News from Jones Street

November 6, 2026

The Election That Reshaped Jones Street

The November 3 election did more than change the balance of power in North Carolina. It changed some of the people who will be sitting at the tables where state budgets are written, legislation is negotiated, and decisions affecting retirees are made. For those of us who spend time at the Legislative Building, this is the most significant part of the story.

Unofficial returns show Democrats poised to win control of the 120-member House for the first time since 2010. They held 47 seats going into Election Day and now lead in 71 districts. Republicans appear poised to retain the Senate by a narrow 26–24 margin, although one close race could still produce a 25–25 tie. House Democratic Leader Robert Reives is expected to become the next Speaker when members organize in January. While results remain subject to canvassing and possible recounts, the size of the shift in the House is unmistakable. After 16 years, the Speaker’s gavel is set to change hands.

The changes go well beyond the Speaker’s chair. Representatives Donny Lambeth and Erin Paré, both important voices in House budget negotiations, lost reelection bids. Rep. Tricia Cotham, whose 2023 party switch helped Republicans secure a veto-proof House majority, was also defeated. In the Senate, Michael Lee, a leading contender for the chamber’s next leadership role, lost his seat, as did veteran senators Buck Newton and Lisa Barnes. Phil Berger’s defeat in the March primary had already guaranteed a change in Senate leadership. Experienced lawmakers and familiar negotiating partners will be replaced by new faces.

The real test of this new arrangement may come with the 2027 state budget. North Carolina operates on a two-year budget cycle, and the incoming legislature must work through a spending plan covering the next biennium. If current results hold, a Democratic House and Republican Senate will have to agree on the same legislation, with Democratic Governor Josh Stein also part of the process. The result could be more negotiation over spending priorities, taxes, employee compensation, retirement benefits, and the State Health Plan. Disagreement could also slow the budget process. Neither chamber will be able to set the agenda entirely on its own.

For retired state and local government employees, this creates a significant new opportunity to make our case, but a new House majority does not automatically mean a cost-of-living adjustment. The financial hurdle remains substantial, with the estimated long-term cost of providing just a 1% permanent COLA to state retirees now exceeding $600 million. Even if the House supports such an increase, it would still have to pass through the Senate, where Republicans currently hold a narrow lead. How receptive the Senate will be to a COLA may depend heavily on who succeeds Phil Berger as President Pro Tempore and the priorities that new leadership brings to the budget negotiations.

RGEA’s approach will not change with the election results. We will work with returning legislators, incoming members, and leaders in both parties to advocate for North Carolina’s retirees. In a divided legislature, those relationships and a clear understanding of retirement issues will be essential.

What’s next? County election boards will canvass results November 13, followed by the state canvass November 24. Then attention will turn to leadership elections, committee assignments, and the opening of the 2027 long session. The political landscape has changed, but the work on behalf of retirees continues.

October 30, 2026

Good News for Atrium Patients, but Questions Remain About State Health Plan Finances

This week brought two significant developments involving the North Carolina State Health Plan. One offered welcome relief for members concerned about access to their healthcare providers, while the other raised serious questions about the Plan’s finances and the protection of funds dedicated to retiree healthcare.

On Tuesday, State Treasurer Brad Briner announced that the State Health Plan and Atrium Health had reached an agreement bringing all Atrium’s hospitals and physicians back into the Plan’s network for 2027. Under the agreement, Atrium will participate in the Access tier of the new provider network, resolving a dispute that had created considerable uncertainty for thousands of members.

Importantly, the new tiered provider system applies to active state employees and retirees who are not enrolled in Medicare. Retirees enrolled in the State Health Plan’s Medicare Advantage coverage were not affected by the Atrium dispute or the new provider tiers.

While the Atrium announcement brought good news, Tuesday’s State Health Plan Board of Trustees meeting also highlighted significant financial challenges. Rising healthcare expenses have caused the Plan’s cash reserves to decline from $493 million midway through 2026 to $298 million at the end of September. Without intervention, projections showed the Plan potentially running out of available cash by late December or early 2027. The Plan has a cyclical annual cash flow and the final quarter of the year has historically been the low point in this cycle.

To address this shortfall, the Board unanimously approved temporarily increasing contributions from the Retiree Health Benefit Fund from $300 to $600 per retiree per month for July through December 2026. This adjustment is expected to provide approximately $415 million in additional funding.

This decision will not directly increase premiums or out-of-pocket costs for retired State Health Plan members.

During the meeting, the Board added a requirement that the additional funds be repaid with interest to the Retiree Health Benefit Fund. However, no specific repayment deadline has been established. The Plan will provide quarterly reports on repayment progress and develop a schedule for returning the funds. 

North Carolina General Statute (G.S. 135-7(f)) establishes the Retiree Health Benefit Fund as a trust and irrevocable source of funding for retiree health benefits and disabled employees.

This is not the first time retiree health reserves have been used to address financial challenges. In 2023, approximately $85 million was reportedly borrowed from the fund and subsequently repaid. During Tuesday’s meeting, a Board member also recalled an earlier withdrawal in 1990 during the Martin administration that was never returned.

These examples underscore the importance of clear repayment expectations and continued financial oversight.

RGEA recognizes the difficult financial circumstances facing Treasurer Briner and State Health Plan leadership, and we share their commitment to finding sustainable solutions to rising healthcare costs. However, borrowing funds dedicated to retiree healthcare to address immediate financial pressures will not eliminate those costs. It ultimately will shift the active plans financial obligations into the future.

Moving forward, RGEA will closely monitor the repayment arrangements, the Retirement Health Benefits Fund financial condition, and the  implementation of its new provider network as well as its impact on non-Medicare eligible retirees. Our priority remains ensuring that North Carolina’s retired public servants have access to affordable, dependable healthcare and that the funds established to support their benefits remain protected.

October 23, 2026

Staying in the COLA Game: How an LGERS’ New Funding Policy Will Help Retirees

From RGEA Executive Director Tim O’Connell

As baseball fans settle in for the World Series, there is a lesson from the diamond that also applies to retirement security: championship teams don’t win by swinging for the fences every inning. They win by playing fundamentally sound baseball consistently over the long season. The same idea is behind the new Employer Contribution Rate Stabilization Policy (ECRSP) adopted by the LGERS Board this past year that will go into effect in July of 2027.

While the policy may sound technical, its goal is simple: keep the retirement system financially strong and give retirees a better chance of seeing future Cost-of-Living Adjustments (COLAs).

What Is ECRSP?

Think of the Local Government Employees’ Retirement System (LGERS) as a baseball team playing a 162-game season.

Each year, local governments make employer contributions to the pension system. Those contributions are like the team’s regular practice, conditioning, and player development. Most of these areas are not the lead story on a team, but they’re essential for building a team’s long-term success.

The ECRSP is designed to keep those contributions steady and predictable rather than allowing them to rise and fall dramatically from year to year.

Instead of trying to win every game with a home run, the policy focuses on hitting singles, moving runners, and avoiding costly errors. The “fundamentals” in baseball-speak.

How Does This Help Employers?

Local governments are funded by taxpayer dollars. When pension contribution rates jump unexpectedly, it can create budget challenges for counties, cities, and other participating employers.

The new policy helps by:

• Making pension costs more predictable
• Reducing sudden contribution swings
• Improving long-term budget planning
• Limiting the risk of larger funding problems down the road

In baseball terms, the policy helps employers avoid wild pitches and costly errors that can turn a close game into a loss.

Why Should Retirees Care?

Because a stronger pension system creates a better opportunity for future COLAs.

Under North Carolina law, LGERS can only grant a COLA when sufficient actuarial gains exist to support it. Those gains are much easier to achieve when the retirement system is consistently funded and financially healthy.

Think of COLAs as runs on the scoreboard.

Before you can score runs, you have to get players on base.

Consistent employer contributions help put LGERS “on base” by strengthening funding, reducing volatility, and preserving gains that may eventually support benefit increases.

The new policy doesn’t guarantee a COLA, but it improves the conditions needed to make one possible.

A Win for Taxpayers, Too

The policy also benefits taxpayers.

LGERS is a defined benefit pension plan, which studies have repeatedly shown can deliver retirement benefits more efficiently than typical 401(k)-style plans. Professional investment management, pooled assets, and long-term investing help provide lifetime benefits at a lower overall cost.

The ECRSP helps preserve that advantage by promoting disciplined funding today and reducing the likelihood of larger costs tomorrow.

In baseball terms, it is better to maintain a winning roster than it is to rebuild after years of poor decisions.

The new ECRSP isn’t a home run that immediately produces a COLA. Instead, it’s something just as important: a smart game plan.

By keeping employer contributions steady, strengthening LGERS’ financial position, and protecting the gains needed for future COLAs, the policy helps put retirees, employers, and taxpayers on the same team.

And just like in baseball, consistently doing the fundamentals right is what creates the best chance to win.

Next week we will share information on the November 5^th Trustee Meeting. With both LGERS and TSERS investment returns having been on a “winning streak” the past few years, we look forward to seeing and sharing the information with you, our members.

October 16, 2026

From One Day to Seventeen: North Carolina’s Early Voting Story

For much of American history, Election Day was exactly what its name suggested: one day to cast a ballot. If work, illness, travel, or family obligations got in the way, voting could be difficult. Over time, states began finding ways to give eligible voters more flexibility.

The roots of voting before Election Day stretch back to the Civil War, when absentee voting helped soldiers serving away from home participate in elections. In the decades that followed, absentee voting expanded to other groups, often requiring voters to explain why they could not appear at the polls.

North Carolina’s version of early voting has its own interesting history. In 1977, the General Assembly authorized what became known as “one-stop” absentee voting. Eligible absentee voters could visit their county board of elections, request a ballot, and vote in a single trip. At the time, however, the option was limited to those who qualified for absentee voting.

A major change came in 1999, when lawmakers approved “no-excuse” absentee voting for even-year general elections. For the first time, eligible voters could vote early without having to provide a special reason. The legislature also allowed counties to open voting locations beyond the elections office. In 2001, lawmakers extended no-excuse voting to all elections and expanded the schedule. By 2007, eligible North Carolinians could register and vote during the early voting period in one visit.

The rules have not remained unchanged. Legislation in 2013 shortened the early voting period and attempted to eliminate same-day registration; a federal appeals court blocked those provisions in 2016. Subsequent legislation made additional changes to voting schedules and locations. Through those debates, early voting became a regular part of elections in our state.

Just how popular? According to the State Board of Elections, 74 percent of North Carolinians who voted in the 2024 general election did so at early voting sites.

For the November 3, 2026, election, in-person early voting begins Thursday, October 15, and ends Saturday, October 31, at 3 p.m. Registered voters may use any early voting site in their county rather than only their assigned Election Day precinct. Eligible residents who missed the regular registration deadline may also register and vote during early voting, subject to identification and residency requirements. Locations and hours are available at www.ncsbe.gov.

Open Enrollment Information

It is important to note that Medicare‑primary retirees under the State Health Plan who are currently enrolled in the 70/30 Plan will be automatically moved to the Humana Medicare Advantage Base PPO Plan for 2027 unless they take action during Open Enrollment to select a different option. For more information on all aspects of open enrollment be sure to go to 2026 Retiree Benefits | NC State Health Plan

State Health Plan and Atrium Dispute

The State Treasurer’s Office and Atrium remain in a contract dispute. Unless the two parties reach a new agreement, most Atrium-operated healthcare facilities and services will be considered out of network beginning January 1, 2027.  Retirees who are Medicare-eligible will not be impacted but those who have yet to qualify for Medicare may be impacted.

Why They Disagree

• The State Health Plan established new pricing standards to control rising costs with providers.
• UNC Health, Novant Health, and Duke Health agreed to these terms and are considered Preferred providers.
• Atrium Health forego participating in the original process and is seeking higher reimbursement rates for comparable services, which would increase costs to the State Health Plan. Covering Atrium’s additional charges could raise costs across the plan and lead to higher premiums.

RGEA will continue to stay in communication with State Treasurer’s Office and the State Health Plan on this issue. For a fuller understanding of the issue, NC Health News provides the underpinnings of this dispute in a balanced manner.

 NC treasurer: Atrium affordability program could bankrupt state employees’ health plan | NC Health News

October 9, 2026

What Happens After You Vote?

Most of us know what happens before Election Day. We register, study the candidates, find our polling place, and eventually fill out a ballot. But what happens after that ballot leaves our hands? With North Carolina’s November 3 general election approaching, it is worth taking a quick look behind the curtain.

For many voters, election night feels like the finish line. Results begin appearing after the polls close, television networks start filling in maps, and everyone watches the numbers move. But the results reported that night are unofficial. North Carolina’s election process continues well after the last voter leaves the polls.

During the days that follow, county election officials continue reviewing eligible absentee ballots and determining whether provisional ballots should be counted. Counties also conduct required audits designed to verify that ballots were tabulated correctly. Ten days after Election Day, each county board of elections holds its canvass, the formal process used to authenticate the official results. Those canvass meetings are open to the public.

Before any of that happens, however, voters still have several important dates ahead. The regular voter registration deadline is October 9. Those who miss that deadline can still register and vote at any early voting location in their county during the early voting period. This process, known as same-day registration, requires proof of residence and an acceptable form of photo identification. Early voting begins October 15 and runs through 3 p.m. October 31. The deadline to request an absentee ballot is October 20. Election Day is November 3.

Elections are often discussed in terms of campaigns and candidates. But behind every election is a process involving thousands of poll workers, county officials, volunteers, and voters themselves.

Elections are one of those rare moments when millions of individual decisions become something larger than any one person. Across North Carolina, people from every community, background, and point of view will walk into polling places or return absentee ballots and take part in the same process. We may disagree about candidates, policies, and the direction our state should take, but the opportunity to participate belongs to all of us.

In a few short weeks, campaign signs will come down, television commercials will disappear, and another election will become part of North Carolina’s history. Before that happens, each of us has the opportunity to play our small part in writing what comes next.

Casting the ballot is our part of the process. Making sure every eligible ballot is counted accurately is what comes next. And together, those two things are what turn an election from a campaign into democracy in action.

October 2, 2026

Why 2027 Is Already on Our Radar.

It may only be October, but around RGEA, we are already looking toward 2027 with more optimism than we have had in quite some time. The reason is simple: North Carolina’s retirement systems have now had two strong years of investment performance, with a 13 percent return in 2025 followed by a 12.41 percent return for the year ending June 30, 2026, after fees and expenses. Those numbers matter because strong investment performance is one of the biggest factors in determining whether a true cost-of-living adjustment can become possible for both TSERS and LGERS retirees.

For years, North Carolina’s pension investments ranked near the bottom nationally. State Treasurer Brad Briner has described North Carolina as ranking either 49th or 50th in the country in investment performance over various time periods. That long-term underperformance has had real consequences for retirees. It has been particularly important for LGERS, where the Board of Trustees’ ability to approve a COLA without requiring additional employer contributions depends on having sufficient investment gains available to pay for it.

That history is also why RGEA believed changing the way North Carolina manages pension investments was so important. RGEA worked alongside the Treasurer’s Department in support of House Bill 506, the State Investment Modernization Act, which replaced North Carolina’s longstanding sole fiduciary investment model with a new North Carolina Investment Authority governed by an appointed Board of Directors. Instead of responsibility for investment decisions resting with one elected official, the new structure brings additional investment expertise and shared oversight to the management of the State’s pension assets.

The early results are encouraging. North Carolina’s pension fund earned 13 percent in calendar year 2025 and 12.41 percent for the year ending June 30, 2026. We are still early in this transition, but after years of lagging investment performance, the direction has changed significantly.

That is why the conversation feels different today than it did just a few years ago. When investment returns are weak, the discussion quickly becomes about what cannot be done. When returns are strong and the systems are in a better financial position, the conversation can begin to shift toward what may be possible.

We have already seen what consistent advocacy can accomplish. This year, state retirees are receiving a 2.5 percent one-time supplement on October 23rd, representing roughly $149 million in additional retirement payments. That is real money going back to retirees, and RGEA is proud of the years of work that helped keep retiree needs in front of lawmakers and at the center of the budget conversation. But we also know exactly what a one-time supplement is: one time. It provides meaningful relief today, but it does not permanently increase a retiree’s monthly benefit.

A true recurring COLA remains the goal.

That is what makes the outlook for 2027 so encouraging. At RGEA’s Fall Conference last week, State Treasurer Brad Briner told attendees that if investment returns remain steady through the remainder of 2026, he expects to recommend a COLA for both TSERS and LGERS retirees. That is not a guarantee, and there are still important steps ahead, but it is a significant development and a sign of how much the financial picture has improved.

RGEA has spent years making the case that stronger investment performance must be part of the long-term solution for retirees. We supported reforms designed to improve the way pension assets are managed, we have stayed engaged with retirement system leadership, and we continue to make sure retirees have a voice whenever decisions are being made about the future of these systems.

There is still work to do, and nothing about 2027 is guaranteed, but the most important step has been accomplished and for the first time in a long time, the conversation is increasingly about opportunity rather than limitation.

That is why 2027 is already on our radar.

September 25, 2026

A Great Day to Be a RGEA Member: A Celebration of Service in New Bern

A News from Jones Street Special:  By Jackson Cozort

Sometimes the best news from Jones Street does not come from Jones Street at all.

Earlier this week, hundreds of retired state and local government employees gathered in New Bern for RGEA’s Fall Conference, celebrating careers spent serving communities across North Carolina. On a beautiful September day, members had the opportunity to reconnect with old friends, visit with organizations ranging from SECU and Civic to the North Carolina Symphony, and hear from an outstanding group of speakers. Our keynote speaker, North Carolina Poet Laureate Jaki Shelton Green, delivered an inspiring message centered on “Powering Your Story,” reminding everyone in the room that the experiences of public service matter and deserve to be told.

But for retired government employees, perhaps the biggest news of the day came from State Treasurer Brad Briner.

Treasurer Briner spoke about the many responsibilities of the Department of State Treasurer and, importantly, about the partnership that has developed between his office and RGEA. That partnership played an important role in supporting House Bill 506, the State Investment Modernization Act, which replaced North Carolina’s sole fiduciary investment structure with the North Carolina Investment Authority and its governing board. The Authority officially assumed responsibility for managing state investments in January 2026.

That change came after years of concern about North Carolina’s investment performance. Recent results, however, have provided real reason for optimism. The Retirement Systems earned 13 percent during calendar year 2025, followed by a 12.41 percent return, net of fees and expenses, for the fiscal year ending June 30, 2026.

Then came the moment that got our attention.

Treasurer Briner told retirees that if investment performance remains strong through the remainder of 2026, he intends to recommend a cost-of-living adjustment in 2027 for both TSERS and LGERS retirees. For retirees who have waited years for meaningful inflation relief, hearing the State Treasurer publicly discuss recommending a true COLA for both retirement systems was a significant moment.

That does not mean a COLA is 100 percent guaranteed just yet. There are still financial, actuarial and legislative steps ahead. But after years of explaining why recurring COLAs have become so difficult to achieve, hearing North Carolina’s State Treasurer publicly discuss recommending one for both retirement systems is fantastic news.

For RGEA, it was an encouraging reminder of why we continue showing up, building relationships and pushing for better lives for our retirees. And for the hundreds of state and local retirees gathered in New Bern, it was some very welcome news indeed!

September 18, 2026
The People Who Built North Carolina.

A News From Jones Street Special: By Jackson Cozort

For the past year and a half, News from Jones Street has spent a lot of time inside the Legislative Building, attending Trustee meetings and following court cases, budgets, pensions, health care, elections, and the countless debates that shape public policy in North Carolina. Those decisions matter, and they matter deeply to retired public servants, but after all our advocacy on Jones Street and beyond, I keep coming back to one simple truth: North Carolina was not built in Raleigh alone. It was built by the people who got up every morning, went to work, and spent their careers serving the communities and causes around them.

It was built by teachers who opened classroom doors before the first bell rang, transportation workers who maintained the roads connecting our towns and cities, correctional officers who worked behind prison walls, university employees who helped educate generations of North Carolinians, and state and local employees who handled the countless responsibilities that most people rarely think about until they need them. It was built in schools, courthouses, county offices, town halls, parks, maintenance shops, laboratories, hospitals and thousands of workplaces spread across every corner of this state. Much of that work was quiet, often unnoticed and rarely celebrated, but over decades it became the foundation on which North Carolina stands today.

The promise made to these individuals did not end when they walked out of the workplace for the last time. They spent decades serving North Carolina with the expectation that the retirement security they worked for would still be there when their working years were over. In policy discussions, it can be easy for those promises to become little more than costs in a budget, but for retirees they are something much simpler and much more personal. They are the promises made in return for a lifetime of service.

Protecting that promise is why RGEA exists, and it is why our staff works wherever decisions affecting government retirees are being made, from the Legislative Building to Trustee meetings and the courts. We also work hard to keep you informed, because those decisions eventually travel far beyond Raleigh and land at kitchen tables across North Carolina. After writing about them for so long, I have come to believe that the most important part of the story was never really the people making the decisions. It was always the people affected by them.

It was the retired teacher, the highway worker, the administrative assistant, the correctional officer, the university employee, the county employee and the thousands upon thousands of public service retirees whose names may never appear in a newspaper or be spoken on the floor of the General Assembly, but whose work shaped the state we know today. Governors and legislators come and go, and political battles eventually give way to new ones, but the work done by generations of public servants remains woven into North Carolina itself.

In the end, a state is not built by the people who occupy its most powerful buildings. It is built by the people who serve it. And North Carolina was built by you. That is why all of us at RGEA will continue showing up for you, day after day, especially in the fight for the true cost of living adjustments our retirees so desperately need. We know that fight will continue to be difficult, both politically and financially, but we are up to the challenge, and we are in it for the long haul. Thank you for taking the time to read News from Jones Street, thank you for allowing us to tell your story, and most of all, thank you for your service to this great state.

September 4, 2026
More Strong Returns: And a Path for Local Retirees 

Sometimes the most important news for retirees is hidden in the numbers. In this issue of News from Jones Street, we take a closer look at recent investment results and what they may mean, especially for our Local Government members.

Strong Investment Performance

At last Friday’s meeting of the North Carolina Investment Authority Board, officials reported that the Retirement Systems earned a 12.41% return for the year ending June 30, 2026. This is nearly double the long‑term assumed rate of 6.5%, which is the benchmark used to measure the fund’s long‑term health. The Systems also passed $150 billion in assets, marking another milestone for one of the nation’s largest public pension funds. Even more encouraging, this is the third straight year that returns have exceeded the 6.5% benchmark.

For Local Government retirees, these results matter because investment gains help determine whether a cost‑of‑living adjustment (COLA) or bonus is allowed under state law. Strong returns do not guarantee an increase, but they are an essential part of the process.

How COLA Decisions Work

Local Government retirees often ask how Trustees decide whether a COLA is permitted. State law requires three conditions:

1. Inflation must be rising (the last year it did not was 2009).
2. Trustees must review investment performance over the past three years.
3. The pension fund must show enough investment gains over a “smoothing period” to support an increase.

North Carolina currently uses a five‑year smoothing period, adopted in 2020. The purpose of smoothing is to averages gains and losses over several years to reduce the impact of short‑term market swings.

Right now, the first two conditions are already met. Inflation is running at about 3.4%, which satisfies the requirement that the Consumer Price Index show an increase. The fund’s three‑year average return is 10.18%, well above the 6.5% target. These results show positive investment gains, which are an important part of the COLA formula.

The final step is the actuarial valuation, which applies the five‑year smoothing method. As it stands, the fund’s 1, 3, and 10‑year averages are above the required benchmark. So how can these all be above the threshold, yet the five‑year is not? Because the fund is still recovering from the difficult 2022 market year, when global bond losses affected pensions everywhere, few plans more than North Carolina’s.

It is important to note that the Trustees cannot act on any of the information shared in this article until the actuarial valuation is complete. A preliminary valuation report will be shared in October, and the final vote on any post‑retirement increase will be made at the January LGERS Board meeting.

What This Means for Local Government Retirees

The pension fund is having a strong multi‑year run, and the actuarial outlook is improving on a much quicker timeframe than projected. These are the conditions that produce a more optimistic outlook on post-retirement increases than we have seen in some time. It is especially important to note that the long‑term health of the system is secure, as the ten‑year return rate remains above the benchmark earnings level.

RGEA has worked closely with the Department of State Treasurer, policymakers, and other partners to support a clearer path toward future benefit increases for all retirees. Strong investment returns are a key part of that effort, and this year’s results are an encouraging in the near term and longer road ahead.

August 28, 2026
RGEA’s Work Doesn’t End When Legislators Leave Raleigh

Some weeks at the General Assembly feel like everything is happening at once. Bills are moving, committees are meeting, budgets are changing by the hour, and everyone is waiting to see what makes it across the finish line. Then there are weeks like this one. The budget has passed, lawmakers have largely gone home, and the next real budget cycle will not begin until January. Jones Street is quiet. For RGEA, however, quiet does not mean the work has stopped. In many ways, it simply means a different kind of work begins.

One of the biggest responsibilities right now is making sure RGEA members understand exactly what this year’s budget delivered and what it did not. State retirees will receive a 2.5 percent one-time bonus, and RGEA worked relentlessly to secure it. As North Carolina’s statutes do not mandate post-retirement supplements like COLAs and bonuses, it does provide the legislature with the power to award them for State employees, so this year’s outcome was never guaranteed, and there were points in the budget process when retirees could easily have been left with nothing.  We are glad RGEA’s efforts will ensure State retirees receive some additional benefit money in their September 25 distribution, but we are also clear-eyed about its limitations. Our members need more than occasional one-time payments. A true Cost of Living Adjustment remains our primary retirement benefit goal, and we will continue pressing for one because it is the only way to permanently protect the purchasing power of a retiree’s monthly benefit.

The obstacle is not a lack of advocacy, effort, or urgency. It is a combination of very real political and financial barriers. Some lawmakers in leadership still believe the State’s obligation ends with fully funding the pension system, and they remain resistant, if not completely opposed, to recurring COLA increases for retirees. At the same time, the cost of a true COLA has increased with an expanding retiree base. A 1% recurring COLA for State retirees now costs more than $600 million. This allocation would nearly rival the $700 million the 2026 budget dedicated to Hurricane Helene Recovery. That is why a one-time bonus and a true COLA are fundamentally different. A bonus offers temporary relief, but a COLA permanently increases a retiree’s monthly benefit and thus becomes part of the pension system’s ongoing obligation for defined fifteen-year period. That is a much harder fight, but it is still the fight we intend to keep having, though there is a clearer path…

In the U.S., majority of pensions meet their obligations and deliver COLAs more often than not. Over two-thirds of public pensions have automatic COLAs worked into their pension formulas and deliver COLAs.  That reality is why RGEA has spent so much time working on a better and more efficient possible path toward future COLAs: investment performance. We supported and helped secure passage of HB 506, the State Investment Modernization Act, which created the new Investment Authority Board. The goal is straightforward. North Carolina needs its pension assets working as effectively as possible for the people who earned those benefits. We have already seen encouraging signs, with the pension fund finishing calendar year 2025 with investment returns of more than 13 percent. Continued strong performance could create opportunities for future true COLAs for both State and Local retirees without relying entirely on the annual budget process.

That investment work is especially important for Local Government retirees, whose post-retirement benefit increases are not determined by the State legislature in the same way as TSERS benefits. For them, strong investment performance and sound pension policy remain paramount to the future value of their pensions. That is why our work doesn’t end when legislators leave Raleigh. The October and January Trustee meetings are the two most important meetings of the year for local government retirees, as this is when the Trustees receive the actuarial forecast and decide on any post-retirement increases. At this time, things look optimistic, with a string of double-digit returns vastly improving the pension position on its unfunded liability, as reported by the Department of the Treasurer.

 While the Legislative Building may be quieter right now, RGEA is not. We are answering member questions, meeting with policymakers, monitoring pension and health benefit issues, evaluating what worked this session, and preparing for the opportunities and challenges ahead in January. The votes may be over for now, but the work of protecting retirement security never really stops.

August 21, 2026
Quiet Does Not Mean Finished

For the last few weeks in what feels like a very long time, Jones Street is quiet.

After months of budget negotiations, committee meetings, late nights, and unexpected twists, lawmakers have left Raleigh and returned to their districts. Legislative leaders have indicated that they do not expect to take up substantive votes before the November election. But as we have learned throughout this session, quiet does not necessarily mean finished.

Governor Josh Stein recently vetoed two bills passed during the General Assembly’s final days in Raleigh: House Bill 958, Election Law Changes, and House Bill 377, 2026 Court Changes. Those vetoes now raise an obvious question. Will lawmakers wait until after the election to consider them, or will they return to Raleigh sooner? The answer is that they can.

When the General Assembly adjourned on August 6, lawmakers approved a schedule that allows both chambers to reconvene on August 31, September 28, and October 26, all before Election Day. During each of those sessions, the legislature is specifically permitted to consider overriding gubernatorial vetoes.

That does not mean an override vote will happen. Legislative leaders could decide to leave the vetoes alone until after the election. But the door is open, and that means RGEA will continue watching closely.

It is also worth remembering that the 2025 Regular Session is not technically over. Under the adjournment resolution, lawmakers have additional return dates after the election, and the session does not finally adjourn until December 18. In other words, there are still several opportunities for action before this unusually long legislative session is officially put to bed.

For retirees, the biggest legislative issue of the summer has already been resolved. After a long wait, lawmakers passed the state budget, which included a 2.5 percent one-time bonus for TSERS retirees. While RGEA will always continue advocating for a true recurring COLA, securing that bonus was an important victory for state government retirees and a reminder that persistent advocacy matters.

The quieter months ahead also give us an opportunity to shift some of our attention away from the Legislative Building and toward lawmakers in their home districts. Elections have a way of bringing legislators closer to the people they represent, and RGEA will continue using that opportunity to remind them that retiree issues do not disappear when the General Assembly is out of town.

There may not be much activity inside the chambers right now, but that does not mean our work stops. We will continue monitoring the vetoes, talking with legislators, preparing for the next session, and making sure North Carolina’s public retirees remain part of the conversation. For now, Jones Street is quiet. But quiet and finished are two very different things.

August 7, 2026
The Last Votes Before the Votes

For a legislature that has spent much of 2026 coming and going, this week may have marked the last time North Carolina House members pushed their voting buttons before voters push theirs in November.

The House returned to Raleigh this week for what is expected to be one of its final voting sessions before the election, and lawmakers managed to produce both action and inaction, each of which may prove politically significant.

First came House Bill 958, a wide-ranging elections bill that would shorten the early voting period from 17 days to 10 days for primaries, certain special elections, runoffs and municipal elections. Importantly, the change would not apply to the November general election. The bill also gives the State Auditor a new role in post-election reviews. Under the legislation, the Auditor would conduct audits of county election systems after elections are certified, with counties selected randomly and every county subject to review at least once every six years. Those audits could examine voting equipment, ballot records, voter rolls, absentee and provisional ballots, chain of custody procedures and other parts of election administration.

Supporters say the changes would strengthen election security and accountability. Opponents argue the bill would unnecessarily reduce voting access and place too much authority over election administration in the hands of the State Auditor. Governor Josh Stein has already indicated that he plans to veto the measure.

Then came the issue that produced the real fireworks.

House Bill 328 would dramatically restrict intoxicating hemp products currently sold across North Carolina. The proposal drew an unusual show of force from supporters, including Republican lawmakers, sheriffs, local law enforcement officials, prosecutors and the State Bureau of Investigation. They argued that the state’s current laws have failed to keep pace with increasingly potent products that are widely available and, in some cases, marketed in ways that appeal to children.

On the other side, hemp business owners, employees and customers packed the Legislative Building to warn that the proposal would wipe out much of a rapidly growing industry. Opponents said they support age restrictions, testing and regulation, but not what they view as an effective ban on almost all hemp products currently being sold.

And then, after all that buildup, the House did not take up the bill.

 July 31, 2026
July 30 LGERS/TSERS Trustees Meeting: Strong Earnings Report and Customer Service Improvements on the Way

The LGERS and TSERS Trustees met on July 30 sharing a number of updates relevant to local and state retirees. The headline from the meeting is that the pensions continue to perform well above the 6.5% target earnings, tracking towards another potential double-digit return year.

This is good news comes despite a number of ongoing economic concerns including the impact of military conflict in Iran, and U.S. inflation running above long-term averages for the year.  Operating above this 6.5% return target is important to both TSERS and LGERS, but especially LGERS as this is the only mechanism for delivering post-retirement benefit increases in terms of bonuses or COLAs.

During the meeting, the Chief Investment Officer of the North Carolina Investment Authority, Kevin SigRist, shared that the Investment Authority decided to reduce the allocation to public equities and shift additional funds to asset classes that typically improve earnings during inflationary periods and are more resilient to market downturns.

The second topic of interest is for those who have called the Retirement System Office and experienced a long wait time. The need for improvement has been studied, acknowledged, and is now being addressed. North Carolina’s Retirement System operates at exceptionally low administrative cost, spending just $33 per member annually, which is far, far below the $130 peer average. While this nominally protects pension resources, it has also historically limited its investments in staffing, technology, and support services that directly shape retiree experience. As a result, retirees may feel the strain in the form of long call‑center wait times, reduced 1‑on‑1 counseling, and slower survivor pension processing. The Trustees took two positive actions at the meeting, voting to approve additional member counselor headcount and later in the meeting participating in a presentation on the Trustees’ role in future technology implementation plans.

The Budget Is Done. The Session Is Not.

The state budget has been passed, Governor Josh Stein has signed it into law, and lawmakers spent most of July away from Raleigh. For a few weeks, Jones Street was unusually quiet.

But this quiet does not mean the session is officially over. The Senate returned this week to begin tying up some of the remaining odds and ends before lawmakers can finally bring this year’s session to a close. Among the items taken up were two related bills described as technical corrections to the recently enacted state budget.

A technical corrections bill is something that typically follows the passage of the state budget. In theory, its purpose is fairly straightforward. It allows lawmakers to correct drafting errors, fix incorrect references, clarify language, and address other relatively minor mistakes discovered after the budget or another piece of legislation has already passed. In other words, it is supposed to help make sure the legislation says and does what lawmakers originally intended.

This year, however, opponents argue that the technical corrections legislation goes well beyond simply correcting mistakes. They contend that several provisions make meaningful changes to state policy and spending that would ordinarily receive more extensive debate as stand-alone legislation.

You can read more about the specific provisions here.

Whether those provisions represent appropriate end-of-session cleanup or policy changes that should have been considered separately is now part of the broader debate surrounding the legislation.

The House is scheduled to return next week and is expected to consider an agenda similar to the one taken up by the Senate.

The major work of the session may be complete, but the General Assembly is not quite finished. As lawmakers work through these final bills, RGEA will continue watching closely for any provisions that could affect North Carolina’s public servants and retirees.

July 6, 2026
RGEA Addresses State Health Plan Trustees

North Carolina’s State Health Plan Trustees met on July 10th and approved a plan for overall costs.  The State Health Plan Staff stated their aims to make healthcare expenses more predictable and shift costs away from the point of care.

RGEA Director of Government Relations addressed the State Health Plan Trustees at  the meeting stating on behalf of state retirees.  “Whether an additional cost comes through a monthly premium or when they visit the doctor, it is still money coming out of the same monthly budget.” Cozort noted that retirees who retired from public service with full benefits remain eligible for premium‑free coverage, as a result of the Lake Case ruling,  yet many could face higher copays under the State Health Plan’s latest recommendation.

Health Plan officials stated they are confronting rising costs driven largely by hospital pricing and consolidation.  Cozort emphasized that retired teachers, nurses, troopers, correctional officers, and other public servants upheld their commitment to North Carolina and now worry about affording the healthcare they earned.

In other news, earlier this week, Governor Josh Stein signed the budget into law, bringing one of the longest legislative budget processes in recent state history to a close. While the Governor acknowledged that the legislation was far from perfect, he also recognized that it contained several important investments for North Carolina and chose to sign the bill rather than prolong the process any further.

In announcing his decision, Governor Stein said the budget includes “meaningful investments in our community colleges, the DMV, childcare, and summer food programs for our kids. These are real wins, worthy of celebration and worthy of my signature.” While he also expressed concerns about several provisions within the budget, he concluded that North Carolina had waited long enough and that state employees, state agencies, and state government retirees should not have to wait any longer for certainty.

For RGEA members, the Governor’s signature means something very important. The 2.5% one-time bonus for State Retirees is now officially law.

Throughout this 1000 day plus budget process, there were no guarantees that retirees would receive any additional benefit. As RGEA shared over the past several months, the Senate’s original budget proposal contained no bonus for state retirees. The House, however, stood firmly behind retired public servants throughout negotiations and successfully preserved the 2.5% bonus in the final conference budget.

These bonuses will be included in state retirees’ September 2026 benefits payments. As we have noted in past issues of News from Jones Street, our mission remains unchanged in advocacy for retirees and RGEA will continue pursuing permanent Cost-of-Living Adjustments.

It is also important to remind our Local Government Retirement System members that LGERS bonuses and COLAs are not determined through the state budget. Instead, they depend upon the financial strength and investment performance of the retirement system. That is why RGEA has invested so much time supporting reforms such as House Bill 506, the State Investment Modernization Act, and working alongside Treasurer Brad Briner’s administration on the Employer Contribution Rate Stabilization Policy. Combined with the retirement system’s strong investment performance over the past year, these reforms position both TSERS and LGERS for stronger opportunities to approve future COLAs.

On that note, the next LGERS (and TSERS) Trustees meeting is scheduled for July 30 and we look forward to reviewing the second quarter investment earnings for the pension funds as they appear to still be tracking towards COLA or bonus territory for 2027. Through February of this year, the funds earned 13.5%  net of fees, producing $17 billion in investment gains while covering $1.4 billion in net benefit payments to retirees or their beneficiaries.

As always, we will continue advocating for permanent COLAs, protecting retiree benefits, and working with policymakers and the Treasurer’s Office to strengthen North Carolina’s retirement systems for generations to co