Legislative Report #07-05

Report 07-5
February 23, 2007

GOVERNOR EASLEY PRESENTS BIENNIAL BUDGET

The Governor presented the State of the State Message to the General Assembly on Monday evening, highlighting a number of proposed new initiatives. The detailed budget was released on Thursday, including the proposals on state employee compensation and retiree COLAs.

The proposed budget for 2007-08 includes a 2.0% Cost-Of-Living Adjustment for retired teachers and state employees. The budget includes funding to maintain the current benefit levels in under the State Health Plan with no increases in co-payments or the annual deductible. The Governor also included $45 million to cover the final installment on the repayment of monies diverted from the Teachers’ and State Employees’ Retirement System in 2001.

The Governor’s recommendations do not address local retiree COLAs since no state funding is provided to the Local Governmental Employees’ Retirement System. The Board of Trustees of the Retirement Systems has recommended a 2.2% COLA for local retirees which would use all gains available in the local retirement fund.

The Governor has proposed a 5.0% compensation increase for public school teachers. The proposed raise for regular state employees is 2.5%.

BILLS INTRODUCED THIS WEEK

House Bill 233: Equal Tax Treatment of Gov’t Retiree Benefits
(Primary Sponsors – Reps. Underhill, Faison, Glazier, and Pate)

This bill would North Carolina state and local government pensions and Federal pensions from state income taxes, effective in 2008. The bill also provides a reciprocal deduction of at least $4,000 for other state’s governmental pension benefits being received by N.C. residents.

Senate Bill 276: Enhance National Guard Pension Fund
(Primary sponsor – Sen. Dalton)

This bill would increase the minimum monthly benefit from the current $80 to $150 and the maximum from $150 to $300. The bill has been referred to the Committee on Pensions, Retirement, and Aging.

STATE HEALTH PLAN OPEN ENROLLMENT - TRAINING DATES

The staff of the State Health Plan (SHP) have asked us to inform our members of several informational sessions that have been scheduled to help retired teachers and state employees understand the PPO options that now are available to members. The open enrollment period for the PPOs runs from March 1 through March 31.

This year, SHP is making a special effort to reach state retirees regarding the PPO options. The training sessions are, as follows:

Carteret Community College (Joslyn Hall)
March 5, 10:00 AM - 12:00 Noon

Asheville-Buncombe C. C. (Ferguson Aud)
March 6, 10AM - Noon, 2PM - 4PM

Winston Salem State Univ. (Anderson Conf. Ctr)
March 7, 10AM –Noon, 2PM –4PM

Central Piedmont C.C. (Central Campus, Central High Bldg.)
March 8, 10 – Noon, 2PM-4PM

Wake Tech C.C. (Central Campus, Student Services Bldg., Room 215)
March 9, 10AM – Noon, 2PM –4PM

Fayetteville C.C. (Cumberland Hall Aud.)
March 14, 10AM – Noon, 2PM – 4PM

Pitt Community College (Fulford Bldg., Room 153)
March 13, 10AM - Noon