Understanding Your Benefits
Mandatory Benefit Deductions • OASDI • HI • Federal Withholding • State Withholding • TSERS • ORP
Benefits and Payroll Information Your Monthly Check Stub: • OASDI(Old Age and Survivors Disability Income) orSocial Security Tax = 6.20%of monthly salary. Extension matches this tax at 6.20% monthly. • HI(Health Insurance) orMedicare Tax=1.45%of monthly salary. Extension matches this tax at 1.45% monthly.
Federal Withholding: Based on marital status and exemptions claimed. • State Withholding: Based on marital status and exemptions claimed. TSERS(Teachers and State Employee’s Retirement System):Employee contributions= 6% of monthly salary before taxes. Extension matches State Retirement of 5.815 % ORP(Optional Retirement Plan): Employee contributions= 6% of monthly salary before taxes. Extension matches State Retirement of 10.485%
Deadlines for Changes The University has a payroll deadline of the 10th of the month with the exception of December. Benefit Plan Deadline Whenever changes to benefit plans need to be made, such as adding or deleting dependents, forms must be completed and received in our office by the 10th of the month prior to the desired date change is to take place.
Direct Deposit of Salary • University Employees must participate in the Direct Deposit Program. • Changes in banking institutions must be completed and processed no later than the 10th working day in any month. We suggest the old account “NOT” be closed until deposit into the new account has been made.
University Leave Programs • Annual Leave • Sick Leave • Shared Leave • Family Medical Leave • Family Illness Leave • Civil Leave • Military Leave • Mentor/Volunteer Leave
Annual and Sick Leave Accrual • Annual and Sick Leave are Accrued Monthly. • Employees must work greater than half the working days of the month to accrue annual and sick leave. • Annual and Sick Leave must be taken in 15 minute increments.
Annual Leave Accrual • Vacation Leave is Accumulated through December 31st of each year. • Vacation Leave Accrued above the Maximum limit allowed by the University as of December 31st of each year will convert to sick leave.
Calendar Year Annual Leave Maximumaccumulation: Full-time employees is 240 hours 3/4 time employees is 180 hours 1/2 time employees is 120hours
Sick Leave Accumulation • Accumulated indefinitely • Sick Leave can be used towards retirement credit • Employees do not forfeitunused sick leave except upon resignation.
SPA Leave Earning Rates Vacation Leave is Earned Based on an Employee’s FTE and Years of Service.
Creditable State Service Employee transferring from another creditable NC State Government Agency or county agency can rollover their annual, bonus, sick leave balances under the following provisions. SPA Employees: • Vacation leave will be accepted from your previous employer. • Accumulated vacation leave is transferable if there is not a break in service. EPA Employees: • Annual Leave – NC State University does not accept the transfer of annual leave. This includes any leave from State of North Carolina agency or local North Carolina Government,or a UNC constituent institutions. • Accumulated sick leave is reinstated if re-employed within 5 years from date of separation from a state or eligible local agency. Bonus Leave (All NCCE Employees): The transfer of bonus leave will be accepted based on the agreement in place by the employing county and NC State University – NCCE.
There are Three Categories Of Pre-Taxed Benefits • Retirement • Health Insurance • NC Flex
North Carolina Teachers State Employees Retirement System TSERS
Immediate Participation • Defined Benefit Retirement System • Contributions Paid Before Taxes
5 year Membership Required for Vesting • Guaranteed Retirement Benefits • Retirees Receive State Health Coverage Cost Free
Employee Contribution • Employee Contributes 6% of Monthly Gross Pay - Extension Matches at 5.815% • All Contributions are Deposited in the State Retirement System
Death Benefits • 12 Months of Contributing Service • Equal to Previous 12 Months of • Salary • Continues up to 180 Days After Retirement/Separation • Minimum $25,000 • Maximum $50,000
DIP Disability Income Plan • Employees are Eligible for Short-Term Disability Coverage After One Year of Creditable Service • 60 Day Waiting Period to Qualify for Short-Term Disability • Employees are Eligible for Long-Term Disability Coverage After Five Years of Creditable Service
Service Retirement Eligibility - Full Benefits • 30Years with No Age Limitation • 25 Years & at Least Age 60 • 5 Years & at Least Age 65
Early Retirement Eligibility -Reduced Benefits • 20 Years & at Least Age 50 • 5 Years & at Least Age 60
Optional Retirement Program • Alternative to the Teacher’s and State Employees Retirement System (TSERS) • Defined Contribution Plan • Allows portability and greater choice of investment and distribution options
Who is Eligible? • Employees in EPA positions who work 30 hours or more per week • Employees with the following appointments can participate in the ORP: Senior Academic & Administrative Officers Faculty with the rank of Instructor or above Lecturers who are equivalent to Instructor Cooperative Extension Field Faculty, Instructional and Non-Research Faculty
Defined Contribution Plan Retirement Benefits not based on predetermined formula Employee determines investment options for employee/employer monthly contributions Defined Benefit Plan Retirement Benefits based on predetermined formula TSERS oversees investment of monthly contributions Defined Contribution Planvs.Defined Benefit Plan
ORP Election Period • Eligible employees have 60 days to elect participation in the ORP • ORP election is irrevocable as long as the employee remains in an eligible position • Failure to enroll within eligibility period automatically becomes a member of TSERS
ORP Contributions • Employee and Employer contributions are established yearly by General Assembly • Fiscal Year Contributions are: Employee – 6% Employer – 6.84% (Other 3.645% Paid for Health and Disability Insurances). • Contributions are made on a pre-taxed basis • Contributions are invested in an annuity contract or mutual fund offered by approved carriers
Allocation of Monthly Contributions • Multiple options - Contributions can be allocated to one or more approved carriers • Flexibility – Allocations may be changed at any time within university payroll deadlines
ORP CARRIERS • TIAA-CREF • VALIC • LINCOLN LIFE • FIDELITY INVESTMENTS
ORP Vesting & Portability • Immediate vesting in the value of your contributions • Employer contributions are vested after five years of contributory service • Portability – Ability to transfer accumulated retirement benefits using same carrier or change your benefit to a retirement plan sponsored by your new employer
Disability Benefits - ORP • ORP Account available for income benefits upon retirement • Coverage under NC Disability Income Plan • Voluntary coverage under Standard Disability Plan • Eligible to participate in voluntary supplemental plans offered by University
ORP - Death Benefits • Total value of account (employee/employer contributions) is 100% vested and available to beneficiary • If death occurs while an active employee, beneficiary can designate distribution option • If death occurs during retirement, payments will continue according to annuity option chosen
ORP RetirementHealth Insurance • Eligible to continue health insurance coverage upon retirement with five years of ORP Participation • ORP Annuitant must begin to receive an ORP on a monthly basis
ORP – Retirement Benefits • No age or service requirements to meet • Monthly benefit is based on account balance, age of employee, age of annuity partner, and income option selected.
The State Health Plan • Choose Your Own Physician • Physicians Services with Co-pay • Deductible (July 1 - June 30) • Minimum $350 Per Year With $1050 Limit • 80/20 Formula
Wellness Benefit • NO Preventative Dental/Vision Coverage • Co-Pay Prescription Drug Plan $10.00 Generic $25.00 Preferred Brand without Generic $40.00 Preferred Brand with Generic $50.00 Non- Preferred Brand
State Health PlanMonthly Premiums • Employee Only – $0.00 • Employee/Child(ren) – $200.18 • Family Coverage – $480.14 • Employer Matching Contributions for all levels of coverage is $321.14
Who is Eligible? • The University pays the full cost of the premium for Employees working at least ¾ time in a permanent position for 9 or more months per year. Note: Permanent employees who work between 20-29 hours per week (0.5 FTE) for 9 or more months per year are eligible for health insurance; however, they are responsible for the total cost of the premiums.
When Does Coverage Begin? • 1st Day of Month Following Hiring Date • Must Elect Coverage Within 30 Days of Hire • Coverage is Pre-taxed and Pre-paid
Enrollment Dates & Changes • Annual Enrollment for Health Insurance is August of Each Year With an October 1st Effective Date • Changes Can be Made With Qualifying Events
Examples of Qualifying Events • Marriage, Divorce, or Legal Separation • Birth or Adoption of Dependent Child • Commencement or Termination of Employment for Employee or Spouse • Switch from Full-Time to Part-Time (vice-versa by employee or spouse) • Dependent Child Ages Off Coverage or Change of Student Status (Age 19 or 26)
For answers to your questions, refer to: Your Health Benefits Summary Plan Description or statehealthplan.state.nc.us benefits at a glance handout