Average final compensation (AFC)
Your average pay over your four highest-paid consecutive years.
Handbook: Benefit CalculationsMore on this →Start with three: average final compensation, creditable service and the early retirement reduction. The TSERS calculator puts them together for your own dates.
Contribution
You pay 6% of your pay. Employers pay 26.10% for teachers and state employees from July 1, 2026 (18.22% of it for retirement).
Handbook: TSERS Handbook home; Retirement Monitor, July 2026, TSERS, ORP, CJRS, and LRS Employer Contribution RatesMore on this →Contribution-based benefit cap (CBBC)
A limit that can apply to members retiring with an average of $100,000 or more (adjusted yearly) whose benefit is larger than their contributions would be expected to fund.
Handbook: Benefit Limitations, Contribution-Based Benefit Cap (CBBC)More on this →Creditable service
All service that counts toward retirement, including membership service, eligible purchases and converted sick leave.
Handbook: Benefit CalculationsMore on this →DIPNC (Disability Income Plan of North Carolina)
Employer-paid short-term, extended short-term and long-term disability income for permanent employees under TSERS or the Optional Retirement Program.
Handbook: Disability Income Plan of North CarolinaEarly retirement reduction
The percentage cut to your benefit, for life, if you retire before you qualify for an unreduced benefit.
Handbook: Benefit Calculations, Early Retirement PercentagesMore on this →Earnable allowance
How much a retiree can earn from a TSERS employer before their benefit is suspended.
Return to Work Laws page (myncretirement.gov)More on this →Effective date of retirement
The date your monthly benefit starts. It is always the first day of a month.
Handbook: Retirement Application ProcessMore on this →Form 5TR
The form, in ORBIT, for transferring your contributions and creditable service between TSERS and LGERS. Transferred service counts toward eligibility and the benefit amount.
Handbook: Reciprocity Between Systems, Transferring Service & Contributions Between SystemsMore on this →Form 6 (Claiming Your Monthly Retirement Benefit)
The retirement application, done online in ORBIT or on paper, filed at least one day and not more than 120 days before your effective date of retirement.
Handbook: Retirement Application ProcessGuaranteed refund
If you and your survivor both die before your payments add up to your contributions plus interest, the rest is paid to another beneficiary.
Handbook: Death Benefits (Retiree), Guaranteed RefundMore on this →Maximum allowance
Your unreduced lifetime payment under Option 1.
Handbook: Benefit Payment Options, Option 1More on this →Membership service
The periods you contributed to TSERS.
Handbook: Benefit CalculationsMore on this →Modified joint and survivor (Options 6-2 and 6-3)
Like Options 2 and 3, with a larger reduction, but if your beneficiary dies first your payment rises to the maximum allowance.
Handbook: Benefit Payment Options, Options 6-2, 6-3More on this →One-time supplement
A single extra payment the General Assembly may grant retirees, figured as a percent of the yearly benefit.
G.S. 135-5(uuu)-(zzz)More on this →Option 4 (Social Security leveling)
A payment option that pays more until you're eligible for Social Security at 62, then less, so your TSERS payment plus Social Security stays about the same. It's based on an SSA estimate you provide.
Handbook: Benefit Payment Options, Option 4More on this →ORBIT
The Retirement Systems' secure online account, where you can get a custom benefit estimate.
Handbook: Benefit CalculationsReciprocity
Credit in the Legislative (LRS), Consolidated Judicial (CJRS) or Local Governmental Employees' (LGERS) retirement systems can count with your TSERS credit to decide whether you qualify for a reduced or unreduced benefit, but only TSERS service is used to figure the TSERS amount.
Handbook: Reciprocity Between SystemsMore on this →Required minimum distribution
In most cases the Retirement Systems must start paying a non-retired member with an open account by April 1 of the year after the member reaches the IRS age or stops working, whichever is later.
Handbook: Required Minimum DistributionsSick leave credit
Unused sick leave converted to service at retirement, one month for each 20 days (plus a month for any remainder of at least one hour). It can't be used to meet the minimum for a deferred benefit or the Survivor's Alternate Benefit.
Handbook: Adding to your Creditable Service, Sick leaveMore on this →Survivor's Alternate Benefit
A lifetime monthly payment to one beneficiary, instead of a refund, if a member dies in service after meeting the age and service rules.
Handbook: Death Benefits (Active), Survivor's Alternate BenefitMore on this →Unreduced benefit
The full formula benefit, with no early retirement cut (65 with 5 years, 60 with 25, or 30 years at any age).
Handbook: Qualifying for Benefits, Service Retirement (Unreduced Benefit)More on this →Vested
Having the five years of membership service needed for a lifetime benefit.
Handbook: Qualifying for Benefits, VestingMore on this →Vested deferred benefit
The benefit a vested member who leaves, and keeps their contributions in TSERS, can draw later once they meet the age and service rules, figured with the formula in effect on the retirement date.
Handbook: Qualifying for Benefits, Vested Deferred BenefitMore on this →Waiting period
The six months after your retirement date when you can't work for any TSERS employer.
Return to Work Laws page (myncretirement.gov), Working During the Waiting PeriodMore on this →Source: TSERS Handbook, Online handbook, pages modified Nov. 2024 - Oct. 28, 2026 (retrieved Nov. 11, 2026), pages Benefit Calculations, TSERS Handbook home, Benefit Limitations, Disability Income Plan of North Carolina, Retirement Application Process, Reciprocity Between Systems, Death Benefits (Retiree), Benefit Payment Options, Required Minimum Distributions, Adding to your Creditable Service, Death Benefits (Active), Qualifying for Benefits. Also: N.C.G.S. 135-5(uuu)-(zzz); Retirement Monitor, July 2026; Return to Work Laws page (myncretirement.gov). Last reviewed .