About NC Lifetime Income

Members of the Teachers' and State Employees' Retirement System (TSERS) and Local Governmental Employees' Retirement System (LGERS) will have a one-time opportunity to transfer all or part of their NC 401(k) and/or NC Deferred Compensation (457) funds to the Retirement System in order to receive lifetime income at or after retirement.

You will want to carefully evaluate this option. Money you transfer will be used to purchase lifetime income. That money will no longer be available for you to withdraw in an emergency or leave to your heirs as a lump sum.

The monthly benefit is calculated so that if you live exactly the expected number of years, you would receive the same payments with this benefit that you would have received by investing your NC 401(k) or 457 in safe U.S. Treasury Bonds and taking regular monthly withdrawals equal to the monthly benefit. In other words, the benefit is calculated to neither make money nor lose money for the Retirement System.

If it looks like the transfer might be a good choice for you, log into your personal ORBIT account and use the estimator to see how much monthly income you could receive.

Sample Benefit Amounts under the Transfer Option

The monthly benefit amounts shown in the table below are based on interest rates from October 2017. Actual benefits are almost certain to differ from these amounts. We are providing them to give you a rough sense of the estimated amount of benefits for a given amount transferred.

All of the values in the table assume the following elections:

• 3 Year Guaranteed Refund
• Maximum Option (no survivor benefit)
• Cost of living adjustment (COLA)

Before you get started, try this quick calculator below to see if the NC 401(k)/457 transfer option may be suitable for you. If you are not yet retired, please use estimates. *Required Fields

Monthly Household Retirement Income (TSERS/LGERS, annuity, etc. Include social security if payments have begun or will begin within 12 months.)

$*

If social security benefits will begin more than 12 months from now, enter estimated benefit. (Use monthly benefit amount for age you plan to start receiving benefits.)

$

Monthly Household Retirement Expenses

$*

Household Savings Balance (Include retirement plan savings and regular savings.)

$*

 

 

 

 

 

 

 

To learn more about the Transfer Benefit and whether it is right for you, review the linked informational pages:

Balancing Income and Expenses
Length of Payments
Taxes
Stock Market Risk
Costs to You
Inflation Protection
Guaranteed Payment Options
Special Options for Law Enforcement Officers
Your Choices
Assumptions Used to Determine the Transfer Benefit
Frequently Asked Questions

If you are ready to begin the transfer process, please go to the ORBIT website and choose the appropriate version of Form 319.

We need to collect some information from you so SECU staff can help you determine if the Transfer Benefit may be suitable for you.

Please gather the following documents before selecting the "Suitability Form" button below.

• Household Income (Social Security benefit, TSERS/LGERS benefit, etc.)
• Household Expenses: Itemized
• Household Savings Balances (NC 401(k)/457, IRAs, CDs, etc.)