North Carolina teachers and state employees participate in the Teachers and State Employees Retirement System, which is a pension plan, according to North Carolina State University. Participants in this plan receive a defined benefit that is calculated at retirement and is based upon factors such as salary and length of participation in the plan. Retirees may also be eligible for full or partial health insurance benefits, depending on length of service.Continue Reading
Permanent employees working 30 hours per week or more are eligible to participate in the retirement plan, explains the North Carolina Court System. The state mandates that an employee contribute six percent of his salary on a pre-tax basis to the retirement plan. An employee is required to enroll in the retirement system, and is vested in the plan after five years of service.
An individual retiring at age 50 is eligible to receive a reduced retirement benefit from the state pension plan with at least 20 years of creditable service, notes North Carolina State University. An individual retiring at age 60 is also eligible for a reduced benefit with at least five years of creditable service. A retiree is eligible for full benefits if his age at retirement is 60 and he has at least 25 years of creditable service; if his age at retirement is 65 and he has at least five years of creditable service; or if he retires at any age with at least 30 years of creditable service.
The state of North Carolina pays health insurance premiums for individuals with five years of creditable service at retirement who were hired before October 1, 2006. Those hired after October 1, 2006 must have 20 years of creditable service at retirement to receive the paid health insurance benefit, notes North Carolina State University.Learn more about Financial Planning