Campbell urges governor to support retired Hoosier teachers, state employees

INDIANAPOLIS – State Rep. Chris Campbell (D-West Lafayette) earlier this week sent a letter to Governor Eric Holcomb, urging him to support retired Hoosier teachers and state employees by increasing the initial cost-of-living adjustment (COLA) amount to include the additional funds the 13th check historically provided upon retirement.

The 2021 enacted state budget provided a 1% COLA to retired teachers and state employees in lieu of a “13th check,” which is a one-time, post-retirement payment based on an individual's number of years vested in their retirement plan. A decade ago, Indiana leaders provided both a 13th check and a COLA that was usually over 2% to invest in the retirees who invested in the state.

Read the full letter below.

July 30, 2021

The Honorable Eric Holcomb
Governor, The State of Indiana
200 W. Washington St.
Indianapolis, IN 46204

Dear Governor Holcomb:

I am writing to express my deep concern for our valued retired state employees and teachers. As you know, the “13th check” was provided to help relieve the financial burden retirees may face regardless of their previous salary or work tenure. A decade ago, the Indiana General Assembly and the Governor provided a cost of living adjustment (COLA) that was over 2% in addition to a 13th check. Unfortunately, this past legislative session, the Republican majority chose to implement a budget that you signed into law which eliminated the 13th check, and instead opted for a 1% COLA.

The COVID-19 pandemic has created severe hardships, and we should actively be working to do everything we can to mitigate the adversities Hoosiers are facing across our state. Providing an increase to the COLA would be ethically viable during these uncertain times, while the state benefits from such an abundant budget surplus.

The increased COLA would not only create a level of economic stability and security, but also support our most vulnerable populations, ensuring that all remain in their homes, are able to seek quality healthcare, and can continue to put food on the table. I believe we can rectify the oversight by increasing the initial COLA amount to include the additional funds the 13th check would historically provide in addition to the scheduled 1% COLA.

The 1% COLA without the 13th check is simply not enough to make ends meet. As inflation exceeds 5%, the returned adjustment is substantially less than what a traditional 13th check would offer. The increase in funding will help keep our retirees afloat rather than fighting to stay above the average cost of living.

Thank you for your consideration in this matter. We have heard the voices of our constituents and now it is time to act. This September when the Indiana General Assembly reconvenes for redistricting, we have an opportunity to address this issue through legislation. Please join me in this collective effort to lift off the weight placed upon Indiana's retired state employees and teachers.

Sincerely,

Chris Campbell
State Representative
House District 26