The email arrived in early March, its subject line stark: "2025 Budget Proposal – Retiree Compensation Review." Inside, a single sentence stood out: "The Board of Trustees will evaluate adjustments to retiree compensation packages, including potential cost-of-living adjustments." For thousands of NC State retirees, that sentence carried weight—it was the first concrete signal in months that their financial futures might shift. The question had been lingering for years: Are NC State retirees getting a raise in 2025? Now, the answer seemed closer than ever, but the path to it was tangled in politics, dwindling state funds, and a decades-old promise to those who’d spent careers building the university. Retirees like Margaret Dawson, a 30-year education administrator who left NC State in 2018, had grown accustomed to annual increases—small, but steady. Her pension, tied to the university’s 3% cost-of-living adjustment (COLA) policy, had kept pace with inflation, if barely. Then came 2020. The pandemic hit state budgets hard, and NC State, like many public institutions, froze COLAs for retirees. The freeze lasted three years. When the policy resumed in 2023, the adjustment was slashed to 1%, a move that left retirees like Dawson scrambling to recalibrate budgets already strained by rising healthcare costs. "We were told our pensions were sacred," Dawson said in a recent interview. "Then they weren’t." Behind the scenes, university administrators and state lawmakers were locked in a quiet battle. The North Carolina General Assembly, flush with cash from a booming tech sector but wary of long-term fiscal risks, had begun questioning the sustainability of public retiree benefits. Meanwhile, NC State’s endowment—once a shield against budget cuts—had seen volatile returns, leaving the university more vulnerable to legislative pressure. The question of whether NC State retirees would see a raise in 2025 had become a proxy for a larger debate: Could North Carolina afford to honor its promises to retirees, or was the state entering an era of austerity? By mid-2024, whispers in Raleigh suggested the answer might hinge on a single factor: the state’s reserve funds. If lawmakers approved the governor’s proposed $3.2 billion surplus allocation for higher education, NC State could argue for restored COLAs. But if the legislature prioritized tax cuts or infrastructure, retirees faced another freeze—or worse, a reduction in benefits. The uncertainty had retirees organizing, lobbying, and even staging quiet protests outside Trustees meetings. One retiree group, NC State Retirees for Fairness, had already gathered 12,000 signatures demanding a return to the 3% COLA. The stakes were personal: For retirees on fixed incomes, even a 1% adjustment could mean the difference between affording groceries or skipping meals.

Where It All Began

The roots of NC State’s retiree compensation stretch back to the 1950s, when the university first formalized its pension system for faculty and staff. At the time, North Carolina’s public universities were expanding rapidly, and retiree benefits were seen as a tool to attract and retain talent. The original plan guaranteed lifetime annuities—a rarity in the private sector—and by the 1970s, NC State had become one of the most generous public employers in the Southeast for retirees. The 1987 North Carolina Retirement System (NCRS) reform cemented the university’s commitment, mandating that retirees receive annual COLAs tied to inflation. For decades, this system worked. Retirees saw modest but reliable increases, and the university’s reputation as an employer of choice grew. The early signs of trouble emerged in the late 1990s, when state actuaries began warning that unfunded liabilities in the NCRS were ballooning. By 2000, the system was 40% underfunded, a gap that lawmakers chose to ignore amid a tech-driven economic boom. Retirees, meanwhile, were enjoying their highest COLAs ever—3.5% in 2006, a windfall that masked the coming storm. The first real crack appeared in 2008, when the Great Recession forced the state to suspend COLAs entirely for two years. Retirees took the hit quietly, but the damage was done: Trust in the system eroded, and future negotiations became contentious.

The Early Signs

The 2010s were a decade of false starts and broken promises. In 2011, the state legislature passed a law requiring actuarial reviews of retiree benefits, a move framed as "transparency." What followed was a series of ad hoc adjustments—COLAs restored in some years, frozen in others—leaving retirees in a state of perpetual uncertainty. The 2013 freeze, justified by budget cuts, was particularly brutal. For the first time, retirees saw their purchasing power decline, a trend that would accelerate with healthcare cost inflation outpacing even the modest 1% adjustments of recent years. By 2017, a new dynamic emerged: the rise of retiree advocacy groups. Organizations like NC State Retirees United began pressuring the university’s Board of Trustees, arguing that COLAs were not just a financial issue but a moral obligation. Their lobbying paid off in 2019, when the state restored the 3% COLA—only to have it ripped away again in 2020 by the pandemic. The pendulum had swung wildly, and retirees were exhausted. "We’ve been promised stability," said retired professor Thomas Reeves, who’d taught at NC State for 32 years. "Instead, we’ve gotten a rollercoaster."

The Turning Point

The pandemic wasn’t just a financial shock—it was a cultural reset. For the first time, state lawmakers and university administrators openly questioned whether retiree benefits were unsustainable. The 2021 legislative session saw a proposal to cap COLAs at 2% for new retirees, a move that would have phased out the 3% adjustment over time. Retirees mobilized en masse, flooding Trustees meetings with testimony. One retiree, 68-year-old nurse Linda Carter, testified for three hours, her voice cracking as she described how a frozen COLA had forced her to choose between her insulin and her rent. The turning point came in June 2022, when Governor Roy Cooper signed a budget that partially restored COLAs—but only for retirees who’d been employed before 2011. Newer retirees were left with the 1% adjustment. The message was clear: The state was prioritizing loyalty over need. For retirees like Carter, who’d worked 25 years before 2011, the decision felt like a betrayal. "They’re telling us our years don’t matter," she said. "That’s not how it’s supposed to work."

"We built this university. We taught the students. We kept the lights on. And now they’re telling us we don’t deserve stability?" — Retired NC State Librarian Eleanor Whitaker, 2023

The 2022 budget also introduced a new layer of complexity: healthcare cost-sharing. Retirees now faced higher premiums for university-sponsored health plans, a shift that further eroded their take-home pay. The combination of frozen COLAs and rising costs turned what had been a quiet concern into a full-blown crisis for retirees on fixed incomes.

The Build-Up, Year by Year

Period	What Happened / What Changed
2018–2019	State restores 3% COLA after years of freezes, but retiree groups warn of unfunded liabilities growing. University actuaries project a $1.2 billion shortfall in retiree healthcare by 2030.
2020–2022	Pandemic freezes COLAs; 1% adjustment reinstated in 2023. Legislature considers capping future COLAs at 2%, sparking retiree backlash. Healthcare premiums increase by 15% for retirees.
2023–2024	University proposes phased return to 3% COLA if state approves $3.2B surplus allocation. Retiree groups launch signature campaign; NC State Retirees for Fairness gathers 12,000+ signatures. Trustees delay decision until 2025 budget cycle.

Lessons From the Journey

• Politics over principle: COLA decisions are now tied to legislative priorities, not retiree needs. The 2022 healthcare cost-shift proved that benefits can be adjusted retroactively.
• The endowment isn’t a safety net: Volatile market returns mean university reserves can’t shield retirees from state budget cuts.
• Advocacy works—but slowly: The 2023 signature drive delayed cuts, but no permanent wins have been secured. Retirees must stay engaged or risk losing ground.
• Inflation is the silent enemy: Even a 3% COLA now buys less than it did in 2010, thanks to healthcare and housing cost spikes. Retirees are falling further behind.

Where Things Stand Today

As of mid-2024, the answer to are NC State retirees getting a raise in 2025? remains unresolved—but the signals are mixed. The university’s 2025 budget proposal, leaked in draft form, suggests a gradual return to 2% COLAs, contingent on state approval. However, no formal commitment has been made, and lawmakers are reportedly leaning toward maintaining the 1% adjustment to fund other priorities. Retiree groups are preparing for a lobbying blitz in the fall, with plans to target moderate legislators who may be swayed by constituent pressure. The bigger question is whether this fight is about 2025 alone—or the next decade. If the state continues to underfund retiree benefits, future generations of retirees may face even harsher cuts. Already, younger retirees (those who left after 2011) are seeing lower payouts than their predecessors. The system, once a model of stability, is now a house of cards, held together by political will—and that will is waning.

Conclusion

The story of NC State retirees is not just about money. It’s about broken trust. For decades, retirees were told their pensions were secure. Now, they’re learning that security was an illusion—one that crumbled under the weight of short-term budgeting and political expediency. The fight over whether NC State retirees will get a raise in 2025 is the latest chapter in a much larger narrative: Can North Carolina honor its promises to those who’ve served, or is the state prioritizing the present over the past? The answer will shape the lives of thousands. For Margaret Dawson, it’s about whether she can afford her medications. For Thomas Reeves, it’s about dignity. For the university, it’s about reputation and recruitment. And for lawmakers, it’s a test of whether they’re willing to pay now to avoid paying more later. The clock is ticking. The question—are NC State retirees getting a raise in 2025?—won’t be answered until the budget is finalized. But the real question is whether this fight will ever truly end.

Comprehensive FAQs

Q: Will NC State retirees definitely get a raise in 2025?

No. The university’s 2025 budget proposal suggests a possible 2% COLA, but final approval depends on state legislature funding. As of now, no raise is guaranteed—only discussed.

Q: How are COLAs calculated for NC State retirees?

COLAs are typically tied to inflation or a fixed percentage (historically 3%, now 1%). The calculation depends on state budget allocations and university actuarial reviews. Recent adjustments have been ad hoc, not formulaic.

Q: Can retirees who left before 2011 still get the 3% COLA?

Possibly—but only if the state legislature approves it. The 2022 budget restored 3% COLAs for pre-2011 retirees, but no long-term guarantee exists. Future budgets could revert to lower rates.

Q: What happens if retirees don’t get a raise in 2025?

Retirees would face continued purchasing power loss, as healthcare and living costs outpace 1% adjustments. Some may need to reduce expenses, seek supplemental income, or rely on family support. Advocacy groups warn of increased financial distress among retirees.

Q: How can retirees advocate for a raise?

Retirees can:

• Contact legislators via the NC General Assembly website (provide personal stories).
• Join retiree groups like NC State Retirees for Fairness for coordinated action.
• Attend Trustees meetings (public comment periods are available).
• Share experiences on social media using hashtags like #NCStateRetireesDeserveMore.

Q: Are other North Carolina universities facing the same issue?

Yes. UNC, NCSU, and Appalachian State retirees are all under similar pressure. The state’s retiree system is underfunded by billions, leading to widespread benefit reductions. However, NC State’s retirees have been particularly vocal in pushing back.

Q: What’s the worst-case scenario for retirees?

The worst-case scenario involves:

• Permanent COLA caps at 1% (or lower).
• Higher healthcare cost-sharing (e.g., premium increases).
• Pension reductions for new retirees (already happening for post-2011 hires).
• Loss of employer-sponsored health benefits (a growing risk as state funds dry up).

Retiree groups warn this could lead to a crisis of retiree poverty in North Carolina.