NCRGEA Executive Director Quoted in Op-Ed Article About Current Shortage of Public Servants
“They can’t keep people”: There’s a critical shortage of public employees in NC
News & Observer, December 1, 2022, by Ned Barnett
Callers to the Social Security office are put on a seemingly endless hold.
Callers to a state Department of Motor Vehicles office in Raleigh often get the message: “Your called party is temporarily unavailable. Please try again later.”
Cities and towns across the nation have closed city pools for lack of lifeguards, while school systems are canceling bus pickups for lack of drivers.
The COVID pandemic has aggravated a worker shortage across the U.S. economy, but it’s hitting public employees especially hard.
“At the local level, governments are pulling out all the stops to get people,” said Leisha DeHart-Davis, a professor of public administration and government at the UNC School of Government. “The status quo no longer works for retaining and securing people.”
A UNC survey of local government employees found that 23 percent of them were planning to leave their job, up from 15 percent before the pandemic.
The pandemic’s disruptions and rising private sector wages have accelerated the loss of government workers, but the roots of the problem go deeper. Republicans have been pushing back against the value of public employees at least since President Ronald Reagan fired 11,000 striking air traffic controllers in 1981. Benefits have been pared back, pensions have lost ground to inflation and fewer young people are drawn to public service.
In North Carolina, legislation passed in 2017 eliminated retiree health benefits for state employees and teachers hired after 2020. Meanwhile in the past 10 years, retired state employees’ cost of living allowance (COLA) totaled only 2% and Local Government Employee’s COLA in the same period has increased by less than 1%.
“Things have just been rolled back,” said Tim O’Connell, executive director of the N.C. Retired Governmental Employees’ Association. “The promise of what a pension would deliver upon retirement is not there the way it was for folks who retired 20 or 30 years ago.”
As benefits shrink and private sector wages rise, the state government is struggling to attract and keep workers who provide both basic and essential services.
State agencies are reporting vacancy rates as high as 20, 30 and 40 percent. DMV Commissioner Wayne Goodwin has boosted starting salaries for drivers license examiners, but it’s not enough to fill gaps.
Beyond wages, Goodwin said, his employees are burdened by filling in for missing workers and a sense that their public service is not valued. “We do hear in exit interviews that they don’t feel like they are getting respect from the public,” he said. “It can be a stressful job.”
Even at the federal level, once the gold standard for public employee pay and benefits, eroding pay, short staffing and low morale are inhibiting the delivery of services.
Valerie Langley, a 31-year Social Security Administration employee based in Charlotte, said her office’s traffic has fallen from 78 employees prior to the pandemic to 64 even as the population served has increased sharply. “They can’t keep people,” she said.
The union representing Social Security employees, the American Federation of Government Employees (AFGE), said the agency nationally has 4,000 fewer field office and teleservice center employees than it did 12 years ago. Meanwhile, the number of Social Security beneficiaries has risen by 21 percent since 2010.
Langley, a union steward, said the public blames employees when the phone isn’t answered or employees are late to appointments. “That’s the stereotype – lazy government workers,” she said. “It’s honestly the exact opposite. We’re overworked and overwhelmed.”
For too long, Republican lawmakers have neglected raising wages for public employees, enhancing benefits or modernizing government workplaces. Now that neglect has converged with the Great Resignation. Elected officials all levels are going to have to answer why taxpayers seeking services are instead getting busy signals, long lines and extended delays.
Reposted with permission from Associate Opinion Editor Ned Barnett. Read more at: https://www.newsobserver.com/opinion/article269329472.html#storylink=cpy
Donate Locally for Giving Tuesday, November 29, 2022
Tomorrow is GivingTuesday 2022, which means many of you will be donating to a nonprofit or community organization.
We encourage you to donate to groups here in North Carolina. In your community, check for specific information on #GivingTuesday or contact an organization to inquire about donating.
Otherwise, you can explore some of the North Carolina initiatives we discovered online.
Giving Tuesday Raleigh Durham – scroll down to see the seven local nonprofits on which they are focusing this year. – bit.ly/3gEewz0
Cumberland Community Foundation, Inc. – lists 76 local nonprofits in the area. Choose one and click the Donate button beside its name. bit.ly/3VcqMW9
Conservation Trust for North Carolina – donations will be triple matched by board members – bit.ly/3GS8g17
Farmville Public Library – bit.ly/3gCe04x
Families & Communities Rising, Durham – bit.ly/3EL5J65
Kellin Foundation, Greensboro – Kellinfoundation.org
Big Brothers Big Sisters of the Central Piedmont – bbbscp.org
Friends of Guilford County Animal Shelter – bit.ly/3VeB602
Insurance Update
Great news! There were no premium increases or changes to the dental plans with the Standard Dental coverage that uses the Ameritas network of providers.
We also still have Superior vision as our eye care provider, and even though there was no change to the cost of the vision care coverage, we have gotten a reduction in the co-payment. The co-payment cost has been reduced from $20 to $10. This is for the exam and the materials (up to the noted limits).
Since we did not have any changes, NCRGEA did not have an open enrollment this year. If you are satisfied with your current dental and vision coverage, no action is required and your policies will continue just as they are now. If you want to make any changes, such as add, drop, enroll or cancel, you may do so at any time.
Please keep in mind all the wonderful benefits that are included (free) with your NCRGEA membership:
- Superior Vision Discount Card (acts as a coupon with providers who will accept it)
- Start Hearing Inc Discount Hearing Program (referring you to hearing providers in your area and discounted materials)
- NCRGEA’s $10,000 Accidental Death and Dismemberment Policy (cause of death must state accidental on the death certificate and be reported within 365 days of accident or death)
We are always looking for more benefit options for our members, and that’s why we partnered with AMBA. You may have already received a mailing, email or phone call from them regarding supplemental benefits. AMBA can provide you with many different supplemental benefits, such as:
- Home Health Care Insurance
- Long Term Care Insurance
- Medicare Solutions
- Cancer, Heart & Stroke Accident and Disability Insurances
- Hospital Stay Coverage
- Medical Air Services Association (MASA)
- Final Expense Whole Life & Guaranteed Acceptance Life Insurance
If you have any questions, want to enroll in or need help with your benefits, please contact our call center with AMBA for:
- Dental or Vision 833-733-1605
- Changes to existing Standard Dental and Superior Vision plans 833-784-2183
- Information on new supplemental benefits 833-784-2184
Please refer to our website rgea.info for more details on the Standard Dental, Superior Vision and supplemental benefits.
Managing Debt in Retirement
As of 2022, nearly half of all Americans expect to retire with debt. If you’re dealing with debt in retirement, having a clear understanding of your loans and a strong management plan means debt doesn’t have to derail your retirement goals. Here are some things to know about managing your debt so you can take control and be confident in your financial future.
Understand your debt
First, not all debt is created equal. Over the years you may have accumulated both “good debt” and “bad debt.”
“Good debt” generally refers to the money borrowed as an investment in yourself and your future, while “bad debt” is the money owed on depreciating assets, often at a high interest rate.
Prioritize your payments
Once you’ve identified which of your debts are good and which are bad, it’s important to prioritize your payments. Paying off loans with higher interest rates first means you will pay less over time. If you have the means, make more than the minimum payment on these high-interest loans.
You can also consider refinancing your loans for terms that better fit your retirement income and lifestyle. When you refinance, you may be able to get a lower rate and a more manageable payment schedule.
Make the most of your income
Once you’ve made a plan for managing your debt, smart financial choices can help keep you on track.
Downsize your dream home
If home prices are rising, you’d be wise to downsize rather than splurge on your dream retirement home. Plus, a smaller home could lower your utility bills and upkeep expenses in addition to lowered property taxes and mortgage payment.
Find supplemental income
If your retirement income doesn’t cover your debt payments and still afford you a comfortable lifestyle, you may want to consider finding a supplemental source of income. Marketing and monetizing your skills and expertise can be a fulfilling way to spend your time and bring in some extra cash.
Be consistent
This one might sound obvious, but being consistent with your payments is the most important thing you can do to manage your debt. If you’re feeling overwhelmed, it may be wise to seek a financial planner to help you build a personalized management strategy.
Visit lgfcu.org for more good ways to manage your money.
Vaccines: Where You Get Them Determines How Much You Pay
Your Group Medicare plan provides coverage for vaccines, but that coverage depends on the specific vaccine and where you get it.
Knowing how your coverage works may save you from paying for vaccines out of pocket.
At your provider’s office the Medicare Part B portion of your plan pays for the following vaccines at your provider’s office and at the pharmacy:
- Influenza (flu) vaccine—once per season
- Pneumococcal vaccines
- Hepatitis B vaccines for persons at increased risk of hepatitis
- Vaccines directly related to the treatment of an injury or direct exposure to a disease or condition, such as rabies and tetanus.
At a network pharmacy the Medicare Part D portion of your plan covers all commercially available vaccines—except for those covered by Part B—as long as the vaccine is reasonable and necessary to prevent illness.
Important information for your pharmacist
Let your pharmacist know to use BIN 015581 and PCN 03200000 when filling your prescription for items covered under Part D.
Get vaccines like the ones listed below at a network pharmacy. If you get them at your doctor’s office, you’ll pay the full cost of the vaccine out of pocket.
Here are some common vaccines that you should get at your pharmacy, not from your doctor.
- Shingles
- Tdap (If you need a tetanus shot due to injury, Medicare Part B will cover that from your doctor.)
- Hepatitis A
Because vaccines are covered differently at the provider’s office and the pharmacy, you may want to call first to understand how your insurance covers a specific vaccine.
Call the Customer Care number on the back of your Humana member ID card or sign in to MyHumana.com.
Pension Dollars Keep Rural Communities Alive
Driving along the interstates throughout North Carolina you can see the growing skylines of the cities and construction of new business. It’s not until you start driving down the smaller state maintained highways that you start to come into the more than 450 towns within our state with populations fewer than 10,000. Towns that aren’t nearly as prosperous as their neighbors on the interstates. These are the towns with the shrinking populations.
“National economic trends coupled with population declines have had a devasting impact on many small towns and rural areas across America. Often, the largest employer in these smaller towns is a public entity like a school system or municipality that employs teachers, nurses, firefighters, and public safety officials. These public employees spend their career serving their communities at a time when a growing number of young workers are leaving their hometowns for job opportunities in urban areas,” said Dan Doonan, National Institute on Retirement Security executive director.
These are the town that are more dependent on the incomes of its residents than on the tax revenues brought in from major corporations and big developments. These are the towns where the residents that worked there for the community are more likely to retire there. And these are the towns where their public pension benefits go beyond the retirees and their families. Their benefit dollars also play a critical role in supporting the local economies.
Retired public employees spend their pension income in their towns on goods and services like housing, food, medicine and clothing, which serves as a stable source of economic activity in smaller communities
Dan Doonan, NIRS executive director
Research by the NIRS revealed that, in absolute terms, the greatest number of public pension recipients and, therefore, public pension benefit dollars, reside in big cities. But because the economies in the cities are large and complex, the economic impact of pension benefit dollars is modest. However, in small towns and rural areas where the economies are more dependent on the income of its residents, the economic impact of pension benefit dollars goes farther.
The NIRS examined the economic impact of public pension benefit dollars at the county level in 2,922 counties across 43 states representing every region of the country. North Carolina was one of the seven states that was not included in the research.
The analysis of the data reveals that pension benefit dollars account for an average of 1.2% of gross domestic product (GDP) in those counties. NIRS believes this is because many rural areas have agriculture-dependent economies. Farms often are described as “asset rich, but cash poor.” This means that the value of the land, equipment, and goods produced is high, but the monthly cash income of the farmers is relatively low. Therefore, the pension benefit dollars in these counties represent a greater portion of personal income than GDP.
Likewise, the benefit dollars make up an average of 1.25% of the total personal income in the counties. Therefore, GDP and total personal income derived by pensions are why these communities experienced the greatest relative economic benefit from public pension benefit dollars.
“Eventually, public employees in rural and smaller communities retire and typically stay in their hometown. Retired public employees spend their pension income in their towns on goods and services like housing, food, medicine and clothing, which serves as a stable source of economic activity in smaller communities. Our analysis clearly indicates that pension spending provides a substantial economic impact on struggling small towns and rural communities across the nation,” Doonan explained.
The NRIS analysis reveals two interesting effects taking place in rural counties concerning pension benefits. Pension benefit dollars provide metropolitan and rural counties similar levels of GDP, but rural areas have a greater percentage of personal income from pension dollars.
Additionally, the conversation about public pensions should not focus solely on the dollars contributed to the plans, it also must acknowledge substantial economic impact they have across the state, especially in the rural areas.
Great News, The Check Is in the Mail
The budget enacted by the North Carolina General Assembly and signed by Gov. Roy Cooper earlier this year allowed for a one-time supplement to be paid to retirees of the Teachers’ and State Employees’ Retirement System (TSERS), Consolidated Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS). In addition, the General Assembly passed a bill allowing the Local Governmental Employees’ Retirement System (LGERS) Board of Trustees to consider a one-time supplemental payment for LGERS retirees provided there were sufficient funds from investment gains to pay for it.
The one-time supplemental payments will be distributed as a part of the monthly pension payments to eligible TSERS and LGERS retirees and benefit recipients in October. Regular payments will return to the levels they would have been without the supplemental payment in November.
There is often confusion about the way COLAs or one-time supplements are considered. While we are all public servants in the state of North Carolina, there are seven retirement systems with different rules, laws and guidelines.
As it relates to COLAs or one-time supplements, TSERS’, CJRS’ and LRS’ payments are granted by the General Assembly. LGERS supplements are paid for by the local governmental employer. With the passage of Senate Bill 311, I was able to recommend a solution that is fiscally responsible, providing LGERS’ retirees a one-time benefit without increasing rates for the cities and counties across the state.
Our job is to keep the retirement system solvent for this and the next generation of those who teach, protect and serve -and every decision made by me, staff and the Boards of Trustees is made with a member-first mentality.
I encourage you to visit our website, myNCRetirement.com, and view Trending Topics. Here you will find important information about the October one-time supplements and other retirement matters.
Retirement is a big part of what we do at the Department of State Treasurer (DST), but did you know there are several other divisions and programs that work hard for you and others in North Carolina? DST includes the Office of State Treasurer, Retirement Systems Division, Financial Operations Division, Investment Management Division, State and Local Government Finance Division, Unclaimed Property Division (NC Cash), State Health Plan, Supplemental Retirement Plans and the NC ABLE Program. Each of these work together to make a difference for the citizens of North Carolina.
The role of the Treasurer has always had widespread influence and impact in our state. I am fortunate to have been able to accomplish many things, including reducing costs and fees, increasing transparency and making sure that this benefit is available for current and future public service employees. I stand on the shoulders of staff, Boards of Trustees and previous Treasurers who have conservatively managed the pension plan, making it one of the best funded in the world.