SEANC is calling on the Retirement Systems Boards of Trustees to provide retirees with a true Cost-of-Living Adjustment after actuarial reports this week showed a $1.3 billion gain for the system in 2020.

The Board of Trustees met on Thursday to hear actuarial reports and address recommendations to the General Assembly for 2022. While the reports show substantial gains, the board voted against calling for the COLA because it has set restrictions on budgeting funds available from gains.

In April 2021, the board voted on a resolution to implement the Employer Contribution Rate Stabilization Policy (ECRSP). While this policy was an effort to protect the Treasurer’s ability to use retirement system funds to pay for critical operations and investments for the system from the General Assembly, it hamstrings the board from recommending that the General Assembly appropriate the system funds for a recurring cost of living adjustment.

The $1.3 Billion in gains for 2020 would pay a 2.6 percent true COLA to members without having to go to the state’s General Fund for money. SEANC lobbyists spoke to the board at the October 2021 meeting and asked that they reconsider their policy and vote “yes” to recommending the General Assembly use system funds to provide a true COLA for retirees.

SEANC has had conversations with State Treasurer Dale Folwell and his staff and made it clear that we do not accept this policy that precludes the board from recommending a COLA after so many years without one. We will still seek these funds in the 2022 short session through the General Assembly.

Treasurer Folwell has made strides in undoing bad investment decisions made by previous administrations, and now there is money to show for it in the system. Retirees deserve a recurring COLA. The funds will be available for a recurring COLA in the continuation budget cycle, and we will continue our pursuit of a long-overdue pay increase for retirees.