North Carolina 2025-2026 Regular Session

North Carolina House Bill H498 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 498
	3	+	H D
	4	+	HOUSE BILL DRH10109-MRp-64
	5	+
5	6
6	7
7	8		Short Title: Military to Teacher Ret. Incentive. (Public)
8		-	Sponsors: Representatives Biggs, Loftis, Tyson, and Goodwin (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Pensions and Retirement, if favorable, Homeland Security and Military and
11		-	Veterans Affairs, if favorable, Rules, Calendar, and Operations of the House
12		-	March 26, 2025
13		-	H498 -v-1
	9	+	Sponsors: Representative Biggs.
	10	+	Referred to:
	11	+
	12	+	DRH10109 -MRp-64
14	13		A BILL TO BE ENTITLED 1
15	14		AN ACT TO INCENTIVIZE INDIVIDUALS WITH ACTIVE DUTY SERVICE IN THE 2
16	15		ARMED FORCES OF THE UNITED STATES TO BECOME TEACHERS BY 3
17	16		PROVIDING SERVICE CREDIT UNDER THE TEACHERS ' AND STATE EMPLOYEES ' 4
18	17		RETIREMENT SYSTEM . 5
19	18		The General Assembly of North Carolina enacts: 6
20	19		SECTION 1. G.S. 135-4 reads as rewritten: 7
21	20		"§ 135-4. Creditable service. 8
22	21		… 9
23	22		(a1) The following definitions apply in this section: 10
24	23		(1) Active duty. – As defined in 38 U.S.C. § 101, except that this term does not 11
25	24		include periods of active duty in the Armed Forces of the United States 12
26	25		creditable in any other retirement system except the National Guard and does 13
27	26		not include periods of active duty for training. 14
28	27		(2) Active duty for training. – As defined in 38 U.S.C. § 101. 15
29	28		(3) Service in the uniformed services. – As defined in 38 U.S.C. § 4303. 16
30	29		… 17
31	30		(f) Armed Service Credit. –All of the following apply to certain service in the Armed 18
32	31		Forces of the United States: 19
33	32		… 20
34	33		(g) Teachers and other State employees who served in the uniformed services as defined 21
35	34		in the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. § 22
36	35		4303, services, who were not dishonorably discharged, and who returned to the service of the 23
37	36		State within a period of two years from date of discharge shall be credited with prior service for 24
38	37		such the period of service in the uniformed services for the maximum period that they are entitled 25
39	38		to reemployment under the Uniformed Services Employment and Reemployment Rights Act of 26
40	39		1994, 38 U.S.C. § 4301, et seq., or other federal law, and the salary or compensation of such a 27
41	40		the teacher or State employee during that period of service is deemed to be that salary or 28
42	41		compensation the employee would have received but for the period of service had the employee 29
43	42		remained continuously employed, if the determination of that salary or compensation is 30
44	43		reasonably certain. If the determination of the salary or compensation is not reasonably certain, 31
45	44		then it is deemed to be that employee's average rate of compensation during the 12-month period 32
46	45		immediately preceding the period of service. When a member who has served in the uniformed 33
47		-	services returns to work in compliance with the conditions of this subsection, that member's 34 General Assembly Of North Carolina Session 2025
48		-	Page 2 House Bill 498-First Edition
49		-	employer shall remit to the System all employer and employee contributions for the full period 1
50		-	of that member's military service. 2
51		-	(g1) Notwithstanding any other provision of this Article to the contrary, a member with 3
52		-	active duty service in the uniformed services who subsequently becomes a teacher is eligible for 4
53		-	creditable service in accordance with this subsection. All of the following apply: 5
54		-	(1) In order to be eligible for creditable service under this subsection, the 6
55		-	following criteria shall be met: 7
56		-	a. The member was not dishonorably discharged from service in the 8
57		-	uniformed services. 9
58		-	b. The member's active duty service in the uniformed services occurred 10
59		-	prior to that member's employment as a teacher and was not concurrent 11
60		-	with any time period for which membership service was earned in the 12
61		-	Retirement System. 13
62		-	c. The member has satisfied the licensure requirements to be a teacher 14
63		-	pursuant to G.S. 115C-270.20. 15
64		-	d. The member is currently employed as a teacher. Satisfactory evidence 16
65		-	of the active duty service in the uniformed services claimed by the 17
66		-	member shall be submitted to the Board of Trustees prior to that 18
67		-	member's separation from service as a teacher or retirement. 19
68		-	(2) The amount of creditable service for which a member is eligible under this 20
69		-	subsection shall not exceed four years. Subject to this maximum, the amount 21
70		-	of service credit a member receives under this subsection is equal to length of 22
71		-	the member's active duty service in the uniformed services. For periods of 23
72		-	service in the uniformed services that exceed four years, a member may 24
73		-	purchase credit for that excess service under G.S. 135-4.5, subject to the 25
74		-	qualifications and limitations under that section. 26
75		-	(3) The member's employer shall pay a lump sum amount credited to the Pension 27
76		-	Accumulation Fund for a member receiving creditable service under this 28
77		-	subsection. The amount payable shall be equal to the full liability increase of 29
78		-	the Retirement System due to the additional service credit plus an 30
79		-	administrative fee that is set by the Board of Trustees. The full liability 31
80		-	increase shall be calculated on the basis of the same assumptions used for the 32
81		-	purposes of the actuarial valuation of the liabilities of the Retirement System, 33
82		-	except for the following assumptions specific to this calculation: (i) the 34
83		-	allowance shall be assumed to commence at the earliest age at which the 35
84		-	member could retire on an unreduced retirement allowance and (ii) there shall 36
85		-	be assumed annual postretirement allowance increases set by the Board of 37
86		-	Trustees upon the advice of the consulting actuary. 38
87		-	…." 39
88		-	SECTION 2.(a) G.S. 135-4(f)(1) and G.S. 135-4(f)(2) are repealed. 40
89		-	SECTION 2.(b) G.S. 135-5(a3)(1) reads as rewritten: 41
90		-	"(1) Determine an amount equal to the member's accumulated contributions as 42
91		-	required under G.S. 135-8(b)(1) for all years during which the member earned 43
92		-	membership service, other than service earned through armed service credit 44
93		-	under G.S. 135-4(f), G.S. 135-4(g), G.S. 135-4 or G.S. 135-4.5, used in the 45
94		-	calculation of the retirement allowance that the member would receive under 46
95		-	this section." 47
96		-	SECTION 2.(c) G.S. 128-27(a3)(1) reads as rewritten: 48
97		-	"(1) Determine an amount equal to the member's accumulated contributions as 49
98		-	required under G.S. 128-30(b)(1) for all years during which the member 50
99		-	earned membership service, other than service earned through armed service 51 General Assembly Of North Carolina Session 2025
100		-	House Bill 498-First Edition Page 3
101		-	credit under G.S. 128-26(a1), G.S. 128-26(j1), G.S. 128-26 or G.S. 128-26.5, 1
102		-	used in the calculation of the retirement allowance that the member would 2
103		-	receive under this section." 3
104		-	SECTION 3. This act is effective when it becomes law and applies to members who 4
105		-	are first hired as teachers on or after that date. 5
	46	+	services returns to work in compliance with the conditions of this subsection, that member's 34
	47	+	employer shall remit to the System all employer and employee contributions for the full period 35
	48	+	of that member's military service. 36
	49	+	H.B. 498
	50	+	Mar 24, 2025
	51	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRH10109-MRp-64
	53	+	(g1) Notwithstanding any other provision of this Article to the contrary, a member with 1
	54	+	active duty service in the uniformed services who subsequently becomes a teacher is eligible for 2
	55	+	creditable service in accordance with this subsection. All of the following apply: 3
	56	+	(1) In order to be eligible for creditable service under this subsection, the 4
	57	+	following criteria shall be met: 5
	58	+	a. The member was not dishonorably discharged from service in the 6
	59	+	uniformed services. 7
	60	+	b. The member's active duty service in the uniformed services occurred 8
	61	+	prior to that member's employment as a teacher and was not concurrent 9
	62	+	with any time period for which membership service was earned in the 10
	63	+	Retirement System. 11
	64	+	c. The member has satisfied the licensure requirements to be a teacher 12
	65	+	pursuant to G.S. 115C-270.20. 13
	66	+	d. The member is currently employed as a teacher. Satisfactory evidence 14
	67	+	of the active duty service in the uniformed services claimed by the 15
	68	+	member shall be submitted to the Board of Trustees prior to that 16
	69	+	member's separation from service as a teacher or retirement. 17
	70	+	(2) The amount of creditable service for which a member is eligible under this 18
	71	+	subsection shall not exceed four years. Subject to this maximum, the amount 19
	72	+	of service credit a member receives under this subsection is equal to length of 20
	73	+	the member's active duty service in the uniformed services. For periods of 21
	74	+	service in the uniformed services that exceed four years, a member may 22
	75	+	purchase credit for that excess service under G.S. 135-4.5, subject to the 23
	76	+	qualifications and limitations under that section. 24
	77	+	(3) The member's employer shall pay a lump sum amount credited to the Pension 25
	78	+	Accumulation Fund for a member receiving creditable service under this 26
	79	+	subsection. The amount payable shall be equal to the full liability increase of 27
	80	+	the Retirement System due to the additional service credit plus an 28
	81	+	administrative fee that is set by the Board of Trustees. The full liability 29
	82	+	increase shall be calculated on the basis of the same assumptions used for the 30
	83	+	purposes of the actuarial valuation of the liabilities of the Retirement System, 31
	84	+	except for the following assumptions specific to this calculation: (i) the 32
	85	+	allowance shall be assumed to commence at the earliest age at which the 33
	86	+	member could retire on an unreduced retirement allowance and (ii) there shall 34
	87	+	be assumed annual postretirement allowance increases set by the Board of 35
	88	+	Trustees upon the advice of the consulting actuary. 36
	89	+	…." 37
	90	+	SECTION 2.(a) G.S. 135-4(f)(1) and G.S. 135-4(f)(2) are repealed. 38
	91	+	SECTION 2.(b) G.S. 135-5(a3)(1) reads as rewritten: 39
	92	+	"(1) Determine an amount equal to the member's accumulated contributions as 40
	93	+	required under G.S. 135-8(b)(1) for all years during which the member earned 41
	94	+	membership service, other than service earned through armed service credit 42
	95	+	under G.S. 135-4(f), G.S. 135-4(g), G.S. 135-4 or G.S. 135-4.5, used in the 43
	96	+	calculation of the retirement allowance that the member would receive under 44
	97	+	this section." 45
	98	+	SECTION 2.(c) G.S. 128-27(a3)(1) reads as rewritten: 46
	99	+	"(1) Determine an amount equal to the member's accumulated contributions as 47
	100	+	required under G.S. 128-30(b)(1) for all years during which the member 48
	101	+	earned membership service, other than service earned through armed service 49
	102	+	credit under G.S. 128-26(a1), G.S. 128-26(j1), G.S. 128-26 or G.S. 128-26.5, 50 General Assembly Of North Carolina Session 2025
	103	+	DRH10109-MRp-64 Page 3
	104	+	used in the calculation of the retirement allowance that the member would 1
	105	+	receive under this section." 2
	106	+	SECTION 3. This act is effective when it becomes law and applies to members who 3
	107	+	are first hired as teachers on or after that date. 4