Raleigh—The North Carolina Retired Governmental Employees’ Association opposes Senate Bill 743. The bill would deny new hires of the state-supported UNC Health from participating in the State Health Plan and the state’s pension plan.
“After reviewing Senate Bill 743, we have determined that this bill will have an adverse effect on current and future UNC Health employees, retirees of the state, and taxpayers,” Tim O’Connell, executive director of the association, said. “There are numerous case studies where these types of changes to government employee retirement plans have been attempted, and always failed to achieve the desired outcomes.”
An April 2023 report by the National Institute of Retirement Security showed that defined benefits plans, such as the state’s public pension plan, continue to attract and retain quality employees. The rippling effects of such an action would hurt pension solvency, as these employees would not contribute to the pension system.
“Mostly, Senate Bill 743 harms the stability of loyal public servants working in health care during times of financial uncertainty in the financial markets,” O’Connell said. “This will increase the liability of the State Health Plan and place a greater burden on taxpayers.”
The North Carolina Retired Governmental Employees’ Association, NCRGEA, advocates for retired state and local government employees. With more than 66,000 members statewide, it is the largest association of its kind in the nation.