Retirement Monitor Update Archives: March 2004

Cap on Reemployment Earnings Increased

The Board of Trustees governing the State and Local Government Retirement Systems has increased the reemployment earnings cap by 1.9 percent to $24,620.00.  The increase is applicable to retirees who are reemployed between Jan. 1, 2004 and Dec. 31, 2004.

Employer Advisory Council to Hold First Meeting in April

More than 40 human resources and benefits professionals from across the State will comprise a new advisory council to the Retirement Systems Division. The first meeting of the Council will be held on April 20, 2004 at the McKimmon Center at North Carolina State University in Raleigh.

State Actuary Predicts Sharp Increase in Retirements

Public employees in North Carolina retired in record numbers during 2002 and 2003. According to the State’s actuary, retirement applications are expected to continue to rise through 2009 and to grow exponentially between 2014 and 2022.  New retirements in the state and local government retirement systems will climb from approximately 11,000 in 2003 to 13,541 in 2008.  Rates will dip slightly between 2009 and 2013 but begin a steep upward climb in 2014. By 2022, new retirements will total 29,150 per year – nearly triple the 2003 rate.

State Treasurer Moore Announces Pension Fund Worth Record-Breaking $61 Billion

State Treasurer Richard Moore announced in February that the combined North Carolina Retirement Systems have grown to a record value of nearly $61 billion. The Systems, which contain the pension funds of every public school teacher, police officer and state and local government employee in North Carolina, have experienced tremendous growth over the last decade. The Systems were worth $24 billion ten years ago in 1994.

State Treasurer Moore Calls Economic Development Inappropriate Use of Pension Funds

State Treasurer Richard Moore spoke out in February against a recommendation from the North Carolina Biotechnology Center to use state pension funds to stimulate economic development. “Using the retirement pension of North Carolina’s public school teachers, police officers and state and local government employees for economic development purposes is inappropriate,” said Moore. “Stimulating job growth and new industry is important, but state pension funds will not be used in this effort.”

By the numbers:

The Retirement System received 16,241 calls from members during January 2004. Members who called the System were on hold an average of 7.39 minutes before speaking to a benefits counselor, down from 13.09 minutes in January 2003.

The new phone line dedicated to human resources and benefits professionals (919-807-3100) received 724 calls in Jan. 2004.

Human resources and benefits professionals were on hold an average of 1.47 minutes before speaking to a benefits counselor.

Toll-Free Lines to Retirement System Announced

North Carolina State Treasurer Richard Moore has announced the installment of several new toll-free lines to the Retirement Systems Division. Separate lines have been established for retirees, employees, and human resources and benefits professionals:

• After April 1, 2004, retirees outside of the Raleigh area will be able to call the System toll-free by dialing 1-877-733-4191.Retirees within local calling distance should dial 919-733-4191.
• After April 15, 2004, employees outside the Raleigh area will be able to call the System toll-free by dialing 1-877-NCSECURE (1-877-627-3287). Employees within local calling distance should dial 919-807-3050.
• After April 15, 2004, human resources and benefits professionals will be able to call the System toll-free by dialing 1-877-807-3131. Employers within local calling distance should dial 919-807-3131. The current phone line dedicated to employers (919-807-3100) will remain active until December 2004.

New Employer Education Services Unit to Hold Disability Training Workshops in April and May

A new employer education service unit formed by the Retirement Systems Division will hold free training workshops on state and local government disability laws for human resources and benefits professionals across North Carolina. The workshops will be held in Boone, Hendersonville, Fayetteville, Raleigh, Wilmington, Charlotte, Greensboro, Havelock, and Elizabeth City during April and May, and free lunch will be provided at each event.

Meetings to be Held Statewide

The Retirement Systems Division, part of the NC Department of State Treasurer, will hold a series of meetings across the State for public employees planning for retirement. Human resources, personnel and benefits professionals who consult with public employees on retirement matters and employees who are nearing retirement will find these meetings helpful.

Retirement System Slashes Hold Times to Less Than One Minute

Approximately 16,000 public employees and retirees in North Carolina contact the Retirement Systems Division by telephone each month with questions about their retirement benefits. In the past, those callers faced frustrating hold times in excess of ten minutes and many – up to half – hung up before they got through. Hold times have been falling since January 2003 thanks to new staff and new management practices in the Division.  In March 2004, after a third phase of reorganization, hold times plummeted to less than one minute.

2004 Edition of “Your Retirement Benefits” Now Available Online

The 2004 editions of “Your Retirement Benefits” are now available at www.nctreasurer.com. “Your Retirement Benefits” is a guide to public employee retirement benefits in North Carolina. The 2004 editions include changes resulting from legislation enacted by the General Assembly in 2003 and a new section on the retirement application process.

By the numbers: