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, survivors are not paid anything due until the reimbursement is made, and fraudulently receiving a deceased retiree's benefit is a Class 1 misdemeanor. Uncashed checks are mailed back to Death Benefits, N.C. Department of State Treasurer, 3200 Atlantic Avenue, Raleigh, NC 27604.

Contact

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

Governing law: N.C.G.S. Chapter 135 (TSERS); N.C.G.S. Chapter 128, Article 3 (LGERS)

Steps to take when someone dies

1. Identify whether the deceased was a member of TSERS, LGERS, or another plan in the Retirement Systems Division.
2. Report the death using the Retirement Systems Division's online reporting form, or by calling 919-814-4590, with the member's name, Social Security or member ID number, and date of death.
3. Stop cashing any benefit checks for months after the death; the month-of-death payment is still due. Mail back any uncashed checks, and mail a certified copy of the final death certificate, to Death Benefits, N.C. Department of State Treasurer, 3200 Atlantic Avenue, Raleigh, NC 27604 — the Division cannot pay benefits without the death certificate.
4. Confirm the beneficiary designation on file and ask what survivor or death benefit is payable.
5. File the survivor or death-benefit claim with the documents the Division requires.

Frequently asked questions