The state budget approved last week by the House of Representatives now is under review by Senate Appropriations leaders. There is every indication that the Senate intends to move quickly to finalize the budget.
We urge all of you to make contact with your Senators as soon as possible and let them know that state retirees deserve a larger Cost-Of-Living Adjustment than the 2.0% included in the House budget. The House provided a 2.2% COLA for local government retirees.
You can access Senate e-mail addresses by going to the General Assembly web page (www.ncga.state.nc.us). Click on “Senate” and go to “Senate Member List” to find your Senators. Also, you can call them directly using the list of legislative phone numbers that we published in the March/April issue of our Living Power newsletter.
The Senate and the House agreed to extend the cross-over deadline by one week, to May 24, in order to allow standing committees more time to consider bills that have been introduced this Session. Under the crossover rule, a bill introduced in either legislative chamber must be approved and sent to the other chamber by the deadline in order to be eligible for further consideration this year. Bills involving appropriations, taxes, and fees are exempt from this deadline.
Committees in both chambers worked through this week to clear bills assigned to them. Several bills of interest to retirees were approved. A summary of these bills is presented below.
Senate Bill 720: Open Enrollment/Contributory Death Benefit
(Primary Sponsor – Sen. Atwater)
The Senate Committee on Commerce approved this bill in amended form. The bill would allow all state and local government retirees who did not elect coverage under the state contributory death benefit insurance plan at the time of retirement to join during a special open enrollment period. The enrollment period would begin February 1, 2008 and close on May 31,2008. Premiums would be based on age at the time of enrollment. The bill requires the Retirement Systems Division to notify all eligible retirees via U.S. Mail.
This bill is scheduled for consideration by the Senate on May 21. The N.C. Retired Governmental Employees’ Association supports Senate Bill 720.
House Bill 654: Clarify Definition of Retirement
(Primary Sponsor – Rep. Edith Warren)
The bill clarifies the statutory provisions defining “retirement” under the Teachers’ and State Employees’ System (TSERS). The current law requires a complete separation from active service with no intent or agreement to return to work. This bill states that service as a member of a local school board does not violate the separation from active service requirement in the current law. This bill was approved by the House Appropriations Committee and will be sent to the floor for consideration next week.
House Bill 956: Retired Teachers Work
(Primary Sponsors – Reps. Yongue, Tolson, Pate, and Carney)
This bill extends the provision that allows the re-employment of retired teachers at full salary with no loss of retirement benefits for another two years (to June 30, 2009). The House Appropriations Committee amended the bill to require the employers or the re-employed teachers to provide a contribution of 16% of compensation to the retirement system.
