NC House Includes 2% COLA for State Retirees in 2023 Biennium Budget

By Tim O’Connell, Executive Director of North Carolina Retired Governmental Employees’ Association | March 30, 2023

On behalf of our association’s close to 66,000 members, we want to thank the efforts of both the executive branch and our House legislative leadership for including a 2 percent recurring cost of living adjustment for state government retirees and retired educators. If fully approved, the recurring adjustment will be distributed one percent per biennium year. Government retirees are the unsung heroes of our North Carolina, building a state that remains prosperous, safe, clean, and desirable for families to lead healthy, high-quality lives.

Today, the State House of the North Carolina General Assembly released its anticipated budget, an almost $30 billion budget providing raises for active state government employees and educators and rainy day funds to protect against our challenging, unbridled current inflationary economic environment.

While we have made tremendous progress, we at the NCRGEA will continue to fight for these dedicated women and men, both our local and state government retirees and stay a resource for executive and legislative leadership in providing this most critical relief.  

Our elected officials recognized the plight of retirees and have also provided raises to help our future retirees have a better quality of life in retirement.

Letter to the Editor | State government retirees drowning in inflation

Tim O’Connell, Executive Director, North Carolina Retired Governmental Employees Association – March 9, 2023

More than 320,000 local and state government retirees are drowning in inflation. With a likely probability of another multi-billion-dollar surplus for the state, it’s time to do the right thing and provide inflation-fighting cost-of-living adjustments for these dedicated women and men.

The fact that everything costs more today is common knowledge. Over the past decade, individual purchasing power has declined by 29 percent. The basket of basic goods bought 10 years ago for $100 now costs $129. During this same period, cost-of-living adjustments totaled just 2 percent for state retirees and less than 1 percent for local government retirees.

This widening gap of lack of cost-of-living adjustments related to inflation hurts not only the retirees but the entire North Carolina economy. This is particularly true in North Carolina’s rural counties, where a higher percentage of retired public servants live compared to urban counties.

And yet retirees are good for the state’s economy. The National Institute of Retirement Security reports that in North Carolina, public pensioners support more than 49,477 jobs across all 100 counties and across a breadth of industries, from hospitality to healthcare to real estate. The value of this to the North Carolina economy is $8.1 billion a year and excludes the $1.2 billion this group pays in taxes to the state and federal government. The continued stagnation of cost-of-living adjustments will reduce this impact if not addressed.

While retirees remain grateful for the one-time bonuses the North Carolina General Assembly and Retirement System Trustees have provided over the past decade, such appreciated efforts will not abate the issue of short and long-term inflation. With the average retirement payment of approximately $1,650 monthly for retired public servants and the current 29 percent reduction in buying power adjusted for inflation, North Carolina has not seen this significant disparity in nearly 50 years.

Public sector retirees are forced to make hard decisions at the grocery store and at the pharmacy, and some struggle to maintain their own homes. Governmental retirees are our neighbors, friends, and parents. They educated our children, maintained our roads, cared for our loved ones, provided our families with clean drinking water, and were the first responders who put in long and often dangerous hours to keep our communities safe.

As we look at ways to bolster the resiliency of the North Carolina economy, serious consideration must be given to how it can be done in a way that provides dignity and quality of life to governmental retirees. As our legislators and elected officials make decisions in what is projected as another year of surplus revenues, they cannot forget our retired public servants.

Weekly Update: March 17, 2023

New Tool Allows Members to Better Advocate for Their Retirement Needs

NCRGEA Partners with FastDemocracy

In an exciting new development, NCRGEA has partnered with FastDemocracy to offer members the ability to follow the Association’s advocacy efforts and what is happening in the North Carolina legislature. Pensions, retiree healthcare, broadband — any issue that is a priority to our members will be tracked and then shared on our website for you to see.

What’s New?

  • Bill Tracker Page – on our website, we now have a page that displays the specific bills being
  • tracked by NCRGEA. When we see a bill of interest, we will add it to our list. Members will be able to explore this list, including information about the bills and sponsors, notes added by the Association, etc. There are also video tutorials located on the page for using this function.
  • Find My NC Legislator — not sure who to contact when NCRGEA asks for help in advocating for an issue related to public employees? With our FastDemocracy partnership, there’s no need to wonder any longer. Use the legislator search function to type in your address and find your State Representative and Senator. 

Both pages are located under the Advocacy section in the NCRGEA website‘s dropdown menu.

Our Commitment to Members

NCRGEA is committed to representing its members and empowering them with the tools needed to advocate effectively for their retirement needs. We will continue to explore technology and any other tools needed to bring us all together in pursuit of a common goal — protecting you in retirement after a lifetime of dedicated public service.

Treasurer Folwell Announces New Third-Party Administrator for the State Health Plan

Wednesday, January 4, 2023

North Carolina’s Treasurer announced on Wednesday, January 4 the award of the Third-Party Administrative (TPA) Services Contract to Aetna. Blue Cross and Blue Shield of North Carolina (Blue Cross NC) is the current TPA for the Plan and has been the TPA for more than 40 years.

The three-year initial service period for the contract begins January 1, 2025, and continues through December 31, 2027, with the option to renew for two, one-year terms.

This change will not impact our members who are enrolled in the Humana Group Medicare Advantage Plans. It will only impact members on the Base PPO Plan (70/30) and the Enhanced PPO Plan (80/20) which are currently being administered by Blue Cross NC.

Plan members will start receiving more information regarding the changes in 2024 prior to our Open Enrollment Period for the 2025 benefit year.

The administrative contract, awarded by the State Health Plan Board of Trustees, oversees health care spending of more than $17.5 billion over five years. The new contract reflects a partnership that focuses on transparency and lower costs, with the potential administrative cost savings over the course of the contract equaling $140 million. 

The award is the result of a Request for Proposals, a competitive bid process in which the Plan solicited and selected industry-leading partners providing exceptional customer service, technological resources and professional support. The services under the contract include processing claims and offering a comprehensive network of health care providers.  Aetna was one of three companies bidding for the contract. Blue Cross NC and UMR, Inc. also submitted proposals.

The State Health Plan, a division of the Department of State Treasurer, provides health care coverage to nearly 740,000 teachers, state employees, retirees, current and former lawmakers, state university and community college personnel, and their dependents.

$500 Travel Giveaway Winner Announced: Local Government Retiree

Congratulations to the winner of our $500 Travel Giveaway. Lesha West retired in 2014 from the Cabarrus County Department of Social Services. Prior to that, she was with the Rowan County Department of Social Services. We hope she enjoys a wonderful trip in 2023!

Win $500 Toward Travel. Deadline is January 3, 2023!

Whether sand and waves or a view of the Eiffel Tower, here’s a chance to earn $500 toward travel to your dream destination in 2023. You do not need to be a member to win. Use the QR code or visit bit.ly/ncrgeagiveaway to enter the giveaway.