1 minute read
Retirement Board asks for bonuses rather than COLAs
by SEANC
The General Assembly opened its 2023 long session on Jan. 11 and by all indications legislators could be in Raleigh into the fall. Lawmakers hope to finish the state budget by late June, then turn their attention to redistricting once again.
SEANC’s Government Relations team is tracking every bill to identify anything related to state employees and retirees. As is the case every year, the fight for raises, cost-of-living adjustments (COLA) for retirees, and full funding of benefits will be chief concerns.
The Retirement System Board of Trustees met in late January and made its final recommendation of a 2% bonus for retirees in both 2023 and 2024, paid by the general fund. The board made its decision based on an actuarial analysis that stated a COLA would cost the same as gains made by the system.
High vacancy rates across state government means fewer state employees paying into the system, while the number of retirees has increased. Therefore, the legislature would have to decide to increase its contribution to pay for a COLA.
It’s important to note that a recommendation by the Retirement System Board does not mean an appropriation for a COLA will happen. However, the legislature does put a certain amount of reliance on the recommendation.
SEANC has made it clear to legislators that retirees demand a true cost-of-living adjustment, not just another bonus. We will continue to press lawmakers to invest in a true COLA in the upcoming state budget debate.
With the legislature now in full swing, it’s more important than ever for members to BE READY TO ACT. Please scan the QR code below and fill out the form to ensure you receive our email alerts and text messages. And be ready to call or email your legislators to make your voices heard.
