The North Carolina ESRR form is used to certify an employee's status under retirement reemployment laws. This form is essential for retirees returning to work, as it helps ensure compliance with state regulations regarding earnings and benefits. Understanding the requirements and implications of this form is crucial for both retirees and employers.
The North Carolina ESRR form, or Employee Status Under Retirement Reemployment Laws form, plays a crucial role for retirees considering reemployment within the state. This form is essential for certifying whether an individual is currently receiving retirement benefits and outlines the necessary steps retirees must take before returning to work. The form consists of several sections that gather important personal information, including the retiree's name, Social Security number, and position title. It also highlights the earnings restrictions that retirees face, emphasizing that exceeding certain income limits can lead to the suspension of retirement benefits. Furthermore, it requires retirees to acknowledge their understanding of the return-to-work laws applicable to their specific retirement system, whether it be the Teachers' and State Employees' Retirement System (TSERS) or the Local Government Employees' Retirement System (LGERS). Additionally, the form mandates a signature, confirming that the information provided is accurate and that the retiree is aware of their responsibilities regarding potential overpayments. Finally, it instructs retirees to submit the form to their employer rather than the Retirement Systems Division, underscoring the importance of compliance to avoid penalties for both the retiree and the employer.
In reality, completing the ESRR form is mandatory. Employers must report rehired retirees to the Retirement Systems Division to avoid penalties.
Retirees are subject to earnings restrictions when returning to work. Exceeding the allowable earnings can lead to suspension of retirement benefits.
This is incorrect. If a retiree works for an employer within the same retirement system, they may face reemployment provisions, including possible suspension of benefits.
The earnings limit varies based on the retirement system and individual circumstances. For example, the limit is calculated as either a fixed amount or a percentage of prior earnings.
New retirees in certain systems, such as TSERS, must wait at least six months before working for a TSERS employer.
While employers may not be penalized for an employee's false statements, the employee is fully responsible for repaying any overpayments that result from such actions.
Only specific retirees who meet certain conditions can return as nursing instructors without facing earnings limitations. These conditions include a six-month separation from service.
Retirees should submit the ESRR form to their employer, not the Retirement Systems Division. Employers are responsible for retaining this documentation.
Benefits can be reinstated after a retiree's earnings fall below the allowable limit in the following calendar year.
In addition to the ESRR form, retirees must also adhere to specific reemployment laws and understand the implications of their employment on their retirement benefits.
Form W-4: This form is used by employees to indicate their tax situation to their employer. Similar to the ESRR form, it requires personal information and is essential for determining the correct amount of tax withholding from paychecks.
California Residential Lease Agreement: This legally binding document is essential for outlining the terms and conditions between a landlord and tenant. It is crucial for a well-regulated rental experience in California, ensuring both parties are aware of their rights and responsibilities. For more information, visit https://documentonline.org/blank-california-residential-lease-agreement.
I-9 Employment Eligibility Verification: This document verifies an employee's identity and eligibility to work in the U.S. Like the ESRR form, it requires personal details and is crucial for compliance with employment laws.
Form 1099: Used to report various types of income other than wages, salaries, and tips. The ESRR form also deals with income, particularly regarding retirement benefits and earnings limits.
Form 1040: This is the standard individual income tax return form in the U.S. It requires detailed financial information, similar to how the ESRR form collects information about retirement benefits and employment status.
Form SS-5: This application for a Social Security card requires personal information and is necessary for employment. Like the ESRR, it is a critical document for ensuring compliance with employment regulations.
Form 941: This is the Employer's Quarterly Federal Tax Return. It reports income taxes, Social Security tax, and Medicare tax withheld from employee's paychecks, paralleling the ESRR's focus on earnings and benefits.
State Unemployment Insurance (UI) Claim Form: This form is used to apply for unemployment benefits. It collects personal and employment information, similar to the ESRR form, which assesses eligibility for retirement benefits based on employment status.
Filling out the North Carolina ESRR form is an important step for retirees looking to return to work. This form helps ensure compliance with retirement reemployment laws, which can affect your benefits. Follow these steps carefully to complete the form accurately.
Once you submit the form to your employer, they will handle the necessary reporting to ensure compliance with the retirement systems. It's crucial to keep a copy for your records and stay informed about any further requirements or implications regarding your retirement benefits.
Certifying Employee Status Under Retirement
Reemployment Laws
Please print or type in black ink.
Section A. Tell us about yourself.
FIRST NAME
MI
LAST NAME
SUFFIX
SSN (last 4 digits)
MAILING ADDRESS
MEMBER ID (if known)
CITY
STATE
ZIP CODE
DATE OF BIRTH
POSITION TITLE
TELEPHONE NUMBER
Section B. Please understand that retirees are subject to earnings restrictions.
Retirees may be subject to earnings restrictions upon returning to work. State return-to-work laws require suspension of retirement benefits when earnings from applicable employers exceed the allowable limit. Before returning to work, be sure that you understand the return-to-work laws that apply to the System from which you retired. For example, new retirees in the Teachers' and State Employees' Retirement System
(TSERS) may not work with a TSERS employer, or make arrangements for future work, until the first six months of retirement have passed. A summary of return-to-work laws for the Local Government Employees' Retirement System and the Teachers' and State Employees' Retirement System is located in Guides B, C, and D.
Section C. Please tell us if you are receiving a monthly benefit from any of the systems below.
YES, I am currently receiving a monthly benefit from the following: (check all that apply)
Teachers' and State Employees' Retirement System (TSERS)
Local Governmental Employees' Retirement System (LGERS)
Consolidated Judicial Retirement System (CJRS)
Legislative Retirement System (LRS)
Disability Income Plan of North Carolina (DIPNC)
NO, I am not currently receiving a monthly benefit from any of the above listed systems.
Section D. Please sign below.
I certify that I have read the Guides and the information I provided in Sections A and C is correct to the best of my knowledge. I understand that if my employment subsequently creates an overpayment of benefits from the Retirement Systems Division, I am fully responsible for the repayment of the said overpayment.
Member's Signature _______________________________________________________ Date _________________________
Section E. Please submit this form to your employer.
Please do not send this form to the Retirement Systems Division (RSD). Your employer should retain this form.
Thank you.
N.C. Department of State Treasurer, Retirement Systems Division 325 North Salisbury Street, Raleigh, North Carolina 27603-1385
(919)807-3050 in the Raleigh area or (877) 627-3287 toll free www.myncretirement.com
REV 20091106
ESRR
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Guides for Certifying Employee Status
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Under Retirement Reemployment Laws
Guide A. What is the purpose of this form and why does this form need to be completed?
Effective July 1, 2009, employers are required to report any rehired retirees to the Retirement Systems Division (RSD) or the employer will incur a penalty. In order for employers to avoid a potenial penalty, RSD asks employers to take the following steps:
•Obtain signed documentation (Form ESRR) from the employee stating he/she is or is not currently receiving a monthly benefit from RSD.
•Report any known rehired retirees who may be subject to
the earnable allowance, or the 11.7% contribution under the exception for nursing instructors in TSERS, to RSD through the ORBIT system.
If a member falsifies this document (Form ESRR) by not reporting himself/herself as a benefit recipient, the employer will not be penalized. However, if the employee exceeds his/her earnable allowance, or violates other return-to-work laws, the employee will be held fully responsible for repaying any overpayment to RSD.
Guide B. What are the return-to-work laws?
After you have officially retired and are receiving monthly benefits, if you perform work in any capacity for an employer under the same Retirement System from which you retired, you will be subject to the reemployment provisions described below. These provisions may require you to work under an earnings limitation or to reenroll as a contributing member of the Retirement System. You will be subject to reemployment provisions based on the nature of the particular work you perform for a covered employer, regardless of your job classification or your technical employment status (which may include being assigned to work for a covered employer by a private company such as a temporary agency).
If you retired from LGERS, see Guide C for more detailed information. If you retired from TSERS, see Guide D for more detailed information.
If you retired from the Consolidated Judicial Retirement System, or the Legislative Retirement System, or if you receive disability benefits from any System, please contact the Retirement Systems Division for information on reemployment provisions that apply to you.
Guide C. Return-to-work laws for Local Governmental Employees' Retirement System retirees
Reemployment After Receiving Early Or Service Retirement Benefits. If you retire with monthly early or service retirement benefits from LGERS and are reemployed by an employer that participates in LGERS, the following applies:
If you are reemployed in an LGERS position, the duties of which require 1,000 hours or more per year, your monthly retirement payment must be stopped on the first day of the month following the month of reemployment and you will again become a contributing member in the month in which you are restored to service.
At any time you are reemployed and become a member of the Retirement System again, your retirement benefits will be greater at the time of your second early/service retirement. If you return to service and contribute for at least three additional years, your service from your first and second periods of employment will be combined and you can change the retirement payment plan and/or beneficiary you selected at the time of your original retirement. If you return to service for less than three years, your first retirement benefit will be reinstated upon re-retirement and you will have a choice of either receiving a lump sum refund of contributions or another (generally smaller) monthly benefit from your second period of employment.
If you are reemployed on a part-time, interim, temporary, or contractual basis, or are otherwise engaged to perform services on any basis that does not require memberhip in
LGERS, your retirement payment must be stopped if your earnings during the 12-month period immediately following the effective date of retirement or during any calendar year exceed your earnings limitation which is calculated as the greater of the following:
•$28,080 (2009 amount), or
•50% of your compensation, excluding termination payments, reported to the Retirement System during the 12 months of service preceding the effective date of your retirement.
The above amounts will be increased on January 1 each year by the percentage increase in the Consumer Price Index, which is a national measure of the increase in the cost of living from one year to the next.
Your retirement payment must be stopped for the remainder of the calendar year on the first day of the month following the month in which your earnings exceed the greater of the two limits stated above. Your retirement payment will start again on January 1 of the year after your benefit is stopped. If your earnings exceed the allowable amount in the month of December, your benefit will not be suspended.
Please note that retirement law requires your retirement date to be on the first day of the month, and for your retirement to become effective on the first day of a month, you must not work for a covered employer at any time during that month.
Please continue to the next page.
(919)733-4191 in the Raleigh area or (877) 733-4191 toll free www.myncretirement.com
GUIDES
Guides for Certifying Employee Status Under Retirement Reemployment Laws
Page 2 of 2
Guide D. Return-to-work laws for Teachers' and State Employees' Retirement System retirees
Reemployment After Receiving Early Or Service Retirement Benefits. If you retired before November 1, 2005, with monthly early or service retirement benefits from TSERS and are reemployed by an employer that participates in TSERS, the following apply:
If you are reemployed in a position that requires membership in the Teachers' and State Employees' Retirement System, your retirement payment must be stopped on the first day of the month following the month of reemployment and you will again become a contributing member in the month in which you are restored to service.
At any time you are reemployed and become a member of the Retirement System again, your retirement benefits will be greater at the time of your second early/service retirement. If you return to service and contribute for at least three additional years, your service from your first and second periods of employment will be combined and you can change the retirement payment plan and/or beneficiary you selected at the time of your original retirement. If you return to service for less than three years, your first retirement benefit will be reinstated and you will have a choice of either receiving a lump sum refund of contributions or another (generally smaller) monthly benefit from your second period of employment.
If you are reemployed on a part-time, interim, temporary, or contractual basis, or are otherwise engaged to perform services for a TSERS employer on any basis that does not require membership in TSERS, your retirement payment must be stopped if your earnings during the 12-month period immediately following the effective date of retirement or during any calendar year exceed your earnings limitation which is calculated as the greater of the following:
Reemployment which causes suspension of your retirement allowance will also cause suspension of your health coverage under the retiree group of the State Health Plan. Before accepting such reemployment, you should ask the new employer if you will qualify for continued coverage under the active group of the State Health Plan, and if you will qualify for
the State's contribution toward your coverage. Upon restoration of your retirement allowance, your health coverage under the retiree group will be reinstated the first of the month following the month your retirement allowance is restored.
If you retire on or after November 1, 2005, in addition to the above provisions, the following applies:
A six-month period during which no work is performed for any employer in the Teachers' and State Employees' Retirement System must immediately preceded a return to employment. A return to work earlier than six months will revoke your retirement benefit retroactively to your retirement date and all benefits paid to you must be repaid to the Retirement System. Establishing a pre-existing.agreement for post-retirement employment with an employer in this System is prohibited and will cause retroactive revocation of retirement benefits, as well.
Reemployment Exception for TSERS retirees who return to work as Nursing Instructors.
If you are a Teachers' and State Employees' Retirement System (TSERS) retiree who retired on or before June 1, 2009 with a reduced or unreduced benefit, or if you retired on or after July 1, 2009 with an unreduced beneift, and you wish to return to work as a nursing instructor exempt from the earnings limitations, you may do so provided you meet all of the following conditions:
•you have a six-month separation from service under the TSERS immediately preceding your return to employment as a nursing instructor, during which time no work is performed in any capacity with a State-supported community college or university;
•you return to work as a nursing instructor for a maximum of three years in a permanent full-time position, or a part-time position that exceeds fifty percent of the workweek, in a certified nursing program at a State-supported community college or university;
•you have been certified by your North Carolina Community College System or University of North Carolina System employer to teach as a nursing instructor; and
•your employer has certified to the TSERS that it has a shortage of qualified nursing instructors and has met all required conditions of making a good faith effort to hire non-retirees as nursing instructors.
Unless legislation extends this reemployment exception for nursing instructors, the above provisions are in effect through June 30, 2013.
Reemployment under the Consolidated Judicial Retirement System (CJRS).
If you are retired from TSERS and are reemployed under CJRS, please contact the Retirement Systems Division for provisions that apply to you.
These guides are subject to and governed by the General Statutes of the State of North Carolina.
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Reporting Forms - Employers may receive confirmation or additional notifications regarding their submissions.
North Carolina Department of Insurance Phone Number - Make sure to complete all spaces before submission.
When navigating the complexities of retirement reemployment in North Carolina, it is essential to be aware of various forms and documents that often accompany the North Carolina ESRR form. Each of these documents serves a specific purpose in ensuring compliance with state regulations and protecting the interests of both retirees and employers. Below is a list of commonly used forms related to the ESRR process.
Understanding these forms and their purposes can significantly ease the transition for retirees returning to work. Each document plays a crucial role in maintaining compliance with North Carolina's retirement reemployment laws, ensuring that both retirees and employers are well-informed and protected throughout the process.