NC House rejects plan to give retirees a permanent pension raise, citing cost

The N.C. House shot down an attempt to provide state retirees with a permanent pension increase, citing concerns about the increasing costs of the state’s retirement system.

State retirees would get a 1.6 percent, one-time cost-of-living bonus in their pensions under the House budget, but wouldn’t receive one under the Senate budget plan.

During Thursday’s budget debate, Rep. Mickey Michaux, a Durham Democrat, proposed an amendment that would instead provide retirees a permanent 2 percent cost-of-living increase. The proposal would cover the $88.6 million cost in the coming fiscal year by using salary money the state saves as a result of employee turnover.

“There’s some folks around here, even right now, living on just a single source of income, who gave their working lives to this state,” Michaux said. “I hope you would give these people what they are really due.”

Read more here: http://www.newsobserver.com/news/politics-government/state-politics/article153947719.html