GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 363
Short Title: DST Technical Corrections/Admin. Changes 2025.-AB (Public)
Sponsors: Senators Alexander, Ford, and Hanig (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 24, 2025
*S363 -v-1*
A BILL TO BE ENTITLED 1
AN ACT MAKING TECHNI CAL CORRECTIONS AND ADMINISTRATIVE CHANG ES 2
TO THE LAWS GOVERNIN G AND RELATED TO THE DEPARTMENT OF STATE 3
TREASURER. 4
The General Assembly of North Carolina enacts: 5
6
PART I. EXTEND THE PROVISIONAL ENTRY PER IOD OF CHARTER SCHOOLS 7
IN THE TEACHERS' AND STATE EMPLOYEES' RE TIREMENT SYSTEM 8
SECTION 1.1. G.S. 135-5.3 reads as rewritten: 9
"§ 135-5.3. Optional participation for charter schools operated by private nonprofit 10
corporations or municipalities. 11
… 12
(b3) A charter school seeking to become a participating employer in the Retirement 13
System prior to the end of the second year of operation shall be granted provisional entry into the 14
Retirement System for one year. In the event the employee or employer contributions required 15
under G.S. 135-8(f) are not received by the date set by the Board of Trustees, the Board of 16
Trustees may revoke the charter school's provisional entry into the Retirement System. The 17
Board must notify a charter school in writing not less than 90 days prior to revoking a charter 18
school's provisional entry into the Retirement System. One year after the charter school was 19
granted After the charter school's initial year of provisional entry into the Retirement System, the 20
charter school shall undergo an actuarial and financial review as required by the Board of 21
Trustees.Trustees may extend the charter school's provisional entry by up to two additional years 22
or the charter school may apply to become a participating employer in the Retirement System. If 23
the Board of Trustees extends the charter school's provisional entry under this subsection, then 24
the charter school may apply to become a participating employer in the Retirement System at 25
any time during the extended period of provisional entry. 26
(b4) A charter school seeking to applying to become a participating employer in the 27
Retirement System after the end of the initial year of operation but before the end of the second 28
year of operation may period, or during the extended period, of provisional entry shall undergo 29
an actuarial review and a financial review as required by the Board of Trustees prior to entry into 30
the Retirement System. A charter school seeking to become a participating employer in the 31
Retirement System after the end of the second year of operation shall undergo an actuarial and 32
financial review as required by the Board of Trustees prior to entry into the Retirement System.a 33
decision on the application. 34
… 35 General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 363-First Edition
(b6) The financial review required under this section will be based on financial statements 1
and independent audit reports or functionally equivalent reports submitted to the Board of 2
Trustees by the charter school. Any charter school that is unable to provide this required 3
information shall not be granted entry into the Retirement System. 4
…." 5
SECTION 1.2. This Part applies to any charter schools that seek to become a 6
participating employer in the Teachers' and State Employees' Retirement System, or are in the 7
initial period of provisional entry into the Retirement System, on or after the date that this act 8
becomes law. 9
10
PART II. REQUIRE THE BOARD OF TRUSTEES R ATHER THAN THE STATE 11
TREASURER TO DETERMI NE THE REVERSAL OF B ENEFITS FORFEITED DU E 12
TO FELONIOUS CONDUCT UNDER THE TEACHERS' AND STATE EMPLOYEES ' 13
RETIREMENT SYSTEM, T HE LOCAL GOVERNMENTA L RETIREMENT SYSTEM, 14
THE CONSOLIDATED JUD ICIAL RETIREMENT SYS TEM, AND THE 15
LEGISLATIVE RETIREME NT SYSTEM 16
SECTION 2.1.(a) G.S. 135-18.10A(c) reads as rewritten: 17
"(c) If a member or former member whose benefits under the Retirement System were 18
forfeited under this section, except for the return of member contributions plus interest, 19
subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set 20
aside for any reason, then the member or former member may seek a reversal of the benefit 21
forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State 22
Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all 23
benefits will be restored upon repayment of all accumulated contributions plus interest. 24
Repayment of all accumulated contributions that have been received by the individual under the 25
forfeiture provisions of this section must be made in a total lump-sum payment with interest 26
compounded annually at a rate of six and one-half percent (6.5%) for each calendar year from 27
the year of forfeiture to the year of repayment. An individual receiving a reversal of benefit 28
forfeiture must receive reinstatement of the service credit forfeited." 29
SECTION 2.1.(b) G.S. 128-38.4A(c) reads as rewritten: 30
"(c) If a member or former member whose benefits under the Retirement System were 31
forfeited under this section, except for the return of member contributions plus interest, 32
subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set 33
aside for any reason, then the member or former member may seek a reversal of the benefit 34
forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State 35
Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all 36
benefits will be restored upon repayment of all accumulated contributions plus interest. 37
Repayment of all accumulated contributions that have been received by the individual under the 38
forfeiture provisions of this section must be made in a total lump-sum payment with interest 39
compounded annually at a rate of six and one-half percent (6.5%) for each calendar year from 40
the year of forfeiture to the year of repayment. An individual receiving a reversal of benefit 41
forfeiture must receive reinstatement of the service credit forfeited." 42
SECTION 2.1.(c) G.S. 135-75.1A(c) reads as rewritten: 43
"(c) If a member or former member whose benefits under the Retirement System were 44
forfeited under this section, except for the return of member contributions plus interest, 45
subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set 46
aside for any reason, then the member or former member may seek a reversal of the benefit 47
forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State 48
Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all 49
benefits will be restored upon repayment of all accumulated contributions plus interest. 50
Repayment of all accumulated contributions that have been received by the individual under the 51 General Assembly Of North Carolina Session 2025
Senate Bill 363-First Edition Page 3
forfeiture provisions of this section must be made in a total lump-sum payment with interest 1
compounded annually at a rate of six and one-half percent (6.5%) for each calendar year from 2
the year of forfeiture to the year of repayment. An individual receiving a reversal of benefit 3
forfeiture must receive reinstatement of the service credit forfeited." 4
SECTION 2.1.(d) G.S. 120-4.33A(c) reads as rewritten: 5
"(c) If a member or former member whose benefits under the Retirement System were 6
forfeited under this section, except for the return of member contributions plus interest, 7
subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set 8
aside for any reason, then the member or former member may seek a reversal of the benefit 9
forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State 10
Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all 11
benefits will be restored upon repayment of all accumulated contributions plus interest. 12
Repayment of all accumulated contributions that have been received by the individual under the 13
forfeiture provisions of this section must be made in a total lump-sum payment with interest 14
compounded annually at a rate of six and one-half percent (6.5%) for each calendar year from 15
the year of forfeiture to the year of repayment. An individual receiving a reversal of benefit 16
forfeiture must receive reinstatement of the service credit forfeited." 17
18
PART III. CLARIFICATION OF FEES SUBMITTED TO TH E STATE TREASURER 19
FOR THE LIMITED PRAC TICE OF OUT-OF-STATE ATTORNEYS 20
SECTION 3.1. G.S. 84-4.1 reads as rewritten: 21
"§ 84-4.1. Limited practice of out-of-state attorneys. 22
Any attorney domiciled in another state, and regularly admitted to practice in the courts of 23
record of and in good standing in that state, having been retained as attorney for a party to any 24
civil or criminal legal proceeding pending in the General Court of Justice of North Carolina, the 25
North Carolina Utilities Commission, the North Carolina Industrial Commission, the Office of 26
Administrative Hearings of North Carolina, or any administrative agency, may, on motion to the 27
relevant forum, be admitted to practice in that forum for the sole purpose of appearing for a client 28
in the proceeding. The motion required under this section shall be signed by the attorney and 29
shall contain or be accompanied by:by all of the following: 30
… 31
(7) A fee in the amount of two hundred twenty-five dollars ($225.00) submitted 32
and made payable to one of the following: (i) for judicial proceedings, the 33
presiding clerk of court and (ii) for administrative proceedings, the presiding 34
administrative agency. The clerk of court or administrative agency shall: (i) 35
remit transfer, by way of the State's electronic accounting system, two hundred 36
dollars ($200.00) of the fee collected to the State Treasurer North Carolina 37
Administrative Office of the Courts for support of the General Court of 38
Justice, and (ii) transmit twenty-five dollars ($25.00) of the fee collected to 39
the North Carolina State Bar to regulate the practice of out-of-state attorneys 40
as provided in this section. 41
Compliance with the foregoing requirements does not deprive the court of the discretionary 42
power to allow or reject the application." 43
44
PART IV. ABLE ACCOUNTS MODIFICATION 45
SECTION 4.1.(a) G.S. 147-86.73 reads as rewritten: 46
"§ 147-86.73. Administration of ABLE Program. 47
… 48
(e) Claim for Medical Assistance Benefits. – To the extent provided in subsection 26 49
U.S.C. § 529A(f) Unless required by federal law, upon the death of a designated beneficiary, the 50
State shall have not file a claim pursuant to 20 U.S.C. § 529A(f) for payment from the 51 General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 363-First Edition
beneficiary's account in an amount equal to the total for any medical assistance paid for the 1
designated beneficiary after the establishment of the account. beneficiary. The State may shall 2
file its claim for repayment from the account with the State Treasurer within 60 days of receiving 3
notice from the State Treasurer of the death of the designated beneficiary. Any remaining funds 4
in the beneficiary's account shall be distributed as provided in the account agreement or 5
distributed to the beneficiary's estate if no other designation is made. 6
(f) Notice of the Death of a Designated Beneficiary. – Within 30 days of the date the 7
State Treasurer receives notice of the death of a designated beneficiary, the State Treasurer shall 8
provide notice of the designated beneficiary's death to the Department of Health and Human 9
Services, Division of Health Benefits. 10
… 11
(g1) Notice for Designated Beneficiary Receiving Medicaid. – The ABLE Account 12
application package approved in accordance with G.S. 147-86.71(b)(1) shall include notice of 13
the State's right under subsection (e) of this section to file a claim for payment only if required 14
by federal law from a designated beneficiary's ABLE account following the death of a beneficiary 15
who received medical assistance benefits. 16
… 17
(i) The Department of Health and Human Services shall provide information and 18
assistance to the Department of State Treasurer and shall enter into a data-sharing agreement with 19
the Department of State Treasurer for the purpose of the ongoing implementation of this act. The 20
Department of State Treasurer shall consult with other departments as needed." 21
SECTION 4.1.(b) This section is effective when it becomes law and applies to deaths 22
of designated beneficiaries on or after that date. 23
24
PART V. CORRECT STAT UTORY REFERENCES TO RESTORATION OF SERVI CE 25
AS AN EMPLOYEE OR TEACHER IN THE TE ACHERS' AND STATE EM PLOYEES' 26
RETIREMENT SYSTEM 27
SECTION 5.1.(a) G.S. 120-32(1) reads as rewritten: 28
"(1) Determine the number, titles, classification, functions, compensation, and 29
other conditions of employment of the joint legislative service employees of 30
the General Assembly, including but not limited to the following departments: 31
a. Legislative Services Officer and personnel. 32
… 33
Temporary employees The provisions of G.S. 135-3(a)(8)c. do not apply to 34
temporary employees of the General Assembly are exempt from the 35
provisions of G.S. 135-3(8)c., as to with respect to compensation earned in 36
that status.while a temporary employee of the General Assembly." 37
SECTION 5.1.(b) G.S. 135-3(a)(8) reads as rewritten: 38
"(8) The provisions of this subsection (8) subdivision shall apply to any member 39
whose membership is terminated on or after July 1, 1963 and who becomes 40
entitled to benefits hereunder in accordance with the provisions hereof:all of 41
the following provisions: 42
… 43
c. Should Unless otherwise provided, if a beneficiary who retired on an 44
early or service retirement allowance under this Chapter be Article is 45
reemployed by, or otherwise engaged to perform services for, an 46
employer participating in the Retirement System on a part time, 47
temporary, interim, or on a fee for service basis, whether contractual 48
or otherwise, except as provided in G.S. 120-32(1), and if such the 49
beneficiary earns an amount during the 12 month period immediately 50
following the effective date of retirement or in any calendar year which 51 General Assembly Of North Carolina Session 2025
Senate Bill 363-First Edition Page 5
exceeds fifty percent (50%) of the reported compensation, excluding 1
terminal payments, during the 12 months of service preceding the 2
effective date of retirement, or twenty thousand dollars ($20,000), 3
whichever is greater, as hereinafter indexed, then the retirement 4
allowance shall be suspended as of the first day of the month following 5
the month in which the reemployment earnings exceed the amount 6
above, indexed amount, for the balance of the calendar year, except 7
when unless the reemployment earnings exceed the amount above 8
indexed amount in the month of December, in which case December. 9
If the reemployment earnings exceed the indexed amount in 10
December, then the retirement allowance shall not be suspended. The 11
A suspended retirement allowance of the beneficiary shall be 12
reinstated as of January 1 of each year following suspension. The 13
amount that may be earned before suspension shall be increased on 14
January 1 of each year by the percentage change between the 15
December Consumer Price Index in the year prior to retirement and 16
the December Consumer Price Index in the year most recently ended, 17
calculated to the nearest tenth of a percent (1/10 of 1%), provided that 18
this percentage change is positive. 19
c1. Within 90 days of the end of each month in which a beneficiary is 20
reemployed under the provisions of sub-subdivision c. of this 21
subdivision, each employer shall provide a report for that month on 22
each reemployed beneficiary, including the terms of the 23
reemployment, the date of the reemployment, and the amount of the 24
monthly compensation. If the required report is not received within the 25
required 90 days, the Board may do any or all of the following: 26
… 27
e. Any beneficiary who retired on an early or service retirement 28
allowance as an employee of any State department, agency or 29
institution under the Law Enforcement Officers' Retirement System 30
and becomes employed as an employee by a State department, agency, 31
or institution as an employer participating in the Retirement System 32
shall become subject to the provisions of G.S. 135-3(8)c and 33
G.S. 135-3(8)d sub-subdivisions c. and d. of this subdivision on and 34
after January 1, 1989. 35
…." 36
SECTION 5.1.(c) G.S. 135-3(b) reads as rewritten: 37
"(b) Notwithstanding the provisions of sub-subdivsions sub-subdivisions c. and d. of 38
subdivision (8) (a)(8) of this section to the contrary, a beneficiary who was a beneficiary retired 39
on an early or service retirement with the Law Enforcement Officers' Retirement System at the 40
time of the transfer of law enforcement officers employed by the State and beneficiaries last 41
employed by the State to this Retirement System on January 1, 1985, and who also was a 42
contributing member of this Retirement System on January 1, 1985, shall continue to be paid his 43
or her retirement allowance without restriction and may continue as a member of this Retirement 44
System with all the rights and privileges appendant to membership." 45
SECTION 5.1.(d) G.S. 135-5(hh) reads as rewritten: 46
"(hh) Notwithstanding any other provision of this Chapter, from and after July 1, 1983, the 47
retirement allowance payable to each teacher and State employee, who retired prior to July 1, 48
1973, and who is in receipt of a reduced retirement allowance based upon 30 or more years of 49
contributing membership service, shall be increased by the elimination of the reduction factors 50
applicable at the time of their retirement under G.S. 135-3(8) G.S. 135-3(a)(8) or G.S. 135-5(b3). 51 General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 363-First Edition
The provisions of this subsection shall apply equally to the allowance of a surviving annuitant of 1
a beneficiary." 2
SECTION 5.1.(e) G.S. 135-5.1(a)(4) reads as rewritten: 3
"(4) Field faculty of the Cooperative Agriculture Extension Service, and tenure 4
track faculty in North Carolina State University agriculture research programs 5
who are exempt from the North Carolina Human Resources Act and who are 6
eligible for membership in the Teachers' and State Employees' Retirement 7
System pursuant to G.S. 135-3(1), who in any of the cases described in this 8
subsection (i) who either had been members of the Optional Retirement 9
Program under the provisions of Chapter 338, Session Laws of 1971, 10
immediately prior to July 1, 1985, or (ii) or have sought membership as 11
required in subsection (b), below. subsection (b) of this section. Under the 12
Optional Retirement Program, the State and the participant shall contribute, 13
to the extent authorized or required, toward the purchase of such contracts 14
under subsection (b) of this section or deposited in such trust on the 15
participant's behalf." 16
SECTION 5.1.(f) G.S. 135-27(e)(3) reads as rewritten: 17
"(3) Terminate contributing membership service and be entitled alternatively to the 18
benefits and allowances provided under G.S. 135-3(8) G.S. 135-3(a)(8) or 19
G.S. 135-5(a)." 20
SECTION 5.1.(g) G.S. 143B-1491(e) reads as rewritten: 21
"(e) The members of the Commission shall receive the salary fixed by the General 22
Assembly in the Current Operations Appropriations Act and shall receive necessary travel and 23
subsistence expenses in accordance with the provisions of G.S. 138-6. Notwithstanding any other 24
provision of law, the The half-time members of the Commission shall not be subject to the 25
provisions of G.S. 135-3(8)(c).G.S. 135-3(a)(8)c." 26
27
PART VI. CORRECT REF ERENCE TO ARTICLE 11 OF CHAPTER 159 OF T HE 28
GENERAL STATUTES 29
SECTION 6.1.(a) G.S. 153A-82 reads as rewritten: 30
"§ 153A-82. Powers and duties of manager. 31
(a) The manager is the chief administrator of county government. The manager is 32
responsible to the board of commissioners for the administration of all departments of county 33
government under the board's general control and has the following powers and duties: 34
… 35
(9) The manager shall receive a minimum of six clock hours of education upon 36
the occurrence, or within six months of the occurrence, of any of the 37
following: 38
a. The Local Government Commission is exercising its authority under 39
Article 10 11 of Chapter 159 of the General Statutes with respect to 40
the county. 41
b. The county has received a unit letter from the Local Government 42
Commission due to a deficiency in complying with Chapter 159 of the 43
General Statutes. 44
…." 45
SECTION 6.1.(b) G.S. 159-25 reads as rewritten: 46
"§ 159-25. Duties of finance officer; dual signatures on checks; internal control procedures 47
subject to Commission regulation. 48
… 49
(d) The Local Government Commission has the authority to require any finance officer 50
or any other employee who performs the duties of a finance officer to participate in training 51 General Assembly Of North Carolina Session 2025
Senate Bill 363-First Edition Page 7
related to the powers, duties, and responsibilities of the finance officer under any of the following 1
circumstances: (i) the Commission is exercising its authority under Article 10 11 of this Chapter 2
with respect to the employing local government or public authority, (ii) the employing local 3
government or public authority has received a unit letter from the Commission due to a deficiency 4
in complying with this Chapter, (iii) the employing local government or public authority has an 5
internal control material weakness or significant deficiency in the most recently completed 6
financial audit, or (iv) the finance officer fails to annually meet or attest to the minimum 7
qualifications of the position, as established by the Commission. The training may be provided 8
by the Commission, the School of Government at the University of North Carolina, the North 9
Carolina Community College System, the North Carolina League of Municipalities, the North 10
Carolina Association of County Commissioners, or other qualified sources at the choice of the 11
governing board and upon the prior approval of the Commission. When the Commission requires 12
a finance officer or other employee to participate in training as authorized in this subsection, the 13
Commission shall notify the finance officer or other employee and the employing local 14
government or public authority of the required training. Upon completion of the required training 15
by the finance officer or other employee, the employing local government or public authority 16
shall submit, in writing, to the Commission proof that the training requirements have been 17
satisfied. 18
(e) The Local Government Commission may require any local government or public 19
authority to contract with outside entities in accordance with the terms of subdivision (9) of 20
subsection (a) of this section if the local government or public authority has received a unit letter 21
from the Commission due to a deficiency in complying with this Chapter or the local government 22
or public authority has an internal control finding in the most recently completed financial audit." 23
SECTION 6.1.(c) G.S. 160A-148 reads as rewritten: 24
"§ 160A-148. Powers and duties of manager. 25
(a) The manager shall be the chief administrator of the city. The manager shall be 26
responsible to the council for administering all municipal affairs placed in the manager's charge 27
by the council, and shall have the following powers and duties: 28
… 29
(9) The manager shall receive a minimum of six clock hours of education upon 30
the occurrence, or within six months of the occurrence, of any of the 31
following: 32
a. The Local Government Commission is exercising its authority under 33
Article 10 11 of Chapter 159 of the General Statutes with respect to 34
the city. 35
b. The city has received a unit letter from the Local Government 36
Commission due to a deficiency in complying with Chapter 159 of the 37
General Statutes. 38
…." 39
40
PART VII. MISCELLANEOUS TECHNICAL AND CONFOR MING CHANGES 41
SECTION 7.1. G.S. 120-4.21(b2)(3) reads as rewritten: 42
"(3) For a member whose retirement date occurs on or after his the member's 50th 43
birthday and before his the member's 60th birthday and upon completion of 44
20 years of creditable service, computation as in subdivision (2) of this 45
subsection, reduced by the same percentage as provided for in Article 1 of 46
Chapter 135 of the General Statutes.under G.S. 135-5(b21)(2)." 47
SECTION 7.2. G.S. 120-4.28 reads as rewritten: 48
"§ 120-4.28. Survivor's alternate benefit. 49
(a) The designated beneficiary of If a member who dies in service before retirement but 50
after age 60 and after completing five years of creditable service or after completing 12 years of 51 General Assembly Of North Carolina Session 2025
Page 8 Senate Bill 363-First Edition
creditable service service, then the principal beneficiary designated by that member to receive a 1
return of accumulated contributions under G.S. 120-4.25 is entitled to Option 2 prescribed by 2
G.S. 120-4.26. 3
(b) In the event that If a retirement allowance becomes payable under this section to the 4
principal beneficiary designated to receive a return of accumulated contributions pursuant to this 5
subsection and that principal beneficiary dies before the total of the retirement allowances paid 6
equals is equal to or greater than the amount of those the member's accumulated contributions 7
over the total of the retirement allowances paid to the beneficiary, contributions, then the 8
allowance excess of those accumulated contributions over the total of the retirement allowance 9
paid to the principal beneficiary shall be paid in a lump sum to the person or persons the member 10
has designated as the contingent beneficiary for return of accumulated contributions, if the person 11
or persons contributions under G.S. 120-4.25. 12
(c) If a retirement allowance becomes payable under this section and the principal 13
beneficiary is not living at the time the payment falls due, then the retirement allowance shall be 14
paid to the contingent beneficiary designated to receive a return of accumulated contributions 15
under G.S. 120-4.25. If that contingent beneficiary dies before the total of the retirement 16
allowances paid is equal to or greater than the amount of the member's accumulated 17
contributions, then the excess of those accumulated contributions over the total of the retirement 18
allowances paid to the contingent beneficiary shall be paid in a lump sum to the contingent 19
beneficiary's legal representative. 20
(d) If no beneficiaries are living at the time the payment required under this section first 21
falls due, otherwise to then the allowance shall be paid in a lump sum to the principal beneficiary's 22
legal representative. In the event that a retirement allowance becomes payable to the contingent 23
beneficiary designated to receive a return of accumulated contributions pursuant to subsection 24
(m) of this section and that beneficiary dies before the total of the retirement allowances paid 25
equals the amount of the accumulated contributions of the member at the date of the member's 26
death, the excess of those accumulated contributions over the total of the retirement allowances 27
paid to the beneficiary shall be paid in a lump sum to the contingent beneficiary's legal 28
representative." 29
SECTION 7.3. G.S. 128-28(c) reads as rewritten: 30
"(c) Members of Board. – The Board shall consist of (i) five members of the Board of 31
Trustees of the Teachers' and State Employees' Retirement System appointed under 32
G.S. 135-6(b): the State Treasurer; the Superintendent of Public Instruction; the two members 33
appointed by the General Assembly; and one of the two members appointed by the Governor 34
who are not members of the teaching profession or State employees; and (ii) eight members 35
designated by the Governor:Governor. The members designated by the Governor are as follows: 36
(1) One member shall be a mayor or a member of the governing body of a city or 37
town participating in the Retirement System;System. 38
(2) One member shall be a county commissioner of a county participating in the 39
Retirement System;System. 40
(3) One member shall be a law-enforcement officer employed by an employer 41
participating in the Retirement System;System. 42
(4) One member shall be a county manager of a county participating in the 43
Retirement System;System. 44
(5) One member shall be a city or town manager of a city or town participating in 45
the Retirement System;System. 46
(6) One member shall be an active, Fair Labor Standards Act nonexempt, local 47
governmental employee of an employer;employer. 48
(7) One member shall be a retired, Fair Labor Standards Act nonexempt, local 49
governmental employee of an employer; andemployer. 50 General Assembly Of North Carolina Session 2025
Senate Bill 363-First Edition Page 9
(8) One member shall be an active or retired member of the Firemen's North 1
Carolina Firefighters' and Rescue Squad Workers' Pension Fund. 2
The Governor shall designate eight members on April 1 of years in which an election is held 3
for the office of Governor, or as soon thereafter as possible, and each of the eight members 4
designated by the Governor shall serve on the Board in addition to the regular duties of their the 5
member's city, town, or county office: Provided, that if office. If for any reason any member 6
appointed pursuant to subdivisions (1) through (6) of this subsection vacates the city, town, or 7
county office or employment which that the member held at the time of this designation, then the 8
Governor shall designate another member to serve until the next regular date for the designation 9
of members to serve on the Board." 10
SECTION 7.4. G.S. 128-26A is redesignated as G.S. 128-26.1. 11
SECTION 7.5. G.S. 135-48.40(d)(10) reads as rewritten: 12
"(d) Fully Contributory Coverage. – The following persons shall be eligible for coverage 13
under the Plan, on a fully contributory basis, subject to the provisions of G.S. 135-48.43: 14
… 15
(10) Any eligible dependent child of the deceased retiree, teacher, State employee, 16
member of the General Assembly, former member of the General Assembly, 17
or Disability Income Plan beneficiary, provided the child was covered at the 18
time of death of the retiree, teacher, State employee, member of the General 19
Assembly, former member of the General Assembly, or Disability Income 20
Plan beneficiary, (or was in posse at the time and is covered at birth under this 21
Part), Part, or was covered under the Plan on September 30, 1986. An eligible 22
surviving dependent child can remain covered until age 26 or indefinitely if 23
certified as incapacitated under G.S. 135-44.41(b).G.S. 135-48.41(b)." 24
25
PART VIII. EFFECTIVE DATE 26
SECTION 8.1. This act is effective when it becomes law. 27