Retirement at NC State
Congratulations on attaining this milestone in your career and life! Review the information below for details specific to your elected retirement plan.
Planning for Retirement
Retirement is a measured decision, and the timing of one’s retirement varies per individual. Many factors, including finances and plans for life after leaving full-time employment, should be considered in deciding when one is ready for retirement.
Below is information for both Teachers’ and State Employees’ Retirement System (TSERS) members and UNC Optional Retirement Program (ORP) participants, and includes what happens to active benefits and the process for retiring.
Retirement Planning Resources
TSERS Members
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. The pension is calculated based upon a formula. The formula consists of the number of years of qualifying service, the retirement factor (determined by the State Legislature), and the average of the highest forty-eight consecutive months of qualifying salary. There is an online retirement process available for those who cannot have an in-person retirement counseling session. However, submission of the retirement application is only one step in the retirement process. The following is information shared in the counseling session, and will assist you in understanding what will happen to current and retiree benefits upon retirement.
Eligibility
For Full Retirement:
- at age 65 with 5 years of service
- at the age of 60 with 25 years of service, or
- at any age with 30 years of service
For Reduced Retirement:
- at age 60 with 5 years of service
- at the age of 50 with 20 years of service
- A retiring employee should attend a Ready To Retire session for instructions on completing the retirement process, understanding Social Security and how Medicare works in conjunction with the Retiree Health Plan
A mandatory six-month break in service from State of North Carolina employment is required upon retirement from TSERS.
- Overview
- TSERS (ORBIT)
- TSERS Member Handbook
- Retiree Medical Eligibility
- Adding to Credible Service – Review section 6 of the Retiree Handbook
Retirement Process
Meet with NCSU Benefits Team
- Submit a case in HR NOW requesting a retirement submission appointment no earlier than 120 days prior to your retirement date
- Items Needed for Appointment:
- You must be able to access to your ORBIT account. Please bring your USER ID and Password and device for 2-step authentication
- Date of Birth and SSN for your potential survivor
- Most recent SS estimate, if under age 62
Submit your retirement application online
- After logging into your TSERS (ORBIT) account, click here for online retirement process information
Retirement Information
The monthly pension is paid via direct deposit on the 25th of each month. First pension check is mailed; subsequent pensions will be direct deposited.
Mandatory six-month break: The State Retirement System requires that retirees do not work in any capacity (direct or indirect) for the same branch of the retirement system from which they retired for six months after retirement. Violation of this rule will result in cancellation of retiree benefits.
An exception is made for volunteering in “bona-fide volunteer” positions. Note that applicable positions must be deemed as such with the State. No such positions exist at NC State University.
Rehired retirees are subject to earnings and work hour restrictions in order to maintain retiree benefits. For questions or clarification, contact the State Retirement System or your department-assigned Benefits Consultant.
Bailey Vesting: For those vested in TSERS prior to August 12, 1989, the pension will not be subject to NC state tax.
Additional retirement forms must be completed and submitted. These include forms for direct deposit, taxes, the death benefit and the guaranteed refund beneficiary form. All forms are available online via ORBIT. Be sure to submit forms timely. Late submission of forms will delay receipt of your pension.
Email and Campus Directory
- Email
Retirees may retain their NC State email account at the discretion of their department management. A department HR representative will submit a no-pay action in the HR System to maintain access. See instructions for submitting Retiree and Guest Accounts (found near bottom of page). - Campus Online Directory
Remove any custom information. Ex: Phone Number, address, etc.
Note: In order to update the directory, you will need to have DUO Security set up.Contact the Help Desk at 919-515-HELP (4357) or help@ncsu.edu if you have any questions.
ORP Participants
The UNC Optional Retirement Program (ORP) is a defined contribution plan. For participants in this plan, retirement is based upon how contributions perform over time. To qualify for retiree health insurance, you must be in receipt of a monthly benefit from your ORP account. Benefits staff at NCSU do not have access to your ORP account. Schedule a meeting with the ORP vendor reps assigned to NC State to determine the best method of receiving a monthly benefit from your ORP account. Some retirees may need income replacement, and some may simply need to receive enough to qualify for retiree health insurance, if eligible. The vendor rep can assist in determining the amount right for you.
After meeting with the vendor rep, request a meeting with the benefits office in HR NOW for information on will happen to current active benefits and retiree benefits upon retirement.
Eligibility
There are no age requirements for retirement under the ORP. Vesting in the employer contributions occurs after 5 years of ORP participation. Consult with your ORP vendor rep for assistance in determining your options for a monthly benefit with the plan.
Retirement Process
- Meet with your ORP vendor representative to decide how to receive a monthly benefit from your ORP account
- Submit a case in HR NOW requesting a retirement submission appointment no earlier than 120 days prior to your retirement date
- Complete an ORP-3 form
- Enroll in your retiree health insurance, if eligible, when notified by the State Retirement System. You will need to remit payment for retiree health insurance.
Retirement Information
A one-month break is suggested for ORP participants.
Bailey Vesting: For those enrolled in the ORP prior to August 12, 1989, the monthly benefit from the ORP account will not be subject to NC state tax.
Email and Campus Directory
- Email
Retirees may retain their NC State email account at the discretion of their department management. A department HR representative will submit a no-pay action in the HR System to maintain access. See instructions for submitting Retiree and Guest Accounts (found near bottom of page). - Campus Online Directory
Remove any custom information. Ex: Phone Number, address, etc.
Note: In order to update the directory, you will need to have DUO Security set up.Contact the Help Desk at 919-515-HELP (4357) or help@ncsu.edu if you have any questions.
Benefits Information for Both Plans
| Benefits Plans | Information | Notes / Instructions |
|---|---|---|
| State Health Plan | Your 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 your 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 once your coverage ends. Find Retirement Dental options at NCretiree.com NCRGEA.com | NCFlex benefits end when your 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 Plan | Coverage 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 your 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 Summary |
| Traveler’s Insurance (home, auto) | Traveler’s deductions end on the date your full-time employment ends. | Call 919-847-4909 for information on continuing coverage. |
| Parking | A 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. |
Other Information
Retiree Health Insurance Eligibility
When you retire and begin receiving monthly benefits from your mandatory retirement plan you may also be eligible to enroll in the State Health Plan with the cost determined by when your employment started with the State. In all cases, the full cost of dependent coverage, if elected, must be paid by the retiree.
First Hired on/After January 1, 2021
- 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.
First Hired Prior to October 1, 2006
- If you were first hired prior to October 1, 2006, and retire with five or more years ORP or TSERS participation, the State will pay either all or most of the cost.
First Hired On/After October 1, 2006
- If you were first hired on or after October 1, 2006, in order to receive individual coverage at no cost, you must retire with 20 or more years of retirement service credit;
- If you have 10 but less than 20 years of retirement service credit, you will have to pay 50 percent of the cost for your coverage,
- With five but less than 10 years, you will have to pay the full cost for your coverage.
Based on current law, if you previously withdrew, transferred, or rolled-over your entire TSERS account, your first hire date is forfeited and will reset based on your re-employment date with the state. Upon termination/separation/retirement if you withdraw, transfer, or rollover your entire TSERS account you will forfeit your right to the State’s retiree group health plan coverage.
For more on Retiree Health Insurance, please visit the State Health Plan website.
For additional deductions such as gym membership, SEANC, bank deductions, etc., contact the applicable institution for instructions on remitting payments after employment ends.