Benefits - News
Actuarial Factors for Retirement Benefits Changing
The North Carolina Retirement Systems will begin using updated factors for calculating optional retirement benefit amounts under Options 2, 3, 4, 6-2 and 6-3. The new factors are effective for members retiring on and after January 1, 2012. This update is a result of a five-year experience study completed by our actuary and approved by the Boards of Trustees for the Teachers' and State Employees' Retirement System (TSERS) and the Local Governmental Employees' Retirement System (LGERS).
For members retiring on or after January 1, 2012, the factor change will affect the calculated benefit amounts payable under Options 2, 3, 4, 6-2 and 6-3, and it is expected that the majority of new calculations will benefit the member. This change does not affect the calculation of the Maximum Allowance, since it is based solely upon the defined benefit formula specified in Retirement System law.
Members should use extra caution when comparing prior estimates to new estimates calculated using the on-line benefit estimator for retirements effective on and after January 1, 2012, as the amounts payable under Options 2, 3, 4, 6-2 and 6-3 will be different depending on the member's effective retirement date and option selection.