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.

The University System has authorized two companies to offer investment products under the ORP: Fidelity Investments and TIAA.

 

Accessing Your Retirement Account Online

Employees enrolled in the ORP can access and manage their retirement account through their designated carrier’s website:

 

Vesting

Employees enrolled in the ORP are immediately 100% vested in the value of their contributions. Employees are 100% vested in the UNC System’s contributions after 5 years of participation in the ORP.

If an ORP participant leaves UNC System employment before completing five years of participation, but within 12 months of separation from the UNC System, and continues participation in a core retirement plan at another institution, as outlined in the Plan document, the UNC System will vest the participant in the value of the UNC System contribution.

An ORP participant must choose the ORP carrier that will invest their contributions, select the funds in which to invest, and review and redirect investments in the future if needed.

IMPORTANT: When an employee enrolled in the ORP plans to leave the University, the employee must submit an ORP-3 Form to the HR Benefits Office on or before their separation date. The completed form can be sent by email to HR_BENEFITS@ecu.edu or faxed to 252-328-9918.  For questions, contact the HR Benefits Office at 252-328-9887.

 

Applying for Retirement While Actively Employed

It is recommended that employees contact their Benefits Consultant to schedule an appointment to complete the appropriate documents to begin the retirement process approximately 90-120 days in advance of their effective retirement date. Employees approaching retirement should review the Retirement Planning Guide.

How to apply for retirement under the Optional Retirement Plan.

 

Retiree Health Insurance

An employee may be eligible to continue health insurance under the North Carolina State Health Plan when retiring and electing to begin their monthly retirement benefit. The cost, if any, is determined by two factors: (1) when state employment began, and (2) which health plan is selected.

If an employee was first hired prior to October 1, 2006, and retires with 5 or more years of contributory retirement service, the employee will be eligible for health care coverage at no cost, under certain plan options.

If an employee was first hired on or after October 1, 2006, in order to receive health care coverage at no cost, the employee must retire with 20 years of retirement service credit. If an employee has at least 10 but less than 20 years of retirement service credit, the employee is eligible for coverage but will pay 50% of the cost of coverage. If an employee has at least 5 years of contributory retirement service, but less than 10 years of retirement service credit, the employee is eligible for coverage but will pay 100% of the cost of coverage.

In all cases, retirees must pay the full cost of dependent coverage.

If an employee withdraws, transfers, or rolls over all of their ORP contributions to an IRA or another employer’s retirement plan, the employee will forfeit their right to the State’s retiree group health plan coverage.

Employees hired on or after January 1, 2021 will not be eligible to receive retiree medical benefits.

All new retirees who are eligible for State Health Plan coverage will be automatically enrolled into a plan at the time of retirement even if a member did not have Plan coverage as an active employee. If eligible, retiree health coverage begins on the first day of the month following the effective date of retirement. For example, if an employee has an effective date of retirement of January 1, his or her coverage in the retiree group plan will begin on February 1.

IMPORTANT: When an employee (or their covered dependents) becomes eligible for Medicare upon retirement, the employee must elect both Part A (Hospital) and B (Medical) in order to maintain the same level of coverage received prior to retirement.

For additional details about retiree health coverage eligibility and benefit options at retirement, refer to State Health Plan Retiree Benefits and Planning for Retirement.

 

Helpful Resources

For more information about the authorized companies or their products, including investment options, services and fees, refer to the UNC Optional Retirement Program (ORP) website for additional details.