In this Issue:
Contribution Accelerator is Here!
The NC Supplemental Retirement Board of Trustees has incorporated contribution accelerator into the NC 401(k) and NC 403(b) Plan documents. Contribution accelerator helps your employees commit to saving for retirement, by choosing regular percentage increases in their personal savings. It’s one more way to help your employees achieve retirement readiness!.
HOW does Contribution Accelerator work? As an employer, you must adopt this plan feature in order for your employees to have access to it. Then, employees who elect contribution accelerator, will have their contributions to the plan (either pre-tax or Roth) increase automatically each year by one percentage point. These automatic increases stop once the employee reaches an 8% total contribution rate. To adopt contribution accelerator contact your Prudential retirement educational counselor or client services manager. Employee can change contributions at any time by logging into their account at ncplans.prudential.com.
NC 403(b) to Transition Record-Keeping Services to Prudential
We are pleased to share with you some exciting news about the NC 403(b) Program! We are in the process of transitioning record-keeping services for the program from TIAA to Prudential, who will bring enhanced plan features, web capabilities, and an increased field presence to this award-winning program. Employers received an email communication from RSD on September 16, 2016, about this upcoming transition.
Our primary goal remains the same – retirement readiness for ALL NC public servants. With oversight from the NC Supplemental Retirement Board of Trustees, RSD is undergoing contract negotiations for record-keeping services with Prudential, which currently serves as our partner vendor for record-keeping and educational services for our nearly 300,000 NC 401(k) and NC 457 Plan participants. We expect the transition to a new provider for the NC 403(b) Program record-keeping services will take place within the next six months.
At this time, no action is needed on your part. NC 403(b) Program participants will continue to have their account funds invested as they have selected, payroll contributions will remain unchanged, and the plan features and benefits participants enjoy will also remain in place. NO action is needed on your part at this time with regard to payroll contributions or administration. We have communicated this information to NC 403(b) participants. During the transition period, your TIAA representative will continue to provide administrative, outreach and customer assistance for you, as an NC 403(b) Program manager.
Employee Outreach Shows How Salary Increases and Bonuses Could Boost Retirement Readiness
As you know, this year, the NC General Assembly voted to provide a 1.5% increase to all permanent full-time state employees. We want to let you know that the NC Total Retirement Plans emailed all active employees this month, to call attention to the power of increased contributions to supplemental retirement savings over time. The email explains the power of compounding, and how something that may seem small on its own – like saving just 1% more today – has the potential to grow and make a large impact over time. The message includes information about how employees can make a one-time contribution any time they’d like, and includes links for forms and more information. To learn more, visit myncretirement.com.
NIRS Releases Pension Economic Impact Study
The National Institute on Retirement Security (NIRS) has released a study outlining the economic impact of defined benefit pensions. "Pensionomics 2016 - Measuring the Economic Impact of DB Pension Expenditures," was released in September 2016, and shows how pensions not only provide a source of income for retired public employees, but also contribute to local, state and national economies. The links below are to the full study, the North Carolina part of the study, and infographics showing how pension spending affects the economy.
NAGDCA Discusses Fiduciary Responsibilities for Government DC Plans
Nothing Could be Finer than the Department of State Treasurer’s Booth at this Year’s NC State Fair!
The North Carolina Retirement Systems would like to invite you and your employees to visit us at the North Carolina State Fair from October 13 – 23, 2016. If your employees have questions about their NC Retirement Benefits, we’ll have staff on hand to help them. The State Health Plan and Prudential Retirement will be in attendance, as well as the department’s Unclaimed Property division, showing everyone how to receive their unclaimed cash.
We’ll be in booths 23-24 in the Kerr Scott Building. We look forward to seeing you there!
North Carolina Saves for Retirement Month and National Save for Retirement Week
During October, the Department of State Treasurer is celebrating North Carolina Saves for Retirement Month. We want to be sure that all North Carolina public employees are financially ready for a comfortable retirement. Encourage your employees to set aside some time this month to assess their retirement savings plans.
National Save for Retirement Week is October 16-22. That's the perfect time for your employees to review their retirement strategy! To retire comfortably, your employees need to replace 80 percent of their pre-retirement income. Currently, about 64 percent of our active members are on track to do just that by age 62. If your employees are not one of the 64 percent, it’s not too late. Encourage your employees to visit the NC Saves for Retirement website to learn some tips, access resources to help them plan for retirement, or view their annual benefits statement in ORBIT.
NC Open Book