Retirement Monitor – November 23, 2010
A monthly newsletter for public sector human resources and payroll
specialists from the Retirement Systems Division of the North Carolina
Department of State Treasurer.
In This Issue:
ORBIT Tool Helps Employers Track Rehired Retirees
Assisting Employees with Designating Beneficiaries Online
Disability Training Sessions for TSERS Employers
Employer Reporting E-mail Address Changed
Retirement Planning Conference Schedule/Locations Needed for 2011
Retirement Systems Contact Information
Message to Active Employees: Transfer Benefit Option Now Available at Retirement with NC 401(k)
and NC Deferred Compensation (457) Plans
ORBIT Tool Helps Employers Track Rehired Retirees
The North Carolina Retirement Systems implemented a tool at the beginning of the year to help
employers meet the requirement to identify, on a monthly basis, employees who have retired and
returned to work in the same Retirement System from which they retired. The tool will also capture
information for a person who is receiving a Disability Benefit and information for an ORP Retiree for
Health Insurance Benefit purposes.
Identifying rehired retirees enables the Retirement Systems to:
Help retirees track their earnings under the earnable allowance
Identify retirees who return in a contributing membership capacity
Track retirees’ compliance with return-to-work laws
The retiree must be reported to the Retirement Systems within 90 days of the end of the month in which a
beneficiary is reemployed. If the reemployment is not reported, the Retirement System will assess a
penalty of 10% of the compensation of the unreported reemployed retiree during the months the employer
did not report the reemployed retiree, as required by law. The minimum penalty is $25.00.
The ORBIT-based reporting tool assists employers in reporting all rehired retirees, therefore avoiding
penalties. The reporting tool helps you verify which of your employees are retired and have returned to
work, so you will know which employees to report to the Retirement Systems.
To use this new tool, you should:
Access the ORBIT Employer Self
Service page by clicking on the
ORBIT logo at
www.myncretirement.com.
Under “Reporting,” click on “Check
Retired Status”
On a monthly basis, upload a list of
employee Social Security numbers
Make necessary adjustments under
the “Check Retired Status” heading
Your employee list will be run against the Retirement Systems retiree lists to generate a report of
members who are actively
receiving a benefit from the
Teachers’ and State
Employees’ Retirement
System or the Local
Governmental Employees’
Retirement System. This
rehired retiree list should
be reported to the
Retirement System via your
monthly ORBIT payroll
report and in the same
manner as your other
ORBIT reported records.
The Retirement Systems
appreciate your important
role in helping us provide
accurate information to
active members and retirees.
Assisting Employees with Designating Beneficiaries Online
Thank you for providing such good customer service by assisting your employees, with less than 10 years
of service, in gaining access to the ORBIT-based beneficiary designation process. Please remember
that employees should not give you their passwords to gain access to ORBIT.
If a member does not have access to a computer, you are encouraged to provide your employee with
temporary access to a computer so that the employee can log in and change their information. This
procedure will better safeguard you from any liability if the information is entered incorrectly or not as the
employee wishes.
Disability Training Sessions for TSERS Employers
The Retirement Systems Division’s Educational Retirement Group will hold disability training sessions for
Teachers’ and State Employees’ Retirement System (TSERS) employers. The sessions will be held from 8:30
a.m. to 4:30 p.m. at:
January 13, 2011
Department of Correction
2020 Yonkers Rd
Raleigh, NC
To register for the Disability training session, please e-mail Jeannie Alston at
Jeannie.alston@nctreasurer.com. Seating is limited.
Employer Reporting E-mail Address Changed
The e-mail address for the ORBIT Employer Reporting Group. The e-mail address has changed to
OER@nctreasurer.com from eesu@nctreasurer.com. The ORBIT Employer Reporting Group assists you
with your monthly ORBIT reporting questions.
Please update your records to reflect this change. The old e-mail address will not be valid after Jan 1,
2011.
Retirement Planning Conference Schedule for 2010 – Locations Still Needed for 2011
The last retirement planning conference for 2010 will be held on November 30 at:
High Point Museum
Lecture Gallery
1859 E. Lexington Ave.
High Point, NC
TSERS sessions begin at 9:30 a.m. and LGERS sessions start at 1:30 p.m.
2011 Retirement Planning Conferences
January 6, 2011
Kannapolis Train Station
Council Meeting Room
201 S Main St
Kannapolis, NC
January 12, 2011
Nash Community College
Business & Industry Center/Brown Auditorium
522 N. Old Carriage Rd
Rocky Mount, NC
January 20, 2011
Department Of Transportation
Highway Building Auditorium
1 S. Wilmington St.
Raleigh, NC
January 25, 2011
Wayne Community College
Moffatt Auditorium
3000 Wayne Memorial Dr.
Goldsboro, NC
January 26, 2011
Robeson Community College
ADL Auditorium
5160 Fayetteville Rd.
Lumberton, NC
The conference provides TSERS and LGERS members with an orientation about their retirement benefits and
also serves as a pre-retirement planning session for members closer to retirement. Prudential Retirement,
our third-party administrator, will offer information on the NC 401(k) and NC Deferred Compensation (457)
plan, and the new Transfer Benefit option, available to retiring active members. Registration is not required.
Some locations may charge a parking fee.
Members unable to attend their local conferences may access the PowerPoint presentation shown at
the conference. The presentation is available on the Employers and Active Employees sections of
the Retirement Systems website under “Retirement Planning Resources.” There is a presentation
for TSERS members and one for LGERS members.
The 2011 conference schedule will soon be posted to the “Employers” and “Active Employees” sections of the
Retirement Systems website at www.myncretirement.com. Employers are asked to remind employees about
the sessions being offered. Members should check the website regularly or contact Member Services
(telephone numbers below) for schedule updates.
Member Services employees at the Retirement Systems are happy to help with questions. Please call
1-877-627-3287 (toll-free) or 919-807-3050 (Raleigh area only). Members may also schedule an
appointment to meet with a counselor. We ask that members request and receive a retirement
estimate before scheduling an appointment. Members should complete a Form 309 to request an estimate.
Your help is needed to find locations to hold Retirement Planning conferences in 2011. The facilities
should be able to hold approximately 150 to 200 people and be available for the full day, as the length of
each session is approximately 2½ hours. Please send your recommendations for conference sites to
Alice DeVane at Alice.Devane@nctreasurer.com
Retirement Systems Contact Information
Employers with ORBIT Payroll Reporting questions should call 1-877-NC-ORBIT (1-877-626-7248) or
919-807-3055 (Raleigh area only). For all other questions, contact the NC Retirement Systems
Division’s ORBIT Employer Reporting Unit at oer@nctreasurer.com or call toll-free 1-877-807-3131
Option 2 (outside Raleigh area) or 807-3131 Option 2 (Raleigh area only).
Active Employees with questions or in need of information or forms should contact the Division’s
Member Services unit toll-free at 1-877-627-3287 (for outside Raleigh area) and (919) 807-3050
(Raleigh area only).
Retirees with questions or in need of information or forms should contact the Division’s Member
Services unit toll-free at 1-877-733-4191 (for outside Raleigh area) and (919) 733-4191 (Raleigh area
only).
Remember, to better serve our Spanish-speaking customers, the Retirement Systems’ Call Center is staffed
with a representative who can assist members with translating Retirement Systems’ information and
addressing their retirement-related questions.
The Retirement Systems Division manages retirement benefits for more than 820,000 working and retired
N.C. public employees. The North Carolina Retirement Systems continue to rank within the top five systems
th
nationally. With approximately $65.3 billion in assets, the Systems comprise the 10 largest public pension
plan in the United States.
Messages from the North Carolina Retirement Systems to Retired Public Sector Employees
Active Members Have the Ability to
Transfer NC 401(k) and Deferred Compensation Funds at Retirement for a Lifetime Benefit
Effective January 1, 2011, retiring members of the Teachers’ and State Employees’ Retirement System
(TSERS) and Local Governmental Employees’ Retirement System (LGERS) with an existing NC 401(k) or
NC Deferred Compensation (457) account through Prudential Retirement, will have the opportunity to
transfer all or a portion of their NC 401(k) and/or Deferred Compensation funds at retirement to the
North Carolina Retirement Systems.
During the 2010 legislative session, the General Assembly passed a bill providing the opportunity for
retiring active members to transfer funds for this lifetime benefit, also known as creating an annuity.
Previously, this option was available only to North Carolina law enforcement officers.
Who can transfer?
This option is available to retiring TSERS or LGERS members, including law enforcement officers,
who have NC 401(k)/NC 457 account balances through Prudential Retirement, the Plan’s thirdparty administrator.
Law enforcement officers vested by June 30, 2010, have the option to transfer funds under this
newly established Transfer Benefit available to all members, or transfer funds under the
previously established plan specifically for law enforcement officers.
Determining if the NC 401(k)/457 Transfer Benefit is Right for You
Having multiple options to transfer all or a portion of your NC 401(k) or 457 funds can give you the
opportunity to increase your monthly retirement benefit for recurring expenses while maintaining a
cash reserve in case of emergencies, or to use at some future date.
The NC 401(k)/NC 457 Transfer Benefit is designed to provide a lifetime benefit. However, the NC
401(k)/NC 457 Transfer Benefit may not be the right option if you only need income for a fixed period of
time, or if you have large expenses for which you need access to your funds. Transferring entire
401(k)/NC 457 account balances may not be the right option for those who:
1. Need their NC 401(k)/NC 457 to provide emergency funds after retirement,
2. Desire to leave a bequest, or
3. Want to bridge from retirement to Social Security
How the NC 401(k)/NC 457 Transfer Benefit Works
You may apply to transfer all or a portion of your NC 401(k) or NC 457 funds at the same time
you apply for retirement. Employees can transfer funds from both accounts.
Upon retirement you would submit the Form 319401k and/or Form 319457, or for law
enforcement officers vested by June 30, 2010, the Form 319LEO, to initiate the transfer of funds
from your respective accounts. Forms are available from www.myncretirement.com, under the
“Applications and Forms” section.
Transfers are a one-time, irrevocable election. After-tax Roth contributions are nontransferrable.
There is a one-time administrative fee of $100 per transfer.
How can I learn more about the NC 401(k)/NC 457 Transfer Benefit?
Several resources are available to help you learn more about the Transfer Benefit, and to help you
determine if the benefit is right for you. The North Carolina Retirement Systems and Prudential
Retirement have partnered with the State Employees’ Credit Union (SECU) to provide you with
information on the Transfer Benefit. Contact any one of the partners for more information:
State Employees’ Credit Union – SECU has employees who are ready to advise you on whether
this benefit is right for you. They offer this service free of charge and you do not need to be a
Credit Union member. As a non-profit, member-owned organization, SECU will provide you with
unbiased advice.
Visit the NC 401(k)/457 Transfer Benefit website at www.nclifetimeincome.org.
If you do not have access to the Internet or have further questions about the material
on the website, SECU call center staff is available to assist you 24 hours a day at 1-888732-8562. Press “3” to reach an experienced call center staff person.
North Carolina Retirement Systems – The NC Retirement Systems will help you identify or
obtain the correct forms to complete, will address questions about how to apply for the Transfer
Benefit, or check on the status of your application.
Visit the NC 401(k)/NC 457 Transfer Benefit educational website at
www.myncretirement.com. Click on the ORBIT link to use the Transfer Benefit
Estimator in your personal ORBIT account.
NC Retirement Systems call center staff is available to verify the status of your
application. The call center is open Monday through Friday from 8:30 a.m. – 5 p.m. at
1-877-NCSECURE (1-877-627-3287).
Prudential Retirement – Prudential’s call center staff will answer questions about your existing
NC 401(k) or NC Deferred Compensation (457) account(s), or will assist you in establishing a new
account, if you are employed by a participating employer.
Learn about the Plan features by visiting www.ncplans.prudential.com.
Prudential Retirement call center staff are available Monday through Friday from 8 a.m.
to 9 p.m. at 1-866-NCPLANS (1-866-627-5267).
If you miss the opportunity to transfer your funds when you retire, you have the option to transfer funds
at any point after retirement. However, if you are a law-enforcement officer, certain options are only
available at the time of retirement.