Retirement Monitor

Retirement Monitor - August 2024

Mandatory Employer Reporting Changes Effective Jan. 1, 2025; Employer Reporting Payroll Reminders; Form 6E & Form 6EOL Required Government-Issued Identification; Employer Digital Signatures; We are #myNCRetirement: CEM Benchmarking Pension Administration Report; LGERS & TSERS Employer Contribution Rates; Important Changes Effective Jan. 1, 2025, for Fire and Rescue Squad Pension Fund Return to Work Allowance 2024; Naming Beneficiaries; Expanded Eligibility for the NC 401(k) Plan; Member & Employer Events; North Carolina State Health Plan

Table of Contents

Breaking News

Starting Jan. 1, 2025, state law requires contributions and reporting be submitted on or before the 5th business day of the month in order to be considered complete and avoid a penalty.

On June 20, Governor Cooper signed HB 1020. Part 3 requires monthly both contributions and reporting be submitted by the employer on or before the 5th business day of the month in order to be considered complete and avoid a penalty. Employee and employer contributions and reporting are not considered submitted until all of the required information is received by the Retirement Systems Division.

This is a mandatory change, and we suggest preparing now to avoid penalties. Thank you for all you do and proactively preparing for this important change.

 

Employer Reporting Payroll


Employer Payroll Reporting

Your first point of contact is your assigned Employer Reporting Specialist, rather than the Orbit Employer Reporting OER@nctreasurer.com mailbox for:

  • Payroll Reporting or Payroll error corrections
  • Employee Demographic changes (legible copies of Social Security card, Driver’s License, Passport or other Government issued ID) that verifies the changed information.
  • Form ERRWK or Form 316 (all other Forms email to MemberRecords@nctreasurer.com)
  • Please contact your assigned Employer Reporting Specialist (who sends your Agency Payroll Error report) directly to their email address or phone (919) 814-4590 (please listen to the options as they are subject to change and select Employer Reporting).
     

Reporting RSP Types and Dates:
Retirement Service Period (RSP) Type – the number of months, full or partial, in a 12-month period that a member is expected to report to work.
Retirement Service Period (RSP) Dates – the beginning and end dates of the RSP period. RSP begin and end dates should correspond to the number of full or partial months provided in the RSP Type.

  • 10 month RSP Type - the member is expected to work from August – May. Service is accrued as 0.1000/month up to a total of 1.0000.
  • 11 month RSP Type - the member is expected to work from August – June. Service is accrued as 0.0909/month up to a total of 1.0000.
  • 12 month RSP Type – the member is expected to work 12 calendar months. RSP dates do not need to be reported for 12 month RSP Types.
  • When a member is reported less than a 12 month RSP type but is paid over 12 months, the installment pay can be reported as regular pay with the same RSP dates or as summer pay.
  • Installment pay records do not accrue additional service credit.

Do you need to send member documents to the Retirement Systems Division?  Employers should send all member Forms & records to MemberRecords@nctreasurer.com. This will ensure timely handling of important Forms & documents.

 

Form 6E 6EOL Requirements

Do you have employees who are preparing for retirement? Please remind them that we require government-issued proof of birth and legal name (driver’s license, birth certificate, passport, or state, federal or military identification) when choosing a beneficiary survivor. The document(s) should be attached to the submitted Form 6E or Form 6EOL.

 

Employer Digital Signatures for Form 6C (Reporting an Employee's Work Record for Retirement)
When a member is using the Retirement Online application, you will be notified by email when verification of information is needed.  

Digital Signatures are not a script font
 

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.

 

 

We are #myNCRetirement

At the July 25 TSERS and LGERS Board meeting, CEM Benchmarking presented a Pension Administration Report. This report compares the North Carolina Retirement Systems (NCRS) with other similar pension systems.

NCRS had a lower cost for higher service when compared with similar pension systems.

The results were impressive showing that NCRS had the second-lowest cost-per-member in pension administration. These costs include staff, vendors, IT, building, HR, support services and other costs.
Read the full report here.

 


LGERS Employer Contribution Rates
The rates are posted publicly to improve efficiency and transparency and reduce costs.  

View LGERS Employer Contribution Rates

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.


TSERS, ORP, CJRS, LRS Employer Contribution Rates  
Employer contribution rates effective July 1, 2024, will be the rates from Section 39.26.(c) of Session Law 2023-134 unless further adjusted by the legislature

 Teachers and State Employees State LEOsORPs CJRS LRS
Retirement 16.79%16.79%6.84% 37% 22% 
Disability0.13% 0.13% 0.13% 0%0%
Death0.13% 0.13% 0%0%0%
Retiree Health6.99%6.99%6.99%6.99%6.99%
NC 401(k)0% 5% 0% 0% 0% 
Total Contribution Rate24.04% 29.04%13.96%43.99%28.99%


 

New Law Increases Contribution & Monthly Benefit

Important Changes Effective Jan. 1, 2025, for Fire and Rescue Squad Pension Fund 
New Law Increases Contribution and Monthly Retirement Benefit to members of the Firefighters’ and Rescue Squad Workers’ Pension Fund.

  • Effective January 1, 2025, the monthly pension benefit will increase by $5 per month, from $170 to $175 
  • Effective January 1, 2025, the contribution rate required for members during their 20 years of contributing service will increase by $5 per month, from $10 to $15.

 

Return-to-Work Allowance

After a six-month break in TSERS, or a one-month break in LGERS and return to work in a position that does not require membership in those systems, a retiree is subject to the earning restrictions below.

  • 50% of your gross pre-retirement salary (excluding termination payments) or
  • $40,980 (2024 amount)

Returning to work may have an impact on a retiree’s monthly benefit and health coverage, if applicable.  It is important to understand and be aware of the limitations and the positions that are subject to the earnings allowance.

View Return to Work Laws

 

Naming Beneficiaries

Naming Beneficiaries
One of the most important steps a member can take is to name a beneficiary for their benefits. Beneficiaries do not automatically update across benefit elections and retirement plans. Active members can update beneficiary(ies) in ORBIT for:

  1. return of contributions and 
  2. death benefits, if applicable.  

We encourage members and retirees to do a beneficiary check-up each year or when there is a life-changing event.

A retiree who returns to work in a full-time capacity as a contributing member should designate beneficiaries for their death benefit and return of contributions.

 

Expanded Eligibility for the NC 401(k) Plan

The passing of House Bill 1020 promotes retirement readiness, assists employers with hiring and retention incentives and allows more state and local governmental employees to save for retirement.
Part-time and full-time public servants, as well as re-hired employees who do not contribute to the Teachers’ and State Employees’ Retirement System (TSERS) or Local Governmental Employees’ Retirement System (LGERS) now have expanded access to the NC 401(k) Plan. This provides more opportunities to save for retirement if their employer has one or more employees eligible for the Plan. 
Part VII of House Bill 1020 brings eligibility for the NC 401(k) Plan in line with the NC 457 Plan. Beginning January 1, 2025, all employees, whether full-time or part-time, of the following types of employers are now eligible for the NC 401(k) Plan:

  1. If you are an employer that already has some employees who are eligible for the NC 401(k) Plan, then all of your employees will become eligible for the NC 401(k) Plan on January 1. For example, if you participate in TSERS or LGERS, then your employees who are members of TSERS or LGERS are also eligible to have the NC 401(k) Plan. Your employees who are ineligible for TSERS or LGERS, such as part-time employees, cannot participate in the NC 401(k) Plan, but thanks to House Bill 1020, these currently ineligible employees will have access to the NC 401(k) Plan beginning January 1.
  2. If you do not have any employees who are eligible for the NC 401(k) Plan, beginning January 1, you will have the option to provide access to the NC 401(k) Plan to all of your employees. For example, if you are a local government that does not participate in LGERS or otherwise offer a defined benefit pension, you can elect to participate in the NC 401(k) Plan, which will allow all of your employees to save in the plan.

 

Member and Employer Events

Virtual and on-demand training

Virtual and on-demand training options help you understand employer roles, and responsibilities and assist employees with retirement-related matters.

There are ongoing webinars available for new members, mid-career, and those nearing retirement. We encourage member participation so they can learn about their benefits and plan for their financial future.

 

State Health Plan

Help Your Employees Get Ready for OE!
2025 Open Enrollment will be held Sept. 30 to Oct. 25, 2024. Starting Jan. 1, 2025, the State Health Plan’s Third-Party Administrator (TPA) will be transitioning from Blue Cross NC to Aetna. As a reminder, Humana Medicare Advantage Plan members are not affected by the Aetna transition. We’re here to help your employees and meet them wherever they are – in person, online or by phone. 

Open Enrollment information was sent via mail to all members earlier this month and included the information below. Open Enrollment information is also available on the Plan’s www.shpnc.org website.  

The Plan is excited to offer a number of ways your employees can get the information they need, including:

  • The Aetna bus and van, which will be visiting more than 20 locations at in-person events across the state. No registration is required! Each stop will offer the opportunity to ask Aetna representatives questions about the transition, include flu shots while supplies last, and the opportunity to learn more about the Eat Smart Move More Weigh Less Program from representatives at some locations.
  • Convenient Open Enrollment webinars, designed to ensure employees understand their health plan options for 2025.
  • Telephone town halls, which are like listening to a radio show over the phone. Employees simply provide their phone number when they register, and we’ll call them to join at the start of the event. Employees who have registered and those with a valid phone number in the State Health Plan’s enrollment system eBenefits will receive a call prior to an event, which will prompt them to join.

Events start in late August and continue through late October. To find the complete event schedule and to register for webinars and telephone town halls, visit the Plan’s Upcoming Events page.
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2025 OE HBR Trainings Complete
If anyone missed the OE HBR Trainings the Plan offered in July, the Plan has posted the training materials on the website, which includes a recording of the training and an Open Enrollment flyer for your worksites.
 

 

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