The Retirement Systems Boards of Trustees voted on Thursday to amend an internal policy regarding cost-of-living adjustments (COLAs). Still, the Board stopped short of recommending a COLA for this year.

While some headlines suggest this makes COLAs "easier," it's important to be clear: no COLA has been granted for 2026, and no immediate benefit increase is coming to retirees.

The Board voted to use investment gains above the system's assumed 6.5% rate of return as a potential funding source to recommend a future COLA beginning in 2027. However, the Board has always had the authority to recommend a COLA. What's new is simply identifying a specific pool of possible funds — if those excess earnings exist. For state retirees in TSERS, the General Assembly must still approve and fund any COLA before it can be paid.

This policy does not take effect until July 1, 2027, and it does not guarantee a future COLA. Investment gains are not automatic, and legislative action would still be required.

SEANC believes retirees deserve meaningful, funded COLAs that protect their purchasing power. While this policy change creates a framework for future recommendations, it is not relief. We will continue pushing for real, dependable increases — not just procedural changes.

Also this week, the State Health Plan Board of Trustees voted to approve contracts with three networks as part of the first phase of its new preferred provider strategy. The goal of this strategy, according to the Plan, is "for member health to improve and costs for the Plan to go down."

On this week's episode of The SEANC View Podcast, we discussed at length the dire need for COLAs for retirees, the cuts coming to UNC, winter weather, and more. Click below to listen.

We've also launched a hotline for members to get the latest updates on everything happening at the legislature and beyond. Call 888-732-6242 to listen in!