Retirement at NC State – Benefits, Employee Wellness and Work Life (2024)

State Health PlanYour active group health coverage will end based upon last day of employment.

If eligible, your retiree health coverage will begin on the first of the month following retirement. (If retirement begins immediately following end of employment, there is no lapse in medical coverage.) For example, if you retire July 1st, your retiree health insurance would begin August 1st.

For retirees and/or covered dependents under age 65, the active group medical coverage plans (70/30 or 80/20) will continue into retirement automatically. There is nothing to do unless you wish to un-enroll yourself or dependents from this plan.

If age 65+, you will be defaulted into a Medicare Advantage plan through the State Retirement System.

Medicare Eligible Retirees have until the day prior to their retirement date to change from the defaulted plan (i.e. base plan to enhanced). This change can be made via ORBIT or by calling 855-859-0966.

Dependent coverage can be continued at full cost with the Retiree Health Plan.

First Hired On/After January 1, 2021 - If you were hired on or after January 1, 2021, you will not be eligible to receive retiree or dependent medical benefits.

If age 65 or older, enroll in Medicare Parts A and/or B with effective date same as retirement date. Obtain the Request for Employer Information (Form OMB No. 0938-0787) from your assigned Benefits Consultant.

Once enrolled, a new medical ID card will be sent to you. Provide this to your doctors and pharmacies when your retiree health coverage is effective.

Retirement Contributions

Teachers’ and State Employees’ Retirement System (TSERS)

Or

Optional Retirement Program (ORP)

TSERS or ORP deductions are deducted from annual leave and bonus leave payouts, if applicable.

If ORP, you must complete an ORP-3 form to document your vesting.

Retirement deductions will be taken from leave payouts, if applicable.Supplemental/Voluntary Retirement Plans

401(k)
403(b)
457

Contributions will stop when employment ends. For options with these plans, you can contact the vendors directly:

Prudential: 1-866-627-5267
TIAA-CREF: 1-800-732-8353
Fidelity: 1-800-642-7131

Voluntary retirement deductions will end when employment ends. You may elect to have leave payouts deferred into a voluntary retirement plan. NCFlex Programs

Accident Plan, Dental, Vision, Cancer, Critical Illness, Flexible Spending Accounts, TriCare

Your current NCFlex coverage will end on the date full-time employment ends.

You will have the option to continue your coverage through COBRA for up to 18 months by paying the full premiums directly to the vendors. The vendors will mail the COBRA offers to your home address.
Find Retirement Dental options at
NCretiree.com
NCRGEA.com

NCFlex benefits end when full-time employment ends.

View continuation options for NC Flex plans, including COBRA contact information here: NC Flex Plan Continuation Options

State Disability Programs
(Short-Term and Long-Term DIP-Disability Income Plan)Coverage ends on the date full-time employment ends.Disability coverage ends on the date full-time employment ends.Supplemental Disability Plans

Liberty Mutual Long Term

Standard Long Term

Coverage ends on the date full-time employment ends.MetLife Legal PlanCoverage ends on the date full-time employment ends.MetLife Legal Plans can be continued for a 12-month period following your employment ending. All 12 months of coverage must be paid for in one lump sum to MetLife Legal to continue the coverage.

Call 1-800-821-6400 for more information.

UNC System Term Life Insurance (Securian)Your UNC System Life insurance ends on the date full-time employment ends.
Securian will contact you directly regarding continuation options. If you are not enrolled at the time of retirement, you do have the option of electing coverage upon retirement. Voluntary Retiree Life SummaryTraveler’s Insurance (home, auto)Traveler’s deductions end on the date full-time employment ends.Call 919-847-4909 for information on continuing coverage.ParkingA parking deduction will continue until you return your virtual permit". An “R” sticker is also available for retirees who wish to continue parking on campus.Visit Transportation’s Contact Us page and under the “Have a Question or Comment” section choose “Returning Virtual Permits: Chris Dobek”. Fill out the information and include the day you would like for your virtual permit to be returned. These can be future dated.Leave Accruals

Annual / Bonus

Sick

Unused eligible bonus leave and annual leave (up to 240 hours each for 1.0 FTE) are paid out when employment ends. For TSERS members whose retirement is effective January 1, annual leave above maximum amount to be paid will roll into sick leave balance as part of their retirement calculation. For TSERS members, unused sick leave balance is reported to TSERS and increases retirement service credit. For every 20 days of sick leave, the retirement service credit is increased by one (1) month.

If you wish to defer the leave payout, complete the applicable Voluntary/Supplemental Retirement Plan(s) form(s) and fax to 919-513-2528 no later than the 10th of the month in which the leave will be paid. (Note that December has an earlier payroll deadline.)

For ORP participants, note that sick leave will not affect your retirement. Consider donating leave to the Voluntary Shared Leave Program to assist employees in need.

TSERS or ORP contributions are deducted from annual leave and bonus leave payouts.

Annual and/or bonus leave payouts are based on WolfTime balances and is paid out the month in which they retire. For example, someone who retires effective August 1 would receive a leave payout on August 31.
Retirement at NC State – Benefits, Employee Wellness and Work Life (2024)

FAQs

Do NC state employees get health insurance at retirement? ›

Guidance on State Health Plan changes for Teachers' and State Employee's Retirement System (TSERS) When you retire under TSERS, you may be eligible for health coverage under the State Health Plan (Plan) if you have at least five years of TSERS membership service earned as a teacher or state employee.

How does retirement work for NC state employees? ›

TSERS is a Defined Benefit Plan, which means retirement benefits are based on salary, years of service and a retirement factor. The formula for TSERS is: Average salary based on the 48 highest consecutive months of earnings. Multiplied by a Retirement Factor of 1.82% (set by state statute)

How many years do you have to work for the state of NC to be vested? ›

You become vested in TSERS once you have completed a minimum of five years of membership service.

Is NC State pension for life? ›

The Teachers' and State Employees' Retirement System (TSERS) is a defined benefit plan. For TSERS members, eligible retirees receive a guaranteed lifetime monthly benefit, also known as a pension.

What benefits do state employees get in NC? ›

State employees are eligible for many valuable Benefits in addition to their regular pay. These benefits include the State Health Plan, DHHS Supplemental Benefits, NCFlex Benefits, Retirement, 401K/457 Prudential Savings Plans, Leave Benefits, EAP, Service Awards, and many other important Benefits options.

What is the rule of 85 for retirement in NC? ›

No. Under current law, there is no “rule of 85” (meaning your service plus age equals 85) to receive an unreduced, service retirement allowance. You must be at least age 60 and have at least 25 years of creditable service. You may, however, use your unused sick leave to complete your service requirement of 25 years.

Is NC state retirement taxed? ›

Overview of North Carolina Retirement Tax Friendliness

North Carolina exempts all Social Security retirement benefits from income taxes. Other forms of retirement income are taxed at the North Carolina flat income tax rate of 4.75%. The state's property and sales taxes are both moderate.

What is the one time bonus for NC State retirees? ›

The payments will not reduce the funded ratio of the State System. This one-time payment is equal to 4% of the annual retirement allowance. “Once paid, monthly benefit payments will return to the levels they would have been without the supplemental increase,” Folwell stated.

How many years do you have to work to get retirement benefits? ›

Learn more about credits at www.ssa.gov/planners/credits.html. Although you need at least 10 years of work (40 credits) to qualify for Social Security retirement benefits, we base the amount of your benefit on your highest 35 years of earnings.

Can NC state employees retire after 20 years? ›

You may retire early with a reduced benefit after: you reach age 50 and complete 20 years of creditable service, or. you reach age 60 and complete five years of creditable service.

Can you lose your pension if you are vested? ›

“Vesting” in a retirement plan means ownership. This means that each employee will vest, or own, a certain percentage of their account in the plan each year. An employee who is 100% vested in his or her account balance owns 100% of it and the employer cannot forfeit, or take it back, for any reason.

How long until I'm fully vested? ›

Employees might become vested in 20% of their employer's matching contributions after two years, 60% after four years and 100% after six years. Employers may choose this type of vesting schedule to encourage employees to stay with their company on a long-term basis.

Do NC state employees get health insurance after retirement? ›

State Health Plan Coverage for TSERS Retirees

North Carolina takes care of state employees and state retirees by offering health plan coverage to members of the Teachers' and State Employees' Retirement Systems (TSERS).

What is the formula for NC state employee retirement? ›

Your annual retirement benefit is based on this formula: 1.82% of your average final compensation TIMES your years and months of creditable service. If you are between birthdays when payments start, the reduction will be adjusted proportionately.

What does it mean to be vested with the state of NC? ›

If you have five or more years of membership service, you are vested and may be entitled to a monthly retirement benefit (and health insurance, if applicable) once you reach an age that qualifies you. This potentially extends to your elected beneficiaries and survivors.

Do government employees get health insurance after retirement? ›

Yes. After you retire, you will still have the opportunity to change your enrollment from one plan to another during an annual open season. You cannot change to another plan simply because you retired.

What is the NC state health plan for turning 65? ›

The State Health Plan mails you a Medicare eligibility letter prior to your 65th birthday asking that you confirm your eligibility for Medicare benefits. If you are actively working for the State after turning 65, the Plan will continue to be your primary coverage and Medicare will be secondary.

How does retirement health insurance work? ›

Retiree health coverage is health insurance that some employers, unions and trusts may offer to retiring employees and their spouses. Typically, it is group health insurance similar to plans offered to active employees. Eligibility, enrollment, coverage and other rules are specific to each employer's retiree plan.

Does NC State offer health insurance? ›

The State Health Plan offers freedom of choice among in-network and out-of-network providers, lower out-of-pocket costs and a strong emphasis on preventive health. There are two health plans available: 70/30 plan and a 80/20 plan.

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