Member Handbook - Duplin County, North Carolina€¦ · service representatives can assist with the status of an application or answer questions ... at 3200 Atlantic Ave ... pension

FIREFIGHTERS’ AND RESCUE SQUADWORKERS’ PENSION FUND

Department of State TreasurerRaleigh, NC

Revised January 2016

YOUR RETIREMENT BENEFITS

MemberHandbook

firefighters’ and rescue squad workers’ pension fund

january 2016

NORTH CAROLINADEPARTMENT OF STATE TREASURER

RETIREMENT SYSTEMS DIVISIONNORTH CAROLINA TOTAL RETIREMENT PLANS

JANET COWELLSTATE TREASURER

STEVEN C. TOOLEDIRECTOR

Welcome to the North Carolina Firefighters’ and Rescue Squad Workers’ Pension Fund!

The Firefighters’ and Rescue Squad Workers’ Pension Fund (FRSWPF) is administered by the Department of State Treasurer along with the other re-tirement systems and plans for North Carolina public employees which are collectively referred to as the North Carolina Total Retirement Plans. We are committed to providing you with information to will help you make informed decisions about your financial future. I encourage you to become familiar with the benefits described in this booklet.

This handbook outlines the benefits available to you as a member of FRSWPF.

I also encourage you to visit our website, www.myncretirement.com, for retirement resources. You can also contact the North Carolina Total Retirement Plans if you have additional questions. Our customer service representatives can assist with the status of an application or answer questions about retirement.

Thank you for your service to North Carolina.

Sincerely,

Janet Cowell

1-877-627-3287 Toll-free

[email protected]

Your Retirement Benefits

https://www.nctreasurer.com/Retirement-And-Savings/Managing-My-Retirement/Pages/default.aspx

mailto:nc.retirement%40nctreasurer.com?subject=

https://www.nctreasurer.com/Retirement-And-Savings/Managing-My-Retirement/Pages/default.aspx

Contents Page

Section 1: Membership in the Pension Fund . . . . . . .4Section 2: Who Pays for the Fund . . . . . . . . . . . . . . . .5Section 3: Benefit Eligibility and Amount . . . . . . . . . .6 Disability Status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 If You Leave the Department or Squad BeforeRetirement . . . . . . . . . . . . . . . . . . . . . . . . . 7 EffectofAnnexation . . . . . . . . . . . . . . . . . . . . . . . . . . 7Section 4: How Benefits Are Paid . . . . . . . . . . . . . . . .8 PaymentstoBeneficiaries . . . . . . . . . . . . . . . . . . . . . 8Section 5: Receiving Your Monthly Benefit . . . . . . . .9Section 6: Adding to Your Creditable Service . . . . . . .9

Contents Page

DISCLAIMER: The availability and amount of all ben-efits you might be eligible to receive is governed by North Carolina law. The information provided in this handbook cannot alter, modify or otherwise change the controlling North Carolina law or other governing legal documents in any way, nor can any right accrue to you by reason of any information provided or omission of information provided herein. In the event of a conflict between this information and North Carolina law, North Carolina law governs.


january 2016 Your Retirement Benefits3

Table of Contents

Section 7: Refund of Contributions . . . . . . . . . . . .10 LackofQualification . . . . . . . . . . . . . . . . . . . . . . . 10 Default of the Fund . . . . . . . . . . . . . . . . . . . . . . . 10 Rejoining the Fund . . . . . . . . . . . . . . . . . . . . . . . . 11Section 8: Income Tax . . . . . . . . . . . . . . . . . . . . . .11 RetirementBenefits . . . . . . . . . . . . . . . . . . . . . . . 11 DeathBenefits . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Section 9: Administration and Funding . . . . . . . .12Section 10: Resources and Contacts . . . . . . . . . . .15 ORBIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 ContactUs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16



Section 1: Membership in the Pension FundYoucanenrollasamemberofthepension fund if you are an eligible firefighterorrescuesquadworkerwhomeetsalloftherequirementsstatedbelow.

● Eligible Firefighters

Tobean“eligiblefirefighter,”youmust be 18 or older and belong to afiredepartmentthat:

• IsratedbytheFireInsuranceRatingBureauandiscertifiedbytheDe-partmentofInsuranceasnotlessthanaClass“9S”department.

• FilesarosterannuallywiththeNorthCarolinaStateFiremen’sAsso-ciation,whichisforwardedtothepensionfundbyJanuary31eachyear .

• Holdstrainingsessionsatleast4hoursmonthlyforwhichmembersarerequiredtoattendatleast36hoursperyear.

Training sessions for firefightersaredefinedassessionsordrillsthatpre-parefirefightersfor,orincreasetheirknowledgein,fireprevention,firesup-pression,orprotectionoflifeandproperty.

● Eligible Rescue Squad Workers

Tobean“eligiblerescuesquadworker,”youmustbe18orolderandbelongtoarescuesquadthat:

• IseligibleformembershipintheNorthCarolinaAssociationofRescueandEmergencyMedicalServices,Inc.

• FilesarosterannuallywiththeNorthCarolinaAssociationofRescueandEmergencyMedicalServices,Inc.,whichisforwardedtothepensionfundbyJanuary31eachyear.

Eligiblerescuesquadworkersmustattendaminimumof36hoursoftrainingsessionseachyear.

Training sessions for rescue squad workersaredefinedasanysessionsordrillsthatpreparerescuesquadworkersfor,orincreasetheirknowledgein,rescue,emergencymedicalservices,injuryprevention,orprotectionoflifeand property .



● Enrollment in the Pension Fund

Tobecomeamemberofthepensionfund,youmust:

• CompleteForm350(EnrollingintheFirefighters’andRescueSquadWorkers’PensionFund)throughyourdepartmentorsquad.

• Mailitwithyourfirstpayment(contributionsare$10permonth)tothepensionfundofficeat3200AtlanticAve.,Raleigh,NC27604.

Yourenrollmentdatewill beeffective in themonth inwhich thepensionfundreceivesbothyourapplicationandcontribution.

● Annual March 31 Contribution Deadline

Inordertobeproperlycredited,yourcontributionsforacalendaryearmustbereceivedbythepensionfundbyMarch31ofthefollowingyear.PrioryearcontributionsreceivedafterMarch31willbereturned.Toreceivecreditfortheperiodforwhichthecontributionswerereturned,youmustpurchasetheservicecreditasdescribedunderthe“PriorService”purchaseprovisionsreferencedonpage9 .

● Forfeiting Eligibility for Criminal Offenses

EffectiveDecember1,2013,ifyouareconvictedofastateorfederalfelonythatisdirectlyrelatedtoyourserviceasafirefighterorrescuesquadworkerandyouarenotyet55orhavenotyetreceived20yearsoffullycreditableservice,oryouareatleast55andhave20yearsofcreditableservicebutyouarestillservingasaparticipantofaneligibledepartmentorsquad,youareprohibitedfromreceivinganyretirementbenefitotherthanareturnofyourcontributions.

Section 2: Who Pays for the Fund

Yourcontributionstothepensionfund,theinvestmentearningsontotalcon-tributions,andanannualappropriationfromtheStateGeneralFundpaythecostofprovidingyourpensionfundbenefits.

Yourshareofthecostiscurrently$10monthly.Membersnormallymustpayintothepensionfundfor20years,oramaximumof$2,400,toreceiveamonthlybenefitatretirement.



Section 3: Benefit Eligibility and Amount

The present pension fund benefit is $170 per month

Youmayapplyformonthlypensionfundbenefitsafteryou:

• Have20yearsofcreditableserviceasafirefighterorrescuesquadworker,and

• Reachage55.

Creditableserviceisdefinedaseligibleserviceforanyperiodduringwhichyoupaidandmaintainedcontributionsinthefundorforwhichyoupurchasedservicecreditinthefund.

Creditableserviceaseitherafirefighterorrescuesquadworkercountstowardmembershipinthefund.However,ifyouworkand/orvolunteerbothasafirefighterandasarescuesquadworkerduringthesamemonth,youcanonlyreceiveonemonthofpensionfundcreditforthatmonth.

Onceyoumeettheserequirementsandbeginreceivingyourpensionfundbenefit,youcancontinuetoreceiveyourbenefitwhileyoucontinuetoworkorreturntoworkasapaidorvolunteerfirefighterorrescuesquadworker.

Disability Status

After10yearsofcreditableservice,ifyoubecometotallyandpermanentlydisabled(asapprovedbythepensionfund’sMedicalReviewBoard)andcannolongerperformthedutiesofafirefighterorrescuesquadworker,youareeli-giblefordisabilityretirementstatus.Ifyourdisabilityistheresultofanon-dutyrelatedactivity,youmustcontinuetopay$10permonthintothefunduntilyouhavepaidfor20yearsor$2,400.Atage55,youmayapplytoreceiveyourmonthlybenefitprovidedyouhavemadecontributionsfor20years.

Ifyoubecometotallyandpermanentlydisabled(asapprovedbythepensionfund’sMedicalReviewBoard)whileperformingyourdutiesasafirefighterorrescuesquadworker,youmayapplytoreceiveamonthlypensionwhenyoureachage55.Afterbeingapprovedforaline-of-dutydisability,youwillnolon-gerhavetomakecontributionstothepensionfund.



If You Leave the Department or Squad Before Retirement

Ifyouleavefirefighterorrescuesquadser-vice,andyouwanttomaintainyourpensionfundaccount,contactthepensionfundtoplaceyouraccounton“leaveofabsence”status.Duringaleaveofabsence:

• Youmustnotwithdrawyourcontributions. • Contributionsarenotallowed,exceptduringeligiblemilitaryservice

periods . • Servicecreditswillnotaccrue. • You remain eligible for a refund .

Whenyoureturntoeligiblefirefighterorrescuesquadservice,youcanresumecontributingtothepensionfund.

Ifyouleaveyourdepartmentorsquadbeforeretirement,youmaystillreceiveabenefitatalaterdate,ifyouhavenotwithdrawnyourcontributions.Ifyouleaveforanyreason,youareeligibletoapplyforyourbenefitatage55pro-videdyouhavecompletedandpaidcontributionsfor20years.

Normally,ifyouleavethefundbeforeyouhave20yearsofcreditableservice,theonlypaymentyoucanreceiveisarefundofyourcontributions.

Effect of Annexation

Youmaycontinueasamemberofthepensionfundevenifyourhomeorfiredepartment/rescuesquadlocationisaffectedbyanannexation,andasaresult,youcannolongerserveasafirefighter/rescuesquadworker.Ifyouhave10yearsofserviceatthetimeofannexation,youmaycontinuecontributing$10monthlyuntilyouhavepaid$2,400orpaidfor20years.Youareeligibletoap-plyforyourbenefitatage55providedyouhavecontributedfor20years.



Section 4: How Benefits Are PaidTobeginreceivingbenefits,youmustcompleteandsubmittothepensionfund:

• Form6FR(RetiringfromtheFirefighters’andRes-cueSquadWorkers’PensionFund)

• Form170(AuthorizingDirectDeposit)

Youmustapplyforbenefits.Theyarenotpaidautomati-cally.Yourapplicationanddirectdepositformshouldbereturnedtothepensionfund30daysbeforeyourscheduledretirementdate.

Ifincorrectinformationissubmittedtothepensionfundthatcausesyourben-efittobeincorrect,thepensionfundwillcorrecttheerrorandadjustyourpay-menttobetheactuarialequivalentofthebenefityouwerecorrectlyentitledtoreceive.

Payments to Beneficiaries

Althoughthepensionfund’sprimarypurposeistoprovideretirementincome,werecognizethatsomememberswillnotlivetoenjoytheirretirementbenefits.

Atyourdeath,yourbeneficiaryshouldnotifythepensionfundimmediately.Byretirementlaw,yourspouseisthebeneficiaryofyourpensionfundaccount.Ifyoudonothaveasurvivingspouseasofyourdateofdeath,yourcontributionswillbepaidtoyourchildrenorguardianofyourchildren.Ifyoudonothaveasurvivingspouseorchildren,theproceedswillbepaidtoyour“heirsatlaw”ortoyour“estate,ifitisadministeredandtherearenoheirs.”

Ifyoudiebeforebeginningtoreceiveyourpension,yourbeneficiarywillreceivetheamountyoupaidandcontributionspaidonyourbehalfintothepension fund .

Ifyoudieafterbeginningtoreceiveyourbenefits,yourbeneficiarywillbepaidtheamountyoucontributedtothepensionfund,minusthebenefitsyoucol-lected.

Ifyoudieaftercollectingmorefromthefundthanyoucontributed,paymentsstop.Noadditionalbenefitsarepaid.

Yourbeneficiaryalsomaybeentitledtoa$50,000line-of-dutydeathbenefitifyouareafirefighterorrescuesquadworkerkilledinthelineofduty.ThislumpsumbenefitisadministeredjointlybytheNorthCarolinaIndustrialCommissionand the Department of State Treasurer .

Forms 6FR and 170 can be found in ORBIT.

https://orbit.myncretirement.com/Orbit/Common/Pages/BPASLogin.aspx



Section 5: Receiving Your Monthly BenefitTheeffectivedateofyourretirementisalwaysthefirstdayofthemonth.Thepresentmonthlybenefitis$170.

Uponreceiptofyourapplication,thepensionfundwillsendyouanacknowl-edgmentletterconfirmingyourretirementinformationandadvisingthepay-mentdateforyourbenefits.

Yourfirstmonthlypensionfundbenefitwillbemailedtoyou.Thereafter,yourmonthlybenefitwillbedepositedintoyourbankaccountonthe25thdayofeachmonth.InDecember,yourbenefitwillbedepositedonthe20th.IfthepaydatefallsonaSaturday,Sunday,orholiday,yourdepositwillbemadeonthelastworkdaybeforethepaydate.Directdepositisfast,automatic,andfree.

Section 6: Adding to Your Creditable ServiceInadditiontotheyearsandmonthsyoucontributetothefund,thefollowingcreditableserviceandservicepurchaseprovisionsmayapply:

● Prior Service

Youmaypurchasepensionfundcreditforpriorfireorrescuesquadserviceif:

• Youwereamemberofaneligiblefiredepartmentorrescuesquadbe-foreitsparticipationinthefund.

• Youwerepreviouslyeligible,butdidnotchoosetojointhepensionfund .

• Youhadearlierservicewithadepartmentorsquadotherthanthede-partmentorsquadthroughwhichyoujoinedthepensionfund.

• YouhadeligibleservicefortheprioryearbutdidnotmakeprioryearcontributionsoryourprioryearcontributionswerereturnedbecausetheywerereceivedafterMarch31.

Ifyouare34oryounger,thecosttopurchasepriorserviceis$10amonthplus interest of an annual rate determined by the Board of Trustees . If you are35orolder,thecostisequaltothefullactuarialliability.Youmaypur-chaseprior service inbothafiredepartmentanda rescuesquadas longastheserviceperiodsdonotoverlap.Youshouldcontactthepensionfundand/oryourdepartmentorsquadregardingthepropercertificationform.



You cannot purchase ser-vice credit for periods for which you received a re-fund of your pension fund contributions.

● Military Service

Youmay take a leave ofabsence for one tour ofmilitaryserviceandearnservicecreditduringthatperiodifyoucontinuemakingyourfundcontributionsduringyourtour.Af-teryourreturn,youwillneedtosubmitacopyofyourmilitarydischargepapers,suchasDD214,thatreflectthedateyouenteredandthedateyouwerereleasedfromactiveduty.Contactthepensionfundforfurtherinfor-mationandinstructions.

Section 7: Refund of ContributionsIfyouarenolongereligibleorchoosenottoparticipateinthefundforanyreasonotherthanretirementordeath,youcanreceivearefundofyourcontri-butions.

Toreceivearefund,completeForm5FR(WithdrawingContributionsfromtheFirefighters’andRescueSquadWorkers’PensionFund),andfileitwiththepen-sion fund .

Nointerestwillbepaidontheamountoftherefund.Ifyouwithdrawfromthepensionfund,youwillreceivebothyourcontributionsandcontributionspaidby others on your behalf .

Lack of Qualification

When you turn age 55, if you are a member of the pension fund but do not qualifytoreceiveabenefit,theamountyoupaidintothefundcanberefundedtoyou.Ifyoudonotqualifybecauseyouhavenotyetcompleted20yearsofservice,youmaycontinueworkingtowardyourservicegoal.

Default of the Fund

Ifthepensionfundwereeverunabletopayallbenefitsinfull,allbenefitpay-mentswouldbereduced.Whenitagainbecameable,thefundwouldresumepayingbenefitsinfull.Thefundwouldnotoweback-payments.

You may obtain Form 5FR from your department, squad, the Pension Fund, or in ORBIT.

https://orbit.myncretirement.com/Orbit/Common/Pages/BPASLogin.aspx



Rejoining the Fund

Ifyoupreviouslyreceivedarefundfromthefundandlaterwishtorejoin,youmaydosobycompletinganewenrollmentapplication(Form350).Afterrejoiningthefund,youwillnotbeeligibletopurchaseservicecreditsforyourpreviouswithdrawnaccount.

Section 8: Income TaxThefollowingisabriefoutlineofcurrenttaxlawsastheyapplytofundben-efits.However,becausetaxlawsoftenchange,youshouldconsultyourtaxadvisor for more details .

Retirement Benefits

Afteryouretire,byJanuary31eachyear,wewillsendyouForm1099-RwhichissimilartoFormW-2(StatementofIncomeandTaxWithheld)whichyoureceivedannuallywhileyouwereworking.The1099-Rshowstheamountofyourpensionbenefits,thetaxableportion(ifany),theamountoftaxwithheld(ifany),andrelatedinformation.CopiesalsowillbesenttotheInternalRevenueService(IRS)andtheNorth Carolina Department of Revenue . Therefore, you should report your pension benefitsonyourfederalandNorthCarolinataxreturnsregardlessofwhetheryouoweanyincometax.

• Federal Income TaxUnderfederallaw,themajorityofeverypensionbenefitissubjecttobe-ingtaxed.Althoughyouwillnotpaytaxesagainonanycontributionsforwhichyouhavealreadypaidtax,youmayexcludeonlyasmallportionofyourpreviouslytaxedcontributionseachmonththroughoutaperiodoftimespecifiedbythefederalgovernment.

• North Carolina Income TaxIf you are a North Carolina resident and have maintained 5 or more yearsofpensionfundservicecreditasofAugust12,1989,yourmonthlybenefitpaidbythepensionfundisnotsubjecttoNorthCarolinaincometax.Ifyoudonothave5yearsofmaintainedpensionfundservicecreditasofAugust12,1989,thetaxableportionofyourmonthlybenefitissubjecttoNorthCarolinaincometax.

Death Benefits

Monthlybenefitsarepayabletopensionfundmembersonly.Thefundpaysnomonthlysurvivorbenefits.However,alump-sumdeathbenefitwillbepayabletoyoursurvivingspouseifallofyourcontributionshavenotbeenexhausted.

Generally,yourbeneficiarypaysnoincometaxonlump-sumdeathbenefits,whicharetreatedaslifeinsurancebenefitsfortaxpurposes.



Section 9: Administration & Funding ● Administration

ThePensionFund is administeredby theLocalGovernmentalEmployees’RetirementSystemBoardofTrustees.Theboardmembersare:

JanetCowell,StateTreasurer,Chair

JohnAnerallaJuneAtkinsonMikeBradleyLentzBrewerRandy ByrdKay CashionKevinGordon

Sally SandyCarson SmithGradyN.Smith

● Fund Assets

TheStateTreasurer is the custodianof thePlanassets and serves as theChiefInvestmentOfficer.

Equityassets(e.g.,commonstock,preferredstock,anddebenturesconvert-ibleintocommonstock)areinvestedinconjunctionwithpoliciesadoptedbytheInvestmentAdvisoryCommittee.Thecommitteemembersare:

JanetCowell,StateTreasurer,Chair

JohnAnerallaDavidHartzell

Steve JonesMichaelMebaneNealF.Triplett

CourtneyA.Tuttle ● Medical Review Board

TheMedicalReviewBoarddetermineseligibilityfordisabilitybenefits.Themembersoftheboardare:

Dr.GeorgeS.Edwards,Sr.Dr . Robert H . Fleming Dr.RobertGaddyDr . Bobby Sellers

Dr.NathanielL.Sparrow



● Future of the Pension Fund

ThestateexpectstocontinuetheFirefighters’andRescue SquadWorkers’ Pension Fund indefinitely.However,becausefutureconditionscannotbefore-seen,theN.C.GeneralAssemblyreservestherightto modify the provisions of the fund .

● Fund Documents

ThisbookletsummarizesthemainfeaturesoftheFirefighters’andRescueSquadWorkers’Pensionfund.TheofficialtextgoverningtheoperationsoftheFundandthepaymentofallbenefitsisfoundinChapter58oftheGen-eralStatutesandTitle20oftheNorthCarolinaAdministrativeCode.

● Funded Status

TheFirefighters’andRescueSquadWorkers’PensionFundhasbeenlabeledas“actuariallysound”becauseoftheconsistentuseovertheyearsof:

• Actuarialassumptionsbasedonexperience • Anapprovedactuarialfundingmethod • Therecognitionofallpromisedbenefitsintheactuarialliabilities

● Funded Ratio

Agenerallyacceptedmeasureofthesoundnessofanypensionfund is torelate the total assets to the total accrued liabilities. Thisdetermines thefundedratioorpercentageofthefund.

Thetotaloftheaccruedliabilitiesisthesumoftotalassetsandunfundedaccrued liabilities. Shownare theactuarial assetsandunfunded liabilitiesforthepastseveralyears,asofDecember31ofeachyearandthefundedratioofthePensionFund(thepercentageoftheassetstothetotalaccruedliabilities).

● Member Contributions

Memberscurrentlycontribute$10eachmonthtothefund.



Unfunded Accrued Assets Liabilities

2014 $380,885,154 $38,029,9672013 $364,836,260 $48,217,2532012 $338,885,087 $64,931,8162011 $327,984,054 $63,853,0282010 $318,272,616 $51,963,3712009 $315,697,259 $35,627,3272008 $316,973,296 $22,048,851

‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14

110

100

90

80

70

60

50

40

30

20

10

0

%Funded Funded Ratio

93%

84% 84%

90% 90%

86%88%



Section 10: Resources and Contacts

TheNorthCarolinaDepartmentofStateTreasurercreatedORBIT(OnlineRetirementBenefitsthroughIntegratedTechnology)toallowmemberscon-venientaccesstotheirretirementaccountinformation24hoursaday,sevendaysaweek.Thissecuresiteenablesyoutoviewyourpersonalinformation,accountinformation,andotherrelevantdetailsspecifictoyourretirementsystemaccount.

InORBIT,activeemployeesareabletoview:

• Servicecredithistory

Retireesareableto:

• Maintaintaxwithholdings • Viewanddownload1099-R • Generateincomeverificationletters • Updatetheircontactinformation

ToaccessORBIT,gotoourwebsiteatwww.myncretirement.com,clickontheORBITiconandfollowtheinstructionstologintoyourpersonalORBITaccount.



Resources

Visitourwebsiteto:

• View and download retirement benefits handbooks • See Frequently Asked Questions • Learn about retirement planning resources • Log into your personal ORBIT account

Contact Us

Toll-free1-877-627-3287(1-877-NCSECURE)FraudandAbuseHotline1-855-903-7283

Firefighters’andRescueSquadWorkers’PensionFundDepartment of State Treasurer3200AtlanticAvenueRaleigh, North Carolina 27604

Office visits scheduled by appointment only. Please call or email our office to schedule an appointment.

[email protected]

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