SC/NC Teaching/Retirement Question (credit, how much, to buy) - Charlotte - North Carolina - City-Data Forum

lacey3eb · 07-31-2009, 02:22 PM

What are some possible issues I could face if I work in a district in SC in education and later move to a district in NC? From what I've been told, I'd have to "start all over" in working towards retirement. I haven't had my orientation yet or received any paperwork for my SC district, so this information might be coming my way soon, but I want a heads up on what to expect. Any info to share about this? Thanks in advance!

lovesMountains · 07-31-2009, 02:34 PM

Quote:

Originally Posted by lacey3eb

What are some possible issues I could face if I work in a district in SC in education and later move to a district in NC? From what I've been told, I'd have to "start all over" in working towards retirement. I haven't had my orientation yet or received any paperwork for my SC district, so this information might be coming my way soon, but I want a heads up on what to expect. Any info to share about this? Thanks in advance!

They are two separate states, so why you think you'd get to keep your retirement benefits when you leave one to go to the other is beyond me.

lowercountry · 08-01-2009, 07:29 AM

You will indeed have to "start over" when you move from one state's retirement system to another. You can decide to pull your money out of one state's system when you move and invest it in your new state's system; however, the penalty and taxes on doing such is pretty expensive, and you won't get those years of service adding to your new state.
Ask them instead about being vesting in a state's system - the length of time varies from state to state. I won't go into the long details of what vesting means for retirement here so ask them to explain it to you.

lacey3eb · 08-01-2009, 07:43 AM

Quote:

Originally Posted by lovesMountains

They are two separate states, so why you think you'd get to keep your retirement benefits when you leave one to go to the other is beyond me.

Hmm, perhaps since this is my first "real job" and I don't have any experience with this sort of thing? That might be your least helpful response to a post yet loves, I am surpised.

Thanks lowercountry for your helpful reply! I will definitely inquire about vesting and I am sure they will go over that and much more at the orientation.

My old principal in NC made it out to sound that it is horrible to switch from one state to another and that I'd have to work years beyond my time, but I would think people do it all the time since there is no guarentee that you won't move out of state at some point. That is why am I curious about what issues I would face if I do this. She also said that SCs benefits aren't as good as NCs, but I don't know if that's true or if she was trying to make me change my mind.

lowercountry · 08-01-2009, 08:27 AM

Quote:

Originally Posted by lacey3eb

My old principal in NC made it out to sound that it is horrible to switch from one state to another and that I'd have to work years beyond my time, but I would think people do it all the time since there is no guarentee that you won't move out of state at some point. That is why am I curious about what issues I would face if I do this. She also said that SCs benefits aren't as good as NCs, but I don't know if that's true or if she was trying to make me change my mind.

I have heard similar stories about NC's benefits being better but I do not think that it is substantially greater.
To be very basic here, vesting is the amount of time you have to put into a system to be able to draw from it at retirement age. I think it is 20 years in SC. It used to be only 5 years in NC but that has either changed or will be changed soon I think. In other words, if you work 20 years in SC, then move to NC, you can begin to draw back on those 20 years in SC when you finally reach retirement age. If, however, you stay in SC for the full 28 years (teacher's retirement age in SC), you can retire at that point. For example, I began at age 21 in SC and will be able to retire with full benefits at 49. If I leave SC after 20 years though, I'd have to wait to the legal retirement age (is it 67 now?) to get even partial retirement benefits from SC. If I leave SC for NC after 19 years, I am not vested.

Any of that make sense? I am sure they can make it much more clear to you.

dez181 · 08-01-2009, 09:41 AM

I think that it is still 5 years in NC, because I taught for seven years in NC and then jumped over to SC. I still have my retirement in NC, and I am eligible to receive health benefits when I retire, as long as I do not cash it out. You do in a way start over again when you jump the border, because it is a new system. They pay you for years of experience, although you have to go through the same hoops you do when you first start out as a teacher (observations and accreditation and what not). There is reciprocity for your actual certificate in both states, although you still jump through hoops. Point blank find a state you like and stay there because it is a pain in the butt paper work trail to follow.

If you start in SC you may want to stay there for a little while before you make the jump. The issues that I have seen is people teaching a year in this state, a year in that state, and then you have not built any time anywhere. When you jump all over you have a harder time building that retirement.

getatag · 08-01-2009, 12:14 PM

Dez..
Better check, I think NC has changed that 5 year vested rule about 2 or 3 years ago.

To the OP, if you haven't got 20 in the SC retirement system then you will be allowed (read as smart) to pull out your part of the retirement in your account and invest it somewhere else. The NC buy-in for years may or may not be worth it. You might do better putting it in an individual retirement plan.

dez181 · 08-03-2009, 01:58 PM

I fell within that time period when I taught in NC

soontoretire · 09-27-2009, 06:08 PM

I don't understand. I teach in NJ. If you teach in NJ and you have taught in another state, then you have a certain amount of time--a few years-- to "buy back" your pension from the other state so that you can tack that on to your NJ pension. Makes sense to me. Maybe it will work for you between SC and NC.

iloveaslan · 09-10-2012, 08:47 PM

I taught eight years in Virginia, and I'm currently in North Carolina teaching. How much does it cost to buy back eight years from Virginia?