To: Campus Unit Financial Leads, HR Officers and Secondary Contacts, University Business Managers
From: Walter Miller, Director of Payroll Services
The employer retirement contribution rates have been communicated to us by the North Carolina Teachers and State Retirement System (TSERS). Effective Jan. 1, 2022, the TSERS employer contribution rate increased from 21.86% to 24.10% and the Optional Retirement Program (ORP) employer disability and retiree health contribution rate decreased from 6.77% to 5.99%.
The new rates were effective with payrolls beginning with Biweekly 14 (B14 payday Jan. 14, 2022) and Monthly 07 (M07 payday Jan.31, 2022). This is an employer only adjustment and does not affect employee pay. More information can be found in the Dec. 9, 2021 edition of Retirement Monitor, a newsletter for North Carolina’s public sector employees.
The State Health Plan also communicated the updated Employer Premium Rates in the Dec. 2, 2021, edition of the Health Benefit Representatives (HBR) Alert.
Effective Dec. 1, 2021, the employer contribution rate increased from $532.36 to $647.86 per month. The new rates were implemented prior to Biweekly 12 (B12 payday Dec. 17, 2021) and Monthly 06 (M06 payday Dec. 23, 2021). The rate was not available for Biweekly 11 and will require a one-time retroactive collection of $57.75 which is anticipated to occur on Biweekly 16. This is an employer only adjustment and does not affect employee pay.
The retroactive charges will be distributed according to the employee’s current funding sources. If a biweekly employee is no longer at the University and funding sources are inactive, the charge will go to payroll suspense. A deduction and taxes only Payroll Accounting Adjustment Tool (PAAT) action can be initiated by a PAAT Advanced User to adjust the distribution sources. If the employee is terminated and the position has been abolished, please submit a ServiceNow request to reactivate the position first BEFORE submitting a PAAT.
If you have any questions about PAAT, please email CA_Payroll@unc.edu.