Do I Qualify for North Carolina Bailey Settlement
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Level 2

Do I Qualify for North Carolina Bailey Settlement

Hello, Moved to North Carolina last year, first time filing as NC Resident.  I am trying determine if my FERS retirement qualifies for the NC Bailey Settlement.  Here's my situation:

 

- I started working for the Federal Government as a FERS employee on 4 Nov 1987.  Contributed to my TSP immediately and received matching funds.

 

- I also had 4 years of active duty military with Honorable Discharge 1976-1980. I was able to 'buy in" these four years o my service and retired Dec 2017.  My retirement was calculated using 4 November 1983. So I am collecting slight more than 34 years retirement pay (they used 4 November 1983 through 30 December 2017 to determine my retirement pay).

 

- Buying those 4 years of military time seems to get me the 5 years of creditable service prior to 12 August 1989 since my retirement is calculated using 4 November 1983.  Am I correct?

 

- Finally... is there any paperwork that NC needs to verify I qualify (assuming I do). I see nothing on my 1099-R that would address this one way or the other.

 

Thanks!

 

2 Replies
Employee Tax Expert

Do I Qualify for North Carolina Bailey Settlement


No.  For the FERS you did not have 5 or more years of service as of Aug 12, 1989.

 

As far as the military retirement, it depends on your listed retirement date.  You say you retired Dec 2017, but then you refer to Nov 1983. 

 

The requirement is that you had five or more years of service as of Aug 12, 1989.

 

There is nothing you need to provide to NC, but you do need to keep your records.  In some cases they will ask for documentation, but you will only provide this if you receive a letter asking for it.

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Level 2

Do I Qualify for North Carolina Bailey Settlement

Thank you for the reply CatinaT1... to be clear I did not retire from the military I only served for 4 years.... the reason I'm asking is:

 

I had 4 years of military service from 1976-1980.  When I became a FERS employee in Nov 1987, the FERS program allowed me to "buy in" my years of 4 military service into the FERS system.  That set my start time in civil service towards retirement to Nov 1983.  The basic question being.... did buying those 4 years of military time into the FERS allow me to get into the Bailey Settlement window.  

 

The answer may still be no... but being an odd situation I don't want to leave any rock unturned.

 

Thanks again!!!!

 

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