Retirement
Mandatory Retirement Plans
All permanent, probationary, and time-limited employees regularly scheduled to work at least 30 hours or more per week are required to contribute 6% of their earnings to a mandatory retirement plan of their choice.
Upon initial eligibility, all employees are given up to 30 calendar days to make their mandatory retirement election. Eligible employees are granted the option upon eligibility to choose between the Teachers’ and State Employees’ Retirement System (TSERS) or the Optional Retirement Program (ORP). Once enrolled, the mandatory retirement election cannot be changed. Refer to the Mandatory Retirement Decision Guide and the Retirement Comparison Tool for additional details.
If you take a new position within the UNC System, your eligibility for mandatory retirement plans may change. Refer to the Retirement Plan Transfer Guide for additional details.
Employees of Brody School of Medicine Medical Faculty Practice Plan and the ECU School of Dental Medicine hired on or after January 1, 2024, will only be eligible to join the UNC Optional Retirement Program (ORP). They will not be eligible to participate in the NC Teachers’ and State Employees’ Retirement System (TSERS). Please note that these provisions do not impact any current ECU employees who remain continuously employed and who are already enrolled in TSERS. These employees will also remain eligible to participate in TSERS if they are selected for or transfer into an impacted position within the Brody School of Medicine Medical Faculty Practice Plan or the ECU School of Dental Medicine after January 1, 2024, provided they were employed in a benefits eligible position at ECU immediately before the selection or transfer. Any questions from hiring managers, applicants and/or new hires should be referred to ECU Human Resources benefits contact Pam Brann at 328-9887.
Teachers’ and State Employees’ Retirement System (TSERS)
The Teachers’ and State Employees’ Retirement System (TSERS) is sponsored by the State of North Carolina and governed by the Department of the State Treasurer.
TSERS is a defined benefit plan. Under this type of plan the benefit an employee receives at retirement is based on total years of creditable service, age, and “average final compensation,” which is the employee’s four highest paid consecutive salary years.
Optional Retirement Program (ORP)
The University of North Carolina Optional Retirement Program (ORP) is an option or alternative to the North Carolina Teachers’ and State Employees’ Retirement System (TSERS) for faculty and staff. Under the ORP, an employee controls their investment choices, distribution methods, and retirement goals, whereas the State controls the investments under TSERS.
Law Enforcement Officers (LEO) Retirement Plans
Law Enforcement Officers in an eligible position may participate in either the Teachers’ and State Employees’ Retirement System (TSERS) or the Optional Retirement Program (ORP). Law Enforcement Officers are entitled to additional benefits, including earlier un-reduced retirement benefits, participation in the State 401(k), and additional death benefits.
Supplemental Retirement Plans
All University employees are encouraged to supplement their retirement benefits by participating in one or more of the supplemental retirement savings programs available to them. A significant part of the retirement planning process may include voluntary supplemental retirement plans that offer significant tax advantages.
The University makes such plans available to eligible employees as authorized under Sections 403(b)(1), 403(b)(7), 457(b) and 401(k) of the Internal Revenue Code. A supplemental retirement plan allows you to make contributions pre-tax and/or after-tax through payroll deductions to a variety of investment vehicles. Refer to the Supplemental Retirement Decision Guide for additional details.
The supplemental programs available are:
- UNC System Voluntary 403(b) Program (all employees who pay FICA are eligible to enroll)
- UNC System 457(b) Retirement Program (all employees who pay FICA are eligible to enroll)
- North Carolina 401(k) Plan (all employees who participate in TSERS or ORP are eligible to enroll)
- North Carolina 457 Deferred Compensation Plan (full-time, part-time, or temporary employees are eligible to enroll)
Helpful Resources
- Supplemental Retirement Decision Guide
- UNC System 403(b) Plan Summary
- UNC System 403(b) Plan Universal Availability
- UNC System 457(b) Plan Summary
Enrollment/Change Forms
- UNC System 403(b) Enrollment and Change Form
- UNC System 457(b) Enrollment and Change Form
- North Carolina 401(k) Forms
- North Carolina 457 Deferred Compensation Forms
Approved Supplemental Carriers
- TIAA – UNC System 403(b) and 457(b)
- Empower (formerly Prudential) – NC 401(k) and NC 457