North Carolina state employees receive retirement benefits.
North Carolina's Department of the State Treasurer's office provides administrative oversight for the state's government employees. The department works with local organizations and institutions to educate eligible employees on available benefits. School teachers, college administrators, department of transportation and tax professionals are types of employees offered benefits under the state's benefits program.
Health Coverage
North Carolina state employees are automatically enrolled in the state's Defined Benefit Plan; health care coverage is included in the plan. Health care benefits are active throughout the retired state worker's lifespan; the benefits are protected by the state constitution. Health care insurance premiums that are made by the retired worker at reduced rates are based upon the retired state worker's number of years of service. Retirees with fewer than 20 years of service must pay 50% of their health insurance premiums. Retirees with fewer than 10 years of service must pay the full amount of their health insurance premiums.
Disability Retirement
North Carolina state workers who have worked at least five years with the state and who are classified as disabled by a licensed medical physician are eligible to receive disability retirement payments. Firemen and rescue squad workers who become disabled while on the job only need to complete one year of service to be eligible to receive the disability retirement benefit payments. Payments are similar to retirement payments made through the tax deferred programs.
Tax Deferred Savings Programs
State workers can participate in tax deferred retirement savings plans such as the NC 401(k) and the NC457 Deferred Compensation Plan. Retirement payments in the tax deferred programs are based upon the retiree's salary, age and the number of years that they worked for the state government. Retirees can start to collect payments from the programs at any age after they serve 30 years. They are also fully vested after they reach 65 years of age and complete five years of service. For example, to calculate monthly pension payments for a 60-year-old employee who has 32 years of service, average their highest four paid years. This average would be multiplied by .0185. Multiply this number by the number of years the employee worked for the state. This number divided by 12 equals the estimated monthly retirement payment that the retired employee would receive from the state.
Death Benefit
Beneficiaries of state workers who enrolled in the death benefit program and who die while they are actively employed with North Carolina are eligible to receive a one-time death payment that is equal to the highest 12 months of salary the deceased state worker earned during the last 24 months before their death. Death payments shall be at least $25,000 and not more than $50,000. Payments are made in lump sum to the surviving beneficiary and are paid within 180 days of the state worker's last paycheck.
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