Summer Edition 2025 | Living Power Magazine
By Jackson Cozort, RGEA Government Relations Director
Every year, the RGEA Government Relations Team fights for the well-being of North Carolina’s public retirees. We remain true to the association’s founding mission and purpose in that we must safeguard the dignity and stability of our state and local government retirees through strategic advocacy efforts.
In 2025, that mission is more vital than ever.
A TWO-PRONGED APPROACH
RGEA’s advocacy rests on two central goals: ensuring the actuarial determined funding of TSERS and LGERS public pension systems is met and working to secure relief from inflation through recurring cost-of-living adjustments (COLAs) and one-time pension supplements.
For retirees, these increases are critical tools to keep pace with the rising costs of living.
TWO SYSTEMS, TWO TRACKS
The Local Government Employees’ Retirement System (LGERS) and the Teachers’ and State Employees’ Retirement System (TSERS) operate under separate statute law structure with one of the main differences being who has the authority to award post-retirement increases.
LGERS Trustees can authorize one-time bonuses or COLAs—but only if the fund’s investment average returns over three years surpass specific thresholds. If investment performance falls short, the Trustees have no other means or authority to award postretirement
increases. The last increase from investment earnings came in 2022 and delivered a one-time pension supplement of 2%.
TSERS Trustees are not authorized to award post-retirement increases but rely on the General Assembly to do so. TSERS Trustees are charged with making a decision to recommend or not recommend a COLA or bonus to the legislature based on the investment thresholds similar to LGERS. It is then up to state lawmakers to decide whether or not to fund any retirement benefit increases, either with investment returns or by directly allocating funds in the state budget.
CHANGING OUTCOMES
A recent development promises a brighter outlook for both systems.
The Investment Modernization Act of 2025 (HB 506), signed into law this year, moves North Carolina from a sole fiduciary model where the state’s treasurers held all power on investment decisions, to an appointed investment authority where a board of qualified financial professionals will deploy more robust yet stable investing strategies that will move North Carolina closer to higher returns similar to our peer public pensions.
THE BUDGET BATTLE AHEAD
For TSERS retirees, the path to any sort of inflation relief hinges on this year’s state budget. The House proposal includes a 1% one-time bonus in 2025 and a 2% bonus in 2026—amounting to $180 million in new appropriations. The Senate version, however, includes no increases at all.
Although both the House and the Senate are controlled by the same political party, budget negotiations have gotten off to a very rocky start.
It will be imperative that, in the coming months, both chambers come together and agree on a budget. If they do not, state employee raises, teacher raises, and retiree bonuses all could be in jeopardy.
RGEA will continue advocating for retirees as budget negotiations unfold. Follow our News from Jones Street updates to stay informed!