In this Issue:
- Timely and Accurate Employer Reporting
- TSERS, ORP, CJRS, and LRS Employer Contribution Rates
- LGERS Contribution Rates
- Many Employee Bonuses NOT “Compensation” for TSERS
- Firefighters’ and Rescue Squad Workers’ Pension Fund Benefits Increase
- N.C. National Guard Pension Fund Benefits Increase
- One-Time Supplement for TSERS, CJRS, and LRS
- Changes Regarding Boards of Trustees
- Update on Providing New HR and Payroll Contact Info
- Send Forms and Documents Via e-mail, not Fax
- Do You Have a New Vendor?
- Member and Employer Events
State Health Plan 2027 Open Enrollment Training for HBRs
State law requires submission of contributions and payroll reporting on or before the fifth business day of the month in order to be considered complete and avoid a penalty.
Both contributions and payroll reporting must be submitted by the employer on or before the fifth business day of the month in order to be considered complete and avoid a penalty. Employee and employer contributions and payroll reporting are not considered submitted until the Retirement Systems Division receives all required information.
The schedule for Contribution Summary Instructions (CSI) Contributions through 2026 is posted on myNCRetirement.gov.
Timely Reporting and Invoice Payments
To maintain correct information, it is important to take time to correct errors in ORBIT. Please respond to your Employer Reporting Team representative promptly so that any issues can be addressed and necessary adjustments can be processed as soon as possible.
Session Law 2026-41 (“Current Operations Appropriations Act of 2026”) was enacted on July 7, 2026. Retirement Systems staff will compile a memorandum detailing the effects of this and other 2026 legislation on Retirement Systems operations. Meanwhile, here are some important headlines for employers relating to the new budget law.
TSERS, ORP, CJRS, and LRS Employer Contribution Rates
Beginning with employee service rendered on or after July 1, 2026, (required to be submitted by early August 2026), employer contribution rates will be as specified in Section 41.25.(a) of Session Law 2026-41 unless further adjusted by the legislature.
| Teachers and State Employees | State LEOs | ORPs | CJRS | LRS | |
|---|---|---|---|---|---|
| Retirement | 18.22% | 18.22% | 6.84% | 42.11% | 19.40% |
| Disability | 0.06% | 0.06% | 0.06% | 0.00% | 0.00% |
| Death | 0.13% | 0.13% | 0.00% | 0.00% | 0.00% |
| Health | 7.69% | 7.69% | 7.69% | 7.69% | 7.69% |
| NC 401(k) | 0.00% | 5.00% | 0.00% | 0.00% | 0.00% |
| Total Contribution Rate | 26.10% | 31.10% | 14.59% | 49.80% | 27.09% |
LGERS Contribution Rates
LGERS employer contribution rates effective July 1, 2026, are posted to the Retirement Systems' website.
The rates are posted publicly rather than mailing individual letters to every employer. That approach improves efficiency and transparency, and reduces costs. The table is ordered by five-digit employer codes but is also searchable (by employer name) within a browser, or by downloading the PDF and using “Edit”->”Find” in Adobe.
If you have questions about this information after reviewing the document, you may contact Employer Reporting at (919) 814-9816.
As stated at the link, the rates do not include contributions toward State Health Plan (SHP) coverage, if applicable. Now that S.L. 2026-41 has been enacted, here is what local governments can expect regarding contributions toward SHP coverage:
- For the eleven (11) LGERS employers whose employees are eligible for both active and retiree coverage through the SHP, the employer contribution rate collected by LGERS will be increased by 7.69% of compensation to provide for that coverage.
- For the more than 100 LGERS employers whose employees are eligible for active but not retiree coverage through the SHP, the SHP (not LGERS) will collect the 2.40% of compensation toward the Public Employee Health Benefit Fund as stated in Section 41.25.(a) of S.L. 2026-41.
Many Employee Bonuses in the Budget Law, Including the “$1,750 or $1,000 Bonus” for Most State Employees, Are NOT “Compensation” for TSERS Purposes
Section 41.2.(a) provides for a “State-Funded Employee Bonus” of $1,750 for employees whose annual salaries are $65,000 or less, and $1,000 for employees whose annual salaries are more than $65,000. However, Section 41.2.(b) provides that these bonuses are “not compensation for the purposes of any retirement system administered by the State.” Therefore, they should not be included in the compensation reported to the Retirement System, and no employee or employer contributions (as a percentage of the bonus amounts) should be paid to the Retirement System.
Many other bonuses provided by the budget law contain similar language stating that they are not to be included as compensation for Retirement System purposes, including the performance funding bonuses for the community college system (Section 6.11), bonuses for teachers and assistant principals (Section 7A.2), consolidated teacher bonus program (Section 7A.4), bonuses for principals (Section 7A.8), principal recruitment and retention supplement (Section 7A.9), bonuses for school nutrition and custodial personnel (Section 7A.13), bonuses for members of the N.C. National Guard (Section 19.19), and local law enforcement bonus (Section 41.3).
Benefit Increase Effective Jan. 1, 2027, for Firefighters’ and Rescue Squad Workers’ Pension Fund
Section 41.29 of S.L. 2026-41 increases the monthly retirement benefit for members of the Firefighters’ and Rescue Squad Workers’ Pension Fund. Effective January 1, 2027, the monthly pension benefit will increase by $9 per month, from $175 to $184. There is no change in the member contribution rate, which remains $15 per month.
Benefit Increase Effective Jan. 1, 2027, for N.C. National Guard Pension Fund
Section 41.28 of S.L. 2026-41 increases the monthly retirement benefit for members of the N.C. National Guard Pension Fund. Effective January 1, 2027, the monthly pension benefit will increase from $105 to $110 per month after 20 years of total military service. The additional benefit for each year from the 21st to 30th year of service will increase from $10.50 to $11.00 per month. The maximum benefit after 30 years of total military service will increase from $210 to $220 per month.
One-Time Supplement for TSERS, CJRS (Judicial), and LRS (Legislative)
Section 41.26 of S.L. 2026-41 provides for a one-time payment “as close as practicable to October 15, 2026,” to TSERS, CJRS, and LRS payees of record who are living on September 1, 2026, and receiving benefits in connection with a retirement that commenced on or before September 1, 2026. The payment will be equal to 2.5% of the annual retirement allowance. For most payees, we anticipate including these payments as part of the regular October 2026 retirement payroll (a one-time addition to the monthly payment).
For example, if a retiree is receiving $2,500 per month ($30,000 per year) before deductions such as for taxes, the one-time supplement would be $750, which is 2.5% of $30,000. The payment before deductions would be $2,500 in September, $3,250 in October, and $2,500 in November and thereafter.
Changes Regarding Boards of Trustees
Sections 5.10.(c) through (c4) of S.L. 2026-41 contain provisions effective July 1, 2027, regarding the LGERS Board of Trustees, changing the composition, appointment authorities, qualifications, disqualifications, vacancy procedures, and other details.
Sections 5.10.(d) through (d2) and (d4) contain similar, but not identical, provisions regarding the TSERS Board of Trustees.
Sections 5.10.(e) and (e1) contain similar, but not identical provisions regarding the Supplemental Retirement (NC 401(k) and NC 457) Board of Trustees.
Although there is no immediate change in the status of any trustee, there will be changes beginning July 1, 2027. We encourage employers and other stakeholders to become familiar with these expected changes.
News Flash: We Updated How to Provide Current HR and Payroll Contact Information to the N.C. Retirement Systems Division
As members move through the retirement process, we verify crucial information with employers. In order to avoid delays in processing retirements and other benefits, we want to make sure we have current information on file.
If the contact person handling retirement matters in your agency changes, be sure to notify the Retirement Systems Division by completing a signed Form CONCHG (complete with your required 5-digit ORBIT Agency number) available in the “List of All Forms” ORBIT | Retirement Systems Division Forms. Also, we ask that employers keep active Employees information current (mailing address, email address or telephone number) by updating in the Monthly Payroll file.
You may contact our Employer Reporting Unit by email at OER@nctreasurer.gov
A Wait-Reduction Plan that Works: Send Via e-mail, not Fax
Employers should be aware that sending forms or other documents to our office via fax could result in processing delays. To avoid that potential wait time, employers should email the forms or other documents to MemberRecords@NCRetirement.gov for faster responses. They can also send their forms or other documents by USPS mail to 3200 Atlantic Avenue, Raleigh, NC, 27604. Employees also can send their forms or other documents to the same email link or postal address.
Are you working with a new vendor? Your first step is to contact the Retirement System.
Are you updating or implementing a new payroll system? Once you have finalized writing your business requirements and the new system is in place, the Retirement Systems Division is here to help with testing. If you intend to use a vendor for your system changes, you should still plan on being part of that process as the key contact for reporting.
We request that you notify us as soon as possible if you are making a change or upgrade so we can schedule testing that aligns with your planned start date. You should expect testing to take at least 90 days.
If you are planning a merger or split with another agency, please contact the Orbit Employer Reporting OER@nctreasurer.com for assistance.
Discover upcoming Retirement Systems webinars and events. Registration is required.
2027 Open Enrollment Training for HBRs
2027 Open Enrollment will be held Oct. 12-Oct. 30, 2026. The State Health Plan (Plan) is holding Open Enrollment training sessions for HBRs in July to better prepare you for the changes coming for 2027.
Please select a convenient day and time to register below:
- Tuesday, July 28, 10 a.m. & 2 p.m.
- Wednesday, July 29, 10 a.m. & 2 p.m.
- Thursday, July 30, 10 a.m. & 2 p.m.
You’re encouraged to review the Board of Trustees meeting materials from the July meeting to learn more about the premiums that were approved and other 2027 related benefit changes.