Retiree Benefits

Retirement Systems Funding

Many retirees believe that the retirement system you participated in (if you were a permanent employee) is only funded by the six percent contributions you made each month while working. In reality, there's so much more that's needed.

As you can see from the 2018 Teachers' and State Employees' Retirement System example to the right, in a year where we earned 7.3 percent, the investment returns provided 66 percent of the overall funding, employer contributions equaled 22 percent and employee contributions equaled 12 percent. By assuming a seven percent annual return on investments, the state takes on enormous risk because in years where we don’t hit that return mark they have to kick in more money. They have consistently done so since 1941, which is why the N.C. Retirement Systems continue to be one of the best funded pension plans in the country.


graphic of a dollar bill with the first third larger than the other two.