstretirementbenefithasbeenissued.
For information about State Health Plan retiree group coverage, visit https://shp.nctreasurer.com or contact the State Health Plan at 1-855-859-0966.
For information about optional supplemental in-surance available through Pierce Insurance Agency, visit www.ncretiree.com or contact Pierce at 1-855-627-3847.
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Section 12: Return to Work After RetirementIfyouworkinanycapacityforanemployerunderTSERSafteryouhaveofficiallyretiredandarereceivingmonthlybenefits,youwillbesubjecttothereturn-to-workprovisionsdescribedbelow.Theseprovisionsmaylimityourearningsorrequireyoutore-enrollasacontributingmemberofTSERS.
Youwillbesubjecttoreturn-to-workprovi-sionsbasedonthenatureoftheparticularworkyouperformforaTSERSemployer,regardlessofyourjobclassificationoryourtechnicalemploymentstatus(whichmayincludebeingassignedtoworkforaTSERSemployerbyaprivatecompanysuchasatemporarystaffingagency).AsanactiveTSERSemployee,youmaynotestablishanagreementforpost-retirementemploymentwithaTSERSemployer.
● Penalty for Working During Required 6-Month Break
Duringthe6monthsimmediatelyfollowingyourretirementdate,toavoidafinancialpenalty,youcannotworkforaTSERSemployerinanycapacity,exceptasoneofthefollowing:
• Aschoolboardmember • Amemberofaboardoftrusteesofacommunitycollegeorofanycon-stituentinstitutionoftheUniversityofNorthCarolina
• Anunpaidbonafidevolunteer,performingserviceinapositioninwhichanyindividualperformingthattypeofservicewouldnotbepaid.Youwillbe subject to a penalty if other individuals performing that type of service are typically paid .
ThefinancialpenaltyforreturningtoworkforaTSERSemployeronapart-time,temporary,interim,orfeeforservicebasis,duringthe6monthsimmediatelyfollowingTSERSretirement,willbethelesserofthefollowingasdeterminedbytheretirementsystem:
• Youwillbedeemedtohaveretiredthemonthafterthemonthyouperformedservicesfortheemployerandrepayallretirementbenefitsreceivedandthecostofstate-providedStateHealthPlanpremiumsuntilthatdate;or
• YouwillberequiredtomakealumpsumpaymenttoTSERSequaltothreetimesthecompensationearnedduringthe6-monthperiod.
IfyoureturntoworkforaTSERSemployerinapositionthatrequiresTSERSmembershipduringthe6monthsimmediatelyfollowingyourretirementdate,yourTSERSbenefitswillbecancelledretroactivelytoyourretirementdate,andyoumustrepayallretirementbenefitsreceivedandthecostofstate-providedStateHealthPlanpremiumssinceyourretirementdate.
A 6-month wait after your TSERS retirement date before returning to work for a TSERS employer is generally required to avoid a financial penalty
Unpaid bona fide volun-teer service is generally allowed without a pen-alty during the 6-month break.
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Ifyourretirementbenefitiscancelled,yourStateHealthPlanretireegroupcoveragealsowillbecancelled.
● Working After a 6-Month Break
Aftera6-monthbreak,youmayreturntoworkinapositionthatrequiresmembershipinTSERS.Yourretirementbenefitwillbesuspendedonthefirstdayofthemonthfollowingthemonthofyourreemployment,andyouwillagainbecomeacontributingTSERSmemberinthemonthinwhichyouarerestoredtomembershipservice.(YourTSERSretirementbenefitwillalsobesuspendedifyoureturntomembershipserviceunderCJRS.)
IfyoureturntoserviceandcontributetoTSERSforatleast3additionalyears,atthetimeyouendyoursecondperiodofemployment,youcanchooseoneofthefollowingoptionsforyourbenefit:
• Youcancombineyourservicefromyourfirstandsecondperiodsofem-ploymenttocreateone(generallylarger)monthlyretirementbenefit.Youcanchangetheretirementpaymentplanand/orbeneficiaryyouselectedatthetimeofyouroriginalretirement.IfyouselectedOption4forfirstretirement,wemustactuariallyadjustbenefitswhenyouretireagain.
• Youcanre-instateyourfirstretirementaccountandwithdrawyourcon-tributionsonlyfromyoursecondaccount.
IfyoureturntoserviceandcontributetoTSERSforfewerthan3additionalyears,atthetimeyouendyoursecondperiodofemployment,yourfirstretirementbenefitwillbere-instated.Youcanchooseoneofthefollowingoptionsforyoursecondretirementaccount:
• Youcanapplytoreceiveasecond(generallysmaller)monthlybenefitbased on your second period of employment .
• Youcanwithdrawyourcontributionsfromyoursecondaccount • You can leave your second account open .
Aftera6-monthbreak,ifyoureturntoworkwithaTSERSemployerinapositionineligibleforTSERSmembership,yourearningswillberestrictedtothegreaterofthefollowing:
• 50%ofyourgross12-monthpre-retirementsalary(excludingtermina-tionpayments)
• $32,260(2017amount)
ThedollarfigureisadjustedannuallyaccordingtotheConsumerPriceIndex.Theseearningsrestrictionsapplyforthe12monthsimmediatelyfollowingyourretirementandforeachcalendaryearfollowingtheyearofretirement.
After a 6-month break, you may return to work with a TSERS employer in a position ineligible for TSERS membership with-out affecting your TSERS benefit, provided you do not exceed your earnings limitations.
Your TSERS benefit will be suspended if you return to work in a position requir-ing membership in TSERS.
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● Exceeding Your Earnings Limitations
Ifyouexceedyourearningslimitations,yourretirementbenefitwillbesuspendedonthefirstdayofthemonthfollowingthemonthinwhichyouexceededthelimitfortheremainderofthecalendaryear.Yourretire-mentpaymentwillstartagainonJanuary1oftheyearafteryourbenefitissuspended.IfyourearningsexceedtheallowableamountinthemonthofDecember,yourbenefitwillnotbesuspended.
Ifyourretirementbenefitissuspended,yourStateHealthPlanretireegroupcoveragealsomustbesuspended.Ifyourbenefitissuspendedandlater reinstated, your State Health Plan retiree group coverage will not be reinstated retroactively. As a result, you may experience a lapse in your health coverage whichmeansyoumaynothavehealthcoverageforamonth or more .
Whenyourretirementbenefitisrestored,yourhealthcoverageundertheretireegroupwillbere-instatedthefirstofthemonthfollowingthemonthyourretirementbenefitisrestored.
● After Receiving Disability
Ifyouacceptpublicorprivateemployment,contactTSERSforinformationonprovisionsthatapplytoyou.Foradditionalinformation,pleaseseetheDisabilitysectiononourwebsiteatwww.MyNCRetirement.com .
● Effects on Health Coverage
BeforeyouacceptreemploymentwithaTSERSemployer,askyournewemployerwhethertheemploymentwillaffectyourhealthcoverage,andifthereemploymentwillcause:
• YourStateHealthPlanretireegroupcoveragetobesuspended. • YoutoqualifyforStateHealthPlanactivegroupcoverageandwhetheryouwillqualifyforthestate’scontributiontowardyourcoverage.
● Under the Legislative or Consolidated Judicial Systems
IfyouareaTSERSretireewhoisre-employedunderCJRS,aCJRSretireere-employedunderTSERS,oranLRSretireere-employedunderTSERS,return-to-worklawsmayrequireasuspensionofbenefitsormaylimittheamountyoucanearnwithoutpenalty.PleasecontacttheNorthCarolinaTotalRetirementPlansforinformationonprovisionsthatapplytoyou.
For additional information, see “Return-to-Work Laws” on our website at www.MyNCRetirement.com.
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Section 13: Disability BenefitsDisability Income Plan of North Carolina (DIPNC)
IfyoubecomedisabledwhileapermanentemployeeunderTSERSortheOptionalRetirementProgram(ORP),andyoumeetcertaineligibilityrequire-ments,DIPNCprovidesyouwithmonthlyreplacementincomeintheformofshort-term,extendedshort-term,andlong-termdisabilitybenefits.Yourem-ployerpaysforyourDIPNCcoverage.
FormoreinformationonDIPNCbenefits,seetheDisabilityIncomePlanofNorthCarolinaBenefitsHandbookonourwebsiteatwww.MyNCRetirement.com. ThehandbookincludesexamplesofhowDIPNCbenefitsarecalculatedanddescribeshowtoapplyforbenefits.Italsoexplainsrequiredoffsetsforotherdisabilitybenefits,excessearningsoffsets,healthcoverage,MedicalBoardre-examination,incometax,beneficiarypaymentsifyoudiewhilereceivingDIPNCbenefits,andwhenyouconverttoaserviceretirementbenefit.
● What is a Disability?
UnderDIPNC,disabilityisdefinedasthementalorphysicalincapacityforfurtherperformingyourusualoccupationprovidedthatsuchdisabilitywasnottheresultofterroristactivity,activeparticipationinariot,committingorattemptingtocommitafelony,oranintentionalself-inflictedinjury.
● 60-Day Waiting Period
BenefitsunderDIPNCmaybeginafteramandatory60-calendardaywait-ingperiod,duringwhichyoumayexhaustaccumulatedsickleave,vacationleave,oranyothersalarycontinuationyouremployerprovides.
● Short-Term Disability Benefits
Youmusthaveearnedatleast1yearofcontributingretirementmember-shipservicewithinthe36calendarmonthsprecedingyourdisabilityandmeet all eligibility requirements .
Short-termdisabilitypayments:
• Arepayableaftera60-daywaitingperiodandthereforegenerallybeginon the 61st day of disability .
• Arepaidbyyouremployer. • Providemonthlyincomebefore any offsetsequalto50%of1/12ofyour
annual base salary, including longevity and local supplements, if any, subjecttoamonthlymaximumof$3,000.
Visit our website at www.MyNCRetirement.com for additional information on disability benefits and the required forms.
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• Aresubjecttocertainoffsetsorreductionsforbenefitsreceivedfromother disability programs .
• Arepayableforupto365calendardays.
● Extended Short-Term Disability Benefits
Additionalperiod(s)ofextendedshort-termdisabilitybenefitsmaybepayable:
• Forasmanyas365daysbeyondtheshort-termperiod. • ProvidedtheMedicalBoarddeterminesthatyourconditionisatempo-
rary, not permanent, disability .
● Long-Term Disability Benefits
Long-termdisabilitybenefitsarepayableifyoumeetalleligibilityrequire-mentsattheendoftheshort-termdisabilityperiodoraftersalarycontinu-ationpaymentsstop,whicheverislater.
Tobeeligibleforthelong-termdisabilitybenefit,youmustmeetallofthefollowingconditions:
• Youmusthaveearnedatleast5yearsofcontributingretirementmem-bershipservicewithinthe96monthsimmediatelybeforebecomingdisabledorthedateofcompletionofcontinuoussalarycontinuationpayments,whicheverislater.
• YoumustbeapprovedbytheMedicalBoardforapermanentdisabil-itythathasbeencontinuousandwasincurredwhileyouwereactivelyemployed .
• Youmustterminateyouremploymentasafull-timeteacherorstateemployee .
• Youmustbeineligibletoreceiveanunreducedserviceretirementben-efitfromTSERS.(ORPmembers:YoumustbeineligibleforunreducedserviceretirementifyouhadchosenTSERSmembership.)
Long-termdisabilitypayments:
• ArepaidbyDIPNC. • Providemonthlyincomebefore any offsetsequalto65%of1/12oftheannualbasesalarythatwaslastpayabletoyoupriortothebeginningoftheshort-termperiod,includinglongevityandlocalsupplements,ifany,subjecttoamonthlymaximumof$3,900andamonthlyminimumof$10.00.
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• AresubjecttocertainoffsetsorreductionsforSocialSecuritybenefitsandfordisabilitybenefitsreceivedfromotherprograms.These required offsets will cause your DIPNC benefit to be reduced.
• Arepayableuntiltheearliestdateyoubecomeeligibleforunreducedserviceretirementbenefits,orotherwisenolongermeettherequire-mentstoreceivethelong-termdisabilitybenefits.
Ifyouhadfewerthan5yearsofTSERSmembershipserviceorORPemploy-mentasofJuly31,2007,afterthefirst36monthsofthelong-termdis-abilityperiod,long-termbenefitswillendunlessyouarereceivingSocialSecuritydisabilitybenefits.
TSERS Disability Retirement Benefits
Ifyouearnedandmaintained5ormoreyearsofmembershipservicewithTSERSbeforeJanuary 1, 1988, you may be eligible to receive disabilityretirementbenefitsinsteadofDIPNCbenefits.YoureligibilityisbaseduponapprovalbytheMedicalReviewBoardandisbasedinpartontheamountofservicethatyouwouldhaveearnedhadyoubeenabletoworkuntilyouotherwisewouldhavebeeneligibleforanunreducedserviceretirementbenefit.Ifyou
earnedandmaintained5ormoreyearsofmembershipservicewithTSERSbeforeJuly1,1982,youmaybeeligibletoreceivedisabilityretirementben-efitsinsteadofDIPNCbenefitsbasedinpartontheamountofservicethatyouwouldhaveearnedhadyoubeenabletoworkuntilage65.
Ineithercase,ifyouearnedandmaintained5ormoreyearsofmembershipservicewithTSERSbeforeJanuary1,1988,andsubsequentlybecomedisabled,asapprovedbytheMedicalReviewBoard,youmayelecteithertoreceiveDIPNCbenefitsorTSERSdisabilityretirementbenefits.
Ifyouareeligibleforandyouelecttoreceivedisabilityretirementbenefits,yourbenefitundertheMaximumAllowancewillbecalculatedusingthesameformulaasaserviceretirementbenefit.Underdisabilityretirement,youmaychooseanypaymentoptionexceptOption4.Ifyouchooseasurvivorshipop-tion,itwillbecalculatedusingdisabilityreductionpercentages.
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Section 14: Administration & Funding ● Administration
TSERSisadministeredbytheBoardofTrustees,whosemembersare:
StateTreasurerDaleR.Folwell,CPA,ChairJohnAnerallaLentzBrewerJackBrooksVanDowdy
BarbaraGibsonGregGranthamMarkJohnsonTerryMcCann
MichaelMebaneGregPattersonVeronicaWright
● Assets
The State Treasurer is the custodian of TSERS assets and serves as the Chief InvestmentOfficer.
Equityassets(e.g.,commonstock,preferredstock,anddebenturesconvert-ibleintocommonstock)areinvestedinconjunctionwithpoliciesadoptedbytheInvestmentAdvisoryCommittee.Committeemembersare:
StateTreasurerDaleR.Folwell,CPA,ChairJohnAnerallaDavid Hartzell
Steve JonesMichaelMebaneNealF.Triplett
CourtneyA.Tuttle
● Medical Review Board
TheMedicalReviewBoarddetermineseligibilityfordisabilitybenefits.Boardmembersare:
Dr.GeorgeS.Edwards,Sr.Dr.RobertH.FlemingDr.RobertGaddyDr.BobbySellers
Dr.NathanielL.Sparrow
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● Future of the System
ThestateexpectstocontinuetheTeachers’andStateEmployees’Retire-mentSystemindefinitely;however,becausefutureconditionsareunforesee-able,theNorthCarolinaGeneralAssemblyreservestherighttomodifytheprovisions of the system .
● System Documents
This handbook summarizes the main features of the Teachers’ and State Employees’RetirementSystemofNorthCarolina.Theofficialtextgovern-ingtheoperationsofthesystemandthepaymentofallbenefitsisfoundinChapter135oftheGeneralStatutesandTitle20oftheNorthCarolinaAdministrativeCode.
● Contributions
Memberscurrentlycontribute6%ofgrosssalaryeachmonthtoTSERS.
FromJanuary1,2017toJune30,2017,employerscontribute16.54%ofthegrosspayrollofmemberseachmonthtoTSERSforbenefits.
● Funded Status & Ratio
TheTeachers’andStateEmployees’RetirementSystemhasbeenlabeledas“actuariallysound”becauseoftheconsistentuseovertheyearsof:
• Actuarialassumptionsbasedonexperience • Anapprovedactuarialfundingmethod • Therecognitionofallpromisedbenefitsintheactuarialliabilities
Agenerallyacceptedmeasureofthesoundnessofanyretirementsystemistorelatethetotalassetstothetotalaccruedliabilities.Thisdeterminesthefundedratioorpercentageofthesystem.Thetotaloftheaccruedliabili-tiesisfoundbyaddingthetotalassetsandtheunfundedaccruedliabilities.Shownaretheassetsandunfundedliabilitiesforthepastseveralyears,asofDecember31ofeachyearandthefundedratiooftheTeachers’andStateEmployees’RetirementSystem(thepercentageoftheassetstothetotalac-cruedliabilities).
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Unfunded Accrued Assets Liabilities
2015 $66,169,352,203 $5,352,563,1942014 $64,734,119,837 $2,980,946,7072013 $62,363,807,168 $3,441,748,3232012 $59,911,833,028 $3,718,445,4442011 $58,125,010,880 $3,721,686,0232010 $57,102,198,448 $2,773,867,4832009 $55,818,099,117 $2,360,173,025
‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15
110
100
90
80
70
60
50
40
30
20
10
0
%Funded Funded Ratio
92%95% 95%95% 95% 94% 94%
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Section 15: Resources & Contacts
TheNorthCarolinaDepartmentofStateTreasurercreatedORBITtoallowmembersconvenientaccesstotheirretirementaccountinformation24hoursaday,sevendaysaweek.Thissecuresiteenablesyoutoviewyourpersonalinformation,accountinformation,andotherrelevantdetailsspecifictoyourretirementsystemaccount.
InORBIT,activeemployeesareabletoview:
• Service credit history • Retirementestimates • Servicepurchasecostestimates • NC401(k)/NC457PlanTransferBenefitestimates • Annualbenefitstatements
Retireesareableto:
• Maintaintaxwithholdings • Viewanddownload1099-R • Generateincomeverificationletters • Updatetheircontactinformation
ToaccessORBIT,gotoourwebsiteatwww.MyNCRetirement.com, click on the ORBITiconandfollowtheinstructionstologintoyourpersonalORBITaccount.
1 . RegisterforORBITviatheRegisterbuttonontheloginpage2 . Followthepromptsforregistration3 . AccessORBITusingtheUserIDandPasswordthatyoucreated
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Resources
Visitourwebsiteto:
• View and download retirement benefits handbooks • See Frequently Asked Questions • Learn about North Carolina Total Retirement Plans – NC 401(k) and NC
457 Plans, and NC 403(b) Program • Review the retirement checklist • Use our service purchase estimator • Read retirement newsletters • Use our benefit estimators • Learn about retirement planning resources • Log into your personal ORBIT account
Contact Us
Toll-free1-877-627-3287(1-877-NCSECURE)FraudandAbuseHotline1-855-903-7283
Teachers’andStateEmployees’RetirementSystemDepartment of State Treasurer3200AtlanticAvenueRaleigh, North Carolina 27604
Office visits scheduled by appointment only. Please call or email our office to schedule an appointment.
https://www.facebook.com/MyNCRetirement
www.MyNCRetirement.com
Phone
Address
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Section 16: Glossary of TermsActuary:Abusinessprofessionalwithexpertiseinthefieldsofeconomics,sta-tisticsandmathematicswhocompilesandanalyzesstatisticsinordertocalcu-latefinancialrisksandreserves.
Average final compensation: The average of your salary during your four highest-paidyearsinarow.
CJRS:ConsolidatedJudicialRetirementSystem
Consumer Price Index:Anationalmeasureofincreaseinthecost-of-livingfromoneyeartothenext.
Creditable service:Thetotalofallservicecreditthatcountstowardretirement.
DIPNC:DisabilityIncomePlanofNorthCarolina
LGERS: LocalGovernmentalEmployees’RetirementSystem
LRS:LegislativeRetirementSystem
Membership service: Serviceyouearnedwhileanactiveemployeecontribut-ingtoTSERSthathasnotbeenwithdrawn.
ORBIT:OnlineRetirementBenefitsthroughIntegratedTechnology
TSERS:Teachers’andStateEmployees’RetirementSystem
Vesting: Havingtheright,afteryouhaveaminimumof5yearsofTSERSmem-bershipservice,toapplyforlifetimemonthlyretirementbenefitsonceyoumeetallretirementeligibilityrequirements,providedyoudonotwithdrawyourcontributions.