Human Resource Services

Participation in a retirement program is required for permanent, probationary or time-limited employees who work at least 3/4 time for nine months. Employees are required to contribute 6% of their salaries toward the cost of their retirement. There are two retirement programs available:

Teachers' and State Employees' Retirement System (TSERS)

All employees eligible for retirement may enroll in this plan. TSERS is a 401(a) "defined benefit plan" and retirement income is based on a formula that is determined by average final compensation, age at retirement, and years of creditable service. An employee must have five years of contributing service in order to be vested in the Retirement System. In addition to the employee's mandatory 6% contribution, the University contributes an amount equal to 8.14% of the employee's salary toward retirement benefits of which 3.36% goes directly toward funding the Retirement System. State law enforcement officers are eligible for enrollment in TSERS, with differences in benefits and may contact the Benefits Office for further information. Click here to view the Retirement System Handbook.

Optional Retirement Program (ORP)

The Optional Retirement Program is available to EPA employees. EPA eligible for this option may choose among four carriers: Teachers' Insurance & Annuity Association of America - College Retirement Equities Fund (TIAA-CREF), Lincoln National Life Insurance Company, Valic or Fidelity Investments. The Optional Retirement Program is a 403(a) "defined contribution plan" in which the participant's benefits are determined by the amount contributed and the investment earnings of the contributions. In addition to the employee's mandatory 6% contribution, the University contributes 6.84% to the employee's ORP account. If the employee leaves the University before he/she is vested (five years), then the employee may have to forfeit the University's contributions to their ORP unless certain State requirements are met. For more information regarding ORPs please view the ORP guide at UNC General Administration. Contact the Benefits Office for further details, or visit the Web sites for TIAA-CREF, Lincoln, Fidelity and/or Valic.

*Note: Employees who have an option to elect one plan over another must do so within 60 days of eligibility, and should carefully review the plans, the benefits, and the differences, because the decision made at employment is irrevocable.

Social Security

Employees are required to pay a 6.2% Social Security tax on earnings up to a maximum salary of $102,000, effective January 1, 2008 and $106,800, effective January 1, 2009. Employees are also required to pay a 1.45% Medicare tax on all earnings. The University matches these contributions.