Retirement Monitor Update, May 7, 2004
New Limit on Retirement Estimates Will Yield Faster, More Accurate Service
State and local government employees nearing retirement often contact the Retirement System for an estimate of the monthly benefit they will receive when they retire. In an effort to produce more accurate estimates for the employees who need them the most, the Retirement Systems Division has placed new limits on the number of retirement estimates an employee can receive per year.
Employees may request a maximum of three estimates per calendar year if they are:
- Within a two-year window of retirement eligibility, OR
- Considering a service purchase with a cost estimate on file, OR
- Considering the consolidation of multiple retirement accounts, OR
- Vested in the Retirement System, but no longer work for a government entity and/or make contributions to the Retirement System.
All other employees will be asked to refer to their annual account statements or to use the online benefits calculator.
Click here for more...
Employer Advisory Council Holds First Meeting
A group of 25 human resources and benefits professionals from government employers across North Carolina gathered in Raleigh on April 20 for the first meeting of the Retirement System's Employer Advisory Council. The group discussed a range of topics, including a new website for employers which is currently under development, the content of the Retirement Monitor and topics for upcoming training workshops.
Click here for more...
"The Retirement Report" Distributed to Retirees in May
"The Retirement Report," the first newsletter published by the Retirement System in its 60-year history, will land in the mailboxes of North Carolina's 180,000 state and local government retirees during the first few weeks of May. An electronic version of the newsletter is attached. Calls from retirees about the newsletter should be forwarded to the Retirement System's Member Services Section at 1-877-733-4191 (toll-free) and 919-733-4191 (within local calling distance).
Click here for more...
Pass it On...
(The "Pass it On" Section is a new feature of the Retirement Monitor designed to provide easy-to-use, retirement-related content for employer newsletters, websites or email bulletins. The article summaries below can be easily copied into an email for distribution to your employees. For a longer version of the article to include in your newsletter or on your website, please click on the article link and it will take you to the article in Microsoft Word format.)
Use Sick Leave to Your Advantage When You Retire
Employees pondering retirement should check their sick leave balance first. Those days of unused sick leave can help you retire sooner and affect the size of your benefit check when you do. To convert your unused sick leave into service time, the Retirement System counts every 20 days of sick leave as one month of service. Any left over portion counts as an additional month. For example, 62 days of sick leave translates into four months of service credit.
Click here for the full article in Microsoft Word format...
New Limit on Retirement Estimates Will Yield Faster, More Accurate Service
State and local government employees nearing retirement often contact the Retirement System for an estimate of the monthly benefit they will receive when they retire. In an effort to produce more accurate estimates for the employees who need them the most, the Retirement Systems Division has placed new limits on the number of retirement estimates an employee can receive per year.
Employees may request a maximum of three estimates per calendar year if they are:
- Within a two-year window of retirement eligibility, OR
- Considering a service purchase with a cost estimate on file, OR
- Considering the consolidation of multiple retirement accounts, OR
- Vested in the Retirement System, but no longer work for a government entity and/or make contributions to the Retirement System.
All other employees will be asked to refer to their annual account statements or to use the online benefits calculator.
Click here for the full article in Microsoft Word format...
Please click here to see publications and other electronic resources used frequently by human resources and benefits professionals.
Retirement Monitor, May 25, 2004
STATE EMPLOYERS SPECIAL EDITION
This Special Edition of the Retirement Monitor was prepared to inform human resources and benefits professionals of legislative initiatives and mandates affecting the State Government Retirement Systems. The 2004 session of the General Assembly convened on May 10, 2004.
North Carolina's Teachers' and State Employees' Retirement System (TSERS) is among the healthiest in the nation, but steady contributions from the State are needed to keep it that way. The General Assembly used excess assets in the Retirement System to dramatically lower their contribution to the System as the State struggled through budget crises during 2001, 2002 and 2003. With an economic turnaround underway, the Retirement System has requested a contribution of more than $200 million from the General Assembly in 2004, enough to keep the System fiscally sound and to provide a 2.5 percent cost of living increase for retirees.
Click here for more...
New Rules Accompany Disability Income Plan Changes
The Disability Income Plan of North Carolina provides short-term and long-term income replacement for teachers and state employees who can no longer stay on the job because of a disability. Legislation enacted during the 2003 session of the General Assembly narrowed the qualifications for receiving disability benefits under the Plan. Interpreting the new qualifications fell to the Retirement System, which underwent a lengthy administrative rule making process to create new guidelines for administering the Plan.
Please click here to view the new guidelines and the full article...
Governor Easley Shows Support for Retirement System's Customer Service and Technology Improvements
North Carolina's Governor, Mike Easley, demonstrated his support for the Retirement System's customer service improvements by recommending the General Assembly make permanent 24 temporary staff positions granted to the System last year. Most of these positions, used to address hold times in the System's call center and backlogs in virtually every work area, will disappear during 2004 unless legislative action is taken.
Easley also recommended the General Assembly allow the Retirement System to spend $11 million for the first year of a new information technology project. Over the course of three years, the Retirement System will create new web-based, self-service capabilities for employees and retirees by merging its current mainframes, which were built during the 1970s. The three-year cost of the project is $22 million.
Click here for more...
Governor Easley Recommends $15 Million Payback to the Retirement System
Budget recommendations released by Governor Mike Easley include $15 million to repay the State Retirement System for funds withheld during 2001 to balance the budget. Easley diverted $212 million from the Retirement Systems that year because of a severe state budget crisis. Easley and legislators committed to repaying the money with interest over five years.
Click here for more...
New Listserv for Public Employees Provides Retirement System Updates
Public employees can sign up for the NCWorks listserv to receive periodic email updates on news, policies and legislative changes affecting their Retirement System. To sign up, employees should visit www.nctreasurer.com for instructions.
Pass it On...
The "Pass it On" Section is a new feature of the Retirement Monitor designed to provide easy-to-use, retirement-related content for employer newsletters, websites or email bulletins. The article summaries below can be easily copied into an email for distribution to your employees. For a longer version of the article to include in your newsletter or on your website, please click on the article link and it will take you to the article in Microsoft Word format.
General Assembly Considering Retirement System Contributions and Resources
North Carolina's General Assembly reconvened on May 10. During this summer's short session, the legislature will consider several items affecting your retirement benefits, and the level of service your retirement system is able to provide.
The Retirement System has requested a contribution of more than $200 million from the General Assembly in 2004, enough to keep the System fiscally sound and to provide a 2.5 percent cost of living increase for retired teachers and state employees. The Teachers' and State Employees' Retirement System (TSERS) is among the healthiest in the nation, but steady contributions from the State are needed to keep it that way. The General Assembly used assets in the Retirement System to dramatically lower contributions to the System as the State struggled through budget crises during 2001, 2002 and 2003. With an economic turn around underway, the Retirement System is optimistic a sizable State contribution will be made this year.
Click here for the full article in Microsoft Word format...
New Listserv for Public Employees Provides Retirement System Updates
Public employees can sign up for the NCWorks listserv to receive periodic email updates on news, policies and legislative changes affecting their Retirement System. To sign up, employees should click here or visit www.nctreasurer.com for instructions.
Click here for the full article in Microsoft Word format...
Weblinks for Employers
Please click here to see publications and other electronic resources used frequently by human resources and benefits professionals.
Retirement Monitor, May 25, 2004
This Special Edition of the Retirement Monitor was prepared to inform human resources and benefits professionals of legislative initiatives and mandates affecting the Local Governmental Employees' Retirement System. The 2004 session of the General Assembly began on May 10, 2004.
Local Governmental Employees Forgo Cost of Living Adjustment This Year
The Board of Trustees governing the Local Governmental Employees' Retirement System voted this year not to pursue a Cost of Living Adjustment for retirees, citing substantial increases granted last year.
During 2003, retirees in the local system received an across the board cost of living increase of 2 percent. An additional catch up increase of 6 percent was approved for members who retired during or before June 1982 and a 1.10 percent increase for members who retired between July 1, 1982 and June 30, 1993. The accrual factor used to calculate retirement benefits for members of the local system was increased from 1.82 percent to 1.85 percent in 2003 as well. The accrual formula adjustment boosted retiree benefits by an additional 1.5 percent, bringing the total cost of living adjustment to 3.5 percent.
Click here for more...
Gov. Easley Shows Support for Retirement System's Customer Service and Technology Improvements
Governor Mike Easley demonstrated his support for the Retirement System's customer service improvements last week by recommending the General Assembly make permanent 24 temporary staff positions granted to the System last year. Most of these positions, used to address hold times in the System's call center and backlogs in virtually every work area, will disappear during 2004 unless legislative action is taken. Easley also recommended the General Assembly allow the Retirement System to spend $11 million for the first year of a new information technology project. Over the course of three years, the Retirement System will create new web-based, self-service capabilities for employees and retirees by merging its current mainframes, which were built during the 1970s. The three-year cost of the project is $22 million.
Click here for more...
New Listserv for Public Employees Provides Retirement System Updates
Public employees can sign up for the NCWorks listserv to receive periodic email updates on news, policies and legislative changes affecting their Retirement System. To sign up, employees should visit www.nctreasurer.com for instructions.
Pass it On...
(The "Pass it On" Section is a new feature of the Retirement Monitor designed to provide easy-to-use, retirement-related content for employer newsletters, websites or email bulletins. The article summaries below can be easily copied into an email for distribution to your employees.
For a longer version of the article to include in your newsletter or on your website, please click on the article link and it will take you to the article in Microsoft Word format.
The "Pass it On" Section was suggested by members of the Retirement System's Employer Advisory Council.)
General Assembly Considering New Resources for Retirement System
North Carolina's General Assembly reconvened on May 10. During this summer's short session, the legislature will consider several items affecting the level of service your Retirement System is able to provide.
Click here for the full article in Microsoft Word format...
New Listserv for Public Employees Provides Retirement System Updates
Public employees can sign up for the NCWorks listserv to receive periodic email updates on news, policies and legislative changes affecting their Retirement System. To sign up, employees should visit www.nctreasurer.com for instructions.
Click here for the full article in Microsoft Word format...