ORBIT

Retirement Monitor - Teachers' and State Employees' Retirement System Special Edition - July 2020

Wednesday, July 8, 2020

 

 

 

 

 

Table of Contents

  • 2020-2021 Employer Contribution Rates for Teachers’ and State Employees’ Retirement System and Optional Retirement Program

2020-2021 Employer Contribution Rates for Teachers’ and State Employees’ Retirement System

The 2020-2021 contribution rates for the Teachers’ and State Employees’ Retirement System (TSERS) were set with the approval of House Bill 1218 (Session Law 2020-41), which was signed into law on Friday, June 26, 2020.

The employer contribution rate payable from July 1, 2020, to June 30, 2021, for TSERS members increased from 19.70 percent to 21.68 percent of the covered payroll of members, effective July 1, 2020. The contributions will be deposited as follows:

Retirement System Pension Fund 14.78%
Death Benefit Trust Fund  0.13%
Retiree Health Benefit Fund  6.68%
Disability Income Plan  0.09%
  21.68% from July 1, 2020, to June 30, 2021

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 26.68 percent effective July 1, 2020. Of this 26.68 percent, five percent is payable to Prudential Retirement (the NC 401(k) Plan administrator), and 21.68 percent is payable to the Retirement Systems Division from July 1, 2020, to June 30, 2021.

NOTE: The NC Retirement Systems’ Payroll Services Section will be updating our system with the new employer contribution rates on Monday, July 13, 2020.

The new contribution rate becomes effective July 1, 2020. Your July Contribution Summary Instruction (CSI) report should include the new required rate of 21.68 percent; otherwise, there may be discrepancies in your reporting. Please ensure that your software is updated to calculate the new rate prior to submission of your agency’s July 2020 ORBIT report.

Please share this information with your Chief Administrative Officer, Chief Financial Officer, and Personnel/Benefits Officer.

2020-2021 Employer Contribution Rate for Participants in the Optional Retirement Program

The total employer contribution rate for participants in the Optional Retirement Program (ORP) will be 13.61 percent, effective July 1, 2020. Of this amount, 6.77 percent of the covered payroll of ORP participants is payable to the Retirement Systems Division from July 1, 2020, to June 30, 2021. The contributions will be deposited as follows:

Retiree Health Benefit Fund 6.68%
Disability Income Plan 0.09%
  ​6.77% from July 1, 2020, to June 30, 2021