Revive High-Need Retired Teachers Program.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 441

Short Title: Revive High-Need Retired Teachers Program. (Public)
Sponsors: Senators Corbin, Lee, and Overcash (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 25, 2025
*S441-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REVIVE AND EXPAND THE PROGRAM TO ALLOW RETIRED 2
EDUCATORS TO RETURN TO WORK IN HIGH-NEED SCHOOLS. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. G.S. 115C-302.4 is reenacted as it existed immediately prior to its 5
expiration and expires effective June 30, 2027. 6
SECTION 2.(a) G.S. 135-3(a)(8) is amended by adding a new sub -subdivision to 7
read: 8
"i. Notwithstanding sub -subdivisions c. and d. of this subdivision, the 9
computation of postretirement earnings under this s ubdivision shall 10
not include earnings while a beneficiary is employed as a high-need 11
retired teacher as defined under G.S. 115C-302.4(a) and the 12
beneficiary shall not be restored to service as a teacher or employee. 13
The Department of Public Instruction shall certify to the Retirement 14
System that a beneficiary is employed by a local board of education as 15
a high-need retired teacher. No later than September 15 annually, a 16
local board of education shall inform the Retirement System if it will 17
not employ any high-need retired teachers for that school year. The 18
retirement allowance of a beneficiary who retired on an early or 19
service retirement shall not cease due to reemployment as a high-need 20
retired teacher. A beneficiary reemployed as a high-need retired 21
teacher is not entitled to any benefits otherwise provided under this 22
Chapter as a result of this period of employment." 23
SECTION 2.(b) G.S. 135-3(a)(8)c1. reads as rewritten: 24
"c1. Within 90 days of the end of each month in which a beneficiary is 25
reemployed under the provisions of sub -subdivision c. or i. of this 26
subdivision, each employer shall provide a report for that month on 27
each reemployed beneficiary, including the terms of the 28
reemployment, the date of the reemployment, and the amount of the 29
monthly compensation. If the required report is not received within the 30
required 90 days, then the Board may do any or all of the following: 31
…." 32
SECTION 2.(c) G.S. 135-1(10) reads as rewritten: 33
"(10) "Employee" shall mean all full-time employees, agents or officers of the State 34
of North Carolina or any of its departments, bureaus and institutions other than 35
educational, whether such employees are elected, appointed or employed: 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 441-First Edition
Provided that the term "employee" shall not include employees of the 1
University of North Carolina Health Care System who are not eligible for 2
participation under G.S. 135-5.6, employees of the East Carolina University 3
School of Medicine or Dental School of Medicine who are not eligible for 4
participation under G.S. 135-5.7, any person who is a member of the 5
Consolidated Judicial Retirement S ystem, any member of the General 6
Assembly or Assembly, any high-need retired teacher as defined under 7
G.S. 115C-302.4(a), or any part -time or temporary employee. 8
Notwithstanding any other provision of law, "employee" shall include all 9
employees of the Gene ral Assembly except participants in the Legislative 10
Intern Program, pages, and beneficiaries in receipt of a monthly retirement 11
allowance under this Chapter who are reemployed on a temporary basis. 12
"Employee" also includes any participant whose employment is interrupted 13
by reason of service in the Uniformed Services, as that term is defined in 14
section 4303(16) of the Uniformed Services Employment and Reemployment 15
Rights Act, Public Law 103 -353, if that participant was an employee at the 16
time of the interrup tion; if the participant does not return immediately after 17
that service to employment with a covered employer in this System, then the 18
participant shall be deemed "in service" until the date on which the participant 19
was first eligible to be separated or re leased from his or her involuntary 20
military service. In all cases of doubt, the Board of Trustees shall determine 21
whether any person is an employee as defined in this Chapter. "Employee" 22
shall also mean every full -time civilian employee of the North Caroli na 23
National Guard who is employed pursuant to section 709 of Title 32 of the 24
United States Code and paid from federal appropriated funds, but held by the 25
federal authorities not to be a federal employee: Provided, however, that the 26
authority or agency payi ng the salaries of such employees shall deduct or 27
cause to be deducted from each employee's salary the employee's contribution 28
in accordance with applicable provisions of G.S. 135-8 and remit the same, 29
either directly or indirectly, to the Retirement System; coverage of employees 30
described in this sentence shall commence upon the first day of the calendar 31
year or fiscal year, whichever is earlier, next following the date of execution 32
of an agreement between the Secretary of Defense of the United States and 33
the Adjutant General of the State acting for the Governor in behalf of the State, 34
but no credit shall be allowed pursuant to this sentence for any service 35
previously rendered in the above-described capacity as a civilian employee of 36
the North Carolina Nati onal Guard: Provided, further, that the Adjutant 37
General, in the Adjutant General's discretion, may terminate the Retirement 38
System coverage of the above -described North Carolina National Guard 39
employees if a federal retirement system is established for su ch employees 40
and the Adjutant General elects to secure coverage of such employees under 41
such federal retirement system. Any full-time civilian employee of the North 42
Carolina National Guard described above who is now or hereafter may 43
become a member of the Retirement System may secure Retirement System 44
credit for such service as a North Carolina National Guard civilian employee 45
for the period preceding the time when such employees became eligible for 46
Retirement System coverage by paying to the Retirement Sys tem an amount 47
equal to that which would have constituted employee contributions if the 48
employee had been a member during the years of ineligibility, plus interest. 49
Employees of State agencies, departments, institutions, boards, and 50
commissions who are empl oyed in permanent job positions on a recurring 51
General Assembly Of North Carolina Session 2025
Senate Bill 441-First Edition Page 3
basis must work at least 30 hours per week for nine or more months per 1
calendar year in order to be covered by the provisions of this subdivision. On 2
and after August 1, 2001, a person who is a nonimmigrant al ien and who 3
otherwise meets the requirements of this subdivision shall not be excluded 4
from the definition of "employee" solely because the person holds a temporary 5
or time-limited visa." 6
SECTION 2.(d) G.S. 135-48.40(b)(1a) reads as rewritten: 7
"(1a) All retirees who (i) are meet all of the following criteria: 8
a. The retiree is employed by an employing unit that elects to be covered 9
by this subdivision, (ii) do subdivision. 10
b. The retiree does not qualify for coverage under subdivision (1) of this 11
subsection, and (iii) are subsection. 12
c. The retiree is either a high-need retired teacher under G.S. 115C-302.4 13
or is determined to be "full -time" by their employing unit in 14
accordance with section 4980H of the Internal Revenue Code and the 15
applicable regulations, as amended. 16
The employing unit shall pay the employer premiums for retirees who enroll 17
under this subdivision." 18
SECTION 2.(e) If the Internal Revenue Service determines that any provision of this 19
section jeopardizes the status of the Teachers' and State Employees' Retirement System of North 20
Carolina under the Internal Revenue Code, then this section is repealed on the last day of the 21
month following the month of receipt of that determination by the State Treasurer. Upon receipt 22
of that determination, the State Treasurer shall notify the Revisor of Statutes of the determination 23
and the date of receipt. Within three business days of receipt of the determination, the State 24
Treasurer shall notify all local school administrative units of the repeal of this section and shall 25
publicly notice the receipt of this information on the Department of State Treasurer's website. 26
Within three business days of receipt of the notice from the State Treasurer, a local school 27
administrative unit shall notify all high -need retired teachers employed by its local board of 28
education of the repeal of this section. 29
SECTION 2.(f) Any beneficiary that is employed by a local board of education as a 30
high-need retired teacher, as defined in G.S. 115C-302.4(a), shall not be elig ible to elect into a 31
position that would lead the beneficiary to be eligible to accrue any additional benefits under 32
G.S. 135-3(a)(8). Any failure of a local board of education or a beneficiary to comply with the 33
foregoing shall be corrected by the Executi ve Director of the Retirement System as may be 34
appropriate under State and federal law. Any costs of the correction, as determined by the 35
Executive Director of the Retirement System, shall be the sole responsibility of the local board 36
of education and shall be transferred to the Pension Accumulation Fund under G.S. 135-8 under 37
rules adopted by the Board of Trustees. 38
SECTION 3. This act is effective when it becomes law and expires June 30, 2027. 39