LEGISLATIVE UPDATES
Legislative Summary for 2011
Click here to read a short summary of legislation for your information. Please note that the last item on the summary is SB 727—No Dues Check-Off for School Employees and Retirees.
NCRSP Opposes Health Care Premium
2010-2011
LEGISLATIVE
PROGRAM
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 6.7% or the Annual Required Contribution Rate. (ARC)
- 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.
- Support continuation of defined benefit pension programs for school personnel and state employees, and oppose any trend toward defined contribution programs.
- Support funding existing educator positions and programs in our public schools.
Summary of Legislative Changes Affecting Retired School Personnel
The “short session” of the General Assembly convened May 12, 2010 and adjourned July 10. 2010. The Assembly will reconvene for the “long session”
on January 26, 2011
Appropriations (Budget):
•
A provision in the budget bill specifies that if Federal Medical Assistance Program (FMAP) funds are appropriated by Congress by January 2011, up to $139 million will be sent to the Teachers and State Employees Retirement Fund.
A provision in the budget bill specifies that if Federal Medical Assistance Program (FMAP) funds are appropriated by Congress by January 2011, up to $139 million will be sent to the Teachers and State Employees Retirement Fund. (NOTE: Federal legislation passed August 10, 2010)
•Contribution rate stays at 3.57%. Will go as high as 4.93% if $139 million in FMAP money is directed to TSERS.
Contribution rate stays at 3.57%. Will go as high as 4.93% if $139 million in FMAP money is directed to TSERS.•No Cost of Living Adjustment (COLA) for retirees or state employees.
No Cost of Living Adjustment (COLA) for retirees or state employees.•General Assembly did not provide Annual Required Contribution (ARC) to TSERS as recommended by the State Treasurer’s actuary. ($181 million additional funds needed to meet ARC.)
General Assembly did not provide Annual Required Contribution (ARC) to TSERS as recommended by the State Treasurer’s actuary. ($181 million additional funds needed to meet ARC.)Senate Bill 1450: (Garrou): Did not pass but would cause significant changes in retirement and health care. Watch for this next year. Would change retirement age to 60 years (without penalty) and require future employees to pay a portion of their health plan premium.
State Health Plan:
•House Bill 1707: Allows already enrolled dependent children under age 26 to remain on the State Health Plan, regardless of the child’s status as a full-time student.
House Bill 1707: Allows already enrolled dependent children under age 26 to remain on the State Health Plan, regardless of the child’s status as a full-time student.•Senate Bill 1392: Court-appointed guardians may insure dependents in the State Health Plan.
Senate Bill 1392: Court-appointed guardians may insure dependents in the State Health Plan.•Rate paid by the state (for Medicare Eligible individuals) increased from $287.20/month to $312.76/month. For non-Medicare individuals, the monthly rate increased from $377.22 to $410.80 or $4929.60 a year.
Rate paid by the state (for Medicare Eligible individuals) increased from $287.20/month to $312.76/month. For non-Medicare individuals, the monthly rate increased from $377.22 to $410.80 or $4929.60 a year.•State Health Plan will cover hearing aids (up to $2500) for children up to age 22.
State Health Plan will cover hearing aids (up to $2500) for children up to age 22.Special Retirement Allowance: Allows employees, at the time of retirement or anytime thereafter, to make a one-time election to transfer any portion of their 401(k) Supplemental Retirement Income Plan or their Deferred Compensation Plan to the Retirement System. Upon doing so the retiree will then receive a special retirement allowance which will be based on the amount of the transferred balance, in addition to their regular monthly retirement benefit from the Retirement System. Any beneficiary who retired prior to January 1, 2011 will not be allowed to make the one-time election until July 1, 2011. The Retirement Board of Trustees will develop guidelines for the Special Retirement Allowance over the next few months.
August 6, 2010
Dear Representative:
We urgently need your help to approve the extension of FMAP funding to the states (HR 1586). Approval of the Senate amendment to this bill will save public school teaching jobs, help avoid layoffs, shore up the Teachers’ and State Employees’ Retirement System in North Carolina, and possibly hold off reductions in Medicaid provider reimbursement rates.
The state budget passed by the North Carolina General Assembly this year included a provision that would result in the withholding of appropriations from the retirement system, an additional 1% reduction in state agency budgets, and the reduction of Medicaid provider rate, among other things, if the additional FMAP assistance is not approved by Congress. These reductions would be devastating.
The undersigned organizations represent more than one million North Carolinians who support the extension of FMAP. We ask that you do two things: 1. Support the call by Speaker Pelosi to reconvene the House so that HR 1586 can be considered immediately and; 2. Vote for the bill approved by the Senate.
The citizens of North Carolina are counting on your help. Thank you for your attention to this request.
Bob Jackson, Executive Director
AARP North Carolina - 1.1 million members
Sheri Strickland, President
N.C. Association of Educators – 54,000 members
Frances Cummings, President
N.C. Retired School Personnel – 12,000 members
Ed Regan, Executive Director
N.C. Retired Governmental Employees’ Association – 54,000 members
Dana Cope, Executive Director
State Employees’ Association of North Carolina - 56,000 members
July 26, 2010
The General Assembly has adjourned!
In the wee hours of Saturday, July 10th, the legislature adjourned after two full months of deliberations.
They finally agreed on a revised budget for the state, to the tune of $18.9 billion.
We may all learn the rest of the story in January, when more cuts may come if Congress doesn’t send the state roughly $500 million in Medicaid money.
In a surprise move, the General Assembly voted on a budget bill that will not add any additional money to the NC Teachers and State Employees Retirement Fund (TSERS) and could potentially cause a loss of $139 million for the coming year------if the Federal Medical Assistance Percentage (FMAP) funding isn’t authorized by Congress prior to January 1, 2011.
Reminder: Legislators had agreed last year to appropriate $160 million to TSERS. The State Treasurer’s office reminded them that an additional $181 million was actually needed for this fiscal year to stay on track. The recent Senate budget proposal recommended an additional $20 million for TSERS and the House recommended an additional $40 million, with a provision that would have potentially provided up to an additional $139 million in collected corporate taxes.
Budget Conferees selected neither of these options and instead chose not to contribute any additional money to the Fund. Furthermore, if the federal money doesn’t come to NC, the legislature has agreed to take back $139 million that was previously set aside for the Fund to help cover the loss of Federal Funds. The budget bill cites eight “Extraordinary Measures to Address the Potential Loss of Federal Funds”, and ‘Reduction in Retirement System Contributions” is number seven on the list of priority reductions.
In the meantime, NC retirees need to stand ready to contact Congressional leaders regarding the need for FMAP funding!
June 18, 2010
NOW IS THE TIME TO CONTACT THE BUDGET CONFEREES!
NCRSP is in support of the General Assembly funding the Annual Required Contribution (ARC) of $181 million for the Teachers and State Employees Retirement System. The Senate has recommended only $20 million be appropriated. The House of Representatives has recommended $40 million, with a provision that could potentially add up to $135 million more from delinquent business taxes collected during the year.
A Conference Committee has been appointed to sort out the differences in the two budgets. Now is the time to contact your Senators and Representatives and ask them to support the House version of the budget regarding funding of the Retirement System. All of them need to hear from their constituents but particularly those members on the Conference Committee.
Find out if your legislative representatives are on the Conference Committee by visiting the General Assembly website: www.ncleg.net
OR
Click here to view the list of 2009-2010 Appointed Bill Conferees: http://www.ncleg.net/gascripts/confcomm/confcommittee.pl?BillChamber=S&BillID=897&session=2009
Please share this information with your members locally. Act on this right away, as the members of the Conference Committee are trying to finish their work in the next two weeks in order for the final budget to be voted on by the end of June. Thank you for your attention to this important matter!!!!
