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GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
SESSION LAW 2025-19
HOUSE BILL 476
*H476-v-6*
AN ACT MAKING TECHNI CAL CORRECTIONS AND ADMINISTRATIVE CHANG ES
TO THE LAWS GOVERNIN G AND RELATED TO THE DEPARTMENT OF STATE
TREASURER.
The General Assembly of North Carolina enacts:
PART I. EXTEND THE P ROVISIONAL ENTRY PER IOD OF CHARTER SCHOO LS
IN THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM
SECTION 1.1. G.S. 135-5.3 reads as rewritten:
"§ 135 -5.3. Optional participation for charter schools operated by private nonprofit
corporations or municipalities.
…
(b3) A charter school seeking to become a participating employer in the Retirement
System prior to the end of the second year of operation shall be granted provisional entry into the
Retirement System for one year. In the event the employee or employer contributions required
under G.S. 135-8(f) are not received by the date set by the Board of Trustees, the Board of
Trustees may revoke the charter school's provisional entry into the Retirement System. The
Board must notify a charter school in writing not less than 90 days prior to revoking a chart er
school's provisional entry into the Retirement System. One year after the charter school was
granted After the charter school's initial year of provisional entry into the Retirement System, the
charter school shall undergo an actuarial and financial rev iew as required by the Board of
Trustees.Trustees may extend the charter school's provisional entry by up to two additional years
or the charter school may apply to become a participating employer in the Retirement System. If
the Board of Trustees extends the charter school's provisional entry under this subsection, th en
the charter school may apply to become a participating employer in the Retirement System at
any time during the extended period of provisional entry.
(b4) A charter school seeking to applying to become a participating employer in the
Retirement System after the end of the initial year of operation but before the end of the second
year of operation may period, or during the extended period, of provisional entry shall undergo
an actuarial review and a financial review as required by the Board of Trustees prior to entry into
the Retirement System. A charter school seeking to become a participating employer in the
Retirement System after the end of the second year of operation shall undergo a n actuarial and
financial review as required by the Board of Trustees prior to entry into the Retirement System.a
decision on the application.
…
(b6) The financial review required under this section will be based on financial statements
and independent audit reports or functionally equivalent reports submitted to the Board of
Trustees by the charter school. Any charter school that is unable to provide this required
information shall not be granted entry into the Retirement System.
….
(b8) Upon acceptance by the Board of Trustees of the application to become a participating
employer, the charter school shall be a fully participating employer in the Retirement System.
Page 2 Session Law 2025-19 House Bill 476
The Board may make the final decision for acceptance of the application contingent upon th e
receipt of a financially sound independent audit report for the fiscal year ending prior to
acceptance of the application.application, if the charter school applied for entry within two years
of the charter school's effective date of entry.
…
(b10) Any charter school approved by the Board of Trustees contingent upon receiving a
financially sound independent audit repor t pursuant to subsection (b8) of this section shall
continue its period of provisional entry for up to one year or until the Board has deni ed their
application for entry in the Retirement System, whichever is earlier. The charter school shall
cease participation in the Retirement System the first of the month following the month its (i)
provisional period ends or (ii) the application is denied by the Board.
…."
SECTION 1.2. This Part applies to any charter schools that seek to become a
participating employer in the Teachers' and State Employees' Retirement System, or are in the
initial period of provisional entry into the Retirement System, on or after the date that this ac t
becomes law.
PART II. REQUIRE THE BOARD OF TRUSTEES R ATHER THAN THE STATE
TREASURER TO DETERMI NE THE REVERSAL OF B ENEFITS FORFEITED DU E
TO FELONIOUS CONDUCT UNDER THE TEACHERS' AND STATE EMPLOYEES '
RETIREMENT SYSTEM, T HE LOCAL GOVERNMENTA L EMPLOYEES'
RETIREMENT SYSTEM, THE CONSOLIDATED JUDICI AL RETIREMENT
SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM
SECTION 2.1.(a) G.S. 135-18.10A(c) reads as rewritten:
"(c) If a member or former member whose benefits under the Retirement System were
forfeited under th is section, except for the return of member contributions plus interest,
subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set
aside for any reason, then the member or former member may seek a reversal of the benef it
forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State
Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all
benefits will be restored upon repayment of all acc umulated contributions plus interest.
Repayment of all accumulated contributions that have been received by the individual under the
forfeiture provisions of this section must be made in a total lump -sum payment with interest
compounded annually at a rate of six and one -half percent (6.5%) for each calendar year from
the year of forfeiture to the year of repayment. An individual receiving a reversal of benefit
forfeiture must receive reinstatement of the service credit forfeited."
SECTION 2.1.(b) G.S. 128-38.4A(c) reads as rewritten:
"(c) If a member or former member whose benefits under the Retirement System were
forfeited under this section, except for the return of member contributions plus interest,
subsequently receives an unconditional pardon of innoc ence, or the conviction is vacated or set
aside for any reason, then the member or former member may seek a reversal of the benefit
forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State
Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all
benefits will be restored upon repayment of all accumulated contributions plus interest.
Repayment of all accumulated contributions that have been received by the individual under the
forfeiture provisions of this section must be made in a total lump -sum payment with interest
compounded annually at a rate of six and one -half percent (6.5%) for each calendar year from
the year of forfeiture to the year of repayment. An individual r eceiving a reversal of benefit
forfeiture must receive reinstatement of the service credit forfeited."
SECTION 2.1.(c) G.S. 135-75.1A(c) reads as rewritten:
House Bill 476 Session Law 2025-19 Page 3
"(c) If a member or former member whose benefits under the Retirement System were
forfeited under this section, except for the return of member contributions plus interest,
subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set
aside for any reason, then the member or former member ma y seek a reversal of the benefit
forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State
Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all
benefits will be restored upon repayment of all accumulated contributions plus interest.
Repayment of all accumulated contributions that have been received by the individual under the
forfeiture provisions of this section must be made in a total lump -sum payment with inter est
compounded annually at a rate of six and one -half percent (6.5%) for each calendar year from
the year of forfeiture to the year of repayment. An individual receiving a reversal of benefit
forfeiture must receive reinstatement of the service credit forfeited."
SECTION 2.1.(d) G.S. 120-4.33A(c) reads as rewritten:
"(c) If a member or former member whose benefits under the Retirement System were
forfeited under this section, except for the return of member contributions plus interest,
subsequently receives an unconditional pardon of innocence, or the conviction is vacated or set
aside for any reason, then the member or former member may seek a reversal of the benefit
forfeiture by presenting sufficient evidence to the State Treasurer. Board of Trustees. If the State
Treasurer Board of Trustees determines a reversal of the benefit forfeiture is appropriate, then all
benefits will be restored upon repayment of all accumulated contributions plus interest.
Repayment of all accumulated contributions that have been received by the individual under the
forfeiture provisions of this section must be made in a total lump -sum payment with interest
compounded annually at a rate of six and one -half percent (6.5%) for each calendar year from
the year of forfeiture to the year of repayment. An individual receiving a reversal of benefit
forfeiture must receive reinstatement of the service credit forfeited."
PART III. CLARIFICAT ION OF FEES SUBMITTE D TO THE STATE TREAS URER
FOR THE LIMITED PRACTICE OF OUT-OF-STATE ATTORNEYS
SECTION 3.1. G.S. 84-4.1 reads as rewritten:
"§ 84-4.1. Limited practice of out-of-state attorneys.
Any attorney domiciled in another state, and regularly admitted to practice in the courts of
record of and in good standing in that state, having been retai ned as attorney for a party to any
civil or criminal legal proceeding pending in the General Court of Justice of North Carolina, the
North Carolina Utilities Commission, the North Carolina Industrial Commission, the Office of
Administrative Hearings of North Carolina, or any administrative agency, may, on motion to the
relevant forum, be admitted to practice in that forum for the sole purpose of appearing for a client
in the proceeding. The motion required under this section shall be signed by the attorney and
shall contain or be accompanied by:by all of the following:
…
(7) A fee in the amount of two hundred twenty -five dollars ($225.00) submitted
and made payable to one of the following: (i) for judicial proceedings, the
presiding clerk of court and (ii) for administrative proceedings, the presiding
administrative agency. The clerk of court or administrative agency shall: (i)
remit transfer, by way of the State's electronic accounting system, two hundred
dollars ($200.00) of the fee collected to the State Treasurer North Carolina
Administrative Office of the Courts for support of the General Court of
Justice, and (ii ) transmit twenty -five dollars ($25.00) of the fee collected to
the North Carolina State Bar to regulate the practice of out -of-state attorneys
as provided in this section.
Compliance with the foregoing requirements does not deprive the court of the discre tionary
power to allow or reject the application."
Page 4 Session Law 2025-19 House Bill 476
PART IV. ABLE ACCOUNTS MODIFICATION
SECTION 4.1.(a) G.S. 147-86.73 reads as rewritten:
"§ 147-86.73. Administration of ABLE Program.
…
(e) Claim for Medical Assistance Benefits. – To the extent provided in subsection 26
U.S.C. § 529A(f) Unless required by federal law, upon the death of a designated beneficiary, the
State shall have not file a claim pursuant to 2 6 U.S.C. § 529A(f) for payment from the
beneficiary's account in an amount equal to the total for any medical assistance paid for the
designated beneficiary after the establishment of the account. beneficiary. The State may shall
file its claim for repayment from the account with the State Treasurer within 60 days of receiving
notice from the State Treasurer of the death of the designated beneficiary. Any remaining funds
in the beneficiary's account shall be distributed as provided in the account agreement or
distributed to the beneficiary's estate if no other designation is made.
(f) Notice of the Death of a Designated Beneficiary. – Within 30 days of the date the
State Treasurer receives notice of the death of a designated beneficiary, the State Treasurer shall
provide notice of the designated beneficiary's death to the Department of Health and Hum an
Services, Division of Health Benefits.
…
(g1) Notice for Designated Beneficiary Receiving Medicaid. – The ABLE Account
application package approved in accordance with G.S. 147-86.71(b)(1) shall include notice of
the State's right under subsection (e) of this section to file a claim for payment only if required
by federal law from a designated beneficiary's ABLE account following the death of a beneficiary
who received medical assistance benefits.
…
(i) The Department of Health and Human Services shall pr ovide information and
assistance to the Department of State Treasurer and shall enter into a data-sharing agreement with
the Department of State Treasurer for the purpose of the ongoing implementation of this act. The
Department of State Treasurer shall consult with other departments as needed."
SECTION 4.1.(b) This section is effective when it becomes law and applies to deaths
of designated beneficiaries on or after that date.
PART V. CORRECT STATUTORY REFERENCES TO RESTORATION OF SERVICE
AS AN EMPLOYEE OR TEACHER IN THE TEACHERS' AND STATE EMPLOYEES'
RETIREMENT SYSTEM
SECTION 5.1.(a) G.S. 120-32(1) reads as rewritten:
"(1) Determine the number, titles, classification, functions, compensation, and
other conditions of employment of the joint legislative service employees of
the General Assembly, including but not limited to the following departments:
a. Legislative Services Officer and personnel.
…
Temporary employees The provisions of G.S. 135-3(a)(8)c. do not apply to
temporary employees of the General Assembly are exempt from the
provisions of G.S. 135-3(8)c., as to with respect to compensation earned in
that status.while a temporary employee of the General Assembly."
SECTION 5.1.(b) G.S. 135-3(a)(8) reads as rewritten:
"(8) The provisions of this subsection (8) subdivision shall apply to any member
whose membership is terminated on or after July 1, 1963 and who becomes
entitled to benefits hereunder in accordance with the provisions hereof:all of
the following provisions:
…
House Bill 476 Session Law 2025-19 Page 5
c. Should Unless otherwise provided, if a beneficiary who retired on an
early or service retirement allowance under this Chapter be Article is
reemployed by, or otherwise engaged to perform services for, an
employer participating in the Retirement System on a part t ime,
temporary, interim, or on a fee for service basis, whether contractual
or otherwise, except as provided in G.S. 120 -32(1), and if such the
beneficiary earns an amount during the 12 month period immediately
following the effective date of retirement or in any calendar year which
exceeds fifty percent (50%) of the reported compensation, excluding
terminal payments, during the 12 months of service preceding the
effective date of retirement, or twenty thousand dollars ($20,000),
whichever is greater, as he reinafter indexed, then the retirement
allowance shall be suspended as of the first day of the month following
the month in which the reemployment earnings exceed the amount
above, indexed amount, for the balance of the calendar year, except
when unless the reemployment earnings exceed the amount above
indexed amount in the month of December, in which case December.
If the reemploy ment earnings exceed the indexed amount in
December, then the retirement allowance shall not be suspended. The
A sus pended retirement allowance of the beneficiary shall be
reinstated as of January 1 of each year following suspension. The
amount that may be earned before suspension shall be increased on
January 1 of each year by the percentage change between the
December Consumer Price Index in the year prior to retirement and
the December Consumer Price Index in the year most recently ended,
calculated to the nearest tenth of a percent (1/10 of 1%), provided that
this percentage change is positive.
c1. Within 90 days of the end of each month in which a beneficiary is
reemployed under the provisions of sub -subdivision c. of this
subdivision, each employer shall provide a report for that month on
each reemployed beneficiary, including the terms of the
reemployment, the date of the re employment, and the amount of the
monthly compensation. If the required report is not received within the
required 90 days, the Board may do any or all of the following:
…
e. Any beneficiary who retired on an early or service retirement
allowance as an emp loyee of any State department, agency or
institution under the Law Enforcement Officers' Retirement System
and becomes employed as an employee by a State department, agency,
or institution as an employer participating in the Retirement System
shall become subject to the provisions of G.S. 135-3(8)c and
G.S. 135-3(8)d sub-subdivisions c. and d. of this subdivis ion on and
after January 1, 1989.
…."
SECTION 5.1.(c) G.S. 135-3(b) reads as rewritten:
"(b) Notwithstanding the provisions of sub-subdivsions sub-subdivisions c. and d. of
subdivision (8) (a)(8) of this section to the contrary, a beneficiary who was a beneficiary retired
on an early or service retirement with the Law Enforcement Officers' Retirement System at the
time of the transfer of law enforcem ent officers employed by the State and beneficiaries last
employed by the State to this Retirement System on January 1, 1985, and who also was a
contributing member of this Retirement System on January 1, 1985, shall continue to be paid his
Page 6 Session Law 2025-19 House Bill 476
or her retirement allowance without restriction and may continue as a member of this Retirement
System with all the rights and privileges appendant to membership."
SECTION 5.1.(d) G.S. 135-5(hh) reads as rewritten:
"(hh) Notwithstanding any other provision of this Chapter, from and after July 1, 1983, the
retirement allowance payable to each teacher and State employee, who retired prior to July 1,
1973, and who is in receipt of a reduced retirement allowance based upon 30 or more years of
contributing membership service, shall be increased by the elimination of the reduction factors
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).
The provisions of this subsection shall apply equally to the allowance of a surviving annuitant of
a beneficiary."
SECTION 5.1.(e) G.S. 135-5.1(a)(4) reads as rewritten:
"(4) Field faculty of the Cooperative Agriculture Extension Service, and tenure
track faculty in North Carolina State University agriculture research programs
who are exempt from the North Carolina Human Resources Act and who are
eligible for membership in the Teachers' and State Employees' Retirement
System pursuant to G.S. 135-3(1), who in any of the cases described in this
subsection (i) who either had been members of th e Optional Retirement
Program under the provisions of Chapter 338, Session Laws of 1971,
immediately prior to July 1, 1985, or (ii) or have sought membership as
required in subsection (b), below. subsection (b) of this section. Under the
Optional Retirement Program, the State and the participant shall contribute,
to the extent authorized or required, toward the purchase of such contracts
under subsection (b) of this section or deposited in such trust on the
participant's behalf."
SECTION 5.1.(f) G.S. 135-27(e)(3) reads as rewritten:
"(3) Terminate contributing membership service and be entitled alternatively to the
benefits and allowances provided under G.S. 135-3(8) G.S. 135-3(a)(8) or
G.S. 135-5(a)."
SECTION 5.1.(g) G.S. 143B-1491(e) reads as rewritten:
"(e) The members of the Commission shall receive the salary fixed by the General
Assembly in the Current Operations Appropriations Act and shall receive necessary travel and
subsistence expenses in accordance with the provisions of G.S. 138-6. Notwithstanding any other
provision of law, the The half-time members of the Commission shall not be subject to the
provisions of G.S. 135-3(8)(c).G.S. 135-3(a)(8)c."
PART VI. CORRECT REF ERENCE TO ARTICLE 11 OF CHAPTER 159 OF T HE
GENERAL STATUTES
SECTION 6.1.(a) G.S. 153A-82 reads as rewritten:
"§ 153A-82. Powers and duties of manager.
(a) The manager is the chief administrator of county government. The manager is
responsible to the board of commissioners for the administration of all departments of county
government under the board's general control and has the following powers and duties:
…
(9) The manager shall receive a minimum of six clock hours of education upon
the occurrence, or within six months of the occurrence, of any of the
following:
a. The Local Government Commission is exercising its authority under
Article 10 11 of Chapter 159 of the General Statutes with respect to
the county.
House Bill 476 Session Law 2025-19 Page 7
b. The county has received a unit letter from the Local Government
Commission due to a deficiency in complying with Chapter 159 of the
General Statutes.
…."
SECTION 6.1.(b) G.S. 159-25 reads as rewritten:
"§ 159-25. Duties of finance officer; dual signatures on checks; internal control procedures
subject to Commission regulation.
…
(d) The Local Government Commission has the authority to require any finance officer
or any other employee who performs the duties of a finance officer to participate in training
related to the powers, duties, and responsibilities of the finance officer under any of the following
circumstances: (i) the Commission is exercising its authority under Article 10 11 of this Chapter
with respect to the employing local government or public authority, (ii) the employing local
government or public authority has received a unit letter from the Commission due to a deficiency
in complying with this Chapter, (iii) the employing local government or public authority has an
internal control material weakness or significant deficiency in the most recently completed
financial audit, or (iv) the finance officer f ails to annually meet or attest to the minimum
qualifications of the position, as established by the Commission. The training may be provided
by the Commission, the School of Government at the University of North Carolina, the North
Carolina Community Coll ege System, the North Carolina League of Municipalities, the North
Carolina Association of County Commissioners, or other qualified sources at the choice of the
governing board and upon the prior approval of the Commission. When the Commission requires
a finance officer or other employee to participate in training as authorized in this subsection, the
Commission shall notify the finance officer or other employee and the employing local
government or public authority of the required training. Upon completion of the required training
by the finance officer or other employee, the employing local government or public authority
shall submit, in writing, to the Commission proof that the training requirements have been
satisfied.
(e) The Local Government Commission may require any local government or public
authority to contract with outside entities in accordance with the terms of subdivision (9) of
subsection (a) of this section if the local government or public authority has received a unit letter
from the Commission due to a deficiency in complying with this Chapter or the local government
or public authority has an internal control finding in the most recently completed financial audit."
SECTION 6.1.(c) G.S. 160A-148 reads as rewritten:
"§ 160A-148. Powers and duties of manager.
(a) The manager shall be the chief administrator of the city. The manager shall be
responsible to the council for administering all municipal affairs placed in the manager's charge
by the council, and shall have the following powers and duties:
…
(9) The manager shall receive a minimum of six clock hours of education upon
the occurrence, or within six months of the occurrence, of any of the
following:
a. The Local Government Commission is exercising its authority under
Article 10 11 of Chapter 159 of the General Statutes with respect to
the city.
b. The city has received a unit letter from the Local Government
Commission due to a deficiency in complying with Chapter 159 of the
General Statutes.
…."
PART VII. MISCELLANEOUS TECHNICAL AND CONFORMING CHANGES
Page 8 Session Law 2025-19 House Bill 476
SECTION 7.1. G.S. 120-4.21(b2)(3) reads as rewritten:
"(3) For a member whose retirement date occurs on or after his the member's 50th
birthday and before his the member's 60th birthday and upon completion of
20 years of creditable serv ice, computation as in subdivision (2) of this
subsection, reduced by the same percentage as provided for in Article 1 of
Chapter 135 of the General Statutes.under G.S. 135-5(b21)(2)."
SECTION 7.2. G.S. 120-4.28 reads as rewritten:
"§ 120-4.28. Survivor's alternate benefit.
(a) The designated beneficiary of If a member who dies in service before retirement but
after age 60 and after completing five years of creditable service or after completing 12 years of
creditable service service, then the principal beneficiary designated by that member to receive a
return of accumulated contributions under G.S. 120-4.25 is entitled to Option 2 prescribed by
G.S. 120-4.26.
(b) In the event that If a retirement allowance becomes payable under this section to the
principal beneficiary designated to receive a return of accumulated contributions pursuant to this
subsection and that principal beneficiary dies before the total of the retirement allowances paid
equals is equal to or greater than the amount of those the member's accumulated contributions
over the total of the retirement allowances paid to the beneficiary, contributions, then the
allowance excess of those accumulated contributions over the total of the retirement allowance
paid to the principal beneficiary shall be paid in a lump sum to the person or persons the member
has designated as the contingent beneficiary for return of accumulated contributions, if the person
or persons contributions under G.S. 120-4.25.
(c) If a retirement allowance becomes payable under this section and the principal
beneficiary is not living at the time the payment falls due, then the retirement allowance shall be
paid to the contingent beneficiary designated to receive a return of accumula ted contributions
under G.S. 120-4.25. If that contingent beneficiary dies before the total of the retirement
allowances paid is equal to or greater than the amount of the member's accumulated
contributions, then the excess of those accumulated contributions over the total of the retirement
allowances paid to the contingent beneficiary shall be paid in a lump sum to the contingent
beneficiary's legal representative.
(d) If no beneficiaries are living at the time the payment required under this section first
falls due, otherwise to then the allowance shall be paid in a lump sum to the principal beneficiary's
legal representative. In the event that a retirement allowance becomes payable to the contingent
beneficiary designated to receive a return of accum ulated contributions pursuant to subsection
(m) of this section and that beneficiary dies before the total of the retirement allowances paid
equals the amount of the accumulated contributions of the member at the date of the member's
death, the excess of those accumulated contributions over the total of the retirement allowances
paid to the beneficiary shall be paid in a lump sum to the contingent beneficiary's legal
representative."
SECTION 7.3. G.S. 128-28(c) reads as rewritten:
"(c) Members of Board. – The Board shall consist of (i) five members of the Board of
Trustees of the Teachers' and State Employees' Retirement System appointed under
G.S. 135-6(b): the State Treasurer; the Superintendent of Public Instruction; the two members
appointed by the Gen eral Assembly; and one of the two members appointed by the Governor
who are not members of the teaching profession or State employees; and (ii) eight members
designated by the Governor:Governor. The members designated by the Governor are as follows:
(1) One member shall be a mayor or a member of the governing body of a city or
town participating in the Retirement System;System.
(2) One member shall be a county commissioner of a county participating in the
Retirement System;System.
House Bill 476 Session Law 2025-19 Page 9
(3) One member shall be a law-enforcement officer employed by an employer
participating in the Retirement System;System.
(4) One member shall be a county manager of a county participating in the
Retirement System;System.
(5) One member shall be a city or town manager of a city or town participating in
the Retirement System;System.
(6) One member shall be an active, Fair Labor Standards Act nonexempt, local
governmental employee of an employer;employer.
(7) One member shall be a retired, Fair Labor Standards Act nonexempt, local
governmental employee of an employer; andemployer.
(8) One member shall be an active or retired member of the Firemen's North
Carolina Firefighters' and Rescue Squad Workers' Pension Fund.
The Governor shall designate eight members on April 1 of years in which an election is held
for the office of Governor, or as soon thereafter as possible, and each of the eight members
designated by the Governor shall serve on the Board in addition to the regular duties of their the
member's city, town, or county office: Provided, that if office. If for any reason any member
appointed pursuant to subdivisions (1) through (6) of this subsection vacates the city, town, or
county office or employment which that the member held at the time of this designation, then the
Governor shall designate another member to serve until the next regular date for the designation
of members to serve on the Board."
SECTION 7.4. G.S. 128-26A is redesignated as G.S. 128-26.1.
SECTION 7.5. G.S. 135-48.40(d)(10) reads as rewritten:
"(d) Fully Contributory Coverage. – The following persons shall be eligible for coverage
under the Plan, on a fully contributory basis, subject to the provisions of G.S. 135-48.43:
…
(10) Any eligible dependent child of the deceased retiree, teacher, State employee,
member of the General Assembly, former member of the General Assembly,
or Disability Income Plan beneficiary, provided the child was covered at the
time of death of the retiree, teacher, State employee, member of the General
Assembly, former member of the General Assembly, or Disability Income
Plan beneficiary, (or was in posse at the time and is covered at birth under this
Part), Part, or was covered under the Plan on September 30, 1986. An eligible
surviving dependent child can remain covered until age 26 or indefinitely if
certified as incapacitated under G.S. 135-44.41(b).G.S. 135-48.41(b)."
SECTION 7.6.(a) G.S. 135-7(h)(2) reads as rewritten:
"(h) Legislative Enactment Implementation Arrangement. – The Legislative Enactment
Implementation Arrangement, or LEIA, is established effective October 1, 2017, and placed
under the management of the Board of Trustees. The purpose of the LEIA is to provide for timely
administrative implementation of legislative provisions regarding the retirement of, or payment
of retirement benefits to, public officers or public employees. The LEIA shall have the following
parameters:
…
(2) Funding of the LEIA. – In the event that that (i) the General Assembly creates
or modifies any provision for the retirement of, or payment of retirement
benefits to, public officers or public employees that has a cost savings as
measured by actuarial note required by Article 15 of Chapter 120 of the
General Statutes, or (ii) th e Board of Trustees identifies a specific
administrative or information technology purpose that is necessary to prevent
an interruption to the normal operation of the Retirement System, the Board
of Trustees may direct up to one hundredth percent (0.01%) o f the required
contributions to fund the LEIA. These funds must be deposited in a separate
Page 10 Session Law 2025-19 House Bill 476
fund from the fund into which regular employer contributions are deposited
for the Retirement System. The Board of Trustees shall not direct any
employer contributions into the LEIA after January 1, 2035."
SECTION 7.6.(b) G.S. 128-29(g)(2) reads as rewritten:
"(g) Legislative Enactment Implementation Arrangement. – The Legislative Enactment
Implementation Arrangement, or LEIA, is established effective October 1, 2017 , and placed
under the management of the Board of Trustees. The purpose of the LEIA is to provide for timely
administrative implementation of legislative provisions regarding the retirement of, or payment
of retirement benefits to, public officers or public employees. The LEIA shall have the following
parameters:
…
(2) Funding of the LEIA. – In the event that that (i) the General Assembly creates
or modifies any provision for the retirement of, or payment of retirement
benefits to, public officers or public employees that has a cost savings as
measured by actuarial note required by Article 15 of Chapter 120 of the
General Statutes, or (ii) the Board of Trustees identifies a specific
administrative or information technology purpose that is necessary to prevent
an interruption to the normal operation of the Retirement System, the Board
of Trustees may direct up to one hundredth percent (0.01%) of the required
contributions to fund the LEIA. These funds must be deposited in a separate
fund from the fund into which regular employer contributions are deposited
for the Retirement System. The Board of Trustees shall not dire ct any
employer contributions into the LEIA after January 1, 2035."
SECTION 7.7. G.S. 135-48.54(b)(2) reads as rewritten:
"(b) The board of directors of a charter school operated by a private nonprofit corporation
or a charter school operated by a municip ality may elect to become a participating employer in
the Plan. The following shall apply to that election:
…
(2) If the election is made at any time after two years from the date that both
parties have signed the written charter under G.S. 115C-218.15, then the board
of directors of that charter school shall file an application with the Board of
Trustees for participation in the Plan on a form approved by the Board of
Trustees. The application shall be subject to approval by the Board of Trustees
and notification of approval or denial of the application shall be provided by
the Board of Trustees to the board of directors within 180 days of receipt of
the complete application. Upon approval of the application by the Board of
Trustees, the charter school shall become a participating employing unit in the
Plan. The board of directors shall provide written notification of the election,
the submission of the application required under this subdivision, and the
approval of that application by the Board of Trustees to the Charter Schools
Review Board and the State Board of Education. This written notification
shall include the date that the charter school employees shall be enrolled in
the Plan. For any charter school employee hired after the initial enrollment
date, this election is effective as of the date of that employee's entry into
eligible service. The Board of Trustees may (i) delegate its powers and duties
under this subdivision to the North Carolina State Treasurer and ( ii) require
the board of directors of charter schools applying for participation in the Plan
to file their applications with the person or entity designated by the North
Carolina State Treasurer."
SECTION 7.8. G.S. 135-48.30(a) reads as rewritten:
"(a) The State Treasurer shall have the following powers and duties:
House Bill 476 Session Law 2025-19 Page 11
…
(20) If delegated by the Board of Trustees under G.S. 135-48.54(b)(2), carry out
the powers and duties provided to the Board of Trustees under
G.S. 135-48.54(b)(2)."
PART VIII. REMOVE SIMILAR BENEFIT ELECTION FOR CERTAIN EMPLOYEES
SECTION 8.(a) G.S. 135-5.6 reads as rewritten:
"§ 135-5.6. Employees of the University of North Carolina Health Care System.
(a) All employees of the University of North Carolina Health Care System who (i) are
employed before January 1, 2024, a nd (ii) are members of either the Retirement System or the
Optional Retirement Program before January 1, 2024, shall retain membership in that Retirement
System or that Optional Retirement Program unless the member makes a one -time, irrevocable
election to cease membership in the Retirement System or the Optional Retirement Program in
favor of a similar benefit offered by the University of North Carolina Health Care System
pursuant to G.S. 116-350.30.Program.
…."
SECTION 8.(b) G.S. 135-5.7 reads as rewritten:
"§ 135-5.7. Certain employees of East Carolina University.
…
(b) All employees of the Medical Faculty Practice Plan and the ECU Dental School
Clinical Operations who (i) are employed before January 1, 2024, and (ii) are members of either
the Retirement System or the Optional Retirement Program before January 1, 2024, shall retain
membership in that Retirement System or that Optional Retirement Program unless the member
makes a one -time, irrevocable election to cease membership in the Retirement System or the
Optional Retirement Program in favor of a similar benefit offered by the East Carolina University
School of Medicine, the Medical Faculty Practice Plan, or the ECU Dental School Clinical
Operations pursuant to G.S. 116-360.15.Program.
…."
Page 12 Session Law 2025-19 House Bill 476
PART IX. EFFECTIVE DATE
SECTION 9. This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 18th day of June, 2025.
s/ Phil Berger
President Pro Tempore of the Senate
s/ Destin Hall
Speaker of the House of Representatives
s/ Josh Stein
Governor
Approved 9:39 a.m. this 26th day of June, 2025