As an employee, you can choose between two mandatory retirement programs. In addition, there are supplemental retirement programs to help you save for retirement and other investment information.
The Teachers’ and State Employees’ Retirement System (TSERS) is a defined benefit plan. Under this type of plan the benefit, you receive at retirement is based on a formula. This formula considers your years and months of creditable service, your age, and your “average final compensation,” which is the average of your salary during your four highest paid consecutive years.
Neither the investment experience of the plan assets nor the amount contributed by you and the University, on your behalf, directly determines the amount of the guaranteed benefit you will receive at retirement. Contributions begin on day one of eligibility and retroactive contributions are deducted in one lump sum. Once enrolled, you may not change your election (irrevocable).
The University of North Carolina Optional Retirement Program (ORP) is a defined contribution plan. This program is an option or alternative to the North Carolina Teachers’ and State Employees’ Retirement System (TSERS). Under the ORP, you control your investment choices, distribution methods and retirement goals, whereas the State controls the investments under TSERS. Contributions begin on day one of eligibility and retroactive contributions are deducted in one lump sum. Once enrolled, you may not change your election (irrevocable).
All University employees are encouraged to supplement their state and federal 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. A supplemental retirement plan allows you to make contributions through payroll deductions to a variety of investment vehicles.
Explore the following supplemental retirement programs websites for videos, forms, calculators, plan comparison and investment options:
The UNC Faculty Phased Retirement Program (PRP) is designed to provide an opportunity for eligible full-time faculty members to make an orderly transition to retirement through half-time or equivalent service. See application, FAQs and participant checklist on the UNCSA Faculty Affairs website and program summary and guidelines on the UNC System website.