OCS Pension Spiking Notification
Rhonda Rath
Per G.S. 115C-436(c), I am writing to inform you that Orange County Schools has received it's report from the North Carolina Teachers’ and State Employees’ Retirement System (TSERS) listing seven (7) current or former school system employees who may, if they were to retire within the next twelve months, be eligible for retirement benefits in excess of a contributions-based benefits “cap” imposed pursuant N.C. Session Law 2014-88. Upon the retirement of an employee who is subject to the cap and was a TSER member on or before December 31, 2014, the 2014 session law requires the employee’s last employer to pay any additional contributions needed to cover retirement benefits that exceed the cap.
This report does not necessarily mean that such an assessment will be made, as any particular employee may or may not exceed the contributions-based cap upon retirement depending on a number of factors such as the member’s average final compensation, the member’s age at retirement, and the member’s years of service. Other relevant factors include the applicable annuity factor, the “local government multiplier” used to determine maximum benefit amounts, and the “cap factor” then in effect.
Regards,
