1
UNC-Chapel Hill
Faculty Retirement
Planning Guide
Prepared by the UNC-Chapel Hill
Oce of Human Resources in collaboration
with the UNC Retired Faculty Association
Updated 08/19/2022
i
Planning for your retirement is an important, career-long endeavor with serious personal,
health, and financial implications. The creation of this guide was motivated by more than
30 UNC faculty retirees who wanted to facilitate a smoother process for still-active faculty
by raising awareness of hurdles they faced planning their own retirement. This guide
includes their key advice and provides you with information to consider at successive
career stages, like:
• Information to guide your mandatory initial choice of UNC retirement program.
• Recommended practices and habits to develop early, which become more important as you
grow older.
• Supplemental investment advisory programs to consider throughout your career.
• Steps for executing a smooth transition from active employment to retirement.
• Post-retirement tasks to continue supportive University relationships.
The Retired Faculty Association at the University of North Carolina at Chapel Hill is
pleased to have worked with the Provost’s Oce and the Oce of Human Resources
to prepare this guide. Please send your suggestions for guide additions or corrections
If you have specific questions or would like to set up an appointment, you can call the
UNC-Chapel Hill OHR Benefits & Leave Support Center at 919-962-3071 or send an email
to benefi[email protected]. It is strongly recommended that you meet individually with an OHR
Benefits Consultant three to four months in advance of your retirement.
PREFACE
ii
3
COVER i
PREFACE ii
CONTENTS iii
LET’S GET STARTED
What options does UNC oer? 4
Why you need a plan 5
Retirement planning essentials 6
Sources of retirement income 7
EARLY CAREER | CHOOSE A RETIREMENT PLAN
Understanding the TSERS and the ORP 9
MID-CAREER | WILL YOU HAVE ENOUGH TO RETIRE?
Determining your retirement benefit 11
Supplementing TSERS and ORP benefits 12
Meeting with an investment advisor 13
Tasks for mid-to-late career 14-15
Catch-up contributions
Beneficiary designations
Powers of Attorney and trusts
Long-term healthcare
Tracking your expenses
Tracking your expected retirement income
Retirement planning seminar
Review and update your health insurance
LATE CAREER | FINDING YOUR PATH THROUGH
PRE-RETIREMENT
Retiree healthcare coverage 17-19
Eligibility requirements
When retiree healthcare coverage begins
How retiree healthcare coverage meshes with Medicare
Other retiree benefit options 20
Phased retirement | How it works 21-22
EXECUTING YOUR TRANSITION TO RETIREMENT
Necessary steps to retire with ORP 24
Necessary steps to retire with TSERS 25
Implementing other retirement support 26-27
Social Security
Medicare
Tax-deferred retirement accounts
Retired faculty privileges 28-30
Emeritus designation and directory listing
Maintaining your UNC connections
ID Card, Onyen and library access
Email
Retired Faculty Association
Recreational facilities
Faculty elections
State Employees’ Credit Union
Rams Club
Faculty/Research separation checklist
Archiving your professional materials
Re-employment
CONTENTS
iii
4
The UNC System oers a choice of two retirement plans, the Teachers’ and State
Employees’ Retirement System (TSERS) and the Optional Retirement Program (ORP).
For general information, you can utilize this guide and attend a Let’s Talk TSERS
session or Let’s Talk ORP session sponsored by the UNC Benefits & Leave
Administration Oce. To check for available sessions:
• Log in to ConnectCarolina using your Onyen and password.
• Click on the drop-down arrow in the center of the navy bar at the top of the screen.
• Choose the “Self Service” option.
• Select the “Carolina Talent Learning” tile.
• Type in “Let’s Talk TSERS” or “Let’s Talk ORP.” If classes are available,
they will show up on your screen and you can enroll in them.
LET’S GET STARTED
RETIREMENT PLANS
WHAT OPTIONS DOES UNC OFFER?
5
You should satisfy personal needs and goals.
Planning for retirement is all about you. Who do you want to be and how do you
want to live? Your plan should reflect your values, your wishes, and your particular
responsibilities and situation.
You will need to cover your expenses.
How will you fund your life? Even if you’re close to retirement, it’s never too late to
save as much as you can. Even after retirement, money can grow over time through
interest and investment earnings.
The cost of living continues to rise.
If you don’t set aside money now, your retirement funding gap gets bigger each
year. Your savings need to grow to meet the rising cost of essentials. Most people
assume they will be able to get by on less money in retirement, but that may not
be the case. When asked about spending in retirement, 30% of retirees say it is
unchanged from their working years — and it could well be more. Fidelity estimated
that the average retired couple age 65 in 2022 may need ~$315,000 saved (after tax)
to cover healthcare expenses in retirement like Medicare premiums and out-of-pocket
expenses, but excluding long-term care. It is best to go ahead and do the math to
set a target.
You may think you’ll work into retirement.
While continuing to work makes sense for some, life can sometimes get in the
way. In a recent study, 47% of retirees say they retired unexpectedly, often because
of health problems, disabilities, or having to care for a loved one. When you save
automatically while you are working, you’ll adjust to your new take-home pay while
you have a pot of money building for you.
WHY YOU NEED A PLAN
6
Start saving very early.
Time is your best investment friend. Beginning early to save regularly, small amounts
at first and more whenever possible, builds good habits. Compounded annual
growth of invested savings over a longer time leads to a larger retirement financial
cushion and better ensures security.
Include several types of retirement investment.
Building a rainy-day savings fund early is extremely important. Purchasing and
building equity in a home can also be a good start. When young, purchasing
relatively inexpensive term accidental disability or life insurance may be wise.
As soon as feasible, also consider both supplemental taxable and tax-deferred
investments that can provide diversity, future growth, and later income. Such a
strategy adds financial flexibility, reduces overall investment risk, and, again,
better ensures future security.
Invest carefully and thoughtfully.
As a resource, the University provides investment help from reliable, experienced,
and unbiased advisors to develop an overall financial plan. Revisit that plan
periodically with an advisor to assure that it evolves with your anticipated needs. As
you approach retirement, compare your expenses with anticipated post-retirement
income and adjust your investment and retirement plans accordingly. See page 13 for
information about meeting with an advisor.
Don’t procrastinate!
Try to anticipate your own and your family’s future obligations and healthcare
needs, and plan early to minimize large financial surprises. As retirement gets
closer, consider which post-retirement UNC resources (e.g., lab space) you want to
maintain and begin to discuss with your dean or department chair how to make
that happen.
66
RETIREMENT PLANNING ESSENTIALS
7
SOURCES OF RETIREMENT INCOME
Your retirement income should not come from a single place — you need several sources. Employer-related
retirement plans and Social Security are investments with modest inflationary protection designed to
provide an assured post-retirement income. Supplementing these sources early with other investment types
builds a robust retirement portfolio. You should consider, and track regularly, each of these sources of
retirement income as you develop your own personal plan:
State of North Carolina and UNC System benefits
• Mandatory Retirement Plans — either TSERS (Teachers’ and State Employees’
Retirement System) or ORP (Optional Retirement Program).
• Supplemental Retirement Plans (UNC System 403(b) Plan, NC 401(k) Plan, NC
Deferred Compensation Plan (457(b) Plan), and the UNC System 457(b) Plan.
See pg. 12 for more information.
• Retiree health insurance under the State Health Plan of North Carolina,
if you are eligible.
Government-provided benefits
• Social Security will provide only a portion of your retirement income.
• Medicare will provide your primary healthcare coverage when you are age 65
or older at retirement, and coverage for eligible participants under the State Health
Plan of North Carolina can help pay medical expenses in retirement.
Personal savings and investments
• Outside savings plans, such as an IRA plan invested with a previous employer.
• Your spouse’s retirement savings and investments, if you are married.
• Inheritance.
• Any life or other insurance policies.
• Consulting activities that can continue after retirement.
• Other types of investments wisely chosen to diversify and enhance your overall
retirement portfolio.
8
EARLY CAREER
CHOOSE A RETIREMENT PLAN
Preparing for retirement is about your vision for the future and saving funds to make
that vision a reality. The UNC System helps you realize that vision by mandating that
the State’s retirement contributions for you go to one of two retirement plans:
• NC Teachers’ and State Employees’ Retirement System (TSERS)
• Optional Retirement Program (ORP)
TSERS oers a State-managed plan that pools your contributions with the contribitions
of others into investments that enable a monthly State retirement income. Because
your share of this pool grows over the years in relation to your increased compensation
and number of years employed, TSERS is an attractive option for those who anticipate
a long career as a UNC or State of North Carolina employee.
ORP directs your retirement contributions to a private investment firm whose advisors
work with you to invest and manage the State’s contributions in your best interest.
ORP is attractive to faculty seeking more personal control of their retirement resources
or who desire a more portable plan should they leave UNC.
ENVISIONING YOUR RETIREMENT
9
UNDERSTANDING THE TSERS AND THE ORP
Through the Mandatory Retirement Program, UNC System employees are required to participate in either the
Teachers’ and State Employees’ Retirement System (TSERS) or the Optional Retirement Program (ORP). Your
irrevocable selection between them must be made within 60 days of your date of initial UNC employment. The
plans are compared below and on page 11. For further details, see the UNC System Decision Guide.
KEY PROVISION TSERS ORP WITH TIAA OR FIDELITY
Who is eligible? Permanent employees working 30
hours or more per week.
Permanent employees working 30
hours or more per week.
Type of plan Defined Benefit (DB) Defined Contribution (DC)
Who contributes? How much? You contribute 6% of pay on a
pre-tax basis; UNC System contributes
an amount as defined by the General
Assembly.
You contribute 6% of pay on a pre-tax
basis; UNC System contributes 6.84%.
Who makes the investment decisions
and assumes investment risk?
State Treasurer’s Division makes all
the investment decisions and assumes
investment risk.
You control and monitor your
investment elections within a list
approved by the UNC System for each
carrier. You can choose from two
carriers and allocate your and the UNC
System’s contributions to one carrier.
What about vesting? You must complete five years of
membership service to be fully vested.
You are 100% vested in your
contributions immediately; you are
100% vested in the UNC System’s
contributions after five years of ORP
participation.
How is the benefit determined? The benefit formula is based on your
years and months of Creditable
Service, salary, actuarial formula, and
the payment option you choose when
you retire.
Your benefit is based on the
contributions to the plan, investment
performance, and the payment option
you choose when you take a
distribution from the plan.
What happens if I am not vested
before I leave for another institution?
You must have five years of
participation in this plan to be vested.
There is a provision for vesting if you
leave UNC, go to another higher
education institution, and within 12
months enroll in a like retirement plan.
The UNC System determines vesting.
10
MID-CAREER
WILL YOU HAVE ENOUGH
TO RETIRE?
11
DETERMINING YOUR RETIREMENT BENEFIT
If you entered the ORP or TSERS prior to August 12, 1989, your retirement benefits may be exempt from
State of North Carolina taxes. Talk with your UNC Benefits Consultant if you are in this category.
TSERS
A defined benefit plan.
Your benefit is determined by a set formula. This
formula is based on your Average Final Compensation
(the average compensation of your highest 48
consecutive months), your years of Creditable
Service, and the Retirement Factor (currently 1.82%).
Nine-month faculty do not earn sick leave. For
12-month faculty, 20 days of unused sick leave as of
your retirement date will convert to one month of
Creditable Service.
You also receive one more month of Creditable
Service for any amount of unused sick leave that is
less than 20 days but at least one hour. For example,
if you retired with 24 days of unused sick leave, you
would receive an additional two months of Creditable
Service.
To check your Creditable Service, obtain an Estimate
of Retirement Benefits, or access annual benefits
statements to determine your retirement readiness,
visit the ORBIT website. If you have not used ORBIT
before, you will need to register by clicking on the
“Register” button on the login page.
ORP WITH TIAA OR FIDELITY
A defined contribution plan.
Your benefit is determined by the contributions you
and UNC make to your ORP account and how well
your investments perform over time. The benefit is
based on the value of your ORP account at the time
you begin taking a distribution.
Sick leave balances do not have any impact on the
ORP account. You may wish to donate unused leave
time to the University’s voluntary shared
leave program.
Approved ORP vendors at UNC are TIAA and Fidelity.
To access and monitor your ORP account information,
visit your investment vendor’s website. You can also
use its online tools and calculators to estimate your
monthly benefit and identify potential income gaps.
You should talk or meet regularly with a retirement
representative from your retirement vendor, especially
before you retire.
12
SUPPLEMENTING TSERS AND ORP BENEFITS
As soon as your income and expenses balance and you also have sucient rainy-day funds, you should
consider options for further strengthening your future security. Supplemental Retirement Plans at UNC are
a great resource to 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 by logging into ConnectCarolina>Self Service> My Benefits> Benefits Enrollment (on left)>
Supplemental Retirement Plans. To get additional information or help, contact the appropriate plan represen-
tative using information at the link at the bottom of the next page.
These plans include:
UNC System 403(b) Plan
Current vendors are TIAA and Fidelity. All employees who pay Social Security and
Medicare taxes are eligible to participate. Contributions can be made pre-tax and/or
after-tax through a Roth account.
UNC System 457(b) Plan
Current vendors are TIAA and Fidelity. All employees who pay Social Security and
Medicare taxes are eligible to participate. You may elect to make either pre-tax or
Roth after-tax contributions.
State 457(b) Deferred Compensation Plan
Currently administered by Empower. All North Carolina public employees are eligible
to participate. Your contributions are made pre-tax and/or after-tax through a Roth
account. As with the 401(k) plan, the account is held in a trust by the State of North
Carolina exclusively for participants and their beneficiaries.
State 401(k) Plan
Currently administered by Empower. All permanent employees who participate in
TSERS or ORP are eligible to enroll. This state-sponsored plan allows you to make
contributions pre-tax and/or after-tax through a Roth account. The account is held in a
trust by the State of North Carolina exclusively for participants and their beneficiaries.
13
MEETING WITH AN INVESTMENT ADVISOR
Experience shows that people usually make better overall investment decisions by
consulting with an experienced, unbiased financial advisor rather than by trying to
go it alone. Thus, a good beginning is scheduling a meeting with an independent
advisor or a retirement plan representative.
To eliminate bias, UNC System retirement contracts with TIAA and Fidelity require
that their representatives not be paid any commission. This means their advice will be
provided with your best interests in mind. They may suggest their own investment
products in line with this advice.
The UNC System has another such agreement with CAPTRUST Financial Advisors,
an independent third-party firm for use by sta and faculty. CAPTRUST advisors help
investors make informed, strategic investments.
Topics covered in 45-minute individual advisory sessions include, but are not limited
to, the following:
• Retirement planning
• General financial planning
• Debt management
• Investment education and advice
Information about scheduling a session with an advisor is available on the Retirement
Plan Representatives page of the UNC-CH HR website.
14
TASKS FOR MID-TO-LATE CAREER
Catch-up contributions
Beginning at age 50, you become eligible to make annual catch-up contributions
to your supplemental 403(b) retirement plan.
Beneficiary designations
Periodically you should review and update your successor beneficiary designations
for all retirement plans and life insurance policies.
Powers of Attorney and trusts
To cover an occasion when you cannot act on your own behalf in certain legal
matters, you may designate someone you trust to act as your “Power of Attorney”
and “Health Care Power of Attorney” (note that these are separate documents). You
can also set up a legal trust to manage some or all of your assets. A trust is a plan
where a trustee holds money that you have transferred and manages it according to
a written trust agreement.
Long-term healthcare
Insurance coverage
According to longtermcare.gov, 60% of people turning 65 will need some form of
long-term healthcare during their lives. The cost for such insurance coverage grows
significantly more expensive with age, so early consideration is wise for your and any
future family needs. Neither UNC nor the State oers any long-term care plans, but
private plans are available.
Continuing care retirement communities
An alternative, possibly supplementary, arrangement that some people consider is
moving into a retirement community, which could often oer elders a continuum of
accommodations, from independent living to assisted living to skilled nursing
and/or memory care.
Many popular communities have lengthy waiting lists for their most attractive
accommodations, and their financial models and fees vary considerably. Therefore,
it is worthwhile to compare communities and to consider making initial refundable
deposits at several. Doing this well before you would want to move in can be another
type of insurance for covering future healthcare needs.
1515
Tracking your expenses
Balancing living expenses with income is a lifetime challenge, but tracking annual
expenses in more detail is particularly informative as you grow older. Understanding
how much you spend regularly for essentials, like housing, food, healthcare, and
taxes, and for non-essentials, such as travel, entertainment, and charitable giving,
will better inform your projections for post-retirement years.
Tracking your expected retirement income
Social Security
Determine what Social Security payments are expected for your anticipated
retirement date. Consult with Social Security or go.unc.edu/DRCTable to learn how
payments would change if you were to retire earlier or later. It could be advisable to
retire later. You get an 8% bump in Social Security benefits for each added working
year between ages 62 and 70.
Retirement accounts
Review your retirement estimates for TSERS at myncretirement.com. If in ORP,
contact TIAA or Fidelity to run some retirement projections for you. Similarly,
estimate what retirement income you can expect from your other investments.
Start to re-evaluate your tax plan
You may want to consult a financial planner, estate planner, tax attorney, or certified
public accountant to assist you in planning for your retirement.
Retirement planning seminar
UNC Benefits oers Let’s Talk TSERS and Let’s Talk ORP sessions several times
a year. Sta and faculty age 50 and older are encouraged to attend. Page 4 of this
guide provides enrollment information.
Review and update your health insurance
If you are eligible for retiree health insurance, you can only cover those eligible family
members who are covered at the time you retire. You may add your spouse or child
(age 26 or younger) to your health plan during Open Enrollment in the year before
you retire to continue that dependent coverage after your retirement.
16
LATE-CAREER
FINDING YOUR PATH
THROUGH RETIREMENT
17
RETIREE HEALTHCARE COVERAGE
This section describes detailed eligibility requirements for retiree healthcare under the State
Health Plan. It also discusses how this plan meshes both with your prior coverage during active
employment and with Medicare.
Eligibility requirements
When employees first hired prior to October 1, 2006, retire, they are eligible to
continue health insurance coverage under the State Health Plan of North Carolina
based on the following two retirement service rules or requirements:
• They have at least five years of either TSERS contributory retirement service or
ORP participation.
• They receive a monthly retirement benefit from TSERS or ORP.
When employees first hired on or after October 1, 2006, retire, they are eligible to
continue health insurance coverage under the State Health Plan of North Carolina
based on the following two retirement service rules or requirements:
• They have at least 20 years of retirement service credit. (Employees with fewer
than 20 years of retirement service credit are eligible when they retire to continue
health coverage under the State Health Plan of North Carolina by paying a larger
percentage of the premium).
• They receive a monthly retirement benefit from TSERS or ORP.
In all cases, the full cost of coverage for spouse or dependents during retirement,
if elected, must be paid by you. Employees first hired on or after January 1, 2021, are
not eligible for retiree medical coverage.
When retiree healthcare coverage begins
Generally, your transition to retiree group health coverage begins without a break
in coverage, provided your retirement date immediately follows your date of
termination of active employment. For example, if your last day of work is June 30
and the first day of retirement is July 1, then your UNC-provided health coverage
would end on July 31, and the NC State Retirement System, which handles retiree
health insurance, would pick you up on August 1. Contact the North Carolina State
Health Plan for questions pertaining to retiree healthcare coverage once retired.
To assure no gap in coverage as you retire, it is essential to meet with the UNC
Benefits Oce 120 to 90 days before your retirement date to complete the
required paperwork.
Important note: You forfeit your eligibility for the State’s retiree group health plan
coverage if you withdraw your entire account from TSERS or ORP, or if you transfer
or roll over the entire account to an individual retirement account (IRA) or another
employer’s retirement plan.
18
Retiring at 65 or older
Retiring members who are eligible for Medicare and begin the retirement process
120 days (if enrolled in TSERS) or 90 days (if enrolled in ORP) prior to the
benefit eective date, and their dependents, will be auto-enrolled into the Group
Medicare Advantage Base Plan.
Enrollment in the Group Medicare Advantage Base Plan is contingent on your
Medicare Part B coverage’s being in eect on the retirement date. Enrollment into
Medicare Part B must occur at least 60 days prior to the retirement date but be in
eect on the retirement date. If there is a delay in Medicare Part B enrollment, the
retiree may default to the 70/30 health plan. The State Health Plan pays claims
based on the assumption that the Medicare-Part B-eligible retiree is enrolled in
Medicare Part B, regardless of whether the retiree has actually enrolled.
Retirees may select the State’s 70/30 Plan, an option that may be preferable for
retirees with dependents who also wish to enroll in a Medicare Supplement
program. This option is not available to participants in Medicare Advantage plans.
The Medicare Advantage Base Plan or the State 70/30 Plan may be premium-free
for retiree-only coverage if the retiree was hired prior to October 1, 2006. Otherwise,
there may be premiums paid, but pro-rated depending on years of service.
Changes to plan elections can be made during the next Open Enrollment period.
For all retirees, including those enrolled in ORP, open enrollment is done through
the State Retirement System in their ORBIT website. All retirees need to create an
ORBIT account at some point.
If retirees have dependents that are not eligible for Medicare, the dependents
will be enrolled into the same health plan they had the year prior to retirement.
Medicare-eligible dependents can be added to the Medicare Advantage Plan
at the retiree’s expense.
19
Retiring, and not yet 65
Retiring members who are under 65, along with any covered dependents, will be
enrolled in the health plan they had as active employees. New health ID cards will
have a group number starting with SR-.
How retiree healthcare meshes with Medicare
See the Planning for Retirement section of the North Carolina State Health Plan
website.
Where to find additional information
Complex situations may not be covered above. Retiring employees with questions
about their health plan options should contact the Enrollment Support Center of the
North Carolina State Health Plan at 855-859-0966.
Retirees who are not vested in a UNC retirement system or who have a spouse or
other dependents with other options or needs can find extensive information about
Medicare, Medicare Supplements, and Long-Term Care Insurance from the Medicare
and Seniors’ Health Insurance Information Program (SHIIP).
20
OTHER RETIREE BENEFIT OPTIONS
BENEFITS
C
CAN THIS CONTINUE
AFTER RETIREMENT?
ADDITIONAL INFORMATION CONTACT
TSERS Dental and Vision
Insurance
YES
Those retiring with TSERS can enroll in the Retirement Systems
dental/vision plans at ncretiree.com.
1-855-627-3847
NCFlex Dental Insurance YES
If enrolled at retirement, you may continue coverage under COBRA
for up to 18 months.
1-855-859-0966
NCFlex Vision Insurance YES
If enrolled at retirement, you may continue coverage under COBRA
for up to 18 months.
1-855-859-0966
NCFlex Flexible Spending
Accounts
CONDITIONAL
May submit claims for healthcare expenses up to the last day
worked and dependent care claims up to the last day of the
plan year. May continue the healthcare flex spending coverage
through COBRA on an after-tax basis.
1-866-916-3475
NCFlex Group Life YES
May convert to an individual life policy within 30 days of
retirement; otherwise, it terminates. Rates will be higher.
1-877-464-5111
UNC Group Term Life YES
If enrolled at the time of retirement, you may “port” current
coverage and move to an individual policy. Rates will be higher.
You also have the option to enroll in voluntary retiree life coverage
oered to all retirees.
UNC vendor will reach out
to you directly
NCFlex Accident Plan YES
If enrolled at time of retirement, you may continue current
coverage as a retiree and move to an individual policy.
1-877-464-5111
NCFlex Cancer Plan YES
If enrolled at time of retirement, you may continue current
coverage as a retiree and move to an individual policy.
1-866-232-1517
NCFlex Critical Illness Plan YES
If enrolled at time of retirement, you may continue current
coverage as a retiree and move to an individual policy.
1-866-232-1517
Long-Term Disability NO This stops on your last day of work. ---
NCFlex Accidental Death
& Dismemberment (AD&D)
YES
May convert to an individual policy within 31 days of retirement;
otherwise, it terminates.
1-402-351-3349
(Mutual of Omaha)
21
PHASED RETIREMENT – HOW IT WORKS
The University of North Carolina Phased Retirement Program is designed to provide
an opportunity for eligible, full-time tenured faculty members to make an orderly
transition to retirement through half-time (or equivalent) service.
Phased Retirement is a great way to phase out your work into retirement. Eligible
faculty members include those who meet certain age criteria and are also eligible for
retirement under the Optional Retirement Program (ORP) or Teachers’ and State
Employees’ Retirement System (TSERS). There are both informal agreements and
formal procedures that you need to consider before entering this program.
Informally
You are strongly advised to initiate early discussions to reach an understanding with
your chair or dean about what departmental or school resources or responsibilities you
will have, both during your phased retirement contract period and perhaps afterwards.
For example, during phased retirement what will your teaching, research, and service
obligations be? Will you be eligible for any annual salary increases? Can you retain
your oce?
During phased retirement, you give up your tenured status, but UNC System policy
allows you to retain the right to vote on personnel recommendations that confer
tenure or promotion, to the extent already provided to faculty of your rank.
Formally
There are several steps before you can enter phased retirement:
1. The Academic Personnel Oce notifies each eligible faculty member during the
enrollment period for phased retirement. The phased retirement appointment/
contract starts on July 1 of each year.
2. In phased retirement, you fully retire but have a three-year work contract. It allows
you to work up to .75 FTE in one semester. To balance out to .5 FTE for the year, you
can work .25 FTE during the other semester. In essence, any combination can be
utilized (i.e., 75/25, 70/30, 65/35, etc.), that equates to .5 FTE for the year.
3. While on phased retirement you may only earn from UNC up to 50% of your faculty
base salary. This can include income from teaching in regular or summer sessions,
distance education classes, or grants.
4. Under phased retirement, your health insurance is provided to you as a retiree
through the State Retirement System. However, as a half-time employee, you are
allowed to continue your NCFlex benefits such as dental, vision, and flexible
spending accounts through UNC-Chapel Hill.
22
Frequently asked questions
What is the chance that a regularly submitted request for phased retirement would be
denied by UNC?
This is very rare. The provost works to accommodate every request while balancing
the educational needs of the University.
Is phased retirement also available for clinical or research faculty in health aairs units,
or for long-term, full-time, but non-tenure teaching faculty?
Phased retirement is only available to tenured faculty members.
Can one continue to receive supplemental income during phased retirement from an
external research contract or grant during the semester or summer when there is no
formal teaching obligation associated with the phased retirement contract?
Faculty on phased retirement are limited to 50% of their salary prior to retirement.
This may include summer salary or grants.
Can one still contribute to supplemental IRA or Roth IRA accounts during phased
retirement?
Yes, as these are private plans, contributions to IRAs can still occur. Phased
retirees may also continue contributions to the supplemental retirement plans
such as the UNC 403(b) and UNC 457.
More information about UNC’s Phased Retirement Program can be found on the
Phased Retirement page of the UNC-CH Academic Personnel website.
23
EXECUTING YOUR TRANSITION
TO RETIREMENT
24
NECESSARY STEPS TO RETIRE WITH ORP
Within 120 to 90 days prior to your retirement date, you should:
• Provide your chair or dean with written notice of your intent to retire.
• Contact UNC Benefits & Leave Administration at 919-962-3071 or
benefi[email protected] to schedule an appointment to complete required
paperwork for retirement
.
ATTENTION!
Delaying such a meeting could risk missing deadlines to assure uninterrupted
continuation of your healthcare after your retirement.
The retirement process for ORP (TIAA or Fidelity) participants
1. At your virtual or in-person appointment with the UNC Benefits Oce, you will
need to sign an ORP-3 form. This form is required to verify your vesting in the plan
so TIAA or Fidelity may begin distributions once you set these up with the vendor.
After you sign this form, the UNC Benefits Oce signs it and sends it over to the
UNC System Oce. The System Oce will verify your vesting and sign o on the
form. It updates the TIAA and Fidelity systems to reflect your vested status and
notifies you by email.
2. Once you receive a vesting email from the UNC System, you will work with TIAA
or Fidelity to set up your monthly distribution. Your retiree health insurance is
contingent on your receiving a monthly benefit from your TIAA or Fidelity UNC
ORP account. The monthly benefit must be scheduled to begin on the first day of
your retirement. There are multiple options for receiving a benefit from your ORP
account that you can discuss with TIAA or Fidelity.
3. Your retirement service representative can provide your projected retirement
income and distribution options. You may work with UNC ORP representatives to
begin your retirement distribution process.
25
NECESSARY STEPS TO RETIRE WITH TSERS
Within 120 to 90 days prior to your retirement date, you should:
• Provide your chair or dean with written notice of your intent to retire.
• Contact UNC Benefits & Leave Administration at 919-962-3071
or benefi[email protected] to schedule an appointment to complete required
paperwork for retirement.
ATTENTION!
Delaying such a meeting could risk missing deadlines to assure uninterrupted
continuation of your healthcare after your retirement.
The retirement process for TSERS participants
1. You can schedule a virtual or in-person appointment with the UNC Benefits Oce
to discuss your retirement. Instructions will be given for the retirement process.
2. Retirement is done through the ORBIT system found at myncretirement.com. This
is the State Retirement System’s portal. You will start your retirement process
online. Most forms are completed online, but there are two forms in particular
that must be printed, signed in front of a Notary Public, and uploaded back into
ORBIT. Unfortunately, these forms come at dierent points in the retirement
process, meaning two visits to a Notary Public.
3. Once you start the retirement process in ORBIT, the UNC Benefits Oce receives
a Form 6-C to complete on your behalf. You will also receive a copy of this form.
Prior to your retirement, you will need to check with your department’s HR
Consultant for future pay information and any sick leave balances you may have,
if applicable. This form is sent back to the Retirement System via email by the
UNC Benefits Oce.
4. It is important to move through the steps as quickly as possible to avoid any
delays. There are some steps where the Retirement System will have to provide
some human intervention to move you to the next step. Patience is encouraged
while you await your email from the Retirement System to continue to the
next step.
26
IMPLEMENTING OTHER RETIREMENT SUPPORT
You have flexibility in when to start receiving other retirement benefits.
Social Security
• At age 62, you should review your Social Security benefit options at ssa.gov or
1-888-759-3908. Consider using the table at go.unc.edu/DRCTable to decide
whether delaying the onset of Social Security benefits until or beyond your “full”
retirement age could be advisable for your personal situation.
• At age 65-67, you can start taking full or partial Social Security benefits according
to your birth year.
• If not initiated earlier, by age 70 you should initiate payment of Social Security
benefits since no additional scheduled payout adjustment occurs as you
age further.
Medicare
At age 64 and 8 months, you can apply for Medicare online at ssa.gov or contact
your local Social Security Oce. If actively working and on the State Health Plan
through UNC, you only need Medicare Part A and can delay Part B until your
retirement. During the retirement process with the UNC Benefits Oce, those over
age 65 will be provided an Employer Medicare Form that states you were covered
under a group health plan to provide information as to why you delayed
Part B enrollment.
Tax-deferred supplemental retirement accounts
By age 72, you must begin taking Required Minimum Distributions (RMDs) from
IRAs and other pre-tax investments. However, if you are still actively employed at
UNC and contributing to TSERS or ORP, you can delay taking RMDs from the
UNC accounts until you retire.
Once someone retires, TSERS and ORP are covered under the RMD rules. Rolling
over funds from the ORP to the supplemental plans can be done but is tricky to
navigate. Sucient funds must be left in the original ORP or an annuity payment
must be set up to meet the requirements for retiree health insurance eligibility.
27
Leaving your funds in UNC’s supplemental retirement account(s) after retirement
oers a continuing benefit because of reduced institutional account fees compared
with fees for identical investments in an individual plan. Immediate or later rollover
of these UNC supplemental funds is possible, perhaps to simplify their oversight and
management with your other individual external funds.
If you encounter diculty with such a rollover, identify the issue and contact the
UNC Benefits Oce for help at 919-962-3071 or benefi[email protected].
28
RETIRED FACULTY PRIVILEGES
Emeritus designations and directory listings
Members of the voting faculty, whether tenured, clinical, research, or term, who take
retirement and are no longer performing compensated services for the University,
may continue to use the professorial titles and distinctions that they held
immediately prior to retirement with the courtesy designation of “emeritus” or
“emerita” appended. It is also appropriate that faculty emeriti be included in school
and departmental faculty lists in ocial University publications and websites.
Once the retirement is processed, the UNC Benefits Oce will automatically update
the campus directory to “emeritus” status and this will allow continued access to
UNC email.
UNC’s directory listings have now been standardized. The directory designates
non-emeriti faculty as “Retiree UNC-Chapel Hill” and lists the previous home
department. Those with emeritus status are listed as “Emeritus, UNC-Chapel Hill.”
There is no longer a process to customize such listings further. Faculty who plan to
continue to publish or engage in other professional activities after retirement often
pursue “emeritus” status to reference more readily their prior academic experience.
Others who continue active research with external support may choose to delay
their request for this designation.
Should emeriti faculty continue active participation in the academic life of the
University, the appropriate department chair or dean is encouraged to accord
continued amenities as may be appropriate for the nature and extent of their work,
subject to financial, space, personnel, and other functional restraints. Such privileges
include, for example, oce space, laboratory facilities, library carrels, and parking.
Should emeriti faculty desire to have the title “emeritus” updated to “emerita”
or wish to delay this designation, please email the UNC Benefits Oce at
benefi[email protected] to request this change. Please include your name, PID
and request.
Maintaining your UNC Connections
ID Card, Onyen, and Library Access
When the UNC Benefits Oce receives notification of a faculty member’s
retirement, it will then automatically establish for the faculty member an “emeritus
status” that will keep the Employee ID (One Card) and Onyen active. A card
29
indicating this new status can be acquired from the One Card Oce. Consequently,
any University access based on the Employee ID and/or Onyen, such as library
privileges, IT Services, and UNC-Chapel Hill directory listing, can remain active
and authorized.
Email
All retirees may continue their UNC-Chapel Hill email account. Access for 10 years
is granted automatically and may be renewed for another 10 years by contacting
the UNC Benefits Oce for help prior to your 10-year renewal.
Retired Faculty Association
The UNC Retired Faculty Association (RFA) was established in 1986 to
provide meaningful opportunities for UNC’s retired faculty and professional
sta/administrators to stay connected with the University community through
representation and advocacy as well as through opportunities for intellectual
engagement. Detailed information about the RFA’s mission, life-long learning
programs, social activities, and membership application is available
on the UNC-CH Retired Faculty Association website.
Recreational facilities
Retirees seeking to maintain their health and fitness often utilize gym and pool
facilities and programs available at Carolina Recreation at campusrec.unc.edu or
utilize discount memberships available to UNC retirees at the UNC Wellness
Centers in Meadowmont and Cary. Visit uncwellness.com for more information.
Retiree discounts are also available to both continuing and new members at the
UNC Faculty-Sta Recreation Association. Visit uncfarm.org for more information.
Faculty elections
A member of the voting faculty who retires is still eligible to vote on matters of
Faculty Governance. Faculty Code language governing these details can be found on
the UNC-CH Oce of Faculty Governance website. Retirees who do not continue on
the faculty with a fixed-term appointment that calls for at least one-half time eort
may vote in elections for retired faculty representatives to the Faculty Council.
To activate this eligibility, send a request with your name, date, faculty rank upon
retirement, and unit from which you retired to the Oce of Faculty Governance,
201B Henry Owl Building, Chapel Hill, NC 27599-9170. For more information,
you can call 919-962-2146.
30
State Employees’ Credit Union
You can remain a member after retirement and retain the same privileges as
active employees.
Rams Club
If you are an active member at the time of retirement, you are able to continue your
membership into retirement.
Faculty/Research separation checklist
A faculty member involved in funded/sponsored research projects as Principal
Investigator, Co-Principal Investigator, Key Personnel, or Collaborator must complete
a Faculty/Research Separation Checklist upon retirement. This form can be retrieved
from the Oce of Sponsored Research at r[email protected] or by calling
919-966-3411.
This checklist was developed to ensure timely communications between research units
and OHR units concerning employee separation, and it impacts the status of a Principal
Investigator or Co-Principal Investigator. It is also designed to mitigate risk of research
protocols being left open.
Archiving your professional materials
Faculty seeking a secure place to preserve their records of professional work should
consider the University Libraries Carolina Digital Repository.
Re-employment
Familiarize yourself with return-to-work policies. Retirees in TSERS must adhere
to a mandatory six-month break in service rule, unless a formal phased-retirement
contract is in force.
ORP retirees are permitted to return to work for a State employer with a recommended
30-day break in service. It is strongly recommended that you contact the UNC Benefits
Oce for more information on this topic.
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.
31
Carolina Blue is the color of
a life you love in retirement!
We are here to help. Contact UNC Benefits & Leave Administration
benefi[email protected] | 919-962-3071
