Legislative

 

Legislative Program Index

Legislative Update Short Session 2008

 Legislative Priorities 2008

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2007 Annual Legislative Summary

2005 - 2007 Re-Employment of Retired Teachers

Legislative Questions


Legislative Update 2008 Short Session

The Legislative Short Session begins on May 13, 2008. Watch for more information on NCRSP issues and legislative priorities. Please be ready to contact your local legislators when Legislative Alerts are posted. You provide an important connection to your local legislative members when you voice your support and concerns for upcoming legislation.

 

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NCRSP Legislative Priorities 2008

NCRSP LEGISLATIVE PRIORITIES FOR 2008

 
 
From:  Bob Severs, Legislative Committee Chair
 

On November 28, a meeting of the NCRSP Legislative Committee was convened in Asheboro.  All members were present, including lobbyists Pam Deardorff and Lacy Presnell.  The chief purpose of this meeting was to develop our legislative program for the 2008 session of the General Assembly, which convenes May 13, 2008.  After extensive discussion and input from our two lobbyists, the committee unanimously adopted the following legislative priorities: 

 
1.  To request full funding for the State Health Plan, with no decrease in benefits. 
 
2.  To request an increase in the State contribution rate to the State and Teachers Retirement System to 4.8%, bringing it into line with the rate for Local Government Employees.
 
3. To request a COLA equal to the average salary increase granted to active employees.
 
4.  To request approval of a plan to increase the accrual formula to 1.83% in 2008, 1.84% in 2009, and 1.85% in 2010. 
 
5. To support continuation of defined benefit pension programs for school personnel and state employees, opposing any trend toward defined contribution programs.
 
6. To support the Governor's Pay Plan to raise teachers' salaries beyond the national average by 2009.

We hope that you will work closely with your district Legislative Committee chairs, disseminating  this information to your membership, and making sure that your districts are organized for effective grassroots lobbying.  Although we shall make this information available to each member of the General Assembly at the appropriate time, there is no substitute for contacts of legislators at the grassroots level.  It's absolutely essential that legislators hear from their constituents on these important issues.   

 

Note:  Earnings (gains) in the Retirement Trust Fund for Teachers and State Employees are sufficient to pay a COLA of only 1% in 2007.  A larger COLA would require an additional appropriation, as would an increase in the formula from 1.82% to 1.83%.  For example, a 4% COLA would cost $114 million (1% from gains and 3% from appropriations), and the formula increase would require an appropriation of $47 million. These two items combined would require an increase in the State contribution rate of 1.4%, from 2.66% to 4.06%.

State Health Plan

As of July 2008 the State Comprehensive Major Medical Plan, also referred to as the Indemnity Plan, will no longer be the state recognized health plan. Instead, the new PPO will be the health plan available for state employees and retirees. If you have not changed to the PPO during one of the enrollment periods in 2007, you will receive information during the spring, 2008. If you do nothing an automatic enrollment will place you in the Standard Plan.

Following is a summary of the rate increases and benefit changes:

·        The rate increase for the 2007/2008 and 2008/2009 benefit years is in line with national trends. The premiums that members pay for their dependent coverage will increase by 11.4% for the Indemnity plan, and 11.2% for the PPO plans. This rate increase applies across all coverage tiers and will be effective October 1, 2007. With one increase for the biennium for the PPO, the average annual increase is approximately 5.6%.

·        Based on member feedback, the State Health Plan has expanded certain benefits for the PPO plans, effective July 1, 2007.  This includes enhancements to physical, occupational and speech therapies, and mental health and chemical dependency. Chiropractic benefits have also been modified and offered at a specialist copay.

·        Due to the rising cost of health care, costs for the Indemnity plan deductible and copay have increased. The Indemnity plan copay for office visits increased from $15 to $25. The individual deductible increased from $350 to $450 per benefit year, and the family deductible increased from $1050 to $1350 per benefit year. These benefit changes are effective retroactive to July 1, 2007.

·        The prescription drug plan will remain the same, except that the preferred brand with no generic equivalent tier will increase by $5, from $25 to $30 for all plans, effective August 6, 2007.

For more information about rate and benefit changes and the special fall enrollment, please visit the State Health Plan Web site at www.shpnc.org.

You can also click on Trifold.pdf to see a brief outline of the three Preferred Provider Plans.

Indemnity plan members may call 1-800-422-4658.  PPO plan members, please call 1-888-234-2416 for questions related to health benefits. Members with pharmacy questions may call 1-800-336-5933.

Other legislation enacted by the 2006 session of the General Assembly requires employees hired after October 1, 2006 to work 20 years for the State before earning free health care upon retirement. Current State employees will not be affected, only those hired after October 1, 2006. If a current employee has a day of service prior to October 1, he or she will still receive free health care upon retirement after five consecutive years of State service.

Should an employee have 10 years of service, but less than 20, the employee would be responsible for one-half of their premium upon retirement. The State would pay the other half. According to health care officials, this change in the law will help manage the State’s estimated $13.5 billion unfunded health care liability for current and future retirees, as well as help prepare for future expenses to the health care system due to large numbers of retirements, without raising health care premiums.

Funds Expended for NCRSP Lobbying

We believe that our members are fully aware of the importance of lobbying in improving the welfare and security of retired school personnel.  Suffice it to say that lobbying has played and is playing a major role in bringing to retired school personnel throughout the state COLAs, formula adjustments, and health care benefits.  During the past thirty years, retirement benefits have increased an estimated 150%, due in large part to the payment of COLAs and formula adjustments.  In the past 24 years, there has been only one year (1991) when no COLA was paid, and lobbying has played no small role in this achievement. 

Dr. Lacy Presnell and Pam Deardorff are our two lobbyists in the General Assembly, and they are doing a superlative job.  In 2005-2006, 17.37% of NCRSP membership dues went to lobbying.  From $238,725.43 in membership dues, funds expended for lobbying totaled $41,465.70.  This includes honoraria for the lobbyists, travel, supplies, promotion, and Legislative Committee expenses.  We believe that the return for this investment, as well as previous investments for this purpose, demonstrates that the funds have been well spent.

Legislative Committee

 

Bob Severs, Chairman
Lucy Gwyn Shirley Stockton
Vicky Rogers Keever Clark
Pam Deardorff, Lobbyist Dr. Lacy Presnell, Jr. Lobbyist

 

 

 

 

 

 

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Legislative Brochure for 2007

For a copy of the Legislative Brochure, please click on both pages: page 1 and page 2.

The pages are in PDF format and can be downloaded to print front and back for a brochure.

Click on the icon to download Adobe Acrobat 8.0 to read these pages.      Get it from CNET Download.com!

 

 
 

2007 Legislative Summary

The following is a summary of that part of the 2007 State Budget that impacts NCRSP Members. (Written by Pam Deardorff, Executive Director and lobbyist for NCRSP.)

Summary of Legislative Changes Affecting Retired School Personnel

 August 9, 2007

BUDGET ITEMS

Cost of Living Adjustment (COLA) of 2.2%  = $35 million
  • Increases the Employer’s contribution to the Retirement Fund from 2. 66% to 3.04
  • Repayment to Retirement Fund = Final payment of $45 million, interest to come later.
Health Plan = Approximately $25 million per year of biennium

(Cost to state for Medicare eligible individuals in Indemnity Plan increases from $248.48 per month to $272.36; increases the contribution for retiree health plan from 3.8% to 4.3%)    Indemnity Plan changes:  Increases deductible from $350 to $450 and copay for office visits from $15 to $25.  Indemnity plan will be eliminated by July 1, 2008.   PPO changes:  Physical, occupational and speech therapy visits are now unlimited.  Increases mental health and chemical dependency visits as well as chiropractic visits.   Prescription drug co-pay for preferred brand without a generic equivalent increases by $5 in both plans from $25 to $30 effective August 6, 2007.

LEGISLATION

  • H 956  Retired Teachers Work --- Allows anyone retiring on or before October 1, 2007 (whether Full Service or Early Service) to be reemployed after completing a six month break in service.  Effective on or after November 1, 2007, anyone retiring and reemployed exempt from the earnings cap must be eligible for Full Service Retirement.  Teachers who retire Early will not be allowed to be reemployed exempt from the earnings cap. 
  • H 779 Increase Contributory Death Benefit ----Increases the death benefit from $9,000 to $10,000 with no increase in premiums for retired employees who have elected to participate.  Effective July 1, 2007. 
  • S 720 Open Enrollment for Contributory Death Benefit ---- Allows a four month open enrollment period beginning February 1, 2008, and ending May 31, 2008 for all retirees who elected not to be covered under this benefit or failed to make any election at the time of their retirement.  The contribution rate for retirees electing coverage during open enrollment shall be increased by 11.1% the rate established for retirees who elected coverage when first eligible.  (Must make 24 months worth of payments before benefit will be paid.)
  • H 1593  Change State Health Plan Year --- Directs the Executive Administrator of the State Health Plan to study the impact of converting the Plan’s benefit year to a calendar year from a fiscal year and report findings and recommendations to the legislature by April 1, 2008.    

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Re-Employment of Retired Teachers

 
The 2005 - 2007 Budget provides for a 2-year extension of the law allowing retired teachers to return to work full time after a six-month separation from services without loss of pension benefits.  In addition, school systems that re-employ retired teachers must pay the Teacher's and State Employee's Retirement System a contribution rate of 11.7 % of salaries paid to retired teachers.  The budget also provides a new definition of "retirement' for teachers who retire and then return to work with a state employer.  For teachers who retire on or after November 1, 2005, the new requirement is that they must be completely separated from service for at least six months before returning to work.  This means that they cannot render any part-time, temporary, substitute, or contractor services during the six months period.

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Planning the Legislative Forum

 

According to one of our Legislative Lobbyist, Dr. Lacy Presnell, there are
several points to keep in mind when your local or district unit is planning
a legislative forum.  These items are:
 
     Ask your local legislators what day and time are best for them to
     attend a legislative forum in your area.  Then, schedule the event
     in accordance to their wishes.  If they have no preference, try Friday
     or Saturday morning for breakfast or lunch.
 
     Thank them for their past support and efforts in the retirement
     system and health plan areas.
 
     Discuss future funding and planning for the retirement system and
     health plan.
 
     Request them to guard against decreasing the benefits in our health
     plan.
 
     Discuss any other concerns for our two areas - Retirement system
     and health plan.
 
     Avoid other topics that may divide, like taxes or the lottery.
 
     Do write the participants a note to thank them for participating in your event,
     and for their services to the retirees across North Carolina.

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 Legislative Questions

    

How do you propose to protect and improve the Retirement System funding?
What is your position on meeting the prescription drug crisis?
What is your position on the current health benefits plan?
What are your thoughts on assuring consumer rights for individuals in managed care
health programs?
What are you doing to help with the COLA request?
Do you support a formula increase for educators?

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