Funded or Unfunded It’s all in the Details

The North cover benefits for current and contribution process. The Online Security and other retirement Carolina future retirees who have chosen Agency Contributions pilot is savings opportunities. As a Retirement a career of service to the citizens underway with a staged rollout. member of LGERS, you have Systems (NCRS) of North Carolina, like you. This new tool makes it easier the option of saving in the NC is the ninth- Retirement is an inevitable for departments to update and 401(k) and NC 457 Plans. These largest public milestone and is simply defined modify roster service for each plans are exclusively available pension fund by the separation of yourself member and note the monthly to state and local governmental Dale R. Folwell, CPA in the country. from active employment. The payment for creditable service. employees and are recognized It provides time that you retire may be Whether you pay the $10 for their exceptional value and retirement determined by many things like monthly contribution ($120 strong-performing investments. As benefits and savings for more age, workplace requirements, annually) or your employer pays a participant, you can save now than 950,000 North Carolinians, family or spousal support of your this on your behalf, it is ultimately and carry those savings up to including teachers, state decision and whether or not you your responsibility to make sure and through retirement, retaining employees, local governmental have saved enough to generate contributions are received by the all the benefits, including employees, firefighters, police income in retirement to live the pension fund no later than March meaningful board oversight and officers and other public workers. way you envision. Simply put, is 31 for the previous year. At the access to a team of retirement

A “stress test” by The Pew your retirement funded or are time of your eligible retirement, counselors. Charitable Trusts in 2019 you entering into retirement with you must apply for these benefits. As you look to your future, concluded that North Carolina’s an unfunded liability? They are not paid automatically. think about the details: state pension fund is well- All firefighters and rescue Visit myNCRetirement.com to • Where you want to be and positioned to maintain solvency squad workers, volunteer or learn more about eligibility and the cost of living during tough economic times. employed by a local government, benefits for North Carolina’s • Outstanding debts and your This assessment was put to the are eligible to become a member firefighters and rescue squad ability to address those prior test during 2020’s volatile market of FRSWPF. In order to do so, you workers. to or during retirement conditions as the total NCRS must complete an enrollment If your employer is a local • Budgeting that incorporates valuation has, at times, reached application (Form 350, Enrolling government that has elected income, assets and expenses, historic levels of more than $115 in the Firefighters’ and Rescue to join LGERS, you contribute (Experts recommend that billion. Squad Workers’ Pension Fund) six percent of your pay each your income in retirement

This milestone and the through your department or month to the pension and should be equal to about resilience of the North squad, and mail it with your first this, along with your employer 80 percent of your preCarolina pension fund is due to payment (contributions are $10 contributions (11.35 percent of retirement income.) meaningful and active oversight per month). Your enrollment date your pay in the upcoming fiscal Will you be funded or by the Boards of Trustees, will be effective in the month in year) and investment returns unfunded in your retirement?conservative management and which the pension fund receives (which reached 11 percent for It takes work, planning investment by the Department both your application and first the calendar year ending Dec. and staying the course to of State Treasurer (DST) and staff contribution. You may apply for 31, 2020), create a foundation for realize a funded retirement. I that remains loyal to “doing the monthly pension benefits after your retirement income once you encourage you to take time to right thing” for each member. you have 20 years of creditable become vested and meet certain plan, participate in one of our

When I took office in 2017, service as a firefighter or rescue requirements. retirement planning events and one of my first initiatives was squad worker, and reach age 55. With either of these pension log in to ORBIT to get a better to cut Wall Street fees and other The current pension fund lifetime funds, it is important to register picture of your creditable service investment costs. I pledged to cut benefit is $170 per month. your ORBIT account. This and potential benefits. We will $100 million in fees. As of Dec. We know that 75 percent online tool allows you to track continue to do all we can to 31, 2020, that goal was exceeded of North Carolina’s landmass creditable service, designate and maintain the integrity, value and by 250 percent, resulting in more is protected by volunteer maintain beneficiaries, and access security of the North Carolina than $350 million in incremental fire departments and all fire retirement calculators and other pension and supplemental cost-savings in the state pension. departments have important resources. retirement plans for you and

NCRS is widely regarded as work to do. DST has worked Your pension payment may future members. one of the best funded in the with your team and associations not be enough for a “funded” Thank you for the important nation. In fact, Moody’s Investors to simplify and modernize the retirement. As you plan for your work and service you provide to Service reported in 2019 that “turnaround” document that future, you need to consider the people of North Carolina.North Carolina’s Retirement improves the quality of the other sources, such as Social Systems, which includes state and local governmental employees, is the best funded in the nation when looking at its Adjusted Net Pension Liability.

By law, the NCRS consultant performs an annual actuarial valuation of each pension plan to monitor and adjust the plan’s progress toward its funding goals. As of Dec. 31, 2019, the Firefighter and Rescue Squad Workers’ Pension Fund (FRSWPF) annual actuarial valuation placed the funded ratio at 92.3 percent — significantly higher than 83.7 percent just eight years ago. Additionally, the Local Governmental Employees’ Retirement System’s (LGERS) annual actuarial valuation for the same time period is 89.4 percent funded.

A strong funded status means that there are enough assets to