To: Campus Unit Financial Leads, HR Officers and Secondary Contacts, University Business Managers
From: Walter Miller, Director of Payroll Services; Joe Williams, Senior Director-Benefits, Leave Administration & Total Wellbeing
The employer retirement contribution rates have been communicated to us by the North Carolina Teachers and State Retirement System (TSERS). Effective July 1, 2023, the TSERS employer contribution rate increased from 24.50% to 25.02% and the Optional Retirement Program (ORP) employer disability and retiree health contribution rate increased from 6.99% to 7.25%.
The new rates will be implemented with payrolls beginning with Biweekly 07 (B07 payday October 20, 2023) and Monthly 04 (M04 payday October 31, 2023). The new rates were retroactively effective for Biweekly 27 through Biweekly 06 and Monthly 01 through Monthly 03. The retroactive adjustment will be included on B07 and M04. This is an employer only adjustment and does not affect employee pay. More information can be found in the October 4, 2023 edition of Retirement Monitor, a newsletter for North Carolina’s public sector employees.
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.