FOR IMMEDIATE RELEASE
May 19, 2014
Treasurer Cowell Announces State Health Plan to Forgo
Scheduled Premium Increase
Recommends $23 million in savings go to salary increases
RALEIGH, N.C. – State Treasurer Janet Cowell today wrote
the leadership of the General Assembly to inform them that the State Health
Plan’s strong financial situation has led her to recommend that the Plan forgo
its scheduled premium increase for 2015. Cowell, who consulted with the Plan’s
Board of Trustees, estimated that the move will have a positive impact on the
State Budget by $22 million in General Fund and $1.05 million in Highway Fund
appropriations that were previously budgeted for employer contributions. In her
letter, Cowell recommended that the savings go to salary increases for state
employees and teachers, who are members of the Plan.
“I am pleased to report that the State Health Plan is in
sound financial shape,” Cowell wrote. “As you consider ways to enhance the
compensation for educators and state employees, I hope that you will consider
using these savings for salary increases.”
Cowell also praised legislators for their decision to
move the State Health Plan to the Department of State Treasurer in 2012. “The
Board and I have successfully reduced the unfunded liability associated with
retiree health benefits by nearly $10 billion, without reducing benefits for
members,” Cowell wrote.
Read Treasurer Cowell’s letter and the statement signed
by the Plan’s Executive Administrator and Lead Actuary
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The North Carolina State Health Plan for Teachers and
State Employees provides health care coverage to more than 670,000 teachers,
state employees, retirees, current and former lawmakers, state university and
community college personnel, state hospital staff and their dependents.
