North Carolina 401(k) Plan

The North Carolina 401(k) plan is sponsored by the State of North Carolina and governed by the Department of the State Treasurer. The plan administrator for this program is Prudential.

The North Carolina 401(k) Plan is a supplemental retirement plan that allows employees to set aside payroll-deducted contributions on either a pre-tax basis or an after-tax basis.

Permanent full-time employees scheduled to work 30 or more hours per work week are eligible.

Contribution Amounts

The annual contribution limit to the 401(k) plan is based on a percentage of your gross pay. During 2008, you can contribute up to 80 percent of your gross pay not to exceed $15,500. You may be eligible for a catch-up contribution of an additional $5,000 if you are 50 or older, or will turn 50 during the current calendar year. For employees age 50 or older, the maximum contribution amount is $20,500.

Coordination with other Supplemental Plans

An aggregation of 403(b) and 401(k) plan contributions must be made if you participate in more than one plan during a calendar year. For example, if you contribute to the 401(k) plan in addition to the 403(b) plan, the combined amount of the contribution to both plans in 2008 cannot exceed the elective deferral plan limit of $15,500.

Contributions to the 457(b) deferred compensation plan are not aggregated with 403(b) or 401(k) plan limits. 

To enroll in the 401(k) plan, contact Prudential Retirement at 866-627-5267. All enrollments and changes are handled by Prudential.

Allocating Contributions

When you enroll in the 401(k) Plan you must also decide what portion of your contributions will go into a fixed account and/or what portion will go into an investment account. You may change your allocation for future premiums at any time by contacting Prudential.

Vesting

You are immediately 100 percent vested in the value of your employee contributions.

Loans

You may be able to borrow against your account; contact Prudential for more information about loan provisions.

Death Benefits

In the event of your death, your total account is availableto your designated beneficiary. You designate your beneficiary when you complete your 40l(k) enrollment application.

Distribution Options After Leaving the University

Generally, distributions from a 401(k) Plan can be made when an employee reaches age 59 1/2, severs employment, becomes disabled or dies. In most cases, payments received from a 401(k) account are taxed as ordinary income and may be subject to an additional penalty.

Retirement Benefits

Under the 401(k) Plan, the amount of the benefit is based on the total accumulation in the account(s) including any credited interest or dividends, your age, the age of your partner, if applicable, and the income option selected. There are no age or service requirements to meet in order for a participant to begin receiving a benefit.

Prudential makes available optional forms of payments and a variety of retirement payment options designed to allow you to tailor-make your retirement program to meet your financial needs. These may be fixed payments or payments on a variable basis, or a combination of payment options. You may also elect to receive a lump sum distribution.

If you have questions about the 401(k) program, contact Prudential at 866-627-5267 or call your Benefit Specialist.

The Benefits Administration Department, Office of Human Resources, is responsible for reviewing and revising as needed the content of this page.

The information contained in this website is not a contract and is subject to change. It should be understood that explanations in this summary cannot alter, modify or otherwise change the controlling legal documents or general statutes in any way, nor can any right accrue by reason of any inclusion or omission of any statement in this presentation. The most current information will always be found at the benefit carrier's home page. The Office of Human Resources designs these pages to be as current as possible; however, the benefit information provided herein is always subject to change.