5 WAYS TO RETIRE
Reduced Retirement:
Age 50 with 20 years of service
Age 60 with 5 years of service
Unreduced Retirement:
Age 60 with 25 years of service
Age 65 with 5 years of service
Any age with 30 years of service
Health Insurance is provided with reduced and unreduced retirement.
Effective 10/1/06 new employees must have 20 years of service to be eligible for
free health insurance.
Preparation for Retirement
The first thing you need to decide is your
retirement date(all retirement dates are on the
first day of a month).
You should review your personal information
through the ORBIT system at
www.myncretirement.com .
Once you review your information on ORBIT you
should then complete Form 309 requesting an
estimate from the Retirement System at least 1
year before your retirement date.
• You may also visit the NC Department of State
Treasurer Retirement website at:
www.myncretirement.com .
• Once you are on the website you will need to click
on Retirement, click on Estimate Benefits, click on
Teachers’ and State, click on continue. You will
need the following information: your DOB, Date
of Retirement, Total Creditable Service at
Retirement, Accumulated sick leave hours,
Average final compensation which is your 4
highest consecutive years divided by 4.
• You must have an estimate before
scheduling a retirement appointment
with me.
• Email me 6 months before your
retirement date to schedule an
appointment to complete your
paperwork.
• During the scheduled appointment time, we will
discuss your retirement service years, review
your benefits and your leave days.
• SICK LEAVE
• 20 days of sick leave equals 1 month of service
credit that will add to your years of service. There
is no limit on sick leave days. For the final month,
any increment over .125 will count towards the
final month of service. This means if you have at
least 1 hour of a day you will earn 1 month of sick
leave.
To realize the maximum benefit of your
leave, take your leave balances and
add the number of days you will accrue
throughout the last year of your
employment.
Annual leave
current
will earn
total
built in
total
transfer to sick
29.0
+21.0
50.0
-10.0
40.0
-10.0
30.0
sick leave
current
will earn
total
transferred AL
Total
(payout days)
260 = 1 yr 3 months additional service for a 10 month employee
.125 = 1 extra additional month of service
for a total of 1.4 additional service.
240.125
+10.000
250.125
+10.000
260.125
TOTAL
PERSONAL LEAVE
Personal leave days will convert to sick leave
(classroom teachers and media specialists).
ANNUAL LEAVE
You will be paid out for up to 30 annual leave days.
BONUS LEAVE
You will be paid out for any bonus leave you have.
LONGEVITY
You will also receive prorated longevity.
If you wish to contribute your payout amounts
of annual leave, bonus leave and longevity in
a lump sum to your 401k or Annuity, I will
give you the instructions for this process. You
must be participating in these programs
before your last paycheck is issued.
For answers about how much you are allowed
to put into your annuity, you must work
through your broker.
Health insurance is part of retirement for your
lifetime (if eligible).
You may cover eligible dependents at current
premium rates.
When you or a covered dependent turn 65 you
must sign up for Medicare Part A and B.
At that time Medicare A & B are Primary and the
State Plan is secondary.
Dental may be kept 18 months under COBRA
provisions .
You may convert or port any or all optional life insurance you
have with Met Life (convert means change to a new policy, port
means to keep the same policy. With both options, the premiums
will increase annually and at age 70 the coverage amount
decrease by 50%).
You may continue certain flexible benefits after retirement
(you may COBRA vision for 18 months ; benefits that may be
continue longer than 18 months are the cancer plans, whole life
insurance and the hospital indemnity).
The state offers a $10,000 death benefit policy.
The Department of Insurance will offer you both dental and
vision plans after retirement. If chosen these deductions will be
deducted from your retirement check.
Retirement Forms
& Requirements
Forms
• Form 6 - Claiming Your Retirement Benefits
• Form PS-33 - Resignation Form
Requirements
• Your Driver’s License or Birth Certificate (Copies)
• Beneficiary’s Driver’s License or Birth Certificate (copies) if
interested in Payment Option 2 or 3
• Social Security Statement if interested in
Payment Option 4
Once we have discussed all of this information I will
prepare the required forms for you to sign. I will give you
copies of the completed forms and I will forward the
original forms to the Retirement System and Human
Resources for processing.
Upon receipt the Retirement System will send you the
following paperwork:
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Notification Letter
RET-170 - Authorization Agreement for Direct Deposit
Ret. HM - Online Health instructions
RET-333- Notice of $10,000 Contributory Death Benefit for Retired
Members
Form 6E-Election of Benefits (select payment option)
Form RET-290-Notice of Tax Withholding
Form 336 – Designating Beneficiary(ies) for Guaranteed Refund
Report of Estimated retirement Benefits
Upon receipt you will then decide on your health
insurance coverage, payment option for retirement
along with the decision regarding the $10,000
Death Benefit and your Tax Exemptions.
All retirement checks are subject to Federal
Withholding Taxes.
As a retiree you may change your tax selections
anytime you feel you need to increase or decrease
the deductions.
You need to consult your accountant regarding your
options before making your final decision about taxes
after you retire.
If you had 5 full contributory years in the State on
August 12, 1989, you are exempt from paying State
Withholding Taxes.
Otherwise, you are subject to paying them on your
retirement.
If you had five years and took the money out and
bought back the time, you forfeited the exemption
and are still subject to the taxes.
When you retire, your first check is always
mailed out on the 25th of the month so you
receive it about the 28th or 29th.
After you cash your first check all future checks
are direct deposited into your account on the
morning of the 25th.
In December, they are typically posted on or
about the 20th.
Retirement checks are paid 12 times per year.
How The Payment Options Work
Option 1
Maximum Payment

At your death
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
To You
To Beneficiary
$2,742.00
None
Payment Options
Option 2
100% Joint And Survivor
You receive reduced monthly
payments for life. After you die,
your beneficiary receives the same
amount monthly for life.
To You
To Beneficiary
$2,277.00
$2,277.00
Option 3
50% Joint And Survivor
You receive reduced monthly
payments for life. After you die,
one-half of your payment continues
to your beneficiary for life.
To You
To Beneficiary
$2,488.00
$1,244.00
Option 4
Social Security Leveling
You receive larger monthly payments
than you would otherwise be entitled
to receive, until you become eligible
for Social Security at age 62.
To age 62 - $ 3,242.00
Age 62 and after $2,042.00
Option 6
Modified Joint And Survivor
Option 6-2 -- combination of Option 2 and
*maximum payment
To You
$2,218.00
Beneficiary
$2,218.00
Option 6-3 -- combination of Option 3 and
*maximum payment
To You
$2,453.00
Beneficiary
$1,226.00
*If beneficiary dies before retiree, retiree monthly
amount will convert back to maximum payment.
Example of estimate
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Department of State Treasurer
TEACHERS’ AND STATE EMPLOYEES RETIREMENT SYSTEM
325 North Salisbury Street
Raleigh, North Carolina 27603-1385
22-Nov.-2004
PRELIMINARY ESTIMATE OF RETIREMENT BENEFITS
Jane
A.
Doe
S. S. # 000 00 0000
777 Deer Crossing Lane
Deer Park, NC 27400
A.#
000000
============================================
ASSUMPTIONS USED FOR PRELIMINARY ESTIMATE OF BENEFITS
Date of birth
01/26/44
Total service credits
30.0000
Retirement date
01/01/08
Aver. Final compensation
$58,964.00
Sick leave days
160.00
Total contributions
$69,664.04
Annual leave days
30.00
Taxed contributions
$10,000.00
Est. monthly SS (age 62)
$ 1,200.00
Beneficiary:
John
A.
Doe
Beneficiary birthdate:
10/15/44
MAXIMUM PAYMENT
To You
$2,742.00
At your death
To Beneficiary
None
$2,277.00
$2,488.00
$2,277.00
$1,244.00
$3,242.00
$2,042.00
None
None
$2,218.00
$2,453.00
$2,218.00
$1,226.00
PAYMENT OPTIONS
(2) 100% Survivorship
(3) 50% Survivorship
(4) Social Security Leveling
To Age 62
Age 62 and after
(6) Pop-up
With option (2)
With option (3)
GUARANTEED REFUND (under all of the payment plans above): If you and the beneficiary (if any) you may have to
receive………………………………………………………………………………………
*The estimate under Option (4)…………………………………………………………….
***Based upon your age……………………………………………………………………
*Disclaimer*
Reemployment after Retirement
Under current legislation, all state employees may return to work under a cap.
A 6 month break is required for all retirees returning to state employment.
During the 6 month break the employee shall not work in any capacity in a
organization participating in the Teachers’ and State Employees’ Retirement
System, including part-time, temporary, substitute, part-time tutor or
contracted services.
The cap is determined by the Retirement System. Each year the standard cap
changes in January. You must contact the Retirement System to determine
your yearly cap.
After the 6 month break a retiree may work as an interim, tutor, substitute,
temporary status or permanent part-time (<30 hrs. per week). Employees in
this capacity must not exceed earnings cap and must not be employed in
permanent full-time status.
Reminders
• You should send your estimate request (Form 309) to the retirement
system at least 1 year prior to your retirement.
• You must email or call to schedule an appointment 6 months before
your retirement date.
• The earliest you can complete your paper work is 120 days prior to
your retirement date.
• You should not complete your paperwork later than 60 days prior to
your retirement date.
• Please advise your supervisor of your decision to retire in a timely
manner.
RETIREMENT GUIDELINE
1.
Request estimate from retirement system. (The earliest you can request an estimate is 2 years before your
retirement date. If you would like to have an estimate before the 2 years you will need to visit the Teachers’ and
State Employees’ Retirement Systems website at www.myncretirement.com click on retirement, click on estimate
benefits, check Teachers’ and State and click continue do the retirement estimate online. You will need the
following information: your DOB, Date of Retirement, Total Creditable Service at Retirement, Accumulated sick
leave hours, Average final compensation which is your 4 highest consecutive years divided by 4. You should
review your personal information through the ORBIT System at www.myncretirement.com before requesting your
estimate.
2.
Once you have your estimate contact Jeannie Greer for Retirement appointment (greerj@gcsnc.com) 6 months
before retirement date.
3.
My appointment with Jeannie Greer is _______________at ________o’clock.
4.
During appointment, years of service, annual leave, sick leave, benefits and payout information will be discussed.
5.
After appointment you need to do the following: Wait for the Notification letter, RET-333 Notice, RET-170
Authorization Agreement for Direct Deposit, Ret. HM online health instructions, FORM 6E, RET-290, Form 336 –
Designating Beneficiary(ies) for Guaranteed Refund and Report of Estimated retirement benefits to be sent to
your home address. Once received complete forms and return to the retirement system.
6.
You will receive in the mail from the GCS Benefits Office a letter with the termination dates of your benefits.
7.
You will receive offers from the Dental and Flexible benefits companies regarding the benefits you had with GCS.
Procedures to follow for annuity/401k payout totals:
Annuity: Contact your broker once the payout totals are sent to you and have completed forms sent to Finance 1
month prior to payout .
401k:
Complete the Prudential “One Time Deferral Rate Change Form” (which will be given to you during your
appointment with me) once the payout totals are sent to you. Completed form should be sent to payroll.
IMPORTANT WEB SITES/TELEPHONE NUMBERS
The Retirement Handbook and All Forms Available From the Retirement System May Be
Viewed and Downloaded From the Website At: www.myncretirement.com
There is more than one state retirement system. Our retirement system is the:
Teachers’ and State Employees’ Retirement System
Toll free line: 1-877-627-3287 active employees’
Toll free line: 1-877-733-4191 retired employees’
BENEFIT PLAN SERVICES, INC.
(Direct Reimbursement Dental Plan)
Phone: (336) 889-2003
SUPERIOR VISION
Website: www.superiorvision.com
Customer Ser/Claims: 1-800-507-3800
NC Smart Choice PPO
Customer Service 1-888-234-2416
RETIREMENT DENTAL AND VISION
Customer Service: 1-800-462-7864
ORBIT SYSTEM
ORBIT stands for Online Retirement Benefits through
Integrated Technology. The ORBIT SYSTEM was
launched on 10/1/07 for active employees. You may
access the system at www.myncretirement.com:
Click on Retirement,
Click on ORBIT in the drop down box,
Register in the register box if 1st time user; otherwise
login.
• This system will allow you to view
personal information, account summary,
account history, view benefit estimate,
annual account statement and track recent
request.
• You can also create a custom benefit
estimate or service purchase estimate,
request a current statement of your
account or a counseling session and
update your phone number and email
address .