North Carolina Local Government Employees' Retirement System (LGERS)
All benefit-eligible employees belong to LGERS and must contribute six percent of their salary (pre-tax deducted) to this program; there is also a contribution from the City. If an employee decides to leave the City prior to being eligible for retirement (completing five years of service), he or she may apply to the retirement system for a refund of his or her contributions. Participation in the retirement system begins immediately upon employment and employees are “vested” (eligible for retirement) after five years of service. Retirement credit also transfers to other LGERS-covered employers and employers with other sections of the State Retirement System within the state.
NC Retirement Systems
North Carolina 401(k) Deferred Contribution Plan
In January 2007, the City began offering all eligible employees the option to join the North Carolina Supplemental Retirement Income Plan, commonly referred to as the NC 401(k) Plan. This plan provides employees with options to save part of their income toward retirement, either through a tax-deferred basis or through a Roth 401(k) (after-tax) contribution. The NC 401(k) Plan is offered on a voluntary basis in addition to the City's 457 Deferred Compensation Plan. The City does not make a contribution or a matching contribution to this plan other than for sworn police officers. For more information, contact the plan administrator at 1-866-NC401K1.
401(k) Deferred Compensation
Prudential Financial Services
457 Deferred Compensation Plan
The City provides a (457) Deferred Compensation Plan and makes a contribution to the plan equal to three percent of an employee's base salary, even if the employee is not contributing to the plan. Participation in the plan begins after one month of employment in a benefit-eligible position. Sworn police personnel may also participate in the plan, however, City contributions will only be made to their 401(k) plan. Employees may make voluntary contributions on a pre-tax basis to the 457 plan, while selecting from an array of investment options for their deposits. Eligibility begins when first employed.
457/401(a) Deferred Compensation Plan ICMA-RC
Benefit-eligible general employees are required to participate in the Social Security system (FICA), with the City sharing equally in the cost of the program. Coverage begins after one month of employment. Police and fire personnel do not fully participate in the Social Security program. However, they do contribute to the Medicare portion, which is currently 1.45 percent of pay from the City and a matching amount from each employee.