Retirement Monitor Update: October 5, 2005
Details of New ORBIT Employer Contribution Requirements
Employers with questions about the requirements should contact Roscoe Perry at roscoe.perry@nctreasurer.com.
The Retirement Systems Division today released a detailed explanation of the ORBIT Employer Contribution Record Layout that will be required of employers beginning in June 2007 after the implementation of the new ORBIT system. The new requirements will dramatically improve the quality of retirement-related information available to employers and employees, while helping the Division to make more accurate and timely retirement calculations. The requirements were first presented to employers during the June 2005 ORBIT orientation sessions held throughout the State.
ORBIT (Online Retirement Benefits through Integrated Technology) is a four-year rebuild of the Retirement Systems Division’s information technology infrastructure. This project is essential to helping the Division process baby boomer retirements while continuing to meet the needs of all Retirement System members.
The new contribution layout may require adjustments to the information technology systems of many employers. These up-front adjustments will lay the foundation for a streamlined contribution system through ORBIT.
ORBIT is working with the State’s central payroll system, the Community College System, the Department of Public Instruction, and the makers of software products like Sartox and ISIS to streamline the development process for the new reporting. We know there are other payroll software packages used by government units in North Carolina. ORBIT will be glad to reach out to those vendors to make the transition easier for employers. Please send the name and contact information of the vendor with which you work to Roscoe.perry@nctreasurer.com.
Employers will not submit information in the new layout until June 2007, but ORBIT will begin testing the new contribution requirements with employers in January 2007. Training sessions on the new layout will be held for employers in the fall of 2006 and in early 2007. Please look for ORBIT Questions Answers, compiled from feedback received during the June 2005 ORBIT orientation sessions, in a November edition of the Retirement Monitor Update.
Retirement Monitor Update: October 21, 2005
Record Retirements in October May Result in Delays
Applications received less than 60 days before retirement date face payment delays of up to three months. (Employers should contact the Employer Education and Services Unit at eesu@nctreasurer.com or 919-807-3131 or 1-877-807-3131 with questions about the delays).
Recent legislative changes to the State’s return-to-work policy have caused a sharp increase in retirement applications for the month of October 2005. The Retirement Systems Division received three times the retirement applications it usually receives during October, or approximately 1500 applications. The increase in applications has caused a processing backlog and could delay payment of retirement checks for retirees with effective dates of Oct. 1, Nov. 1, Dec. 1 and Jan. 1.
The Retirement Systems Division processes retirement applications on a first-in, first-out basis. Therefore, the earlier a retiree’s completed retirement application reaches the Division, the sooner the retiree will receive their first benefit check.
If the completed retiree application was submitted to the Division 60 days or more before the retirement date, the retiree will likely receive their check within one to two months.
If the completed retiree application was submitted to the Division 59 days or less before the retirement date, the retiree may have to wait two to three months before receiving their first benefit check.
As always, the first benefit check received will include payments retroactive to the retirement date.
Teachers and state employees who are eligible for retiree health coverage under the State Health Plan will not have a break in health coverage. The State Health Plan will begin their retiree coverage 30 days after their retirement date whether they receive a benefit check or not. The Retirement Systems Division will mail letters to all retirees affected by this delay during the week of Oct. 20 and will continue to inform new applicants of the potential delays.
Though October 2005 represents an unusually high volume of retirements, applications will continue to increase as the baby boomers reach retirement age. It is critical that completed retirement applications are submitted to the Division at least 60 days prior to the retirement date.
We ask for your patience as we work through this unprecedented amount of retirement applications and apologize for the inconvenience this has caused for you and new retirees.
Thank you for your dedicated service to all members of the Retirement Systems.