North Carolina requires all its state employees and teachers to pay 6 percent of each paycheck into a retirement fund over the course of their employment with the state. If you're a North Carolina employee and you leave your post, voluntarily or otherwise, you may withdraw your contributions, so long as you didn't leave your post to retire--in this instance, you'll receive the balance of your fund in monthly installments for the duration of your retirement. The process for obtaining a refund is simple and involves completing a single form.
Resign from your post if you have not already been terminated. You may only withdraw your contributions to the fund after you have ceased contributing to it. You must additionally wait at least 60 days after your employment ends to apply for a refund.
Video of the Day
Print North Carolina Form 5, "Withdrawing Your Retirement Service Credit and Contributions," and fill out your personal information including name, address and member ID. Check the box next to the refund option which most closely matches your wishes, keeping in mind that the state with retain 4 percent of all your total contributions over $4,000. Have your employer fill out section G of the form. Take the completed form to a notary public and have her notarize it.
Mail or fax your completed form to the North Carolina Department of State Treasurer using the information below:
North Carolina Department of State Treasurer Retirement Systems Division 325 N. Salisbury St. Raleigh, NC 27603-1385 Fax: 919-508-5350
Once the state of North Carolina has received Form 5, it will send you a letter notifying that it has begun processing it, which will include an estimated refund date.
Choose carefully between receiving your refund as a "lump sum" cash payment or having it rolled over into a Roth IRA. If you do receive cash, you will be liable to pay tax on it.