SEANC President Kirk Montgomery made the case on Friday to the State Health Plan Board of Trustees that state employees and retirees cannot afford higher premiums and copays because of a lack of raises and cost-of-living adjustments.

According to projections, the Plan will face a drastic financial shortfall in the next three years. Montgomery told the board that increasing premiums and out-of-pocket expenses for employees and retirees would only worsen the vacancy crisis.

"In the past 10 years alone, state employees' pay raises have lagged 12% behind those in the broader labor market," he said. "Retirees have been hit even harder, frequently going years without a true cost-of-living adjustment. The current economic situation leaves state employees and retirees struggling with the rising cost of living while their benefits continue to shrink."

The Plan has not increased premiums in seven years thanks to a commitment and the diligent work of State Treasurer Dale Folwell.

The issue will be a hot topic during budget negotiations in next year's General Assembly session. SEANC will closely monitor any attempts to shift costs to Plan members.