In this Issue:
Required Distributions After Age 70 ½
In most cases, TSERS is required to pay benefits to non-retired members with open TSERS accounts by April 1 of the year following the year in which the member reaches age 70 1/2 or ceases to be an employee, whichever is later. Members who are vested (5 or more years of eligible service) who fail to complete the retirement process will receive a monthly retirement benefit based on the Maximum Allowance. Non-vested members who fail to complete a refund application will receive a refund of their contributions and interest.
Transfer Benefit for TSERS, LGERS and LEOs
NC 401(k) and NC 457 Transfer Benefit available to all qualifying TSERS and LGERS retirees
All eligible TSERS and LGERS retirees can choose the NC 401(k)/457 Transfer Benefit. Under this Transfer Benefit, retirees may make a one-time election at or following retirement to transfer all or any portion of their eligible NC 401(k) and/or NC 457 funds to TSERS or LGERS, allowing them to receive an additional monthly lifetime retirement allowance based upon their transferred balance. Once transferred, the decision is irrevocable. Roth contributions and earnings are non-transferrable.
Members can visit our website at www.myncretirement.com to learn more about the Transfer Benefit, to use our Transfer Benefit estimator, and to access the required forms. To use the estimator, click on “ORBIT,” then click on "View 401K/457 Transfer Benefit Estimate." Members who wish to elect the NC 401(k) or NC 457 Transfer Benefit must submit Form 319401k or Form 319457, located on the ORBIT Forms page. There is a one-time administrative fee of $100 per transfer, per account.
NC 401(k) LEO Transfer Benefit available to certain qualifying TSERS and LGERS LEO retirees vested prior to July 1, 2010
Law enforcement officers (LEOs) vested (5 or more years of retirement service credit) before July 1, 2010, may be eligible to choose the NC 401(k) LEO Transfer Benefit rather than Transfer Benefit described above, and may receive a greater monthly benefit.
At retirement, LEOs vested before July 1, 2010, may make a one-time transfer of all or any portion of their eligible NC 401(k) funds to TSERS or LGERS, allowing LEO retirees to receive an additional monthly lifetime retirement allowance based upon their transferred balance. This NC 401(k) LEO Transfer Benefit option is available only at the time of retirement. Once transferred, the decision is irrevocable. Roth contributions and earnings are non-transferrable.
The amounts payable from the NC 401(k) LEO Transfer Benefit are often greater for LEOs whose contributions in the former Law Enforcement Officers’ Retirement System (LEORS) were maintained and transferred to TSERS in 1985, or to LGERS in 1986. The “Special Options for Law Enforcement Officers” page at https://www.nctreasurer.com/Retirement-and-Savings/Managing-My-Retirement/Pages/Transfer-Benefit---LEO-Options.aspx includes a detailed explanation of the differences between these benefits.
Qualifying LEOs are encouraged to use the Transfer Benefit estimator to compare the amount they would receive under the two alternatives. To use the estimator, LEOs should visit www.myncretirement.com, click on “ORBIT,” then click on "View 401K/457 Transfer Benefit Estimate." LEOs who wish to elect the NC 401(k) LEO Transfer Benefit must submit Form 319LEO, located on the ORBIT Forms page.
LEOs vested on or after July 1, 2010, or LEOs who begin their Transfer Benefit more than 90 days after their TSERS or LGERS retirement date, are not eligible for the NC 401(k) LEO Transfer Benefit, but they are eligible for the Transfer Benefit described above which is available to all qualifying TSERS and LGERS retirees.
Navigating your State Health Plan Benefits and Retirement Meeting Series Announced
(For Active Members Nearing 65)
Do you have employees who are thinking about retirement? Let the State Health Plan (SHP) help them navigate through their State Health Plan options. They are invited to attend an SHP informational session on how to maximize their health plan options in retirement.
The sessions, titled “Navigating Your State Health Plan Benefits and Retirement: Understanding How the State Health Plan and Medicare Work Together,” are designed primarily for members who are turning 65 in the next year or so, and for members who are over 65 and still actively working.
Plan members should submit retirement paperwork 120 days before their anticipated retirement date.
In addition, it’s recommended that members who are considering retirement meet with their HBR up to six months before their planned retirement date.
To help employees who are planning for retirement, the Plan is holding a series of free informational sessions statewide from March through August. For locations, dates and times of events, go to the SHP website at https://shp.nctreasurer.com/AboutSHP/connect/Pages/Navigating-your-State-Health-Plan-Benefits-and-Retirement-Meeting-Series.aspx. Plan to attend a session near you and register early, as seating will be limited.
Retirement Termination Process
As a reminder, under the Benefitfocus eEnroll system there is an enrollment rule that prevents a new retiree from completing their retirement enrollment until their active coverage has been canceled.
Unfortunately, we continue to see HBRs not processing retirements in a timely manner, which is impacting the retiree's ability to enroll in coverage under the Retirement Systems. In addition, the retirement must be processed more than 60 days prior to the benefit effective date for Medicare retirees to have the opportunity to take advantage of all Medicare Advantage options.
Click below to visit the Plan’s website for more information.
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