Table of Contents
- Local Governmental Employees' Retirement System Rates Effective 7/1/23
- Information Regarding TSERS Employer Contribution Rates for Fiscal Year Beginning July 1, 2023
- Timely and Accurate Employer Reporting
- Employer-Implemented New Systems and Testing
- Update: Employer NC 401(k) and NC 457 Plans' Employer Platform Migration
- Employer and Member Webinars
- Prepare for 2024 Open Enrollment with HBR Training
Local Governmental Employees' Retirement System Rates Effective 7/1/23
LGERS employer contribution rates effective July 1, 2023, are posted to the Retirement Systems’ website.
The rates are 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.
Information Regarding TSERS Employer Contribution Rates for Fiscal Year Beginning July 1, 2023
For employee service rendered through June 30, 2023 (required to be submitted by early July 2023), the TSERS employer contribution rates are as specified in Section 39.19 of S.L. 2022-74. These contribution rates totaled 24.50% of compensation for general employees, and 29.50% for law enforcement officers (LEOs). They included employer contributions toward retirement, retiree health, disability, and death benefits, as well as contributions to the N.C. 401(k) Plan for LEOs. They did not include the employee contribution of 6% of compensation.
For employee service rendered on or after July 1, 2023, the employer contribution rate will depend on the status of a Current Operations Appropriations Act for the fiscal biennium from July 1, 2023 to June 30, 2025 (“2023-2025 Budget”).
If the 2023-2025 Budget becomes law by the time an employer is required to submit contributions, the employer contribution rates will be as specified in that law.
If the 2023-2025 Budget has not become law by the time an employer is required to submit contributions, the employer contribution rates for that submission will be equal to the recurring funds portions of the rates that were in effect on June 30, 2023. These rates would total 22.94% of compensation for general employees, and 27.94% for State LEOs. The components of the rates would be 16.09% for retirement, 0.10% for the Disability Income Plan of North Carolina, 0.13% for active employee death benefits, 6.62% for retiree health benefits, and 5.00% (LEO compensation only) for 401(k) contributions. As always, different contribution rates would apply for members of the UNC Optional Retirement Program, Consolidated Judicial Retirement System, and Legislative Retirement System.
If the 2023-2025 Budget becomes law after an employer is required to submit contributions, and has a retroactive effective date of July 1, 2023, the Retirement Systems Division (RSD) will create retroactive rate adjustment invoices for any contributions that have already been submitted with respect to employee service rendered on or after July 1, 2023, where it is feasible to do so. Such invoices may be positive (requiring additional contributions) or negative (providing credits against future required contributions), depending on the contribution rates set in the 2023-2025 Budget relative to the rates already paid.
For example, suppose an employer has already reported on employee service for July 2023 and paid retirement contributions of 16.09% of compensation (the recurring-funds retirement component of the 22.94% total contribution in effect as of June 30, 2023), and the 2023-2025 Budget retroactively requires a contribution at the rate of 17.00% for retirement. Where it is feasible to do so, RSD will create a retroactive rate adjustment invoice for the remaining 0.91% of the compensation that the employer had reported for that pay period. Any additional contributions required from a retroactive rate change will be due by the regular contribution deadline for the payroll period during which the invoice is issued.
Depending on the ultimate timing and details of the 2023-2025 Budget, it may be necessary for RSD to implement retroactive changes through processes other than, or in addition to, issuing retroactive rate adjustment invoices. For example, in 2021, a different process was used after the budget law was enacted in November 2021. RSD will provide additional guidance to employers as needed.
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 has been updated to include 2023 dates and is located on our website.
myNCRetirement Tip: Create a calendar reminder so you meet the required deadlines.
⭐Employer-Implemented New Systems and Testing
Are you updating or implementing a new payroll system? Once you have finalized writing your business requirements and the new system is in place, the Retirement Systems Division is here to help with testing. If you intend to use a vendor for your system changes, you should still plan on being part of that process as the key contact for reporting.
We request that you notify us as soon as possible if you are making a change or upgrade so we can schedule testing that aligns with your planned start date. You should expect testing to take at least 90 days.