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HB 106NORTH CAROLINASession 2025State Billin committee

High Impact

North Carolina revives retired-teacher reemployment program and appropriates $10.1 million

Original title: Revive High-Need Retired Teachers Program.

Last action · April 16, 2025: Re-ref Com On Appropriations (House action)Sponsors: Todd Carver and 35 others

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Would Do

North Carolina reenacts a program allowing retired educators who retired on or before February 1, 2019, to return to work as classroom instructors in high-school or high-need school classrooms without pausing their retirement allowances. The measure exempts postretirement earnings for these teachers, reduces the required separation period before reemployment from six months to two months, and appropriates $10,100,000 to the Department of State Treasurer.

Why it matters

Retired teachers who meet specific retirement dates and service thresholds can resume classroom instruction in high-need schools without losing their monthly retirement benefits, while local school boards must report monthly on their employment and compensation.

Background

The Teachers' and State Employees' Retirement System of North Carolina provides retirement and related benefits for state and public school employees. context
North Carolina previously enacted programs to address teacher shortages by allowing retired educators to return to classrooms under specific statutory exemptions. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

Retired educators

Qualified retired teachers may return to classroom instruction in high-need schools after a two-month separation without losing their monthly retirement allowances.

Directly affected

Local boards of education

Boards must employ eligible retired teachers on annual contracts, submit monthly reports on reemployed beneficiaries, notify the Retirement System by September 15 if no such teachers are employed, and bear correction costs if rules are violated.

Directly affected

Teachers' and State Employees' Retirement System of North Carolina

The retirement system receives administrative cost increases, certifications from the Department of Public Instruction, and $10 million in recurring appropriations to address increased system costs.

Key Facts

Reenacts G.S. 115C-302.4 to revive the program allowing retired educators to return to work in high-need schools.
Applies to beneficiaries of the Teachers' and State Employees' Retirement System who retired on or before February 1, 2019, and meet age and service requirements.
Reduces the required separation period before reemployment from six months to two months for high-need retired teachers.
Excludes postretirement earnings of high-need retired teachers from the standard computation of postretirement earnings limitations.

Show all 12 facts

Requires local boards of education to inform the Retirement System no later than September 15 annually if they will not employ any high-need retired teachers for that school year.
Mandates that employers provide a monthly report within 90 days of the end of each month detailing reemployed beneficiaries, terms of reemployment, dates, and monthly compensation.
Specifies that reemployed high-need retired teachers are not entitled to additional benefits or additional benefit accruals under Chapter 135 as a result of this reemployment.
Requires the State Treasurer to seek a private letter ruling from the IRS to determine if the section jeopardizes the retirement system's status.
Repeals the section on the last day of the month following receipt of an adverse IRS determination, with notice requirements for local school administrative units and high-need retired teachers.
Appropriates the sum of $100,000 in nonrecurring funds for the 2025-2026 fiscal year from the General Fund to the Department of State Treasurer to obtain the private letter ruling.
Appropriates the sum of $10 million in recurring funds for each year of the 2025-2027 fiscal biennium from the General Fund to the Department of State Treasurer to address increased system costs.
Makes the act effective when it becomes law, applying beginning with the 2025-2026 school year.

Frequently Asked Questions

Who is eligible to return to work under this revived program?

Beneficiaries of the Teachers' and State Employees' Retirement System who retired on or before February 1, 2019, and meet specific age and requirements (such as age 65 with five years of service, age 60 with 25 years of service, or 30 years of service) and are reemployed to provide classroom instruction exclusively at a high-need school.

Does returning to work under this program cause a retiree's retirement allowance to cease?

No, the retirement allowance of a beneficiary who retired on an early or service retirement shall not cease due to reemployment as a .

What happens if the IRS determines that the program jeopardizes the retirement system's status?

If the IRS determines that any provision jeopardizes the status of the retirement system, the section is repealed on the last day of the month following receipt of that determination by the State Treasurer, and local school units must be notified.

How much funding is appropriated by this act?

The act appropriates $100,000 in nonrecurring funds for the 2025-2026 fiscal year to obtain an IRS , and $10 million in recurring funds for each year of the 2025-2027 fiscal biennium to cover increased system costs.

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Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

7 actions

Apr 16, 2025House
Re-ref Com On Appropriations
Apr 16, 2025House
Reptd Fav Com Sub 2
Apr 1, 2025House
Re-ref Com On Pensions and Retirement
Apr 1, 2025House
Reptd Fav Com Substitute
Feb 13, 2025House
Ref to the Com on Education - K-12, if favorable, Pensions and Retirement, if favorable, Appropriations, if favorable, Rules, Calendar, and Operations of the House
Feb 13, 2025House
Passed 1st Reading

Show 1 earlier action

Feb 11, 2025HouseIntroduced
Filed

Version history

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