Cost of living increases for current and future University retirees could take a hit for the first time in almost 40 years.

A proposal suggested by the Governor’s office could change the policy wording that the Teacher Retirement System “may give” instead of “shall give” a 1.5 percent increase every six months.

Though the change won’t be voted on until Nov. 19, professors and staff at the University have begun to express concern.

“It’s a shock to everybody that someone would even think of changing it,” said Ralph Steuer, professor of banking and finance and the Board of Regents representative to the Teacher Retirement System Board of Trustees. Steuer, appointed to the position in August, was unable to attend the Sept. 24 meeting to vote on the proposal.

The Teacher Retirement System of Georgia is one of two retirement programs offered at the University, and a large number of University staff are members. The change could affect more than 300,00 statewide – about 79,000 retirees and 254,000 members who have not yet retired.

Under the Cost of Living Annual Increase, benefits for retirees grow by 1.5 percent in January and again in July.

“The program has been on auto pilot since 1969,” Steuer said. “They want to take it off and put it on an ad hoc basis so each year they look at it and decide if it should be at 1.5 percent, maybe 1 percent or even 0.5 percent.”

Tommy Hills, chief financial officer for the state, presented the change and said the rationale is that all the other state retirement boards vote on the increase annually.

But, Steuer said, “no one questions the [1.5 percent] because it’s such a precedent.”

The policy is “pre-funded” as a defined benefit plan, which means faculty and staff pay each year and receive a defined benefit, he said.

“So it’s essentially a property right,” he said.

“If a person is retiring today and has been paying for 30 years, it’s a surprise when someone wants to take away the thing they’ve been paying for.”

Mary Evans, an administrative specialist in Terry College, said she heard about the change through a staff member who received the item on a staff list serv.

“This affects staff, and they should not just let it change without showing that everyone cares,” she said. “I talked to human resources to issue something that alerts faculty, but they said they couldn’t take an opinion on it.”

“At least let people be involved. At least put that much out there for everybody to know about it,” she said. “The list serv notice is starting to get through campus, but this is beyond just us. This affects every educator in the retirement system.”

Of the 10 Teacher Retirement System Board of Trustees members, seven were present to vote on the proposal. Four voted for it and the three members who work for schools – two teachers and one superintendent – voted against it.

“I personally don’t see how it will pass,” Steuer said. “It’ll just stay the way it is. This is just a proposal.”

The proposed change must be “on the table” for 30 days before action can be taken, said Jeffrey Ezell, executive director of the Teacher Retirement System.

“Probably as of now we’ve received approximately 400 to 500 e-mails or letters concerning that change,” he said.

“Basically they vary from single-line e-mails to several bullet points or paragraphs, saying they hope it doesn’t change. The vote will depend on taking all of this into consideration and any information that comes to light between now and then.”