Retirement Monitor - Special Edition: Contribution Rates & Legislation Updates December 9, 2021 Table of Contents TSERS, CJRS, LRS, ORP Contribution Rates Supplemental Bonuses Lump-Sum January "Catch Up" Payment Contribution Rates for TSERS, CJRS, LRS and ORP The State budget law for the 2021-2023 biennium, Senate Bill 105 (“2021 Appropriations Act”), was signed into law November 18, 2021, as S.L. 2021-180. Following are the rates that will be collected from January 1 through June 30, 2022. TSERS Retirement System Pension Fund 17.98% Disability 0.09% Death Benefit 0.13% Retiree Health Benefit Fund 5.90% Total - 24.10% 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 29.10% effective January 1, 2022. Of this 29.10 percent, five percent is payable to Prudential Retirement (the NC 401(k) Plan administrator), and 24.10 percent is payable to the Retirement Systems Division. ORP The total employer contribution rate for participants in the Optional Retirement Program (ORP) will be 12.83% percent, effective January 1, 2022. Of this amount, 5.99% percent of the covered payroll of ORP participants is payable to the Retirement Systems Division from January 1, 2022 to June 30, 2022. The contributions will be deposited as follows: Retiree Health Benefit Fund 5.90% Disability 0.09% Total - 5.99% from Jan. 1, 2022 - June 30,2022 CJRS Retirement System Pension Fund 43.60% Disability 0.00% Death Benefit 0.00% Retiree Health Benefit Fund 5.90% Total - 49.50% LRS Retirement System Pension Fund 29.56% Disability 0.00% Death Benefit 0.00% Retiree Health Benefit Fund 5.90% Total - 35.46% December and January Supplemental Bonuses The $1,000 and additional $500 “pandemic bonuses,” for eligible employees, are not considered pension-eligible compensation and do not need to be reported to the Retirement Systems. Lump-Sum January Salary ‘Catch Up’ Payment for Teachers and State Employees The one-time payment includes the salary increase amount retroactively for July through December 31. This should be reported as regular pay, but we will accept payroll with this payment reported as a bonus. This one-time payment is counted towards salary. If your agency is reporting this payment on the January reporting cycle, which is submitted in February, the payment should have an end date of December 31, 2021, and should reflect prior period adjustments. January retirees should not have pay reported past their termination date. This blog is related to: Employer Newsletter Local Government Employees’ Retirement System (LGERS) Teachers’ and State Employees’ Retirement System (TSERS)
Retirement Monitor - Special Edition: Contribution Rates & Legislation Updates December 9, 2021 Table of Contents TSERS, CJRS, LRS, ORP Contribution Rates Supplemental Bonuses Lump-Sum January "Catch Up" Payment Contribution Rates for TSERS, CJRS, LRS and ORP The State budget law for the 2021-2023 biennium, Senate Bill 105 (“2021 Appropriations Act”), was signed into law November 18, 2021, as S.L. 2021-180. Following are the rates that will be collected from January 1 through June 30, 2022. TSERS Retirement System Pension Fund 17.98% Disability 0.09% Death Benefit 0.13% Retiree Health Benefit Fund 5.90% Total - 24.10% 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 29.10% effective January 1, 2022. Of this 29.10 percent, five percent is payable to Prudential Retirement (the NC 401(k) Plan administrator), and 24.10 percent is payable to the Retirement Systems Division. ORP The total employer contribution rate for participants in the Optional Retirement Program (ORP) will be 12.83% percent, effective January 1, 2022. Of this amount, 5.99% percent of the covered payroll of ORP participants is payable to the Retirement Systems Division from January 1, 2022 to June 30, 2022. The contributions will be deposited as follows: Retiree Health Benefit Fund 5.90% Disability 0.09% Total - 5.99% from Jan. 1, 2022 - June 30,2022 CJRS Retirement System Pension Fund 43.60% Disability 0.00% Death Benefit 0.00% Retiree Health Benefit Fund 5.90% Total - 49.50% LRS Retirement System Pension Fund 29.56% Disability 0.00% Death Benefit 0.00% Retiree Health Benefit Fund 5.90% Total - 35.46% December and January Supplemental Bonuses The $1,000 and additional $500 “pandemic bonuses,” for eligible employees, are not considered pension-eligible compensation and do not need to be reported to the Retirement Systems. Lump-Sum January Salary ‘Catch Up’ Payment for Teachers and State Employees The one-time payment includes the salary increase amount retroactively for July through December 31. This should be reported as regular pay, but we will accept payroll with this payment reported as a bonus. This one-time payment is counted towards salary. If your agency is reporting this payment on the January reporting cycle, which is submitted in February, the payment should have an end date of December 31, 2021, and should reflect prior period adjustments. January retirees should not have pay reported past their termination date. This blog is related to: Employer Newsletter Local Government Employees’ Retirement System (LGERS) Teachers’ and State Employees’ Retirement System (TSERS)
