Legislative Report #05-15

Report 05-15
May 13, 2005

HOUSE GEARS UP FOR BUDGET

The House has not yet initiated formal review of the proposed budget that was approved by the Senate last week. However, there are indications that the House will improve upon the Senate's proposals regarding Cost-Of-Living Adjustments for both active and retired employees. Also, the House may try to reduce proposed increases in State Health Plan co-pays, out-of pocket costs, and dependent premiums.

Again, we are asking our members to contact their Representatives in the House to urge favorable action on higher COLAs and State Health Plan cost containment. If you have not already contacted your Representative, Please do so as soon as possible. We expect that the House Appropriations subcommittees will begin review of the budget next week.

LEGISLATION OF INTEREST

A bill linking COLAs for retired teachers and state employees to the Consumer Price Index was introduced this week. Also, the House approved legislation changing the composition of the Local Governmental Employees' Retirement System (LGERS) governing board. Details are presented below.

House Bill 1653: Mandatory COLA for TSERS Retirees (Primary sponsors- B.Allen, Coleman, Farmer-Butterfield, and Faison)
This bill would require that retired teachers and state employees receive Cost-Of-Living Adjustments each year equal to the rate of inflation as defined by the Consumer Price Index (CPI). The bill, if approved would become effective July 1, 2005.

House Bill 1237: Change Local Government Retirement Board (Primary sponsor- Rep. Tucker)
The bill expands the membership of the local retirement system board by adding a city manager, a county manager, an active local government employee, and a retired local government employee. The bill passed second and third reading in the House and was sent to the Senate.