Legislative

 

Legislative Program Index

 Legislative Goals for 2009-2010

Legislative Brochure for 2009-2010

2009 Re-Employment of Retired Teachers

Legislative Questions


Legislative Information for Long Session 2009

 Summary of Legislative Changes Affecting Retired School Personnel

The “long session” of the General Assembly convened January 28, 2009 and   adjourned August 11, 2009.  The Assembly will reconvene for the “short session”
on May 12, 2010
 
Appropriations
Senate Bill 202: (Session Law 2009-451) Appropriations Act
  • Appropriates $29 million for 2009-2010 and $160 million for 2010-2011 to the State Retirement Trust Fund.  The $29 million moves the State contribution rate from 3.36% to 3.57%, and the $160 million appropriation moves the contribution rate from 3.57% to 4.93%. 
  • No Cost of Living Adjustment (COLA) for retirees or state employees.
  • Appropriates $132 million for 2009-2010 and $276 million for 2010-2011 to the State Health Plan. The state will continue to pay premiums for active and retired employees:  $287.20/mth for Medicare eligible retirees, up from $272; $377.22/mth for non-Medicare eligible retirees, up from $346.38.
 
State Health Plan
Senate Bill 287(Session Law 2009-16) State Health Plan (SHP)
Ratified April 23, 2009, this law appropriated $250 million to cover the shortfall for 2008-2009 and outlined a comprehensive plan to fund the SHP for 2009-2011 and set new initiatives. The law:
  • Eliminates the PPO Plus Option (90/10 Plan) effective July 1, 2009.
  • Adds a Comprehensive Wellness Initiative for all non- Medicare eligible members:  Smoking cessation plan effective July 1, 2010 and weight management plan effective July 1, 2011.
  • Increases cost for certain branded prescription drugs by $5. For branded prescriptions with generic equivalents, members will pay the generic co-pay plus the difference between the cost for the generic and the branded drug. (Generics stay the same---$10)
  • Requires that coverage of non-acute specialty medications, excluding cancer medications, be provided by a specialty pharmacy vendor and may impose a co-payment of 25% of the cost of the drug (not to exceed $100) per prescription per 30 day supply.  Description of specialty drugs is included in the bill but must be a drug that exceeds $400 per prescription.
  • Requires prescriptions to be dispensed on a 30 day supply, instead of 34 day supply.
  • Eliminates (January 1, 2010) the routine eye examinations.   
  • In the Standard Plan (80/20) PPO:  Increases the in-network annual deductible to $600 (from $300) and the annual coinsurance maximum to $2750 (from $1750). Increases the in-network primary care co-pay from $20 to $25 and the in-network urgent care co-pay from $50 to $75.  Increases the in-network specialist co-pay to $60, except for mental health/substance abuse services, chiropractic services, physical, occupational and speech therapy services which will be $45. Different amounts apply to the PPO Basic Plan (70/30).   
  • Clarifies ‘eligibility’ definitions/coverage
  • Includes contract provisions and calls for independent audit.
  • Creates a Blue Ribbon Task Force to review the governance of the SHP “and to make recommendations for changes that will ensure the ongoing financial stability of the Plan….”
  • Sets the premium rate increases at 8.9% for 2009 and 8.9% in 2010 for those who pay for dependent coverage such as spouse/child or family. 
  • Maintains fiscal year plan instead of moving to a calendar year.
 
House Bill 1274: SHP Blue Ribbon Task Force and SHP Changes
  • Makes technical changes to the Blue Ribbon Task Force (created in SB 287) and other changes to the SHP, including a provision regarding prescription drugs which states that SHP members shall pay the lesser of the copayment price or the pharmacy’s cash price to the general public for a particular prescription.  Pharmacies may be removed from the pharmacy network for violation of this provision.
 
State Treasurer/ Retirement
  • Senate 691 (Session Law 2009-283) includes the Treasurer’s Governance and Transparency Act of 2009. The Transparency Act increases the Investment Advisory Committee from five to seven members by adding two additional public members with experience in large investment programs.  It also outlines how the State Treasurer must discharge her duties regarding the retirement systems and if the Treasurer’s investment authority is ever broadened by the General Assembly, the treasurer must provide an annual report on the use and results of this new authority.
  • Senate Bill 703 (Session Law 2009-98) State Treasurer Investments
This law expands the set of assets in which the pension funds can invest.
  • Senate Bill 658 (Session Law 2009-378) Modifies the membership of the Supplemental Retirement Board by requiring that one of the Governor’s appointments be a state or local government retiree.  The law also covers retirement provisions for furloughed local governmental employees.
 
Retire/Rehire  (Return to Work)
  • The General Assembly did not extend the Return to Work provision for teachers, thus the current law allowing reemployed retirees to work exempt from the earnings cap in the NC Public Schools or ‘double-dipping’ will no longer be allowed, starting October 1, 2009.   For more information visit:  www.ncae.org
  • House Bill 94 (Session Law 2009-11) changes the definition of retirement to clarify that unpaid volunteer service (answering phones, monitoring halls and cafeteria, etc.) in a local school administrative unit is allowable during the six months after retirement.
  • Senate Bill 204 (Session Law 2009-137) allows retirees in the Teachers’ and State Employees’ Retirement System to return to full time employment as Nursing Instructors with a State-supported community college or a State-supported university and continue to receive their pension, for a maximum of three years.  The law requires these retirees to have a six month break in service before being rehired. Additionally, the employing entity must certify that it has a shortage of qualified nursing instructors and has made a good faith effort to fill positions with qualified instructors who are not retirees. The law expires June 30, 2013.
 
(Prepared by NC Retired School Personnel—August 11, 2009)

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NCRSP Legislative Goals 2009-2010

 

NCRSP LEGISLATIVE GOALS

 2009-2010

The following legislative goals have been adopted as essential to the improvement of the welfare & security of retired school personnel:

·        Full funding for the State Health Plan, with no decrease in benefits.

·        An increase in the State contribution rate to the Teachers’ & State Employees’ Retirement System (TSERS) to at least 4.8%, the rate for the Local Governmental Employees’ Retirement System.  (6% is needed to keep system actuarially sound in the long term). 

·        A Cost of Living Adjustment (COLA) at least equal to the average salary increase granted to active employees, but no lower than the rate of inflation.

·        A multi-year increase in the accrual formula from 1.82% to 1.85%, to achieve parity with local government retirees.

·        Support continuation of defined benefit pension programs for school personnel and state employees, and oppose any trend toward defined contribution programs.

·        Support raising teachers’ salaries beyond the national average. 

Note:  Earnings (gains) in the Retirement Trust Fund for Teachers and State Employees are sufficient to pay a COLA of only 1.25% in 2008.  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

The PPO is the health plan available for state employees and retirees.

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

·        The rate increase for the 2008/2009 benefit year is in line with national trends. The premiums that members pay for their dependent coverage will increase by 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 rates and benefits, 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.

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.

Legislative Committee

 

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

 

 

 

 

 

 

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Legislative Brochure for 2009-2010

For a copy of the Legislative Brochure, please click on both pages to see the complete document.     

 

Legislative Brochure for 2009-2010 (Outside)

Legislative Brochure for 2009-2010 (Inside)

 

 You may print each side making two pages, then when printing for distribution, make a front and back copy.
 

Re-Employment of Retired Teachers

Printable PDF documents regarding the most recent legislation on Retiree Re-employment for 2009

NCAE Summary of Retire-Re-Employment Expires

State DPI Review of Retire-Re-employment rules begining October 1, 2009

Summary Chart of Retire-Re-hire qualifications for 2009

Volunteering Clarified by HB 94, Session Law 2009-11

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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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