Understanding

1
Understanding Your Benefits
2
Mandatory Benefit Deductions

• OASDI
• HI
• Federal Withholding
• State Withholding
• TSERS
• ORP

3
Benefits and Payroll Information

• Your Monthly Check Stub
• OASDI (Old Age and Survivors Disability Income)
• or Social Security Tax 6.20 of
  monthly salary.
• Extension matches this tax at 6.20
  monthly.
• HI (Health Insurance)
• or Medicare Tax1.45 of monthly salary.
  
• Extension matches this tax at 1.45
  monthly.

4

• Federal Withholding
• Based on marital status and exemptions
  claimed.
• State Withholding
• Based on marital status and exemptions
  claimed.
• TSERS (Teachers and State Employees Retirement
  System) Employee contributions 6
  of monthly salary before taxes.
• Extension matches State Retirement of 5.815
• ORP (Optional Retirement Plan)
• Employee contributions 6 of monthly salary
  before taxes.
• Extension matches State Retirement of 10.485

5
Deadlines for Changes
The University has a payroll deadline of the 10th
of the month with the exception of
December. Benefit Plan Deadline Whenever
changes to benefit plans need to be made, such as
adding or deleting dependents, forms must be
completed and received in our office by the 10th
of the month prior to the desired date change is
to take place.
6

• Direct Deposit of Salary
• University Employees must participate in the
  Direct Deposit Program.
• Changes in banking institutions must be completed
  and processed no later than the 10th working day
  in any month.
• We suggest the old account NOT be closed until
  deposit into the new account has been made.

7
University Leave Programs

• Annual Leave
• Sick Leave
• Shared Leave
• Family Medical Leave

• Family Illness Leave
• Civil Leave
• Military Leave
• Mentor/Volunteer Leave

8

Annual and Sick Leave Accrual

• Annual and Sick Leave are Accrued Monthly.
• Employees must work greater than half the working
  days of the month to accrue annual and sick
  leave.
• Annual and Sick Leave must be taken in 15 minute
  increments.

9
Annual Leave Accrual

• Vacation Leave is Accumulated through December
  31st of each year.
• Vacation Leave Accrued above the Maximum limit
  allowed by the University as of December 31st of
  each year will convert to sick leave.

10
Calendar Year Annual Leave Maximum
accumulation
Full-time employees is 240 hours 3/4 time
employees is 180 hours 1/2 time employees is 120
hours
11
Sick Leave Accumulation

• Accumulated indefinitely
• Sick Leave can be used towards retirement credit
• Employees do not forfeit unused sick leave except
  upon
• resignation.

12
EPA Leave Earning RatesLeave Earnings based on
FTE status
13
SPA Leave Earning Rates
Vacation Leave is Earned Based on an Employees
FTE and Years of Service.
14

• Creditable State Service
• Employee transferring from another creditable NC
  State Government Agency
• or county agency can rollover their annual,
  bonus, sick leave balances under
• the following provisions.
• SPA Employees
• Vacation leave will be accepted from your
  previous employer.
• Accumulated vacation leave is transferable if
  there is not a break in service.
• EPA Employees
• Annual Leave NC State University does not
  accept the transfer of annual leave. This
  includes any leave from State of North Carolina
  agency or local North Carolina Government,or a
  UNC constituent institutions.
• Accumulated sick leave is reinstated if
  re-employed within 5 years from date
• of separation from a state or eligible local
  agency.
• Bonus Leave (All NCCE Employees) The transfer
  of bonus leave will be
• accepted based on the agreement in place by the
  employing county and
• NC State University NCCE.

15
Pre-Taxed Benefits
16
There are Three Categories Of Pre-Taxed Benefits

• Retirement
• Health Insurance
• NC Flex

17
North Carolina
Teachers State Employees Retirement System TSERS
18

• Immediate Participation
• Defined Benefit Retirement System
• Contributions Paid Before Taxes

19

• 5 year Membership Required
• for Vesting
• Guaranteed Retirement Benefits
• Retirees Receive State Health Coverage Cost Free

20
Employee Contribution

• Employee Contributes 6 of Monthly
• Gross Pay - Extension Matches at
• 5.815
• All Contributions are Deposited in the
  State Retirement System

21
Death Benefits

• 12 Months of Contributing Service
• Equal to Previous 12 Months of
• Salary
• Continues up to 180 Days After Retirement/Separati
  on
• Minimum 25,000
• Maximum 50,000

22
DIP Disability Income Plan

• Employees are Eligible for Short-Term Disability
  Coverage After One Year of Creditable Service
• 60 Day Waiting Period to Qualify for Short-Term
  Disability
• Employees are Eligible for Long-Term Disability
  Coverage After Five Years of Creditable Service

23
When Can I Retire ?
24
Service Retirement Eligibility - Full Benefits

• 30 Years with No Age Limitation
• 25 Years at Least Age 60
• 5 Years at Least Age 65

25
Early Retirement Eligibility -Reduced Benefits

• 20 Years at Least Age 50
• 5 Years at Least Age 60

26
Optional Retirement ProgramORP
27
Optional Retirement Program

• Alternative to the Teachers and State Employees
  Retirement System (TSERS)
• Defined Contribution Plan
• Allows portability and greater choice of
  investment and distribution options

28
Who is Eligible?

• Employees in EPA positions who work 30 hours or
  more per week
• Employees with the following appointments can
  participate in the ORP
• Senior Academic Administrative Officers
• Faculty with the rank of Instructor or above
• Lecturers who are equivalent to Instructor
• Cooperative Extension Field Faculty,
• Instructional and Non-Research Faculty

29
Defined Contribution Planvs.Defined Benefit Plan

• Defined Contribution Plan
• Retirement Benefits not based on predetermined
  formula
• Employee determines investment options for
  employee/employer monthly contributions

• Defined Benefit Plan
• Retirement Benefits based on predetermined
  formula
• TSERS oversees investment of monthly contributions

30
ORP Election Period

• Eligible employees have 60 days to elect
  participation in the ORP
• ORP election is irrevocable as long as the
  employee remains in an eligible position
• Failure to enroll within eligibility period
  automatically becomes a member of TSERS

31
ORP Contributions

• Employee and Employer contributions are
  established yearly by General Assembly
• Fiscal Year Contributions are
• Employee 6 Employer 6.84
• (Other 3.645 Paid for Health and Disability
  Insurances).
• Contributions are made on a pre-taxed basis
• Contributions are invested in an annuity contract
  or mutual fund offered by approved carriers

32
Allocation of Monthly Contributions

• Multiple options - Contributions can be allocated
  to one or more approved carriers
• Flexibility Allocations may be changed at any
  time within university payroll deadlines

33
ORP CARRIERS

• TIAA-CREF
• VALIC
• LINCOLN LIFE
• FIDELITY INVESTMENTS

34
ORP Vesting Portability

• Immediate vesting in the value of your
  contributions
• Employer contributions are vested after five
  years of contributory service
• Portability Ability to transfer accumulated
  retirement benefits using same carrier or change
  your benefit to a retirement plan sponsored by
  your new employer

35
Disability Benefits - ORP

• ORP Account available for income benefits upon
  retirement
• Coverage under NC Disability Income Plan
• Voluntary coverage under Standard Disability Plan
• Eligible to participate in voluntary supplemental
  plans offered by University

36
ORP - Death Benefits

• Total value of account (employee/employer
  contributions) is 100 vested and available to
  beneficiary
• If death occurs while an active employee,
  beneficiary can designate distribution option
• If death occurs during retirement, payments will
  continue according to annuity option chosen

37
ORP RetirementHealth Insurance

• Eligible to continue health insurance
  coverage upon retirement with five years of ORP
  Participation
• ORP Annuitant must begin to receive an ORP on a
  monthly basis

38
When Can I Retire ?
39
ORP Retirement Benefits

• No age or service requirements to meet
• Monthly benefit is based on account balance, age
  of employee, age of annuity partner, and income
  option selected.

40
QuestionsForms
41
Health Insurance
42
The State Health Plan

• Choose Your Own Physician
• Physicians Services with Co-pay
• Deductible (July 1 - June 30)
• Minimum 350 Per Year With 1050 Limit
• 80/20 Formula

43

• Wellness Benefit
• NO Preventative Dental/Vision Coverage
• Co-Pay Prescription Drug Plan
• 10.00 Generic
• 25.00 Preferred Brand without Generic
• 40.00 Preferred Brand with Generic
• 50.00 Non- Preferred Brand

44
State Health PlanMonthly Premiums

• Employee Only 0.00
• Employee/Child(ren) 200.18
• Family Coverage 480.14
• Employer Matching Contributions for all levels of
  coverage is 321.14

45
Who is Eligible?

• The University pays the full cost of the premium
  for Employees working at least ¾ time in a
  permanent position for 9 or more months per year.

Note Permanent employees who work between 20-29
hours per week (0.5 FTE) for 9 or more months per
year are eligible for health insurance however,
they are responsible for the total cost of the
premiums.
46
When Does Coverage Begin?

• 1st Day of Month Following Hiring Date
• Must Elect Coverage Within
• 30 Days of Hire
• Coverage is Pre-taxed and Pre-paid

47
Enrollment Dates Changes

• Annual Enrollment for Health Insurance is August
  of Each Year With an October 1st Effective Date
• Changes Can be Made With Qualifying Events

48
Examples of Qualifying Events

• Marriage, Divorce, or Legal Separation
• Birth or Adoption of Dependent Child
• Commencement or Termination of
• Employment for Employee or Spouse
• Switch from Full-Time to Part-Time
• (vice-versa by employee or spouse)
• Dependent Child Ages Off Coverage or
• Change of Student Status (Age 19 or 26)

49

• For answers to your questions, refer to
• Your Health Benefits
• Summary Plan Description
• or
• statehealthplan.state.nc.us
• benefits at a glance handout

50
Savings Convenience Flexibility
51
Offers five popular benefits

• Health Care Flexible Spending Account
• Dependent day Care Flexible Spending Account
• Vision Care Plan
• Voluntary Accidental Death and Dismemberment
  Insurance
• Traditional Dental Plans
• Supplemental Medical Plan
• New in 2005 Cancer Plan
• New in 2005 Term Life Insurance

52
After Tax Voluntary Plans
53
Life Disability
Plans
54
MetLife - Group Term Life Insurance

• Provides coverage to employees up to five times
  their salary
• Minimum 20,000 Maximum 500,000
• Premium is based on Face amount of coverage,
  and the rate per 1,000 of coverage associated
  with age bracket.
• Spousal and Dependent coverage
• Spouse 10,000 Increments Up to 50,000
• Dependent Children 2,000 or 10,000.
• Portable

55
Liberty Mutual Disability Insurance

• Voluntary Long-Term Plan
• 60 Day Waiting Period
• Receive up to 66 2/3 of Monthly Gross Salary
• (250 minimum, 10,000 maximum)
• Suspends During Paid Leave Workers Compensation
• Coordinates with Social Security DIP

56
STANDARD DISABILITY

• Replaces a percentage of employees monthly salary
• Defines disability as being completely unable to
  perform normal occupation or any other occupation
  
• Protects employees retirement income
• Provides partial disability benefits
• Assists with Social Security Application Process
• Pays survivor benefits

57
Additional Benefits
58

• Mutual of Omaha and Med America
• Hyatt Legal Plan
• Personal Liability Plan
• State Employees Credit Union
• Wachovia Bank
• Travelers Insurance
• Savings Bonds
• Tax Deferred Savings
• College Savings Plan-529

59
Prudential Long-Term Care

• Provides Custodial Care, Adult Daycare, Home
  Health Care and Nursing Care
• Monthly Premiums are Based on Age and Benefit
  Options Elected
• Daily Benefits from 100 to 250
• Waiting Periods Ranging From 60 to 90 Days

60
Hyatt Legal Plan

• Provides Legal Representation for Various Legal
  Liabilities as Set Forth by the Plan
• Monthly Premium 8.00
• One time a Year Enrollment - November of Each
  Year with a January 1 Effective Date

61
Personal Liability Plan

• Provides personal liability coverage to employees
  against civil suits pertaining to slander,
  defamation, false arrest, e.t.c.
• One-time yearly premium based on professional
  classification plus 15.00 administrative fee
• Coverage Limits Based on Liability
• Bodily Injury - 500,000
• Reimbursement of Attorney Fees - 5,000
• Bail Bonds Reimbursement - 1,000
• Prof. Liability Aggregate Limit 2,000,000

62
State Employees Credit Union

• State Employees Credit Union Offers Various
  Financial and Savings Programs for State
  Employees and Their Immediate Family Members.
• Please Contact 1-888-732-8562, the web at
  http//www.ncsecu.org, or Visit Your Local Branch
  for Additional Information.

63
Wachovia Bank

• Wachovia Bank Offers At Work Checking Account
  with NO Minimum Balance requirement, NO Monthly
  Service Fee, and Free On-Line Banking with
  Bill-Pay Feature.
• Various Financial and Savings Programs to
  Employees.
• Employee ID Card could act as Bank/ATM Card.
• Discounts Offered for Services such as Financial
  Planning, Retirement Accounts, and
  Broker-Assisted Trades, to name a few.

64
Travelers Insurance

• Provides employees with discounted auto, home,
  and renters insurance through monthly payroll
  deduction
• Monthly premium based on coverage limits and
  quote by agent

65
Savings Bonds

• Denominations Available
• 50.00 for 100.00 Bond
• 100.00 for 200.00 Bond
• 250.00 for 500.00 Bond
• 500.00 for 1000.00 Bond
• Offered Through Monthly Payroll
• Deduction

66
Tax Deferred Annuities

• Offered Through
• 401(k) Prudential
• 457 Deferred Compensation
• (Great West Insurance Company)
• 403-B VALIC Lincoln National
• TIAA-CREFF MetLife
• Nationwide Prudential
• Fidelity

67

• Monthly contributions vary by each vendor
• The University does not match towards these plans
• IRS maximum yearly contribution
• - 13,000 for the 457 plan
• - 13,000 for the 401k plan
• - 13,000 for the 403B plans

68

• Plans are subject to applicable taxes and
  penalties for early withdrawal
• Hardship withdrawals are available under most
  plans
• Plans have loan provision

69
North Carolina College Savings Plan-529

• Save for College through Post-Tax Payroll
  Deductions into a very flexible and beneficial
  college savings program.
• Program is Administered by the North Carolina
  College Foundation and Provides an array of
  Investment Options ranging from Conservative to
  Aggressive.
• Employees may set aside money for college for
  their children, themselves, or others and pay no
  income tax on the earnings or interest.
• Visit their Website for more details at
  www.cfnc.org/savings/cv0021.jsp

70
Moving with the Pack

• Preferred Real Estate Services Program
• For Current and New Employees can enjoy this
  benefit whether moving To or Within the area.
• Administered through Fonville Morrisey
  Relocation, employees receive University
  negotiated discounts and value added services.
• A comprehensive Real Estate Services Program
  tailored to meet the unique needs of each
  employee and designed to minimize the stress
  associated with moving.
• Services include cash-back incentives for home
  sale and purchase, utility connection and
  disconnection convenience services, mortgage
  discounts, rental assistance, moving van
  services, and more
• For additional information visit
  MovingwiththePack.com

71
Who Should I Contact?
Should you have any questions regarding
personnel matters please contact College Of
Agriculture and Life Science Personnel Campus Box
7917 Raleigh, NC 27695-7917 [phone] Fax
[phone] Email calsbenefits_at_cals.ncsu.edu