The State of North Carolina offers two Supplemental Retirement plans to provide additional ways for you to save money for retirement. Participation is voluntary and does not replace your mandatory 6% contribution to your State Retirement Plan.
Both plans are now provided by Prudential Retirement, administered by the NC Department of State Treasurer and sponsored by the State of North Carolina.
The NC 401(k) Plan is a defined contribution plan, which means you may contribute a certain amount to the Plan, plus you get to choose how you want to invest your money based on your unique retirement goals and how many years you have until you retire.
The 457 Plan is a governmental 457(b) deferred compensation retirement savings plan that allows eligible employees to supplement any existing retirement and pension benefits by saving and investing pre-tax dollars through voluntary salary deferral. Contributions and any earnings on contributions grow tax-deferred until money is withdrawn.
Distributions are usually taken at retirement when many participants are typically receiving less income, and may be in a lower income tax bracket than while working. Distributions are subject to ordinary income tax.
Additional information is available online or by calling Prudential Retirement at 1-866-627-5267.