Senate budget ends health retirement benefits for future teachers and state employees

A few short lines in the 2015-17 Senate budget would eliminate state-paid health retirement benefits for teachers and state employees hired after January 1, 2016.

“This will negatively impact the state’s ability to recruit good, qualified folks,” said Richard Rogers, executive director of the North Carolina Retired Governmental Employees’ Association. “In the future, I don’t see folks sticking with state government for the long term or for a career.

Current law provides teachers and state employees with a paid health insurance plan for the duration of retirement. It’s a graduated system, said Rogers, so employees must work a certain number of years in order to receive the maximum benefit of a fully-paid health insurance plan.

The Senate budget provision, located deep in the biennial proposal that was released and passed by Senators this week, would affect teachers and state employees who join the workforce after January 1, 2016 by eliminating the health insurance benefit altogether.

senatebudget

The provision also affects those who stop out of the workforce and withdraw their retirement benefits from the state system, then re-join the workforce after January 1, 2016. Those state employees would also forfeit their retiree health insurance benefits.

The retiree state health plan provides health care coverage to more than 685,000 teachers, state employees, retirees, current and former lawmakers, state university and community college personnel, state hospital staff and their dependents, according to the plan’s website.

The General Assembly is expected to spend the rest of the summer hammering out a final 2015-17 budget for the state. Stay tuned to see if the Senate’s proposal to axe retirement health benefits for teachers and state employees makes it past the cutting room floor.

Top Stories from NCPW

  • News
  • Commentary

Members of the UNC-Chapel Hill journalism school faculty overwhelmingly reject the notion that a meg [...]

Tests show high PFAS levels at site that received contaminated soil from massive Colonial Pipeline s [...]

Last month the North Carolina Senate passed a bill that would eliminate the state corporate income t [...]

Why would public defenders representing patients want a requirement that prosecutors be present? Eac [...]

As P.T. Barnum is so famously credited with observing a century and half ago, Americans can be a sur [...]

The post The new political witch hunt appeared first on NC Policy Watch. [...]

On a sunny Wednesday a little over a month ago, my 7-year-old daughter bravely held my hand as we wa [...]

There have been many contributing factors to the disastrous scope and scale of the COVID-19 pandemic [...]