Allowable Earnings

For TSERS Retirees

The Board of Trustees of the Teachers’ and State Employees’ Retirement System (TSERS) has amended the provision affecting earnings by a retired employee who becomes re-employed with a State Agency.

If you are re-employed on a part-time, interim, temporary, or contractual basis, or are otherwise engaged to perform services on any basis that does not require membership in the Retirement System that you retired from, your retirement payment will be stopped if your earnings during the twelve-month period immediately following the effective date of retirement or during any calendar year exceed your earnings limitation, which is calculated as the greater of the following:

• $32,240 (as of 2022)

OR

• 50% of your compensation, excluding terminal payments, reported to the Retirement System during the twelve months of service preceding the effective date of your retirement.

(These amounts are increased on January 1 of each year by the percentage increase in the Consumer Price Index.)

It is the responsibility of the retiree to monitor earnings.

Retirement payments will be stopped on the first day of the month following the month in which earnings exceed the greater of the two limits stated above. Retirement payments will start again on January 1 of the year after the benefit is stopped.

Personnel facilitators receive updated salary guidelines each year through memoranda sent to “Deans, Directors, and Department Heads.” For more information about post-retirement earnings, see the North Carolina Department of State Treasurer website.

For ORP Retirees

Retirees from the Optional Retirement Program (ORP) do not have any earnings allowance as TSERS retirees do. While there is no earnings cap, rehired retirees at UNC should only work a maximum of 29 hours per week. Working 30 or more hours a week impacts a retiree’s health insurance eligibility.

Retirement Programs

Re-employment in retirement is determined by the faculty member’s retirement plan. If re-employing with UNC or another State agency, retirees should not work over 29 hours per week so that retiree health insurance is not impacted.

Teachers’ and State Employees’ Retirement System (TSERS)

For members of the Teachers and State Employees Retirement System (TSERS), in order for a member’s retirement to become effective in any month, the member must render no service, including part-time, temporary, substitute, or contractor service, at any time during the six months immediately following the effective date of retirement. This policy does not apply to participants in the University of North Carolina Phased Retirement Program.

That is, TSERS retirees must adhere to a mandatory six-month break in service rule, unless a formal phased-retirement contract is in force.

To review your TSERS retirement estimates, visit the NC Retirement Systems website at myncretirement.com.

Optional Retirement Program (ORP)

For ORP retirees, there is no limit on earnings or six month wait for reemployment on a part-time basis.

That is, ORP retirees are permitted to return to work for a State employer with a recommended 30-day break in service.

To review your ORP retirement estimates, contact your vendor to run some retirement projections for you.

Phased Retirement

The UNC-Chapel Hill Phased Retirement program will provide for part-time re-employment for a three-year period after the resignation of the tenured position. This timeframe aligns with that of most other institutions.

For more information, see the Phased Retirement program webpage.

Part-Time Contract

A faculty member may choose to fully retire and negotiate a part-time contract with the Chair instead of entering the phased retirement program. The salary, FTE and length of contract are determined by the Chair.

Whereas the phased retirement program guarantees half-time pay for three years, this part-time contract could be for less salary and time as well as possibly a year-to-year contract.

Faculty members hired under this arrangement are appointed as fixed-term faculty, and are temporary employees with no benefits.

Supplemental Retirement Plans

Supplemental Retirement Plans at UNC help close gaps in your overall retirement savings and diversify your retirement portfolio. The UNC supplemental retirement plans have some of the lowest management fees in the industry because of the size and scale of the UNC System and State.

Faculty can enroll in one of these plans below at any time during their career:

• Log in to ConnectCarolina Self Service.
• Click on the My Benefits tile.
• Click on Benefits Enrollment from the left menu.
• Choose Supplemental Retirement Plans.

For additional information or help, contact the appropriate plan representative using information on the Retirement Plan Representatives page of the HR at UNC website.

Other Sources of Income

Employer-related retirement plans and Social Security are investments with modest inflationary protection designed to provide an assured post-retirement income. Track regularly each source of retirement income as you develop your own personal plan.