May 2016 • Vol. 34, Issue 4
THE
REPORTER
State Employees Association of North Carolina
The state must give raises and COLAs this year Did you know your pay was cut last year?
It may not be evident in the paycheck you take home each month. But it’s there, every time you pay your rent or for medicine or groceries. Each year that state employees and retirees do not receive a significant raise, they fall further and further behind. The annual Consumer Price Index shows that the cost of goods and services rose by 2.1 percent last year, and since state employees got a one-time bonus of $750 rather than a raise, while retirees didn’t get anything, both groups’ salaries bought 2.1 percent less than they did a year earlier — an effective pay decrease. The “Carolina Comeback” Gov. Pat McCrory loves to talk about does not pertain to state employees and retirees. Since 2010, state employees have seen an effective pay decrease of 8.96 percent. Even worse, retirees’ pension checks now buy a whopping 10.5 percent less than they did in 2010. This has to change. State employees and retirees deserve more respect than this. The state needs to raise pay
In This Issue 2 3 4-5 7 8
Public Policy Members in Action Annual Meetings Scholarship Bowl-a-Thon State Health Plan
SEANC SALARY RETIREMENT SYSTEM INCREASE Salary AND and Retirement System Increase History HISTORY Total Net Pay Loss
Total Net CL Loss
Year
ce Salary Increase
2015
$750 1-Time Bonus
2.1%
-2.1%
0
-2.1%
2014
$1,000 + 40 hours
1.6%
.74%
1.0%
-.6%
2013
40 hours
1.9%
-1.9%
0
-1.9%
2012
1.2%
2.1%
-0.9%
1.0%
-1.1%
2011
0
3.2%
-3.2%
0
-3.2%
2010
0
-1.6%
0
-1.6%
-8.96%
2.0%
-10.5%
Total
3.5%*
CPIŦ Yearly erage
1.6% 12.5%
Reree CL
*Based on erage salary of $42,700 ŦCosts of Goods and Serices
enough to meet the rising cost of goods and services this year. SEANC is advocating for a 5-percent pay increase for active employees in the General Assembly’s short session, which is already under way. SEANC will also call on legislators to respect retirees with a 2-percent cost-of-living adjustment and a change to the retirement formula of 0.02 to 1.84. This would give retirees a comparable increase to active employees. Projections show a large surplus of state revenue this year once again. The money is there. These increases are but a drop in the bucket to the effective pay cuts of the last decade. It is literally the least the legislature can do. Gov. McCrory has already announced that he would seek a 5-percent raise and other bonuses
for teachers, but made no mention of raises for other state employees or retirees. He needs to understand that while teachers do need raises, all state employees and retirees are in desperate need of a meaningful increase. Please contact your legislators today and tell them you can’t take another pay cut.
Lobby legislators for your raises Find out more about why you should join us at the legislature this short session in Statewide EMPAC Chairman Tony Smith's column on Page 2. Visit seanc.org/legislators to find your legislators' contact information.