RGEA expresses deep concern that the Governor’s recently released budget does not protect the pension’s long-term stability or provide true inflation relief to government retirees who have struggled for years without cost-of-living adjustments.
Specifically, the Governor’s Budget does not meet the threshold of the actuarially determined employer rate as required by law in G.S. 135-8(d)(3a) and would underfund the pension by $206M over the next two years. Since the pension’s inception, this has only happened under one other North Carolina Governor, and it took several years for the pension and considerably more money to recover from this action.
Additionally, the 2% one-time supplement in the Governor’s Budget is far from addressing the 20% inflation our retired public servants have faced in just the past five years. It is well past time for a true cost-of-living adjustment, not a one-time pension supplement.
The foundation and strength of our public service workforce and the North Carolina Retirement Systems has been from our elected officials’ discipline in fully funding the pension and ensuring government retirees could live with dignity in their retirement years. We ask the legislature to rectify these omissions to ensure that the pension for public service retirees remains strong well into the future.
In addition, as you read this, the Senate budget is being negotiated and drafted. Last year, the Senate included no cost-of-living adjustments for government retirees. This must change in 2025, and we need your voice. Please take a moment to complete this call to action, as the Senate needs to know that government retirees need relief from inflation to meet their daily expenses and maintain their quality of life.