In this Issue:
2017-2018 Employer Contribution Rates for Teachers’ and State Employees’ Retirement System
The 2017-2018 contribution rates for the Teachers’ and State Employees’ Retirement System (TSERS) were set with the approval of the state budget, Senate Bill 257, which was signed into law on Wednesday, June 28, 2017.
The employer contribution rate payable from July 1, 2017, to June 30, 2018, for TSERS members increased from 16.12 percent to 17.13 percent of the covered payroll of members, effective July 1, 2017. The contributions will be deposited as follows:
Retirement System Pension Fund
Death Benefit Trust Fund
Retiree Health Benefit Fund
Disability Income Plan
An additional five percent employer contribution for state-employed law enforcement officers is required in the NC 401(k) Plan. Therefore, the total budgeted employer contribution for law enforcement officers is 22.13% effective July 1, 2017. Of this 22.13 percent, five percent is payable to Prudential Retirement (the NC 401(k) Plan administrator), and 17.13 percent is payable to the Retirement Systems Division from July 1, 2017, to June 30, 2018.
NOTE: The NC Retirement Systems’ Payroll Services Section will be updating our system with the new employer contribution rates on Monday, July 17, 2017.
The new contribution rate became effective July 1, 2017. Your July Contribution Summary Instruction (CSI) report should include the new required rate of 17.13 percent; otherwise your report will be out of balance. Please ensure that your software is updated to calculate the new rate prior to submission of your agency’s July 2017 ORBIT report.
2017-2018 Employer Contribution Rates for Optional Retirement Program
The total employer contribution rate for participants in the Optional Retirement Program (ORP) has changed to 13.03 percent, effective July 1, 2017. Of this amount, 6.19 percent of the covered payroll of ORP participants is payable to the Retirement Systems Division from July 1, 2017, to June 30, 2018. The contributions will be deposited as follows:
Spanish Language ORBIT How To Videos Now Available
If you have Spanish speaking employees, the Retirement Systems Division has posted Spanish language “How To” videos in the Help & Resources section of ORBIT. These videos help members navigate through first-time ORBIT login and registering in ORBIT as an existing user, among other popular topics. Head to ORBIT today to check them out!
Reporting a Death to the NC Retirement Systems
If you need to notify the NC Retirement Systems of the death of a retiree, beneficiary or employee, you now have a new way of doing it. Click on “Reporting a Death to the NC Retirement Systems” on the Death Benefits page on our website. This new feature allows you to submit a report any time of the day or night. You no longer have to call in during business hours, nor do you have to speak to a call center counselor.
Plan Design Enhancements Coming to NC 401 and NC 457
Streamlined Choices Reduce Complexity to Help Build Retirement Readiness
Did you know the NC 401(k) Plan is the largest governmental 401(k) plan in the US? What’s more, it’s strengthened by the continued, trusted oversight of the Supplemental Retirement Board of Trustees. For the NC 401(k) Plan, and for the NC 457 Plan and the NC 403(b) Program too, the Board monitors participant costs, plan features and investment options to ensure all our public servants have access to a diversified investment line-up to meet their varied needs.
In September, the NC 401 and NC 457 Plans will combine existing investment funds in the Small/Mid Cap and Large Cap asset classes to form two, new “blended” funds. Each new fund will combine the current value and growth funds in its asset class and add an index fund component. These changes add value and lower complexity for all Plan participants as they plan and save for retirement readiness.
No action is required on the part of employers or participants. In August, all participants will receive a detailed letter. Employers — look for more details coming soon in your August NC Total Retirement Plans Employer Newsletter or contact your local Retirement Education Counselor.
NC Open Book