State Public Pensions in North Carolina

State Public Pensions in North Carolina: key facts

Systems

Teachers' and State Employees' Retirement System (TSERS) and Local Governmental Employees' Retirement System (LGERS), plus the Consolidated Judicial Retirement System, the Legislative Retirement System, and the Firefighters' and Rescue Squad Workers' Pension Fund.

Retiree death

If the retiree elected a survivor option (Option 2, 3, 6-2, or 6-3), the survivor beneficiary receives a monthly lifetime benefit. Under the Guaranteed Refund, any contributions and interest not yet paid out go in a lump sum to another beneficiary. A retiree who enrolled in the optional $10,000 Contributory Death Benefit adds a $10,000 lump sum.

Pre-retirement death

The beneficiary receives a return of the member's contributions plus interest. If the member died in active service after one year as a contributing member, a lump-sum death benefit is also paid, equal to the highest 12 consecutive months of salary in the 24 months before death — at least $25,000 and no more than $50,000. A single eligible beneficiary may instead take a monthly Survivor's Alternate Benefit if the member had 20 years of creditable service, or was 60 with five years of service.

Payments after death

The member is due a benefit payment for the month of death, and the deceased retiree's legal representative is entitled to a full check for that month. Do not cash checks representing benefits for the months after the death — state retirement law requires reimbursement, and fraudulently receiving a deceased retiree's benefit is a Class 1 misdemeanor.

Contact

919-814-4590; account access through ORBIT; nc.retirement@nctreasurer.gov; 3200 Atlantic Avenue, Raleigh, NC 27604.