Legislative Report #07-11

Report 07-11
April 6, 2007

APPROPRIATIONS CO-CHAIRS HEAR FROM RETIREMENT GROUPS

The co-chairmen of the Senate and House Appropriations Committees invited representatives of our Association and the N.C. Retired School Personnel group to present priority legislative goals for 2007 on Thursday, April 5. The presentations stressed the importance of providing Cost-Of-Living Adjustments that, at a minimum, cover the rate of inflation for all governmental retirees and the critical nature of raising the state’s employer contribution rate to the Teachers’ and State Employees’ Retirement System. The presentation also included an expression of our concerns about proposals to charge premiums to retired and active state employees for coverage under the State Health Plan’s existing indemnity plan.

DISCUSSION OF STATE HEALTH PLAN CONTINUES

Earlier this week, the staff of several organizations that represent retired and active state employees met to discuss the provision in Senate Bill 1207 that would authorize the State Health Plan to charge monthly premiums to members who have decided to remain in the existing indemnity plan. Our Association, together with the N.C. Association of Educators and the N.C. Retired School Personnel group, remain strongly opposed to this proposal.

We expect the State Health Plan to withdraw the premium proposal. Discussions involving a re-designed Indemnity Plan that does not require premiums will continue.

BILLS OF INTEREST

House Bill 890: Repay Retirement Systems
(Primary Sponsors: Reps. Holloway and Dollar)

This bill was introduced on March 20. The proposal would appropriate $94 million to repay the remaining principal plus interest for the money that was withheld from the state retirement systems in 2001. The $94 million would cover the remaining $45 million principal and provide $49 million to replace the interest that otherwise would have been earned on the escrowed funds.

House Bill 1313: Public Defenders/Judicial Retirement System
(Primary Sponsors: Reps. Coleman and Jeffus)

The bill would include public defenders who are serving on July 1, 2007 or who become public defenders after that date as members of the Consolidated Judicial Retirement System.