TSERS Approval Process for Payment of Discontinued Service Retirement


1) Employer determines employee’s eligibility for Discontinued Service Retirement in accordance with N.C.G.S. 126-8.5 and requests a calculation of the cost.

Eligibility – Discontinued Service Retirement
Employees age 50 to 55 with not less than 20 years of creditable service may be eligible for a reduced monthly retirement benefit. The reduction is equal to ¼ of 1% (3% per year) for each month that a retirement precedes a member’s 55th birthday.

Employees age 55 or older, with not less than 20 years of creditable service may be eligible for an unreduced monthly retirement benefit.

Agency specific

2) Employer sends letter or email to N.C. Teachers’ and State Employees’ Retirement System (TSERS) to request calculation of Discontinued Service Retirement and provides the following information:

  • Name, address and phone number of employer and employer contact
  • Member’s Name and ID# (or Last 4 Digits of SS#)
  • Member’s Date of DSR (retirement date)
  • Member’s Last Day Worked
  • Member’s Annual Leave Balance (Hours)
  • Member’s Bonus Leave Balance (Hours)
  • Member’s Sick Leave Balance (Hours or Days)

Contact the Retirement Systems Division at NCRetirement@nctreasurer.com

As soon as applicable employee(s) is (are) identified.
3) TSERS calculates cost for Discontinued Service Retirement and notifies employer. Approximately 2 weeks assuming there are no complications when the service audit is performed.
4) After receiving TSERS cost, the employer determines whether to pay Severance Pay or Discontinued Service Retirement.  

5) If the employer decides to pay the Discontinued Service Retirement, a request must be sent to the Office of State Personnel along with supporting documentation to include:

  • A statement that a RIF has occurred in accordance with State Personnel policy and why it has occurred.
  • Name of employer and name, mailing address, e-mail address, and telephone number of contact submitting the request.
  • Information on the cost for payment of severance vs. discontinued service retirement.

This documentation should be sent to the Office of State Personnel

1-2 days
6) Upon approval by the Office of State Personnel (OSP), this documentation will then be sent by OSP to the Office of State Budget and Management (OSBM) for approval. 1-2 days
7) Once approved by OSP and OSBM, if the employer elects to proceed with the Discontinued Service Retirement (DSR), the employer submits to TSERS a check for DSR along with a complete TSERS application (Form 6DSR along with other accompanying TSERS retirement forms as appropriate). The check for the cost must be attached to the application(s) at the time of mailing. Application may not be submitted more than 120 days prior to discontinued service retirement date.

Employers with questions regarding the DSR process should contact the Retirement Systems Division at (919) 814-4590 to request assistance with Discontinued Service Retirement, Severance and Incentive Packages.