tsers/lgers contribution-based benefit cap...• for members who enter the retirement system from...
TRANSCRIPT
TSERS/LGERS
Contribution-Based Benefit Cap
July 2016
Compliance Section: Contact Information
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Nick ByrneDeputy Director, Policy, Planning & [email protected](919) 814-4163
Shannon Wharry Employer Compliance [email protected](919) 814-4187
Brief Overview of Defined Benefit Plans
• A defined benefit plan promises a specified monthly benefit at retirement based on a set formula.
• Under TSERS and LGERS, a member’s benefit is determined based on a statutory formula:
Average Final Compensation (compensation during 4 highest-paid years in a row) x Accrual Rate (.0182 for TSERS and .0185 for LGERS)
x Years of service = ANNUAL RETIREMENT BENEFIT
• Employer contributions, employee contributions, and investment returns on the pooled assets determine the total dollars in the fund.
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
Session Law 2014-88 / G.S. 128-27(a3) & G.S. 135-5(a3)
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
• Per Session Law 2014-88, “The Board of Trustees shall adopt a contribution-based benefit cap factor recommended by the actuary, based upon actual experience, such that no more than three-quarters of one percent (0.75%) of retirement allowances are expected to be capped.”
• The factor is a comparison of a member’s contributions to the member’s retirement benefit. The General Assembly decided to establish a minimum percentage of value of the retirement benefit that will be paid for by the value of the accumulated contributions.
– TSERS: Retiree’s benefit that is 4.5 times greater than accumulated contributions will exceed the CBBC or accumulated contributions must pay for 22.2% of benefit value
– LGERS: Retiree’s benefit that is 4.7 times greater than the accumulated contributions will exceed the CBBC or accumulated contributions must pay for 21.2% of benefit value
• The Board of Trustees shall modify such factors every five years, as shall be deemed necessary, based upon the five-year experience study as required by G.S. 135-6(n).
The Contribution-Based Benefit Cap
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
The law, “The Fiscal Integrity Act of 2014”, was enacted in July 2014 with several key features:
• Establishes a Contribution-Based Benefit Cap (CBBC) to be set by the LGERS/TSERS BOT
– In October 2015, the TSERS BOT set the CBBC cap at 4.5 and the LGERS BOT set the cap at 4.7
• The CBBC prevents all employers in the Systems from absorbing unforeseen liabilities caused by compensation decisions made by certain employers.
• Sets an AFC of $100,000 for applying the formula (indexed for inflation).
• CBBC liabilities are paid by the employer for impacted employees first hired prior to January 1, 2015. An individual first hired before January 1, 2015, cannot have his or her retirement benefit reduced under the CBBC law.
• Provides options for employees hired in 2015 or later.
The Contribution-Based Benefit Cap Explained
Maximum Benefit Calculation
CBBC Calculation
If the maximum benefit amount
exceeds the cap, a liability is incurred.
Accumulated Employee Contributions $213,698.27
Annuity Factor (for age 60) ÷ 10.9528
Contribution Based Benefit Cap Factor × 4.5
Contribution Based Benefit Cap $87,798.76
Average Final Compensation $175,000.00
Accrual Rate/Multiplier × 0.0182
Years of Service × 30
Maximum Benefit Amount $95,550.00
Maximum Benefit – Benefit Cap $7,751.24
Annuity Factor (for age 60) × 10.9528
Amount Owed to Retirement System $84,897.83
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
What is a Contribution-Based Benefit Cap (CBBC) Liability?
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
• A CBBC liability typically arises as a result of a substantial increase in compensation that results in unusually high liabilities to the Retirement System.
• Prior to the change in the law, these unforeseen liabilities were then absorbed by other members and employers in the Retirement System.
• Liabilities in excess of the CBBC are not a pervasive problem in North Carolina, but the Retirement Systems’ actuary found enough instances that a solution was warranted.
• CBBC Totals as of July 12, 2016:
– More than $2.7 million collected for 53 retirements in excess of the CBBC
Before Legislation: Cost Shift for Unforeseen Liabilities
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EMPLOYER ONE EMPLOYER TWO EMPLOYER THREE
[Exceeds CBBC]
Annual Retirement Benefit: $90,000 $90,000 $90,000
Present Value of Future
Retirement Benefits$1,000,000 $1,000,000 $1,000,000
Contributions $400,000 $225,000 $400,000
Plus Investment Gains + $600,000 + $175,000 + $600,000
$1,000,000 $400,000 $1,000,000
Liability: $ 1,000,000 $ 1,000,000 $ 1,000,000
Employer’s Impact on Next
Year’s Liability:$0 $600,000 $0
Liability Payment Due: $200,000 $200,000 $200,000
Unforeseen Liability
Prior to the passage of the new CBBC law, the unforeseen liabilities were shared by all the employers of the Retirement System.
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
After Legislation: No Cost Shift for Unforeseen Liabilities
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On and after January 1, 2015, under the new CBBC law, the cost of the unforeseen liability is paid by the employer or employee whose retirement caused it. This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
EMPLOYER ONE EMPLOYER TWO EMPLOYER THREE
[EXCEEDS CBBC]
Annual Retirement Benefit: $90,000 $90,000 $90,000
Present Value of Future
Retirement Benefits$1,000,000 $1,000,000 $1,000,000
Contributions $400,000 $225,000 $400,000
Plus Investment Gains + $600,000 + $175,000 + $600,000
$1,000,000 $400,000 $1,000,000
Liability: $ 1,000,000 $ 1,000,000 $ 1,000,000
Employer’s Impact on Next
Year’s Liability:$0 $600,000 $0
Liability Payment Due: $0 $600,000 $0
Unforeseen Liability
Considerations in Setting the Contribution-Based Benefit Cap Factor
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• Analysis and sample factors rely on data from the actuarial valuation for December 31, 2014.
• Based on the assumptions provided by the Systems’ actuary, 9,850 TSERS members and 3,476 LGERS members were expected to retire in 2015:
• In 2015, the number of TSERS retirees expected to be impacted was 26 and the number of LGERS retirees expected to be capped was 6. The total number impacted among both Systems was 20.
• In 2016, the number of TSERS retirees expected to be impacted is 41 and the number of LGERS retirees expected to be impacted is 12. Thus far, a total of 33 members have been impacted.
• Since January 1, 2015, a total of 53 CBBC liabilities have been incurred by LGERS and TSERS employers.
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
Summary
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• The Contribution-Based Benefit Cap will prevent employers in the Retirement Systems from absorbing the additional liabilities caused by individual decisions of other employers.
• The cap only applies to individuals with an Average Final Compensation (AFC) of $100,000 or higher, adjusted annually for inflation, and will only impact a small number of those individuals.
• For members who enter the Retirement System from which they retire before January 1, 2015, the last employer will pay the cost of the additional liability on the Retirement System.
• For members who enter the Retirement System from which they retire on or after January 1, 2015, the employer or employee may pay for the additional liability, or the employee can choose to receive a reduced benefit.
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
Frequently Asked Questions
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
Is a significant increase in salary
the only factor that can cause a
member’s benefit to exceed the
CBBC?
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
What are some key areas for
consideration related to the CBBC
liability?
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
The CBBC liability is an additional employer contribution and
any invoice sent to an employer to account for a CBBC
liability is due in lump sum to the Retirement System the
fourth day of the month following the member’s month of
retirement.
The law allows the Retirement System to provide a twelve-
month installment payment plan option for employers who
request one.
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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Additional Questions?
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
Thank you
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Nick ByrneDeputy Director, Policy, Planning and [email protected](919) 814-4163
Shannon Wharry Employer Compliance [email protected](919) 814-4187
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Appendix
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THE REVIEW ZONE:
Applying the New CBBC Law
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How does the new law work?
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
Example Meaning
Baseball Retirement Application Form (Form 6)
Pitcher Members
Batter The Retirement System
Umpire The Contribution-Based Benefit Cap Law
• Before the CBBC law, the Retirement System had to swing at every
pitch and pay out the full retirement benefit without asking for an
additional contribution to account for the significant benefit.
• The CBBC law introduces an umpire to ensure more quality pitches.
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Which pitches are reviewed?
• The umpire monitors the playing field to determine which
pitches are considered fair.
• The umpire only makes a call on pitches with an Average
Final Compensation (AFC) of $100,000 or more, adjusted
annually for inflation.
• For pitches with an AFC under $100,000, the
Retirement System always hits a home run!
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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A pitch the umpire does not review
Since the pitcher’s AFC was under $100,000, the umpire does not
review the pitch.
The member’s retirement benefit is processed and paid.
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
If the pitcher throws a ball with an AFC under $100,000, the batter
swings and hits the ball out of the park. It’s a home run!
But how did the batter know to swing?
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Which balls enter the REVIEW ZONE?
• For pitches with an AFC of
$100,000 or more, the umpire
determines which are in the
STRIKE ZONE...
…and which are in the
REVIEW ZONE.
• The next few slides will show
how the umpire makes the
call.
Strike Zone
Review Zone
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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A pitch in the STRIKE ZONE
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
• Prudence Parker received annual raises of 6% per year and had no benefit
conversions at end-of-career.
• The umpire reviews the pitch and determines that it is in the STRIKE ZONE.
Amount Employer Owes Retirement System = $0
Example of a pitch over the plate:
This example uses a Pension Spiking factor of 4.5. The Board of Trustees selected a factor of 4.5 for TSERS and 4.7 for LGERS during the October 2015 Board Meeting.
Name Prudence P.
System Teachers’ and State Employees’
Retirement System Entry Date 1/1/1985
Retirement Date 1/1/2015
Age at Retirement 60
Years of Service 30
AFC $175,000
Pension Benefit $95,550 per year
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Calculation details for Prudence P.
The cap does not have an impact because the maximum benefit of
$95,550.00 is less than the cap of $108,385.33.
Accumulated Employee Contributions $263,805.07
Annuity Factor (for age 60) ÷ 10.9528
Contribution Based Benefit Cap Factor × 4.5
Contribution Based Benefit Cap $108,385.33
Average Final Compensation $175,000.00
Multiplier × 0.0182
Years of Service × 30
Maximum Benefit Amount $95,550.00
Amount Owed to Retirement System $0
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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A ball in the REVIEW ZONE
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
• Steven Spiker received annual raises of 6% per year and receives $40,000 in
additional compensation as a result of benefit conversion during the AFC period.
• The umpire reviews the pitch and determines that it is in the REVIEW ZONE.
Amount Employer Owes Retirement System ≈ $85,000
Example of a ball that enters the REVIEW ZONE:
This example uses a Pension Spiking factor of 4.5. The Board of Trustees selected a factor of 4.5 for TSERS and 4.7 for LGERS during the October 2015 Board Meeting.
Name Steven S.
System Teachers’ and State Employees’
Retirement System Entry Date 1/1/1985
Retirement Date 1/1/2015
Age at Retirement 60
Years of Service 30
AFC $175,000
Pension Benefit $95,550 per year
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Calculation details for Steven S.
The cap does have an impact because the maximum benefit of
$95,550.00 is greater than the cap of $87,798.76.
Accumulated Employee Contributions $213,698.27
Annuity Factor (for age 60) ÷ 10.9528
Contribution Based Benefit Cap Factor* × 4.5
Contribution Based Benefit Cap $87,798.76
Average Final Compensation $175,000.00
Multiplier × 0.0182
Years of Service × 30
Maximum Benefit Amount+ $95,550.00
Maximum Benefit – Benefit Cap $7,751.24
Annuity Factor (for age 60) × 10.9528
Amount Owed to Retirement System $84,897.83
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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Prudence P. vs. Steven S.
• Both Prudence and Steven retired on the same day from the
same system with the same pension benefit.
• The big difference is that Prudence and her employer paid
more into the Retirement System than Steven and his
employer.
• When Steven retires, his employer owes an additional
~$85,000 to make up for this difference.
• This charge to the employer is the increased cost that the
Retirement System would have borne in the absence of the
new CBBC law to pay the same benefit to Steven Spiker as
Prudence Parker.
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
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The future of the REVIEW ZONE
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.
• Just like his dad, Steven S., Jr. received annual raises of 6% per year and an
additional $40,000 as a result of benefit conversion during the AFC period.
• The umpire reviews the pitch and determines that it is in the REVIEW ZONE.
• Since Steven S., Jr. first entered the Retirement System in 2015, he has
options….
Example of a ball that enters the REVIEW ZONE after 2020:
Name Steven S., Jr.
System Teachers’ and State Employees’
Retirement System Entry Date 1/1/2015
Retirement Date 1/1/2045
Age at Retirement 60
Years of Service 30
AFC $175,000
Pension Benefit $95,550 per year
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Options for members first hired in 2015 or later
• When Steven S., Jr. retires he has three options:
1. His employer can choose to pay the ~$85,000 owed to the
Retirement System, or
2. He can pay the ~$85,000 himself, or
3. He can choose to receive a reduced pension benefit.
• If Steven S., Jr. chooses option #3, his annual pension benefit would
decrease by $7,751 – from $95,550 to $87,799
This example uses a Pension Spiking factor of 4.5. The Board of Trustees selected a factor of 4.5 for TSERS and 4.7 for LGERS during the October 2015 Board Meeting.
This presentation provides general information about Pension Spiking and its potential implications for members of the North Carolina Retirement System. Each member’s situation is different, so please contact the Retirement System if you have questions about your specific situation. The Retirement System does not provide legal, financial or retirement advice. Members are advised to consult their financial advisor, accountant or attorney for additional guidance. Employers are urged to contact the Retirement Systems Division with any questions related to application of the law to individual members.