Compare Bills

Primary Sponsor

Last Action

Ref to the Com on Pensions and Retirement, if favorable, Appropriations, if favorable, Rules, Calendar, and Operations of the House2025-03-31

Vote Breakdown

No floor votes recorded.

Plain Language Summary

This bill provides a 2% cost-of-living increase to retirement payments for state employees, teachers, judges, and legislators who retired through the state retirement systems. The bill appropriates $106.2 million in state funds for the 2025-2026 fiscal year to cover this increase, which takes effect July 1, 2025.

Arguments in Favor

• •Supporters argue that state retirees have faced declining purchasing power due to inflation and that a cost-of-living adjustment helps ensure their fixed retirement income keeps pace with rising costs for essential goods and services.
• •They contend that this measure honors the commitments made to public servants who spent their careers serving North Carolina and helps prevent retirees from falling into financial hardship.

Arguments Against

• •Opponents may argue that the state has limited budget resources and that $106.2 million could be allocated to other pressing needs such as education, healthcare, or infrastructure.
• •Some may also question whether a 2% increase adequately addresses inflation, while others may be concerned about the long-term recurring cost implications of regular cost-of-living adjustments on the state budget.