Are you prepared for retirement? Retirement analysts say that to maintain your current lifestyle (pre-retirement) you have to generate at least 80% of your current salary.
Vested classified employees will receive two forms of retirement income, Social Security and NCERP. Please consider that you will also have to pick up the total expense of your health insurance. Here is the link to the NCERP Web page _____________. .
Employees can sign up for a 403(b) plan to supplement Social Security and NCERP to help bolster retirement savings. Public employees can contribute pre-tax, tax deferred to a 403(b) plan by contacting Human Resources. The employee determines the amount to be deducted on each paycheck and the College forwards the funds to the chosen retirement savings instrument.
Questions have been raised as to why we don’t increase our contribution rate the same as PSRP has. Our funding formula is based on a vested participant's continuous years of service times a set multiplier. Contributing a higher percentage to the plan doesn’t automatically increase your retirement payment; the amount is increased when the multiplier is increased. The NCERP committee has increased the multiplier in the past and annually reviews the plan to see if enhancements should be made.
The NCERP committee administers the retirement plan and is comprised of two non-voting members from Human Resources and Finance divisions, plus two voting members that are appointed by the Board of Trustees, and four more voting members who represent,the Office and Technical unit, the Office and Technical non-unit, the Public Safety unit and the Facilities unit.
It is really never too soon to think about retirement. You still have time to prepare for retirement goals and achieve the 80% retirement income level that analysts say a retiree needs.