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As of 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.
Part 3 of HB 1020 requires 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 the Retirement Systems Division receives all required information.
This is a mandatory change. Thank you for all you do and proactively preparing for this important change. The schedule for CSI Contributions through 2025 is posted here.
New Vendor? Your first step is to contact the Retirement System.
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.
If you are planning a merger or split with another agency, please contact the Orbit Employer Reporting OER@nctreasurer.com for assistance.
Here are some key steps new members can take to make the most of your benefits.
- After one or two payroll cycles, create an ORBIT account at ORBIT.myNCRetirement.com. Here, new members can track years of service, contributions, perform estimates on their potential future monthly benefit and so much more.
- With an ORBIT account, new members can now designate beneficiaries for the Death Benefit and Return of Contributions. This is an important step that ensures benefits available will go to the person or persons intended. In ORBIT, this is done online, in real-time.
- New members can add to their income in retirement by participating in the NC 401(k)/NC 457 Plans. These supplemental retirement savings plans can help members reach retirement goals. Over half of the employers offering these plans also offer an employer contribution.
More information for new members can be found here.
REMINDER - SECURE 2.0 update – ‘super’ catch-up contribution limit for ages 60-63 The IRS limits the amount you can save each year, and participants over age 50 can contribute more through catch-up contributions. And now, those turning the ages of 60 to 63 can save even more. Starting January 1, 2025, each year in which you turn ages 60, 61, 62 or 63, you can save an extra $11,250 in catch-up contributions. This is called the “super” catch-up contribution. However, the year in which you turn 64, the super catch-up contribution ends, and the standard catch-up limit resumes.
| Contribution limits increased in 2025 The IRS contribution limits for the Plans have increased for 2025. Consider increasing your contributions. | |
| For each Plan: NC 401(k) and NC 4571,2,3 | Max. Contribution |
| Standard contributions | $23,500 |
| Catch-up contributions (50 or older) | $7,500 |
| Super catch-up ages 60-63 | $11,250 |
| NC 457 Plan specifically2 | |
| Three-year catch-up contributions | $47,000 |
| Participating in BOTH the 401(k) AND 457 Plans1,2,3 | |
| Standard contributions | $47,000 |
| Catch-up contributions (50 or older) | $15,000 |
| Super catch-up ages 60-63 | $22,500 |
1 Employer contributions reduce the contribution limits in the NC 457 Plan, but not in the NC 401(k). 2 NC 457 Plan participants may not use age 50+ catch-up contributions or the super catch-up contributions for ages 60-63 in conjunction with three-year catch-up contributions. 3 Participants may utilize one of the catch-up contribution options. Catch-up contributions (50 or older) and super catch-up ages 60-63 cannot be used together. | |
The NC 401(k) Plan has expanded its eligibility requirements. Beginning January 1, for the first time, both full-time and part-time public servants can now participate in 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:
- 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, currently 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.
- 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.
For more information, visit myNCPlans.com.
Discover upcoming Retirement Systems webinars and events. Registration is required. View Calendar
All State Health Plan (Plan) members received a new ID card from Aetna, the Plan’s new third-party administrator as of January 1, 2025. Members should now be using this card for all medical and pharmacy services. Members are encouraged to register for Aetna’s member portal and to download the Aetna app for easy access to their benefits. Visit www.shpnc.org for more information.
Plan members may have received, or may be receiving, a Notice of Initial COBRA Rights in the mail. It is informational only and no action needs to be taken. A Notice of Initial COBRA Rights explains the right to COBRA continuation coverage, when it may become available to the subscriber and any dependent(s), and what needs to be done to protect the right to get it. These notices may be sent to members (subscribers and/or adult dependents) with new hire or Open Enrollment health plan enrollments.