Table of Contents
- Employer Contacts Still Needed for Online Retirements
- Local Government 1,000 Hour Rule Reminder
- Prevent Errors when Reporting Terminations
- Banking Changes?
- Amended Short-term Disability Employer Reimbursement Policy
- New Legislation in Effect for Short-term Disability Filing Period
- Kudos!
Employer Contacts Still Needed for Online Retirements
Online Retirement applications continue to be a popular feature of the ORBIT system. As of this month, 1,065 state and local employees have completed their retirement process through the application. We appreciate your promotion of Online Retirement with your employees. Did you take the time to designate a contact for your agency for Online Retirement? It’s not too late! Click here to provide that information for your agency. This will ensure your employees have a smooth retirement experience and do not experience any delays in their retirement process.
Local Government 1,000 Hour Rule Reminder
North Carolina Retirement Systems law requires an employee to become a contributing member of the Local Governmental Employees’ Retirement System (LGERS), as a condition of employment, on the date he or she begins employment (or after a required local unit waiting period) if the employee is employed by a participating LGERS employer in a regular position that requires at least 1,000 hours of work in a calendar year. The employee will not be a contributing member of LGERS if his or her work is considered “temporary employment,” meaning employment for a limited term which does not exceed 12 consecutive months on a non-recurring basis for an LGERS employer, or “statutorily required interim employment,” meaning employment as an interim city or county manager for a period that does not exceed 12 months on a non-recurring basis.
To determine if an employee is required to be an LGERS member and if contributions must be submitted to LGERS on his or her behalf, examine the requirements of the position. The hours required of the position determine membership in LGERS, not the actual number of hours an LGERS employee works in a calendar year. It is important to remember the key is the position. If the position requires 1,000 hours or more per calendar year (January through December), then the person in the position must become a contributing member of LGERS. For example, if an employee works 999 hours and then goes home, but the position itself requires 1,000 hours or more per calendar year, then the employee must be a contributing member of LGERS.
Also, it is important for employers to carefully evaluate the requirements of their positions. An employer can inadvertently create a position that requires 1,000 hours or more per calendar year by repeatedly calling an employee to fill in due to staff shortages or by allowing an employee to work 1,000 or more hours per calendar year. This situation could require the employer to reclassify the position.
Prevent Errors when Reporting Terminations
When reporting terminations to the Retirement Systems, please keep these items in mind:
- Termination reporting must include both the date and the reason for termination.
- Pay period end dates in the final payout records should end with the same date as the termination date.
- The termination date should be the last date on which the employee reported to work.
Pay period dates CANNOT extend beyond the termination date. Any payments made to the employee after the termination date must be adjusted to dates before termination. Otherwise, the record will be placed in error status.
For more information go to our Employer ORBIT Training and Reporting web page and scroll to the FAQs at the bottom of the page.
Has Your Agency or Unit Had Changes to Your Banking?
Update your banking account before you submit your monthly contributions to avoid delays which could cause penalties to be assessed.
A formal letter of request on agency/unit letterhead is needed with the following information:
- Effective date of change
- Agency Number
- Bank Name
- Routing #
- Account #
- Authorized signature.
Please fax to (919) 855-5801.
Amended Short-term Disability Employer Reimbursement Policy
In the 2018 Financial Accountability, Integrity, and Recovery Act, the General Assembly amended the state law regarding short-term disability employer reimbursement. Currently, employers are responsible for administering and paying for disability income payments and health insurance premiums and are then reimbursed those costs for eligible employees during the second six months of the short-term disability benefit period. These costs are paid out of the Disability Income Plan of North Carolina (DIPNC) trust fund. Employers continue to be responsible for administering and paying for short-term disability benefits and health insurance premiums, but based on this legislative change, employers cannot be reimbursed for any short-term disability benefits that begin on or after July 1, 2019.
Please see this DIPNC Employer Reimbursements page for an analysis of the DIPNC employer reimbursements for costs incurred during the second six months of the short-term disability benefit period as provided for in G.S. 135-105(d). This analysis is unaudited and provided for informational and budget planning purposes only and is based solely on data transmitted by employing agencies to the Retirement Systems Division during fiscal years 2014 through 2018.
New Legislation in Effect for Short-term Disability Filing Period
Members wishing to file an application for short-term disability through DIPNC must do so no later than 365 days following the first day of the 60-day waiting period.
To avoid missing the short-term filing period, employees should apply for short-term disability as soon as possible, even if they are receiving Worker’s Compensation benefits, taking a Family Medical Leave of Absence, receiving salary continuation payments or exhausting leave.
Kudos!
