More than just a paycheck
People work for state government for many reasons, like stability and retirement compensation. But do you know the total “value” of your job? Do you know what pension benefits are provided by your employer through taxpayers? How much your healthcare benefit costs? There is so much more than just your salary!
Benefits of working in public service
Health care costs are skyrocketing and coverage is costly, but the State of North Carolina remains committed to providing you with a comprehensive health plan. That plan does come with a cost to your employer and should be given consideration when you begin to factor your comprehensive value of employment. North Carolina is one of the top five best funded pension plans, according to Standard & Poor. Pensions are increasingly becoming a rarity with employment, but the State of North Carolina is committed to providing a sound retirement plan for you, and your employer contributes a percentage towards your pension for each paycheck you receive.
Understand the Total Benefits Statement
The Total Benefits Statement gives you the “big picture,” helping you better understand your total compensation package. This is a completely personalized look at how your employer and the state contribute to benefit programs on your behalf!
Below is a bit more detail in how we derived your Total Benefits Statement. It is important to note that we did not give consideration to vacation leave, sick leave, and longevity pay in these numbers, though were you to include them you would see thousands of additional dollars in total value.
- Salary: Your salary amount is reflective of wages reported to us by your employer from January 1st through December 31st of the previous calendar year. This amount only includes wages you earned under the Teachers’ and State Employees’ Retirement System.
- Retirement: The retirement amount shows how much your employer is contributing to your pension over and above the six percent you contribute each pay period. This amount is based on calculations prepared by an actuary and is a percentage of your salary. That contribution percentage is the same for all members’ salaries. The amount listed covers the period of contributions by your employer from January 1st through December 31st of the previous calendar year.
- Health Plan: The Health Plan amount reflects annual contributions by your employer to the State Health Plan. Your employer is required to contribute this amount, which covers the period of January 1st through December 31st of the previous calendar year.
- FICA: The FICA (Federal Insurance Contributions Act) tax contribution funds the Social Security program and Medicare. The amount we display is reflective of the estimated annual contribution made by your employer for the previous calendar year from January 1st through December 31st based on your salary for that year. Both you and your employer contribute to FICA, but only your employer’s contributions are reflected here.
Notes and Assumptions
- The Department of the State Treasurer (DST) assumes payroll amounts reported by your employer are accurate at the time the Total Benefits Statement is generated.
- DST includes the employer contribution to the State Health Plan because the payment is required, regardless of your participation in the Plan.
- The state retirement contribution is based on calculations prepared annually by an actuary.
- Should you resign from employment and choose a Refund of Contributions, you will only be entitled to the six percent of contributions you made monthly with four percent interest compounded annually on your prior-year ending balance, as set by state law. You will not be entitled to receive the amount of your employer’s contribution listed in your Total Benefits Statement.
- FICA taxes are calculated based on the year-to-date gross pay for an employee, Social Security and Medicare withholding rates for that year and any amounts deducted from the employee’s pay for pre-tax retirement plans. FICA contributions are estimated based on your annual salary for the previous year.
- The Total Value amount and all subsections are rounded to the nearest whole dollar.
The availability and amount of all benefits you might be eligible to receive is governed by North Carolina law. The information provided here cannot alter, modify or otherwise change controlling North Carolina law or other governing legal documents in any way, nor can any right accrue to you by reason of any information or omission of information provided herein. In the event of a conflict between this statement and North Carolina law, North Carolina law governs. Your actual benefits are subject to verification before any payments are authorized.
DST is continuously reconciling salary reported by your employer to ensure accuracy. If, in the verification process, an amount reported by your employer is determined to be inaccurate, and we are unable to reconcile the figure prior to release of the Total Benefits Statement, the Statement will not be displayed, nor will you receive a myNCRetirement Statement. Also, if an amount is reconciled after the release of the Total Benefits Statement, the display will not be updated to reflect the change.