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Government Employers

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These web pages offer valuable reference and legal information, and tools to help you enroll new employees, report monthly retirement contributions, and provide guidance to your employees.  

 

New Resources Coming in 2018

 

We want to help make onboarding new employees easier!

The Retirement Systems Division is working on some New Hire Orientation materials that can help employees better understand all of the retirement benefits they can receive as public servants.

First, we’re rolling out an ORBIT welcome flyer which you can view and download here. This flyer will teach your new employees about the benefits of creating an ORBIT profile so they can manage their pension account online, day or night! What does that mean for you? No more printing, storing, distributing, collecting and mailing paper forms to our offices!

Instead of handing a new employee forms, simply provide the employee with a copy of the ORBIT welcome flyer! This administrative change will save everyone a lot of time and energy!

Throughout 2018 we’ll be turning that one flyer into a more comprehensive welcome kit that gives employees information about all of the benefits managed by the Department of State Treasurer, such as the Supplemental Retirement Plans, State Health Plan and NCCash program. As these new materials are created, we’ll keep you informed about where to find them so your job of onboarding new employees is easier than ever!

        
ORBIT Account Creation

Since the redesign of ORBIT, some members have had trouble logging in, whether they are users who already have accounts, or they are logging into ORBIT for the first time. Once in ORBIT, users are also having trouble with security emails, device registration and forgetting their username or password.

The Retirement Systems has created How To videos, along with Frequently Asked Questions​, to help our members log into and navigate ORBIT. These videos and FAQs should help answer some of the most common questions and issues our members are encountering in the redesigned environment.
     

Pension Spiking

Legislation passed by the 2014 General Assembly establishes, effective January 1, 2015, a contribution-based benefit cap (CBBC) on pension benefits for TSERS members who retire on or after January 1, 2015, and whose average final compensation (AFC) is $100,000 or higher. This legislation aims to control the practice of “pension spiking,” in which a member's compensation substantially increases to create a benefit that is significantly greater than the contributions paid by the member and that the employer would fund.

The Anti-Pension Spiking CBBC approach to limiting pension spiking will prevent employers in the Retirement Systems from absorbing the additional liabilities caused by pension spiking by other employers.
 
The Retirement Systems has posted Pension Spiking presentations for LGERS and TSERS that provide examples of pension spiking and how employers and employees will be responsible for paying the liability created by causing the pension spike.
In addition, the Retirement Systems created an Anti-Pension Spiking handout​ outlining the highlights of the legislation.

 
Estimating Potential CBBC Impact 
           
Your agency can utilize the statutory formula to help determine the likelihood that the retirement allowance of a member might exceed the contribution-based benefit cap (CBBC). The CBBC formula is as follows:

 
Benefit Formula = Average Final Compensation (AFC) X Multiplier X Service
CBBC Formula = Contributions / Annuity Factor X CBBC Factor
If Benefit is greater than CBBC, the difference is multiplied by the Annuity Factor

 
The current CBBC Factor for TSERS is 4.5 and LGERS is 4.7. The current multiplier for TSERS is 0.0182 and LGERS is 0.0185. The AFC threshold for 2018 is $104,973.81. The listing of current annuity factors can be found here. You can access the member’s accumulated contribution balance and service history through ORBIT Employer Self-Service (Reporting – View Member Info – View Account History). Please note that the total contribution balance does not include the interest (currently 4%) for the current year. 
    
IRC Section 415(b) & Qualified Excess Benefit Arrangement (QEBA)
  

Under federal tax law, a retiree is permitted to receive pension benefits up to a set annual allowable limit determined by the Internal Revenue Code (IRC). The retirement benefits for some highly compensated employees may be subject to the IRC section 415(b) annual pension benefit limit. 

 
Legislation enacted by the 2013 General Assembly established a Qualified Excess Benefit Arrangement (QEBA) fund to pay the part of a retiree’s retirement allowance that exceeds the limit. Recent legislation amended the QEBA law to provide that members hired prior to January 1, 2015, are eligible to receive benefit payments from the QEBA fund. However, the last employer for a member who retires on or after August 1, 2016, will be required to reimburse the QEBA fund for any payments made to that retiree from the QEBA fund. For more information, please refer to the QEBA Fact Sheet, or the  Employer Manuals​
 
Employer Training Podcast Library
 
The Disability Income Plan of North Carolina (DIPNC) provides monthly replacement income to your employees in the form of short-term, extended short-term and long-term disability benefits if they become disabled while a permanent employee under the Teachers’ and State Employees’ Retirement System (TSERS) or a participant of the Optional Retirement Program (ORP), and they meet certain eligibility requirements. Visit the DST Podcast Library to learn more. The 15 video podcasts are identified by subject for quick reference.
       

Employer Training

Employers should sign up to attend Employer Training by emailing employertraining@nctreasurer.com. The Retirement Systems will hold the training only if 10 or more employers have signed up. Email us if you are interested in hosting an Employer Training at your location. If enrolled in training, please attend, or email employertraining@nctreasurer.com to let the Retirement Systems know you need to cancel.​ ​

 New Employees?

​​If you have new employees, don't forget to provide them with our Welcome Packet information, located on the New Hire Welcome Kits​ web page.

 GASB


New GASB Statements 67 and 68 relate to accounting and financial reporting changes and how pension costs and obligations will now be measured and reported in audited external financial reports. Learn about the changes and obtain resources regarding Statements 67 and 68:  New Pension Standards GASB 67 and 68.

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