Retirement Monitor Update Archives: August 2004

Retirement Monitor, August 23, 2004

$250 Million Contribution Made, COLA Granted

The North Carolina General Assembly made a contribution of approximately $250 million to the Teachers' and State Employees' Retirement System before adjourning the 2004 session. The contribution will be used to keep the System in solid financial shape and to grant a 1.7 percent cost of living adjustment to retirees.

$20 Million Paid Back to State Retirement System

State House and Senate leaders approved a $20 million repayment to North Carolina's Teachers' and State Employees' Retirement System. The repayment, included in HB 1352/SB 1169, is the second toward $127 million diverted from the retirement system to balance the budget in 2001.

Contributory Death Benefit for Retirees Worth More

The General Assembly in 2004 boosted the Contributory Death Benefit available to retirees. This voluntary benefit, payable to the spouse or estate at the retiree's death, was increased from $6000 to $9000.

Return-to-Work for Teachers Extended

The General Assembly extended for one year the sunset of the law allowing retired teachers to return to work after six months of retirement without losing their pension income. The General Assembly also directed the Retirement Systems Division to study the return-to-work issue and to give findings and recommendations to the legislature by February 1, 2005.

Lawmakers Reverse Disability Changes, Set New Definition for Long-Term

When teachers and state employees can no longer stay on the job because of a disability, the Disability Income Plan of North Carolina provides short-term and long-term income replacement. Last year, legislators narrowed the qualifications for receiving disability benefits under the Plan. In 2004, legislators repealed those changes but crafted a new definition of long-term disability to be used after August 1, 2005.

Retirement System Granted New Resources

The General Assembly in 2004 made permanent 24 staff positions used to ease the service crisis in the Retirement Systems Division, and provided $11 million for the next phase of the System's new technology infrastructure.

2004 Legislative Digest Available Online

The Retirement Systems Division issues a Legislative Digest for the Teachers' and State Employees' Retirement System and the Local Governmental Employees' Retirement System after each session of the General Assembly. The Digests provide a summary of retirement-related legislation ratified during the session.

Pass it On...

Pass it On...$20 Million Paid Back to State Retirement System

Pass it On...Retirement System Granted New Resources

LOCAL EMPLOYERS' SPECIAL EDITION

2004 Legislative Digest Available Online

Death Benefits Now Worth More

The General Assembly in 2004 boosted two death benefit programs available to North Carolina's local government workers and retirees: the Contributory Death Benefit and the death benefit provided through the Local Governmental Employees' Retirement System.

Retirement System Granted New Resources