Table of Contents
- 2018 Legislative Digest
- ATTN: Employer Contacts Needed for Online Retirements
- Appointment-only Policy and Visitor Directions to the Department of State Treasurer
- Employer Training Series Continues
- Kudos!
2018 Legislative Digest
One-Time Pension Supplement for TSERS/CJRS/LRS Retirees
Retirees of the Teachers’ and State Employees’ Retirement System, Consolidated Judicial Retirement System and Legislative Retirement System will see a special one-time payment included within their October retirement benefit. A one-time pension supplement has been granted by the General Assembly for members who retire on or before September 1, 2018, in the amount of one percent (1.0%) of the annualized benefit. This one-time supplement will be paid on October 25, 2018, and will not change the ongoing monthly benefit going forward.
More information about one-time supplements and cost-of-living adjustments can be found on our website.
Click here to read the full legislation.
Increase and Expansion of Line-of-Duty Death Benefit for Public Safety Workers
The line-of-duty death benefit for public safety workers increased from $50,000 to $100,000, retroactive to April 1, 2017. This benefit now extends coverage to noncustodial employees of the Division of Adult Correction and Juvenile Justice who are killed by inmates. The line-of-duty death benefit is administered jointly by the NC Industrial Commission and the NC Department of State Treasurer.
Click here to read the full legislation.
Expansion of Garnishment of Wages to Recover Overpayments
In the past, if a state or local government employee owed money to the State Health Plan or the Retirement Systems Division, participation in the garnishment of wages was considered optional by employers. Current law now requires employer participation in the garnishment of wages if a member or beneficiary who is employed by a system employer receives an overpayment or erroneous payment. In such cases, the State Health Plan or the Retirement Systems Division will now notify the employer, and the amount owed will be offset against not less than 10 percent of the employee’s net wages until it is fully paid.
Click here to read the full legislation.
Interception of Credit Card Receipts for Funds Owed
When the State Health Plan prevails in a civil action against a provider, or when the Retirement Systems Division prevails in a civil action against a participating employer to collect monies owed, this law provides that the State Health Plan or the Retirement Systems Division may garnish the provider’s or employer’s credit card receipts or other third-party payments in the amount owed.
Click here to read the full legislation.
Elimination of ORP Reciprocity with TSERS for New Hires
For members first hired on or after January 1, 2021, membership service in the University Optional Retirement Program (ORP) cannot be counted toward determining the benefit eligibility for the Teachers’ and State Employees’ Retirement System (TSERS). Prior to this change, ORP membership service is counted toward determining eligibility for TSERS, but it is not counted as creditable service in the calculation of the TSERS benefit.
Click here to read the full legislation.
Anti-Pension Spiking Liability Related to Members with Multiple Employers
When a member has multiple simultaneous employers, the contribution based benefit cap (CBBC) liability applies only if it is generated because of a member’s service to one employer at a time, or if the average final compensation (AFC) earned by the member attributable to one of the member’s employers exceeds the CBBC AFC thresholds.
Click here to read the full legislation.
Establishment of Filing Period for Short Term Disability
To synchronize short-term with the long-term disability filing period, members wishing to file an application for Disability Income Plan of North Carolina short-term disability will need to do so within one year of the end of the 60-day waiting period for short-term benefits.
Click here to read the full legislation.
Employers Pay for Entire Short-Term Disability Period
For short-term disability benefits from the Disability Income Plan of North Carolina that begin on or after July 1, 2019, employers will no longer be reimbursed for the second six months of short-term disability benefits. This will result in the employer paying for the entire short-term disability period.
Click here to read the full legislation.
Felony Forfeiture Modifications
Currently, elected government officials will forfeit their right to a monthly benefit from the Teachers’ and State Employees’ Retirement System or the Local Governmental Employees’ Retirement System if they are convicted of certain state or federal offenses related to their service as an elected official. As of June 26, 2018, convictions on state charges of embezzlement were added to the list of offenses. Also, if any portion of a register of deeds’ Local Governmental Employees’ Retirement System benefit is forfeited, then that member’s entire Registers of Deeds Supplemental Pension Fund benefit is also forfeited.
Click here to read the full legislation.
Clarify that Board Members are not Employees for Retirement Purposes
Members of boards or commissions are generally not considered employees for retirement purposes and are able to serve on a board or commission without affecting their retirement status.
Click here to read the full legislation.
Special Separation Allowance Buyouts
Effective June 22, 2018, state agencies and local governments may offer separation buyouts to law enforcement officers who leave employment before reaching eligibility for the special separation allowance. The buyout must be paid from funds available and may not exceed the total amount that otherwise would have been paid if the officer had been eligible for the special separation allowance at the time of retirement. The special separation allowance is currently paid by the agency or local government beginning at the officer’s retirement with full (“unreduced”) benefits and ending when the officer reaches age 62.
Click here to read the full legislation.
Employers Pay Directly to Transfer Benefit
Currently, a transfer benefit can be funded only with assets in an employee’s qualified retirement account. Effective July 1, 2019, TSERS and LGERS employers may also transfer employer contributions to the Retirement Systems Division to establish a separate lifetime monthly benefit payment.
Click here to read the full legislation.
New Reduced Benefit Eligibility for Law Enforcement Officers
Currently, TSERS and LGERS law enforcement officers (LEOs) may retire with a reduced benefit after reaching age 50 with 15 years of creditable service as an officer. Effective July 1, 2019, LEOs will be able to retire with reduced benefits at any age with 25 years of service. There are several things to consider when contemplating this reduced benefit.
Click here to read the full legislation.
Election Day Service Rules for Retired Law Enforcement Officers
Currently, special separation allowances for retired local law enforcement officers (LEOs) must be suspended if they are re-employed by a local government employer in any capacity. Effective June 14, 2018, retired LEOs will be able to be able to work for county boards of elections in connection with Election Day service without affecting their special separation allowances. Please note that retired LEOs opting to participate in Election Day service will still be subject to return-to-work laws and earnable allowance restrictions for the Teachers’ and State Employees’ Retirement System or the Local Governmental Employees’ Retirement System.
Click here to read the full legislation.
For the full list of legislative changes that affect the North Carolina Retirement Systems, click here.
ATTN: Employer Contacts Needed for Online Retirements
The Retirement Systems Division is currently developing an online retirement application for our members. As with paper applications, we will need a contact within your agency to verify your employees' information at retirement.
As of Aug. 15, 2018, only five percent of the 1,150 state and local agencies have responded. It is very important that we receive responses from all employers in order to ensure that your employees have a smooth retirement experience and do not experience any delays in their retirement because we do not have updated contact information for your agency.
Please provide contact information for your agency’s retirement processing contact using our survey here. A general email account that is monitored by multiple people and will not change is best for this purpose. If that's not available for your agency, please provide contact information for a second contact in case the first contact is unavailable when one of your employees retires.
Appointment-only Policy and Visitor Directions to the Department of State Treasurer
Did you know? If you have employees nearing retirement who have questions about their retirement benefits, they may be able to schedule a virtual appointment with one of our Retirement Benefits Counselors! These face-to-face meetings are conducted over the internet where members are able to see and speak directly with a benefits counselor without the hassle of driving to our offices in Raleigh.
A computer or tablet with sound and an internet connection is necessary for virtual appointments. Members must be within one year of their retirement, be more than two hours of travel time from our Raleigh office or be disabled to be considered for a virtual appointment.
If you have employees who qualify, have them email NCRetirement@nctreasurer.com.
Our office is located at 3200 Atlantic Avenue, Raleigh, NC, 27604.
If your employee is unable to travel to Raleigh for an appointment, but would like more information about the retirement benefits provided to them, we also offer Retirement Planning Conferences in various locations across the state throughout the year. Check the current schedule to find a conference near you.
Employer Training Series Continues
The Retirement Systems Division is offering a series of employer trainings for Human Resource Personnel, employees assisting in retirement-related matters and employees responsible for ORBIT Payroll Reporting.
On September 12, 2018, RSD will conduct Part 1 of the three-part training for employers participating in the Local Governmental Employees’ Retirement System. The LGERS training will be hosted in our offices and available as an online webinar.
On October 10, 2018, RSD will conduct Part 2 of the four-part training for employers participating in the Teachers’ and State Employees’ Retirement System. The TSERS training will cover Short-Term and Extended Short-Term Disability benefits. The training will be hosted in our offices in Raleigh, and available as an online webinar.
A full list of the TSERS and LGERS training sessions can be found on the Employer page of our website. Do you have a lot of staff that should be trained? Email us at employertraining@nctreasurer.com if you are interested in hosting an employer training at your location.
Kudos!
