Retirement PLANNING
RETIREMENT … IT’S IN YOUR FUTURE
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Dale R. Folwell, CPA | State Treasurer of North Carolina
he North Carolina Department of State Treasurer (DST) works hard to sustain pensions and funds for those who have dedicated themselves to a career of service in North Carolina. We also are committed to protecting these retirement benefits and payments for current and future public servants, as well as their beneficiaries and survivors. This is not an easy task, and takes commitment, dedication and requires a member-first mentality by DST, staff, and our Boards of Trustees. Each year, an annual report is prepared by an outside actuarial firm and serves to demonstrate the health, sustainability, and trends for each of the North Carolina Retirement Systems and Funds. This informs decisions and actions taken by DST, staff, and
the Boards. Recently, DST was presented with December 31, 2020, Actuarial Valuation reports for the Local Governmental Employees’ Retirement System (LGERS) and the Firefighters’ and Rescue Squad Workers’ Pension Fund (FRSWPF). As a firefighter or rescue squad worker, you may be a member of LGERS, contributing 6% of your monthly pay towards the pension. LGERS has consistently been wellfunded, and this is because of the steady participation by members, employers, and investment performance. Being well-funded means that the system is able to pay current and future benefits to eligible members. As of December 31, 2020, LGERS has a funded ratio of 87.8%. The FRSWPF is available to eligible firefighters and rescue squad workers who meet certain criteria and enroll in the fund. As of
December 31, 2020, the FRSWPF has a funded ratio of 95.8%. Enrollment in the FRSWPF is not automatic, but this additional pension provides valuable benefits for you, your beneficiaries, and survivors. Contributions ($10 per month) are made by you or on your behalf through your department or squad and go towards your lifetime monthly benefit of $170 once you have 20 years of creditable service as a firefighter or rescue squad worker and reached the age of 55. Retirement is inevitable for most of us. If you are a vested
member of LGERS, this potential monthly benefit may provide a solid foundation in retirement. The FRSWPF is an opportunity for additional support. But it is important to think about your future early and save often. Saving now means your assets may grow enough, and you will not be required to make further contributions in retirement, either by continuing to work or cutting back on your lifestyle. Starting early and saving often can help you achieve the retirement you envision.
Planning for your future is more than financial savings and funding.
It is also important to make sure
you have designated beneficiaries. If you are a member of LGERS, this is easy to do in your secure ORBIT account. Simply log in and click on the Maintain Beneficiaries tab. You can review your current designations for Return of Contributions and Death Benefits, if applicable. You may select as many principal and contingent beneficiaries as you like, but you must have at least one principal beneficiary. Updates made in ORBIT are effective immediately. As a member of the FRSWPF, there are also benefits for beneficiaries and survivors. This is a separate and important process. We recommend you complete Form 2FR (Designating Beneficiary(ies) for the Firefighters’ and Rescue Squad Workers’ Pension Fund) as soon as possible. This will help to ensure a potential line-of-duty death benefit is maximized. If a line-of-duty death occurs, and a single primary beneficiary is designated, they may be entitled to receive your monthly pension benefit. Beneficiaries for this fund can also be updated through ORBIT if you have an FRSWPF account that has not been refunded and you
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