The North Carolina Local Government Employees Retirement System
LOCAL GOVERNMENT EMPLOYEES
Full-time County employees and benefited part-time employees are automatically enrolled in the North Carolina Local Government Employees’ or Local Law Enforcement Officers Retirement System on their date of hire. The mandatory tax-deferred contribution of 6.00% is deducted from the employee’s pay each pay period. There is a five (5) year vesting period.
You may retire with unreduced service retirement after:
- You complete 30 years of creditable service, at any age.
- You reach age 65 and complete five years of creditable service.
- You reach age 60 and complete 25 years of creditable service.
Unused sick leave, 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 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.
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 and complete five years of creditable service.
Your early retirement benefit is determined by the same formula as service retirement benefit. However, because benefits may be paid over a longer period of time, they will be reduced. The amount of reduction depends on your age at retirement.
LOCAL LAW ENFORCEMENT OFFICERS
You are eligible to become a member of the Local Law Enforcement Officers Retirement System if you are a full-time paid employee who possesses the power of arrest, has taken the law enforcement oath administered under the authority of the State as prescribed by G.S. 11-11 and certified as a law enforcement officer under the provisions of Chapter 17C of the General Statutes.
Law Enforcement Officers may retire with unreduced retirement benefit after:
- 30 years of service at any age
- age 55 with five years of credit as an officer
Law Enforcement Officers may retire with reduced retirement benefits after:
- age 50 with 15 years of credit as an officer
You can track your retirement information and complete beneficiary designations and changes through ORBIT, which provides secure, online access 24 hours a day.
Click on the “ORBIT” button to register and log on.
The Local Governmental Employees’ Retirement System (LGERS)
Quick Reference Guide
HOW THE RETIREMENT SYSTEM WORKS
As you are a permanent, regularly scheduled or otherwise eligible local governmental employee, you are contributing 6% of your compensation to the Retirement System as a condition of your employment. Ultimately, these contributions will be returned to either you or your beneficiaries.
Your employer is also making contributions to the System. During the course of your career, these contributions are managed as a part of one of the strongest public pension systems in the United States. The contributions from employees, employers, and investment earnings from the investment of those contributions are used to provide monthly retirement benefits, as well as death and disability benefits, to local governmental employees.
For you to be eligible to receive a benefit, you will have to meet certain age and service requirements. A significant milestone in your career is the five-year mark when you are vested in the System. Being vested means being eligible for a retirement benefit as soon as you meet an age requirement.
While the amount of your eventual retirement benefit may be affected by your rate of compensation over the years, this benefit is not based on the amount you have contributed to the System. The System is a defined benefit plan qualified under Section 401(a) of the Internal Revenue Code. This means that your retirement benefit will be based on a formula which reflects the amount of retirement credit you have earned over the course of your career in North Carolina. You earn retirement credit each month you make contributions to the System. Increasing the amount of credit you have in the System increases your benefit from the System.
You can keep track of your contributions and retirement credit through ORBIT (Online Retirement Benefits through Integrated Technology). Visit myncretirement.gov and log-in to this secure, web-based system which provides you with full access to your personal benefit account.
You will also receive an annual statement. This statement provides information about your System account and beneficiary(ies).
YOUR BENEFITS AT-A-GLANCE (SUBJECT TO THE GENERAL STATUTES OF NORTH CAROLINA)
Note: The following is not an exhaustive description of all benefits for which you may be eligible, of the eligibility criteria, or the benefit amount. For more information, see your member handbook available on our web site at myncretirement.gov.
| Benefit | Minimum Eligibility Requirement | What You Should Know |
|---|---|---|
| Monthly Retirement Benefit | 5 years of credit as early as age 60. For law enforcement officers, as early as age 50 if 15 years of credit. | The amount is based on the retirement formula, which reflects your compensation record, the amount of retirement credit you have, and other factors. At retirement, you will choose among payment options. |
| Monthly Disability Retirement Benefit | 5 years of credit | An authorized medical professional must certify the illness. Amount is calculated the same way as service retirement. |
| Return of Contributions | None | At your death, your beneficiary(ies) receives all your undistributed contributions, unless eligible for a monthly Survivor’s Alternate Benefit. |
| Death Benefit (if your employer has chosen to participate) | After 1 year of credit and in service within the last 180 days | At your death, your beneficiary(ies) receives an amount generally based on one year’s compensation with a minimum of $25,000 (and a maximum of $50,000. |
| Law Enforcement Officers only: Separate Benefit | After 6 months of service and in service | A $5,000 benefit (more if line-of-duty related) |
The NC401(k) and NC457 Plans
PREPARING FOR RETIREMENT
Saving for retirement is an important step toward a more financially secure future. As a public employee in North Carolina, you have two supplemental retirement savings plans available to you through the Department of State Treasurer - the NC 401(k) and NC 457 Plans. When combined with the LGERS and Social Security, the NC Supplemental Retirement Plans offer you a total retirement package. Whether you are a new employee considering whether or not to participate in a Plan or you have participated for years, these Plans can help you fill the gap between what you have and what you will need in retirement.
NC 401(k)
Each pay period, Union County contributes an amount equal to 5.00% of full-time and benefited part-time employees gross salary into an individual 401(k) account established for the employee. The 5.00% contribution is given in addition to your earnings. It is not a deduction.
You are not required to contribute to the 401(k) plan; however, you can contribute up to 80% of your wages not to exceed yearly allowable amounts determined by IRS. You may change or stop your contributions at any time, and no minimum contribution is required.
ACCESSING YOUR MONEY WHILE EMPLOYED
We understand that there may be times when you need to access the funds in your retirement account sooner rather than later. The NC 401(k) Plan gives you the flexibility to do this through:
LOANS
Active employees may be eligible to borrow money from their account for any purpose. Loans are repaid through payroll deduction, with the interest paid directly to your account. The minimum loan is $1,000, and the maximum loan is 50% of your account value, up to $50,000. You have up to five years to repay a loan. You may only have one loan outstanding at any time. Restrictions and fees may apply.
IN-SERVICE DISTRIBUTIONS
Plan members who are 59½ or older can withdraw or roll over all or part of an account balance to another qualified retirement savings vehicle, like an IRA. In addition, and regardless of age, members may elect to roll all or a portion of their balance to the North Carolina Retirement Systems to purchase service credits—this type of distribution is NOT subject to ordinary income tax.
HARDSHIP WITHDRAWALS
If you’re younger than 59½, several types of hardship withdrawals are available, depending on the circumstances. Hardship withdrawals are subject to income tax and, if prior to age 59½, a 10% tax penalty, unless an exception applies. Employer contributions cannot fund hardship withdrawals.
NC 457
This deferred compensation plan works similarly to the 401(k) providing an additional avenue for County employees to save for retirement. Employees may contribute by payroll deduction to the plan on a pre-tax or after-tax basis up to the allowable IRS amounts. Plan members enjoy: Qualified penalty-free withdrawals, easy investing solutions, statements to keep you informed, and plenty of retirement planning tools.
Take a closer look at your retirement planning today with the NC Total Retirement Plans!
Easy Access
You may access your account 24 hours a day, 7 days a week for account inquiries, changes to your contribution amount, investments, mailing address or beneficiary information. You may also access a host of retirement articles, interactive calculators and other resources.
To learn more, myn cplans.com
One-on-one help.
The NC 401(k)/NC457 plans have knowledgeable Retirement Plan Counselors strategically located throughout North Carolina to answer your retirement questions and help you to get the most from your participation in the Plans. These industry-licensed representatives are a no cost resource available to Plan members by phone, email or in person.
Questions?
Call 1.866.NCPlans (1.866.627.5267)
or visit the Plan Website
myn cplans.com
Write anytime or visit by appointment:
N.C. Department of State Treasurer
Retirement Systems Division
3200 Atlantic Avenue
Raleigh, NC 27604
Visit us on the web: myncretirement.gov Log on to ORBIT
E-mail
nc.retirement@nctreasurer.com
Call
919.807.3050 in the Raleigh area
or 877.627.3287 toll free
Fax
919.508.5350