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Important New Information for
2009
IRS Announces Withholding Adjustments
Many of our retirees
will receive a reduced net benefit in June due to changes in IRS
withholding tables.
In February, the IRS
issued, and the NC Retirement Systems Division implemented, new
withholding tables to incorporate one of the key tax provisions included
in the American Recovery and Investment Act of 2009. This change
increased many monthly benefit payments, by having
less tax withheld.
This Act was intended
to stimulate the economy by providing more money in the payroll checks
of workers earning an income.
However, retirement benefits are not considered earned income and the
IRS has now reversed its February decision. This change in withholding
tables by the IRS is intended to prevent
retirees from receiving a smaller refund or even a balance due at the
end of the tax year. In order to prevent this negative impact on our
members, effective June 1, we are reverting to the original tax tables
issued by the IRS.
This will result in a return to your
February benefit level and no adverse tax impact when you file next
year. For more detailed information on the IRS guidance, visit the IRS
Web site at
www.irs.gov
and type in “IR-2009-50” in the search box.
If you have
questions about how much you should withhold, or how this change will
affect you at the end of the year, please contact your Tax Advisor.
You can view your deposit
statements or change your tax withholding amount through your ORBIT
account. To access ORBIT, visit
www.myncretirement.com and
click on the “ORBIT” button. You will be directed to the log-in page
where you may complete your registration or log-in if you’ve already
registered.
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From the NC Retirement
Systems Division: April 2009
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Retirement Planning Conferences 2009
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For the
remainder of the fiscal year, we are unable to provide retirement
planning conferences outside of the Raleigh area due to budget
restrictions. We hope to provide conferences next fiscal year,
beginning July 1.
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All
conferences scheduled until June 30, 2009, have been cancelled
except for the May 13 conference in Cary and the June 3 conference
in Clayton.
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Click here to see the revised schedule.
Reemployment Earnable Allowance Limits For 2009
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The Boards of Trustees of the Retirement Systems increased
by 0.1% the amounts of compensation a reemployed beneficiary
may earn from an employer participating in the same
Retirement System under which the beneficiary is retired,
effective January 1, 2009. The authority for the change is
provided under retirement law [G.S. 128-24(5)c and G.S.
135-3(8)c].
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The increase in the Consumer Price Index for the period from
January 1, 2008 to January 1, 2009 was 0.1%. As provided
under retirement law, the retirement benefit will be
suspended for the remainder of 2009 if such beneficiary’s
earnings during the 12-month period immediately following
the effective date of retirement or during the calendar year
2009 exceed the greater of (i) 50% of the beneficiary’s
compensation during the 12 months of service before
retirement, excluding any termination payments, as increased
by 0.1% or (ii) $28,080.00.
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We also remind you that coverage provided to beneficiaries
of the Teachers’ and State Employees’ Retirement System
under the retiree group of the State Health Plan will be
suspended at the same time a retirement benefit is
suspended.
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Benefit Recipients Direct Deposit Statements
Now Available on ORBIT
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(https://orbit.myncretirement.com/orbit/Common/Pages/BPASLogin.aspx)
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The Retirement Systems is implementing a change that will
enhance retirees personal security, reduce the use of paper
and save money for your retirement system.
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Effective April 2009, “deposit notification” statements for
benefit recipients – retirees, beneficiaries and disability
recipients – will only be available through the ORBIT
system. Statements will no longer be mailed. Currently
statements are mailed just a few times a year when there is
a change in members’ deductions, or gross or net benefit
amounts.
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Accessing statements through ORBIT is a cost saving measure
that supports North Carolina’s Project Green initiative, and
also enhances members’ personal security by eliminating
mailings with social security or member identification
numbers. ORBIT is a secure website that provides you with
access to your personal retirement account 24 hours a day.
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Should this change in process present a hardship for benefit
recipients because they do not have access to a computer or
the Internet, members should contact Member Services at
1-877-733-4191 (toll-free) or 919-733-4191 (Raleigh area
only) to opt-out of electronic statements.
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To access your monthly statement through ORBIT, follow these
instructions:
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How to Access Your Benefit Statement
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Access your benefit statement through ORBIT by visiting
www.myncretirement.com and selecting the “ORBIT” button from
the “Retirement” drop-down menu. You will be directed to the
log-in page to register, or log-in if you’ve already
registered. Once logged on to your personal ORBIT account,
you may print out your statement.
- NCRSP is building an email list of members interested in
receiving IMPORTANT up-dates on issues and Legislative
Alerts.
- We promise not to give your email address to anyone
outside the association and we promise not to inundate
you with tons of email messages. We will only send you
items we consider helpful to you.
- If you would like to receive our
VIA’s (Very Important Announcements)
- please send an email to Dave Deardorff, NCRSP Systems
Analyst at
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ncrspdd@aol.com and ask to be added to our list.
- OR sign up on the NCRSP website
www.ncrsp.org under the “Contact Us” section.
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- THANK YOU for helping us help you!
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