(The Center Square) – More than 1 million active, inactive and retired North Carolina public employees in the state retirement system could get pension benefit improvements such as a cost-of-living increase or one-time supplement.
The Board of Trustees for the North Carolina Retirement Systems voted for the change that takes effect in 2027 and runs through 2032.
The board’s new policy will direct how to determine the “required employer contribution rate” recommended to the General Assembly that funds the Teachers’ and State Employees’ Retirement System, a release says. The board is authorized to recommend a permanent cost-of-living-adjustment or one-time payment if the gain on investments over five years exceeds the cost of providing the benefit improvement.
Legislative approval is required for enacting COLAs for TSERS beneficiaries.
The North Carolina Retirement System serves more than 1 million people, from teachers to state employees, local governments, firefighters, police officers and other public workers. It operates at a deficit similar to Social Security, with fewer people paying in than are eligible for benefits.
