The General Assembly was expected to adjourn this week. However, while the Senate took steps to do so, the House did not follow suit.
The Senate approved the joint adjournment resolution on Tuesday which would officially end the current session on Wednesday, August 24. The resolution also established May 9, 2006 as the date for the General Assembly to reconvene. Both Senate and House met through Tuesday night into Wednesday morning. The Senate adjourned at 6:30 A.M. after approving several bills of interest to retirees. However, the House deferred action on the adjournment resolution. Speaker of the House Jim Black announced on Wednesday afternoon that the House would continue to meet into next week. Several important bills still require final approval or concurrence by the House.
The Senate this week approved two bills containing provisions of interest to our members. We expect that the House will act on these bills before adjourning.
House Bill 413: The Studies Act of 2005
This bill authorizes a variety of legislative studies of policy issues to be conducted before the General Assembly reconvenes in May. Proposed studies pertaining to retirement issues and the State Health Plan are listed below.
• National Guard Pension Fund: the Legislative Research Commission is authorized to study the current status of the Fund and to determine what measures may be needed to provide for the long term stability of this benefit.
• Local Governmental Employees Retirement System (LGERS): a study of potential local option early retirement for local government employees is authorized.
•Prescription Drug Cost Management: the Joint Legislative Health Care Oversight Committee is authorized to study the feasibility of a central state drug cost management office to coordinate the activities of state agencies and programs that cover or directly purchase prescription drugs. The aim of this office would be to reduce state costs for prescription drugs through coordinated negotiation of discounts and purchases.
• Mandatory Annual COLAs For Retired Teachers and State Employees: the Speaker of the House will appoint a 10-member House Select Study Commission to the costs and benefits of automatic COLAs for state retirees linked to the annual Consumer Price Index (CPI).
• Alternatives to the State Health Plan for UNC Employees: a separate study commission will be appointed by Senate and House to consider alternative insurance arrangements for the University system. The Commission will report findings to the 2006 Session of the General Assembly.
House Bill 327: 2005 Technical Corrections Act
This bill includes amendments to the state law authorizing the State Health Plan to recover hospital and medical expenses incurred by Plan members from settlements paid by liable third parties to Plan members. If approved, the amendments would limit Health Plan recoveries to no more than 50% of the damages recovered by Plan members excluding the members' reasonable costs of recovery.
