You become a member of the System after a two month
waiting period if you are a permanent employee of a participating unit and your
duties require that you work at least 1,000 hours a year. If you are transferring from another local or state government agency,
you are already a member of the System and are not subject to the waiting
period. A participating unit is any county, city, town or other local
government, which has agreed to participate in the System. When you begin working for your employer, you
will be asked to complete a Notice of Enrollment (Form 2). You will also be
asked to name a beneficiary to receive a refund of your contributions and a
death benefit, if you die before retirement. You can change your beneficiary at
any time by completing Form 2C, available from your employer or the Retirement
System. By NC law, all members of the retirement system are required to
contribute 6% of your gross paycheck each pay period, (this is deducted pre-tax
saving you payroll tax dollars). If
you are new to the retirement system, then your contributions begin with the
first paycheck immediately following two months from your date of hire. If you are transferring within the retirement
system, your contributions begin with the first paycheck following your
completion of the enrollment form as a new employee with the Town of
At Service Retirement (Unreduced Benefits)
You may retire with an unreduced service retirement
benefit after:
·
You reach age 65 and complete five years of creditable service,
·
you reach age 60 and complete 25 years
of creditable service, or
·
You complete 30 years of creditable
service, at any age.
At Early Retirement
(Reduced Benefits)
You may retire early with a reduced retirement benefit
after:
·
You reach age 50 and complete 20 years
of creditable service, or
·
You reach age 60 (age 55 if you are a
fireman) and complete five years of creditable service.
Your
early retirement benefit is determined by the same formula as a service
retirement benefit multiplied by a reduction percentage based on your age
and/or service at early retirement.
If You Leave the System before Retirement
Even
if you leave before service or early retirement, you may still receive a
benefit. You are entitled to a benefit
at a later date if you leave for any reason - at any age- after you have
completed five years of creditable service, provided you do not with-draw your
contributions.
Your benefit is determined by the formula in effect on
the effective date of your retirement, your average final compensation, and
years of creditable service. You can apply for deferred payments to begin when
you reach age 60. If you have at least
20 years of creditable service when you leave, you can apply for early payments
starting at age 50; however, your benefit is reduced because you may receive
payments for a longer period of time than if you waited until you were eligible
for service retirement.
How
Your Benefit Is Calculated
Your annual retirement benefit is based on this formula:
1.85% of “average final compensation” TIMES years and months of “creditable service.”
Average final compensation means the average
of your salary during your four highest-paid
years in a row.
Creditable service means any period during which you
contribute to the System. Provided you
do not withdraw your contributions.
Creditable service may also include unused sick leave and service credit
purchased or granted under the special service rules outlined in “Your
Retirement Benefit” handbook, which is located on our web site.
Sick Leave earned monthly
under a duly adopted policy and for which you would receive full salary if you
were absent from work on account of sickness, counts as creditable
service. One month of credit is allowed,
at no cost to you, for each 20 days of your unused sick leave when you
retire. One more month is allowed for
any part of 20 days left over.
Sick
leave is used to increase your creditable service but sick leave cannot be used
to meet the minimum qualifications for a deferred benefit or the Survivor’s
Alternate Benefit. You may use your sick
leave to complete 30 years of service, regardless of age; 25 years of service
after age 60, 20 years of service after age 50; 5 years of service after age
60.
Your
employer will certify the amount of sick leave you have on your Application for
Retirement.
System Address
The address of the Retirement System is:
Local Government Employees’ Retirement System
Department of State Treasurer
System Telephone Number - 1-919-807-3050
System Fax Number – 1-919-508-5350
System E-Mail - nc.retirement@treasurer.state.nc.us
System Internet Address -http://www.treasurer.state.nc.us
Visit our Internet web site to learn more about the
benefits that are available to you:
·
Download and view “Your Retirement
Benefits” handbooks,
·
Review “Frequently Asked Questions,”
·
Estimate your monthly retirement
benefits, and
·
Download and complete applications and
forms used by the Retirement System.
DISCLAMER:
While this
pamphlet is intended to be as accurate as possible, the explanation is subject
in all respects to the detailed provisions of the Retirement System law. It must be understood that the explanation in
this pamphlet cannot alter, modify, or otherwise change the controlling legal
documents or General Statutes in any way nor can any right accrue by reason
of any statement or omission of any statement in this pamphlet.
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