Legislative Report #06-11

Report 06-11
July 7, 2006

BUDGET BILL RATIFIED

The House and Senate have ratified Senate Bill 1741 which amends the state budget for 2006-07. The ratified bill was sent to Governor Easley on Thursday to be signed in to law. As noted in last week’s Legislative Report, the amended budget contains several provisions affecting retirees and the retirement systems. These are reiterated below.

• 3.0% COLA for retired state employees, teachers, legislators, and members of the judicial system.

• 2.8% COLA for retired local government employees. (Note: The COLA is not addressed in the budget but was approved by the Retirement Systems Board of Trustees.)

• Increased monthly benefit for retired firefighters and rescue squad workers from $163 to $165.

• Increased maximum monthly benefit for N.C. National Guard retirees from $150 to $160 and minimum benefit from $75 to $80.

• $30 million repayment of monies withheld from the state retirement system in 2001.

ACTIVITY ON OTHER BILLS OF INTEREST

Senate Bill 837: State Health Plan 20-Year Vesting
(primary sponsor-Sen. Kerr)

The House approved the bill on second reading but delayed third reading until next week to allow time for preparation of amendments. The current version of the bill changes vesting for post-retirement State Health Plan coverage from full vesting at 5 years of service to 50% vesting at 10 years and 100% vesting at 20 years. These changes would not affect the benefits of any current state retirees or employees.

ADJOURNMENT NEARS

This week, House and Senate leaders announced plans to complete work and adjourn by Friday, July 14. We expect a very busy week as legislators work to reach approval of a broad range of bills, including legislative ethics and lobbying reform.