Christmas is arriving early in 2018. About 11 months early, to be precise. On Thursday, January 25, North Carolina retirees began receiving their monthly state retirement benefit payments.
According to the office of North Carolina State Treasurer Dale R. Folwell, payments to retirees have increased by a total of $5.7 million this month. The windfall was triggered by two developments. One is the very well publicized federal tax reform signed by President Donald Trump after Congressional Republicans came through with a bill late last year.
The other development flew under the radar. An obscure state entity, the Retirement Systems Division (RSD), simply did its job beating the clock on an IRS deadline that was set after Trump signed sweeping tax cuts into law.
Among those cuts are federal taxes deducted from 2018 benefit payments to North Carolina retirees and benefit recipients. The RSD Operations Team within the N.C. Department of State Treasurer was able to update the tables ahead of the IRS’s deadline.
“I’m very proud of our team for taking the initiative so quickly after the new tax law was passed by Congress and signed by President Trump. While we are in the check delivery business, it involves more than just buying ink and stamps,” said Treasurer Folwell. “This is a testament to the outstanding job that our career public servants do to serve government workers.”
More than $500 million is paid out each month to more than 312,000 retirees and benefit recipients.
“Our team, led by Tom Causey and Susan Fordham, decided not to wait until February to enact this increase in our members’ benefit payments,” explained Steve Toole, Executive Director of RSD. “By updating these tax schedules sooner, our members will see larger January benefit payments.”