The number of retired public employees in NC as of December 31, 2022, is just under 350,000. 

If you are among the thousands planning to retire in the next few years, the expanded interactive checklist below will help members of the North Carolina Retirement Systems know how to approach the retirement process.

The following are steps to guide you through the retirement process.

1 to 3 Years Before Your Retirement Date

1.

Review MARS (Member Annual Retirement Statement), which is distributed in ORBIT during the first quarter of each year, to confirm your creditable service on file. If you feel a correction is required, please contact the System at (919) 814-4590 to request a review of your account.

2.

Attend a retirement planning conference. These are held throughout the year for state and local government employees.

3.

Download an updated copy of your benefits handbook. Familiarize yourself with the formula for calculating your retirement benefit and review benefit payment options.

4.

Generate a Custom Benefits Estimate in ORBIT. An estimate will provide you with the approximate amount of your monthly benefit based on your desired retirement date and show what your benefit may be with each payment option available.

 

120 Days Before Your Retirement Date

1.

Discuss your retirement with your Human Resources (HR) office and make sure they are aware of your plans. Regardless of your last day of work, your retirement date must be the first day of the next month. For example: If the last day you work is Oct. 1, 2024 (or any day in Oct 2024), your retirement date will be Nov. 1, 2024.

2.

Review your benefit payment options and consider which option would work best for you and your family.

 

90 to 120 Days Before Your Retirement Date

1.

If you are a teacher, state employee or local government employee, the easiest and most efficient way to apply for retirement is in your ORBIT account. You will be guided through each step with on-screen examples and important information at critical decision-making points. You will also receive timely notifications and status updates.

Alternatively, you may start the retirement process with the paper Form 6 (Claiming Your Monthly Retirement Benefit). This form contains Guides to help you through the process.

2.

Once you complete Step 1 of the online process, the Retirement Systems will work with your employer to confirm years of service, salary and any unused sick leave. By state law, your application cannot be submitted more than 120 days prior to your effective retirement date.

3.

It will take approximately 90 days for the Retirement Systems to go through the certification process. Staff must verify your service and check your application for accuracy prior to the issuing your first benefit payment.

If your application is not received 90-120 days before your retirement date, you may experience a delay in your first benefit payment. If a delay does occur, you will be paid retroactive to your retirement date.

4.

You will receive a confirmation letter/email within 48 hours after your application is received.

5.

If you have a retirement date of Jan. 1, 2024 or later, and the Retirement Systems has received and acknowledged your direct deposit instructions, your first retirement payment will be issued by direct deposit.

6.

Form 333 (Choosing the Contributory Death Benefit for Retired Members) is an optional $10,000.00 benefit payable at your death and is available to all retirees for a low cost per month, which will be deducted from your benefit payment. 

To choose this optional coverage, you must return Form 333 no later than 60 days after your retirement date. After this 60-day period, you will no longer be able to elect the optional Contributory Death Benefit coverage.

7.

As a part of the online process, you will determine your tax deductions. You may want to consult with a financial or tax advisor to ensure you are withholding the appropriate amount from your benefit payment. Please refer to your benefits handbook to learn more about special tax treatment for some Retirement System benefits.

8.

TSERS and LGERS employees have the option to transfer all or part of their NC 401(k) or NC 457 funds to the Retirement System to receive an additional monthly benefit. You are not required to close your NC 401(k) or NC 457 accounts upon retirement. You may also transfer other eligible retirement accounts such as an IRA into the NC 401(k) or NC 457 plans and then transfer those funds to the Retirement System to receive the Transfer Benefit.

If you do not have a NC 401(k) or NC 457 account, you will need to create an account before you retire in order to transfer other retirement accounts into the Retirement System to receive an additional monthly benefit. Visit the NC 401(k)/NC 457 Transfer Benefit web page for additional information. To better understand the relationship between the transferred amount and the monthly benefit, use the estimator found in ORBIT.

 

30 to 60 Days Before Your Retirement Date

1.

As a part of the online process, and when the Retirement Systems has processed your application, you will receive an estimate and a Form 6E providing your benefit option choices and an explanation of each.

2.

If you enrolled in the optional Contributory Death Benefit for Retired Members, you will receive Form 333BEN (Designating Beneficiary(ies) for the Contributory Death Benefit for Retired Members) to complete and return to the Retirement System.

3.

Discuss your payment options with your family and those who advise you on your finances. Your option decision will determine how much you receive each month and how much your beneficiaries receive after your death, if applicable.

4.

Finalize your payment option.

5.

​Return the Form 6E to the Retirement Systems. If this form is properly completed and returned to the Retirement Systems by the 10th day of your retirement month, your first benefit payment will be issued on the 25th day of that month. For example, if you retire on Oct. 1, 2024, and the System receives your Form 6E by Oct. 10, your first benefit payment will be issued on Oct. 25, 2024.

If your Form 6E is not returned by the 10th day of your retirement month, but is returned to the System before the 25th, your first payment will be issued within a week after the 25th day of the month in which the Form 6E was received.

If your Form 6E is returned to the System after the 25th of the month in which it is first payable, your first benefit payment will be issued within a week after the System receives your completed Form 6E. If a retroactive amount is payable to you, it will be included in your first payment.

6.

Once your properly completed Form 6E is received by the System, you will receive a confirmation letter listing the option you selected and the date your first benefit will be issued.

7.

If you are a teacher or state employee, review your State Health Plan (SHP) coverage which will change from the active group to the retiree group. After the Retirement System processes your Form 6E, you will be auto-enrolled into a health plan under the SHP retiree group, and you will be sent instructions with Form HM Online (Instructions for Changing Retiree Health Coverage through the State Health Plan). For more information, see the Enrollment Process for Eligible Retiring Employees.

State Health Plan Retiree Fact Sheet

8.

You will receive Form 336 (Designating Beneficiary(ies) for the Guaranteed Refund as a Retiree) Complete Form 336 and return it to the Retirement System.

 

Your Retirement Date

1.

Enjoy the first day of your retirement. If your application was completed as instructed above, your first benefit payment will be issued to you on the 25th of the month.

Once this payment is issued, your option selection and retirement are irreversible (except under specific circumstances).

2.

Familiarize yourself with return-to-work policies. State and local government retirees are permitted to return to work for a state or local government employer with certain restrictions. Please see the “Return to Work after Retirement” section for your Retirement System in Your Retirement Benefits handbook, for detailed information regarding this subject.

 

After You Receive Your First Benefit Payment

1.

Log in to ORBIT. Now that you have your first benefit payment has been issued, you have all the information you need in ORBIT.

ORBIT will provide you with payment history, earnable allowance for each year, tax documents, the option to change your address, and much more.

Make sure to verify your email address in ORBIT. Click on the tab titled "Maintain Phone/Email" and click on "Change your current phone/email address?" to add your phone and email information.

2.

Look for final benefit adjustments. Payroll adjustments made by your employer after you retire could cause your benefit to change. If this occurs, you will be notified, and your benefit payment adjusted within one year after you retire. A benefit adjustment is necessary for approximately 50 percent of all new retirees.

3.

Look for information from the Pierce Insurance Agency regarding supplemental insurance coverage.

Additional Links
Nearing Retirement
Apply for Retirement Online
Guides for Members Nearing Retirement
Health Benefits
Member Handbooks
Purchase Service
Retirement Online Process Map
Retirement Planning 101
Retirement Planning Conferences
Return to Work Laws