Spring 2022 • Volume 40, Issue 3
REPORTER
THE
TH
State Employees Association of North Carolina
SEANC presses retirement board for COLA from gains SEANC was the only group present at the Retirement Systems Board of Trustees meeting on April 29 advocating for a much-needed Cost-of-Living Adjustment for state retirees this year. Retirees have not had a true COLA since 2016. The system has made significant gains over the last few years with a booming economy and sound management. It’s time for the board to support a true, recurring increase for retirees. Government Relations Director Suzanne Beasley told the board, “Retirees have suffered long enough waiting out previous administrations’ investment decisions that did not have their best interests in mind. It is imperative that they receive a recurring COLA this year. We have one of the healthiest systems in the country and that needs
to be reflected in members’ benefits and you will not be able to sell it to them that a COLA is not possible because it is.” Beasley’s sentiments were echoed by Retirement Systems Trustee and SEANC District 38 Chairwoman Margaret Reader as well as State Human Resources Director Barbara Gibson. Reader, a retiree herself, said the board should reconsider its stance on the issue. “I encourage (the board) to think about all the years that retirees have done without a COLA,” Reader said. “It is within our authority that we can make it happen.” Gibson, a member of the board as well, said state government is seeing huge turnover right now. A COLA would be another way to make state
SEANC Government Relations Director Suzanne Beasley, District 38 Chairwoman Margaret Reader, and State Human Resources Director Barbara Gibson spoke at the Retirement Systems Board of Trustees meeting.
employment more desirable for current and future employees. “We should do anything we can possibly do to press for a COLA for retirees,” she said. “When the budget is bad people understand that that’s the way it is. But when things have been so good, people really don’t understand.”
Governor releases budget with additional raises, bonuses Gov. Roy Cooper released his budget proposal May 11 that includes another round of raises and bonuses for state employees. The details for state employees and retirees include:
• 2.5% recurring raise to be added to the 2.5%
scheduled to take place July 1 for a total of 5% this year for active state employees and non-certified school employees.
• 2% of payroll to state agencies in a special fund to recruit/retain difficult positions.
• Bonuses (given out in two installments) » $1,500 bonus to employees earning more than $75,000 » $2,000 bonus to employees earning less than $75,000 » $3,000 bonus to teachers. • In addition to the 3% one-time bonus already budgeted for retirees this year, the Governor proposes: » 1% recurring COLA » An additional 1% bonus.
“We are thankful to the Governor and his staff for prioritizing state employees and acknowledging retirees, but this proposal doesn’t go far enough. State government has prob-
lems that can’t be solved without a significant investment in its workers,” said Ardis Watkins, SEANC Executive Director. State government must recruit and retain employees to provide vital public services for taxpayers. This requires competitive salaries and incentives. There is currently a 20% vacancy rate across all state government. We have prisons with vacancy rates of 50% or more. This is a tremendous public safety risk. Retirees are also hurting. Inflation hits their pocketbook just like everyone else. In a year when the retirement system has produced gains, it is imperative that they receive a true, recurring cost-of-living adjustment. It’s important to remember that this is the first step in the budget process. The Governor’s proposal is just one of three expected proposals. The House and Senate will likely propose their own plans; then, a compromise plan will be created and sent to the governor for approval or veto. The whole process is expected to move quickly this year after the start of the Short Session later this month. We look forward to working with the General Assembly to increase these amounts and protect public services.