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Teachers' and State Employees' Retirement System (TSERS)

1. ELIGIBLE EMPLOYEES

Employees become a member of the System on the date of hire if they are a permanent full-time teacher or employee of a State-supported board of education or community college, a permanent employee of the State (or any of its agencies, departments, bureaus, or institutions) and work at least 30 hours per week for nine months per year, or a permanent employee of a charter school whose board has elected to participate in the Retirement System. However, if you are a faculty member or administrator at a State institution of higher education, you may join an optional retirement program, instead of the System; or an Agricultural Extension Service employee and a member of the Federal Employees' Retirement System, you may not join this System.

2. PROCEDURES
   
   
1. Enrollment: Upon hire, employees complete a Notice of Enrollment (form 2) and name beneficiaries to receive refund of contributions and death benefit if employee dies before retirement. Beneficiaries can be changed at any time by completing a Notice of Change of Beneficiary (form 2C).
   
   
2. Contributions: Employees share in the cost of providing retirement benefits. The employee's share is a set percent of salary and is automatically deducted from each paycheck. Salary includes all wages paid, from public funds, which are earned on the covered job while working for the State. On and after July 1, 1982, your contributions to the Retirement System are tax-sheltered for federal and State income tax purposes. The State bases its contributions on calculations prepared by an actuary. The total contributions and investment earnings provide retirement benefits.
   
   
3. Applying for Benefits: To begin retirement benefits, employees must sign and file an Application for Retirement (form 6) no earlier than 90 days nor later than one day before the effective date of your retirement. The effective retirement date is always the first day of the month and is not the date that you quit work. If the retirement application is not executed at least one day before the effective retirement date, the Retirement Systems Division must change the effective date to the first of the following month.
   
   
4. Calculation of Benefits: As a "defined benefit plan", the benefit received at retirement is determined by a formula. The formula used in calculating the maximum annual retirement benefit is the average of the employee's salary during the four highest paid years in a row times a retirement factor set by the N. C. General Assembly times the total number of years of membership service. For an early retirement the annual retirement benefit is multiplied by a reduction factor. Retirement eligibility is based on age and/or years of creditable service. Creditable service means any period during which the employee makes contributions to the System, provided the funds were not withdrawn. In addition, military service, out-of-state service in related governmental employment, or have unused sick leave may apply in determining creditable service. If an employee leaves the System and withdraws their contributions, he/she may restore your creditable service by making a lump sum payment as outline in the provisions.
   
   
5. Options for Retirement Benefits: Several options for lifetime benefits are available to the member and beneficiary in the event of the retiree's death. All retirement options provided for a return of any unused retirement contributions to designated beneficiaries. Benefits may be increased periodically after retirement to keep abreast of the cost of living.
   
   
6. Additional benefits: The plan provides (1) a death benefit after one year of contributing membership service and (2) participation in the Disability Income Plan of North Carolina.