Participation in a retirement plan is mandatory for permanent employees working 30 or more hours per week. Employees working less than 30 hours per week are not eligible to participate in the mandatory retirement programs. The two retirement programs available to UNC Pembroke employees are:
Teachers and State Employees Retirement Plan (TSERS)
TSERS is a defined benefit plan. With a Defined Benefit Plan, benefits are based on salary, years of service and a retirement factor. The retirement benefit is not based on the amount of contributions nor the investment earnings. There is no investment risk for the individual since the state takes on the risk and guarantees the retirement benefit. TSERS is not "portable" except to other North Carolina state agencies, including the 16 constituent institutions of the UNC System, NC Community Colleges, and NC Public Schools.
Vesting
Employees must complete 5 years of membership service (5 years of contributing to TSERS) to be fully vested in their retirement benefits. Being vested means you have a non-forfeitable right to the ownership of your plan benefits, even if you leave employment with the UNC System.
Benefit
The retirement benefit for a defined benefit plan is based on a formula and not on the amount you or the state contribute. The formula for TSERS is determined by state statute and is:
- Average salary based on the highest 48 consecutive months of earnings
- Multiplied by a Retirement Factor of 1.82%
- Multiplied by your creditable years of service
Contributions
Employees contribute 6% of salary per month. The University contributes an amount set by the state legislature each year which funds the:
- Retirement benefit
- Retirees' Health Care plan
- Disability Income benefit
- Death benefit
The University contribution to TSERS is not a match to your contribution, it can change each year and does not go into the same account as your 6% contribution.
Qualification for unreduced or reduced benefits
You qualify for unreduced (or full) retirement benefits with:
- 30 years of creditable service at any age or
- 25 years of service and age 60 or
- 5 years of service and age 65
You qualify for a reduced retirement benefit with:
- 20 years of service and age 50 or
- 5 years of service and age 60
For detailed information about TSERS, including unreduced and reduced retirement benefits, death benefits and survivor benefits, please see the TSERS Handbook. Manage your TSERS retirement account online through ORBIT.
Optional Retirement Program (ORP)
The ORP is a defined contribution plan. With a Defined Contribution Plan, retirement benefits are based on the accumulation (your contributions, the university contributions and the interest and dividends earned) and your age at the time you begin the benefit. Since you select the investment vehicle(s) for the contributions you assume the investment risk for your retirement plan.
Benefit
The annual retirement benefit for the Optional Retirement Program (ORP) is based on:
- Your final accumulation in the plan (contributions, investment and dividend earnings)
- The method of payment you elect at the time of retirement.
Contributions
Employees contribute 6% of salary per month. The University contributes 6.84%, which funds:
- Your retirement account with the ORP carrier
- Retirees' Health Care Plan
- Disability Income benefit
Carriers
Under the ORP, you have a number of choices to make regarding your retirement fund. First, you must choose from the two carriers, and then you must select from the different investment funds to meet your investment objectives and goals. The two carriers are:
Representatives
Fidelity Jared McVey
Tel: (704) 614-4167
Email: jared.mcvey@fmr.com
Customer Service: 1-800-343-0860
www.netbenefits.com/unc
TIAA (formerly TIAA-CREF) Erick Bell
Tel: (919) 687-5231
Email: erick.bell@tiaa.org
Customer Service: 1-800-842-2888
https://www.tiaa.org/public/tcm/unc