NC 401(k) and NC 457 Transfer Benefit Available to Retirees

Beginning July 1, 2011, retired Teachers' and State Employees' Retirement System (TSERS) and Local Governmental Employees' Retirement System (LGERS) members with an existing NC 401(k) or NC Deferred Compensation (457) account through Prudential Retirement, will have the opportunity to transfer all or a portion of their NC 401(k) and/or NC Deferred Compensation funds into the Retirement Systems to receive an additional monthly lifetime benefit (annuity) based on their transferred balance. Upon receipt of transferred funds, the Retirement Systems will create a new Transfer Benefit account for the member, which is separate from the member's monthly retirement pension account.

Retired law enforcement officers who did not take advantage of the previously established plan now have the option of transferring funds under this new plan.

Determining if the NC 401(k)/NC 457 Transfer Benefit is Right for You

• Transferring all or a portion of your NC 401(k) or NC 457 funds can increase your monthly retirement income for recurring expenses.
• Transferring a portion of your funds will give you a monthly benefit based on the transferred amount, leaving the remaining balance in your NC 401(k)/NC457 account as a cash reserve in case of emergencies, or to use at some future date.
• The NC 401(k)/NC 457 Transfer Benefit is designed to provide a lifetime benefit.
• The transfer benefit may not be the right option if you only need income for a fixed period of time, or if you have large expenses for which you need access to your funds.

How the NC 401(k)/NC 457 Transfer Benefit Works

• You may apply to transfer all or a portion of your NC 401(k) or NC 457 funds by submitting a completed Form 319401k and/or Form 319457. Forms are available at www.myncretirement.com, under the "Applications and Forms" section.
• You may transfer funds at any time; transfers are a one-time, irrevocable election. After-tax Roth contributions are non-transferrable.
• There is a one-time administrative fee of $100 per transfer, per account.

Learn More about the NC 401(k)/ NC 457 Transfer Benefit

The North Carolina Retirement Systems and Prudential Retirement have partnered with the State Employees' Credit Union (SECU) to provide you with information on the Transfer Benefit. Contact any one of the partners for more information:
State Employees' Credit Union – SECU's employees are ready to advise you on whether this benefit is right for you. They offer this service free of charge and you do not need to be a Credit Union member. SECU will provide you with unbiased advice. Visit the NC 401(k)/NC 457 Transfer Benefit website at www.nclifetimeincome.org for detailed information on the Transfer Benefit options.

Prudential Retirement – Prudential's call center staff will answer questions about your existing NC 401(k) or NC Deferred Compensation (457) accounts. Learn about the Plan features by visiting www.ncplans.prudential.com

North Carolina Retirement Systems – The N.C. Retirement Systems will help you identify or obtain the correct forms to complete, will address questions about how to apply for the Transfer Benefit, or check on the status of your application. Visit the NC 401(k)/NC 457 Transfer Benefit educational website at www.myncretirement.com. Click on the ORBIT link to use the Transfer Benefit Estimator in your personal account.