Retirement Monitor - July 2022

In this issue: Timely and Accurate Employer Reporting; Security Certificate Updates; Employer Contributions Rate Update; Digital Signatures Required; The Reality About Refunds; Applying for Retirement; Employer & Member Webinars; Employer Manuals Now Available

Table of Contents

 

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Graphic with the words "All in a Day's Work and the NC Total Retirement Plans logo

 

Timely and Accurate Employer Reporting

Employee and Employer contributions are due via the monthly Contribution Summary Instructions (CSI) by 5:00 p.m. on the 5th business day of the month along with the Monthly ORBIT payroll report. If the 5th falls on a weekend, contributions are due the following business day by 5 p.m. This schedule information is also located on our website.

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Security Certificate Updates

On Sunday, July 31, we will be renewing the ftp server certificate. As of August 1, employers will be prompted to accept the updated certificate. If you have an automated system that requires our certification, please email Beverly Willoughby (Beverly.Willoughby@nctreasurer.com).

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Employer Contribution Rates July 1, 2022, through June 30, 2023

TSERS, CJRS and LRS Contribution Rates

On July 11, 2022, Governor Cooper signed House Bill 103, the 2022 Appropriations Act, the law adjusting the budget enacted last year by Session Law 2021-180 (Senate Bill 105).

Effective July 1, 2022, the Employer Contribution rate for TSERS, CJRS and LRS are increased to cover the additional 1% one-time retiree supplement payment.  The revised rates are shown below.

Rates effective July 1, 2022 through June 30, 2023

 

 

 

Breakdown of Rate Type
FY 2022-2023 Total Rate Retirement Retiree
Health
Benefit
Disability
Income
Plan
Death
Benefit^
Supplemental
Retirement^^
TSERS General 24.50% 17.38%* 6.89% 0.10% 0.13%  
TSERS Law Enforcement 29.50% 17.38%* 6.89% 0.10% 0.13% 5.00%
UNC ORP 13.83% 6.84% 6.89% 0.10%    
CJRS 46.84% 39.95% 6.89%      
Legislative Retirement System 31.80% 24.91% 6.89%      

*includes 0.01% QEBA

^Pursuant to Sections 39.19(2) and 39.21 of the law, out of the 0.13% “Death Benefit” contribution rate for TSERS members during the fiscal year, the Department of State Treasurer will deposit 0.11% directly to the TSERS Death Benefit Trust. The remaining 0.02% will be placed in a separate account in case needed during the fiscal year to pay line-of-duty death benefits to beneficiaries of public safety workers awarded by the Industrial Commission under Chapter 143, Article 12A. To the extent the separate account is unspent as of June 30, 2023, it will revert to the TSERS Death Benefit Trust.

^^The “Supplemental Retirement” contributions for State Law Enforcement Officers are paid to Empower for the NC 401(k) Plan.

LGERS Employer Contribution Rates

LGERS employer contribution rates effective July 1, 2022, are posted to the Retirement Systems’ website:  LGERS-Employer-Contribution-Rates-Eff-July-1-2022.

Beginning this year, the rates are being posted publicly rather than mailing individual letters to every employer, to improve efficiency and transparency, and reduce costs. The table is ordered by five-digit employer code but is also searchable (by employer name) within a browser, or by downloading the PDF and using “Edit”->”Find” in Adobe.
The specific rate(s) paid by each employing unit will include the “base rate” from the table above, and other adjustments that are specific to the unit.

 

 

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Employer Digital Signatures for Form 6C (Reporting an Employee's Work Record for Retirement)

We are returning to normal procedures for the Form 6C and require a handwritten signature. 

When a member is using the Retirement Online application, you will be notified by email when verification of information is needed.  If you need to update the person(s) responsible for verifying this information, please use this form.

Digital Signatures

Adobe Acrobat does support digital signatures, which are different than selecting a font and typing a name. Adobe Help has resources available to walk you through the process of creating your official Digital Signature.

  • Digital Signatures are a type of Electronic Signature that uses a certificate-based Digital ID, obtained either from a cloud-based trust service provider or from the signer's local system.
  • A digital signature, like a conventional handwritten signature, identifies the person signing a document. Unlike a handwritten signature, a certificate-based signature is difficult to forge because it contains encrypted information that is unique to the signer. It can be easily verified and informs recipients whether the document was modified after the signer initially signed the document.

 

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A member who has contributed and is no longer employed with a participating employer can request a refund of accumulated contributions and interest. Set by state law, the interest credited on member contributions and paid with a refund is currently four percent (4%) compounded annually on the prior year ending balance. Employer contributions are not paid to the member and remain in the North Carolina Retirement Systems.

It is important to carefully consider the impact of taking a refund of contributions. If a member is terminated or leaves employment, it is not a requirement that they request a refund and withdraw their service and contributions. If a member is vested and request a refund, they are no longer eligible to receive a potential lifetime monthly benefit. In fact, once a refund is received, a member waives ALL rights to ANY benefits from the North Carolina Retirement System, including years of service and coverage through the State Health Plan, if applicable.

Prior to taking a refund, we encourage all members to review the information on our website and discuss the potential impact with a counselor.

Apply for a Refund Online Now Available

Should a member decide to request a refund, we have launched the Apply for Refund Online application.  This new release is available in ORBIT. The application can only be completed by employees that are no longer working for a participating employer.  If a planned termination date is in the future, a member will not be able to complete the application.  The refund application will be processed ONLY when the application has been correctly completed and all necessary information and documentation has been received from the member and the employer.

It is important to note that state law prohibits the Retirement System from issuing a refund earlier than 60 days from the effective date of resignation or termination.  This allows for final, accurate and timely reporting of all contributions.

More information about the Refunds Online Application can be found here.

 

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Applying for Retirement

A member should apply and complete their own retirement application which involves personal decisions and data. We encourage members who are nearing retirement to start the process at least 120 days from their retirement date. The easiest way to apply for retirement is through the Retirement Online application in ORBIT. Retirement Online application delivers a guided experience through the process with integrated videos, on-screen examples and links at critical decision-making points and timely notifications as certain milestones are reached.

With the Retirement Online process, you will receive Form 6C by email. The member is cc’d on this communication so they stay informed of where they are in the process.
More information about the Retirement Online process for members can be found here.

Employer information about Retirement Online is here.

 

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Employer Webinars

MyNCRetirement Employer Training Webinars

Empower Retirement Benefits Webinars

Member Webinars

Retirement Planning Webinars

Empower Retirement Benefits Webinars

 

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Employer Manuals are now available at myNCRetirement.com.

 

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