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S599 • 2025

State Teacher/Employee Pay & Local LEO Bonus.

State Teacher/Employee Pay & Local LEO Bonus.

Budget Education Labor
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Galey, Sawrey, Burgin
Last action
2025-10-23
Official status
Held by House Clerk
Effective date
2025-07-01

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

State Teacher/Employee Pay & Local LEO Bonus.

S599-SMBC-39(e1)-v-3 (2025-04-16): Dental Board Reform.

What This Bill Does

  • S599-SMBC-39(e1)-v-3 (2025-04-16): Dental Board Reform.
  • S599-SMBC-57(e2)-v-2 (2025-04-29): Dental Board Reform.
  • S599-SMMH-3(CSLRa-1)-v-3 (2025-10-22): State Teacher/Employee Pay & Local LEO Bonus.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Plain English: 2025-2026 General Assembly SENATE BILL 599: Dental Board Reform.

  • 2025-2026 General Assembly SENATE BILL 599: Dental Board Reform.
  • Committee: Senate Health Care.
  • If favorable, re -refer to Rules and Operations of the Senate Date: April 16, 2025 Introduced by: Sens.
  • Galey, Sawrey, Burgin Prepared by: Jason Moran-Bates Committee Staff Analysis of: First Edition Kara McCraw Director *S599-SMBC-39(e1)-v-3* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.

Plain English: 2025-2026 General Assembly SENATE BILL 599: Dental Board Reform.

  • 2025-2026 General Assembly SENATE BILL 599: Dental Board Reform.
  • Committee: Senate Rules and Operations of the Senate Date: April 29, 2025 Introduced by: Sens.
  • Galey, Sawrey, Burgin Prepared by: Jason Moran-Bates Staff Attorney Analysis of: Second Edition Kara McCraw Director *S599-SMBC-57(e2)-v-2* Legislative Analysis Division 919-733-2578 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • OVERVIEW: Senate Bill 599 would expand the North Carolina Board of Dental Examiners (Board) to 10 members and change how the members are chosen CURRENT LAW: Under current law, there are eight members on the Board: six dentists, one dental hygienist, and one member of the public.

Plain English: 2025-2026 General Assembly SENATE BILL 599: State Teacher/Employee Pay & Local LEO Bonus.

  • 2025-2026 General Assembly SENATE BILL 599: State Teacher/Employee Pay & Local LEO Bonus.
  • Committee: House Rules, Calendar, and Operations of the House Date: October 22, 2025 Introduced by: Sens.
  • Galey, Sawrey, Burgin Prepared by: Jeff Cherry Staff Attorney Analysis of: PCS to Third Edition S599-CSLRa-1 Daniel Ettefagh Director *S599-SMMH-3(CSLRa-1)-v-3* Legislative Drafting 919-733-6660 This bill analysis was prepared by the nonpartisan legislative staff for the use of legislators in their deliberations and does not constitute an official statement of legislative intent.
  • OVERVIEW: The Proposed Committee Substitute (PCS) of Senate Bill 599 (1) awards legislatively mandated annual salary increases to State employees, teachers and other public school employees, and (2) awards legislatively mandated annual salary increases to State law enforcement and correctional officers and State Bureau of Investigation administrative employees and grants bonuses to State and local law enforcement officers; These salary increases are contingent upon the General Assembly passing a Current Operations Appropriations Act for the 2025-2026 fiscal year.

Bill History

  1. 2025-10-23 House

    Held by House Clerk

  2. 2025-10-23 House

    Message Refused by Senate

  3. 2025-10-23 Senate

    Not received; ineligible pursuant to Res. 2025-11

  4. 2025-10-23 House

    Regular Message Sent To Senate

  5. 2025-10-22 House

    Ordered Engrossed

  6. 2025-10-22 House

    Passed 3rd Reading

  7. 2025-10-22 House

    Passed 2nd Reading

  8. 2025-10-22 House

    Amend Adopted A2

  9. 2025-10-22 House

    Amend Adopted A1

  10. 2025-10-22 House

    Added to Calendar

  11. 2025-10-22 House

    Cal Pursuant Rule 36(b)

  12. 2025-10-22 House

    Reptd Fav Com Substitute

  13. 2025-05-05 House

    Ref To Com On Rules, Calendar, and Operations of the House

  14. 2025-05-05 House

    Passed 1st Reading

  15. 2025-05-01 House

    Regular Message Received From Senate

  16. 2025-05-01 Senate

    Regular Message Sent To House

  17. 2025-04-30 Senate

    Engrossed

  18. 2025-04-30 Senate

    Passed 3rd Reading

  19. 2025-04-30 Senate

    Passed 2nd Reading

  20. 2025-04-30 Senate

    Amend Adopted A1

  21. 2025-04-29 Senate

    Reptd Fav

  22. 2025-04-16 Senate

    Re-ref Com On Rules and Operations of the Senate

  23. 2025-04-16 Senate

    Com Substitute Adopted

  24. 2025-04-16 Senate

    Reptd Fav Com Substitute

  25. 2025-03-26 Senate

    Re-ref to Health Care. If fav, re-ref to Rules and Operations of the Senate

  26. 2025-03-26 Senate

    Withdrawn From Com

  27. 2025-03-26 Senate

    Ref To Com On Rules and Operations of the Senate

  28. 2025-03-26 Senate

    Passed 1st Reading

  29. 2025-03-25 Senate

    Filed

Official Summary Text

S599-SMBC-39(e1)-v-3
(2025-04-16): Dental Board Reform.
S599-SMBC-57(e2)-v-2
(2025-04-29): Dental Board Reform.
S599-SMMH-3(CSLRa-1)-v-3
(2025-10-22): State Teacher/Employee Pay & Local LEO Bonus.

Current Bill Text

Read the full stored bill text
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 5
SENATE BILL 599
Health Care Committee Substitute Adopted 4/16/25
Third Edition Engrossed 4/30/25
House Committee Substitute Favorable 10/22/25
Fifth Edition Engrossed 10/22/25

Short Title: State Teacher/Employee Pay & Local LEO Bonus. (Public)
Sponsors:
Referred to:
March 26, 2025
*S599-v-5*
A BILL TO BE ENTITLED 1
AN ACT APPROPRIATING FUNDS TO AWARD LEGI SLATIVELY MANDATED 2
SALARY INCREASES TO STATE EMPLOYEES, TEACHERS, AND OTHER PUB LIC 3
SCHOOL EMPLOYEES AND PROVIDING FOR A ONE TIME, COST OF LIVIN G 4
SUPPLEMENT PAYMENT F OR LOCAL LAW ENFORCE MENT OFFICERS AND 5
RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, 6
THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE 7
RETIREMENT SYSTEM. 8
The General Assembly of North Carolina enacts: 9
10
PART I. APPROPRIATIONS 11
12
APPROPRIATIONS 13
SECTION 1.1.(a) Effective July 1, 2025, there is appropriated from the General 14
Fund the sum of eight hundred eighty-one million two hundred sixty-two thousand five hundred 15
ninety-nine dollars ($881,262,599) in recurring funds for the 2025-2026 fiscal year and the sum 16
of one billion twenty -one million seventy thousand two hundred forty -one dollars 17
($1,021,070,241) in recurring funds for the 2026 -2027 fiscal year for the costs associated with 18
implementing the provisions of this act. These sums are allocated as follows: 19
20
Entity 2025-2026 2026-2027 21
22
North Carolina Community 23
College System 38,674,539 38,674,539 24
Department of Public Instruction 484,989,426 624,797,068 25
The University of North Carolina 103,777,699 103,777,699 26
DHHS – Aging 82,276 82,276 27
DHHS – Central Management 28
and Support 1,729,614 1,729,614 29
DHHS – Child and Family Well-Being 557,078 557,078 30
DHHS – Child Development and 31
Early Education 54,930 54,930 32
DHHS – Public Health 952,035 952,035 33
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 599-Fifth Edition
DHHS – Social Services 357,308 357,308 1
DHHS – Health Benefits 537,259 537,259 2
DHHS – Services for the 3
Blind/Deaf/Hard of Hearing 112,788 112,788 4
DHHS – Mental Health/Dev. Disabl./Substance 5
Use Services 8,075,529 8,075,529 6
DHHS – Health Service Regulation 610,009 610,009 7
DHHS – Emp. & Indp. For 8
People With Disabilities 444,883 444,883 9
Dept. of Agriculture & 10
Consumer Services 2,791,328 2,791,328 11
Dept. of Commerce 279,595 279,595 12
Dept. of Env. Quality 1,763,143 1,763,143 13
Dept. of Labor 540,375 540,375 14
Dept. of Natural and Cultural Resources 5,907,686 5,907,686 15
Wildlife Resources Comm. 1,782,055 1,782,055 16
Administrative Office of the Courts 18,636,552 18,636,552 17
Indigent Defense Services 2,602,376 2,602,376 18
Department of Adult Correction 143,083,422 143,083,422 19
Department of Justice 1,790,840 1,790,840 20
Dept. of Public Safety 45,896,798 45,896,798 21
State Bureau of Investigation 5,220,195 5,220,195 22
Dept. of Administration 770,895 770,895 23
Office of Admin. Hearings 152,033 152,033 24
Auditor 387,657 387,657 25
Office of Budget and Management 224,490 224,490 26
Controller 588,360 588,360 27
Board of Elections 178,320 178,320 28
General Assembly 2,125,861 2,125,861 29
Office of the Governor 135,528 135,528 30
Office of State Human Resources 201,702 201,702 31
Industrial Commission 312,439 312,439 32
Dept. of Insurance 1,419,695 1,419,695 33
Office of State Fire Marshal 199,415 199,415 34
Office of the Lt. Governor 30,399 30,399 35
Dept. of Military and Veteran Affairs 162,304 162,304 36
Department of Revenue 2,112,540 2,112,540 37
Secretary of State 471,477 471,477 38
Dept. of Information Technology 539,746 539,746 39
40
SECTION 1.1.(b) Effective July 1, 2025, there is appropriated from the Highway 41
Fund to the Department of Transportation for the costs associated with implementing the 42
provisions of this act the sum of twenty -four million eight hundred eighty -four thousand six 43
hundred forty-eight dollars ($24,884,648) in recurring funds each year of the 2025 -2027 fiscal 44
biennium. 45
SECTION 1.1.(c) Effective July 1, 2025, there is appropriated from the General 46
Fund to a Reserve for Local Law Enforcement Officer Bonuses the sum of forty million 47
seventy-five thousand dollars ($40,075,000) in nonrecurring funds in each year of the 2025-2027 48
fiscal biennium for the costs associated with awarding bonuses to local sworn law enforcement 49
officers as provided by Section 3.23 of this act. 50
General Assembly Of North Carolina Session 2025
Senate Bill 599-Fifth Edition Page 3
SECTION 1.1.(d) Departmental re ceipts, as defined in G.S. 143C-1-1, are 1
appropriated for each year of the 2025 -2027 fiscal biennium up to the amounts needed to 2
implement the legislatively mandated salary increases and employee benefit increases provided 3
in this act for each year of the 2025-2027 fiscal biennium. 4
5
PART II. COMPENSATION OF PUBLIC SCHOOL EMPLOYEES 6
7
TEACHER SALARY SCHEDULE 8
SECTION 2.1.(a) The following monthly teacher salary schedule shall apply for the 9
2025-2026 fiscal year to licensed personnel of the public schools who are classified as teachers. 10
The salary schedule is based on years of teaching experience. 11
2025-2026 Teacher Monthly Salary Schedule 12
Years of Experience "A" Teachers 13
0 $4,800 14
1 $4,825 15
2 $4,850 16
3 $4,875 17
4 $4,900 18
5 $4,950 19
6 $5,000 20
7 $5,050 21
8 $5,100 22
9 $5,150 23
10 $5,200 24
11 $5,250 25
12 $5,300 26
13 $5,350 27
14 $5,403 28
15 $5,496 29
16 $5,521 30
17 $5,546 31
18 $5,571 32
19 $5,591 33
20 $5,611 34
21 $5,631 35
22 $5,651 36
23 $5,671 37
24 $5,691 38
25+ $5,711 39
SECTION 2.1.(b) Salary Supplements for Teachers Paid on This Salary Schedule. 40
– 41
(1) Licensed teachers who have NBPTS certification shall receive a salary 42
supplement each month of twelve percent (12%) of their monthly salary on 43
the "A" salary schedule. 44
(2) Licensed teachers who are classified as "M" teachers shall receive a salary 45
supplement each month of ten percent (10%) of their monthly salary on the 46
"A" salary schedule. 47
(3) Licensed teachers with licensure based on academic preparation at the 48
six-year degree level shall receive a salary supplement of one hundred 49
twenty-six dollars ($126.00) per month in addition to the supplement provided 50
to them as "M" teachers. 51
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 599-Fifth Edition
(4) Licensed teachers with licensure based on academic preparation at the 1
doctoral degree level shall receive a salary supplement of two hundred 2
fifty-three dollars ($253.00) per month in addition to the supplement provided 3
to them as "M" teachers. 4
(5) Certified school nurses shall receive a salary supplement each month of ten 5
percent (10%) of their monthly salary on the "A" salary schedule. 6
(6) School counselors who are licensed as counselors at the master's degree level 7
or higher shall receive a salary supplement each month of one hundred dollars 8
($100.00). 9
SECTION 2.1.(c) For school psychologists, school speech pathologists who are 10
licensed as speech pathologists at the master 's degree level or higher, and school audiologists 11
who are licensed as audiologists at the master's degree level or higher, the following shall apply: 12
(1) The first step of the salary schedule shall be equivalent to the sixth step of the 13
"A" salary schedule. 14
(2) These employees shall receive the following salary supplements each month: 15
a. Ten percent (10%) of their monthly salary, excluding the supplement 16
provided pursuant to sub-subdivision b. of this subdivision. 17
b. Three hundred fifty dollars ($350.00). 18
(3) These employees are eligible to receive salary supplements equivalent to those 19
of teachers for academic preparation at the six -year degree level or the 20
doctoral degree level. 21
(4) The twenty -sixth step of the salary schedule shall be seven and one -half 22
percent (7.5%) higher than the salary received by these same employees on 23
the twenty-fifth step of the salary schedule. 24
SECTION 2.1.(d) Beginning with the 2014 -2015 fiscal year, in lieu of providing 25
annual longevity payments to teachers paid on the teacher salary schedule, the amounts of those 26
longevity payments are included in the monthly amounts under the teacher salary schedule. 27
SECTION 2.1.(e) A teacher compensated in accordance with this salary schedule in 28
the 2025-2026 school year shall receive an amount equal to the greater of the following: 29
(1) The applicable amount on the applicable salary schedule for the applicable 30
school year. 31
(2) For teachers who were eligible for longevity for the 2013 -2014 school year, 32
the sum of the following: 33
a. The salary the teacher received in the 2013-2014 school year pursuant 34
to Section 35.11 of S.L. 2013-360. 35
b. The longevity that the teacher would have received under the longevity 36
system in effect for the 2013 -2014 school year provided in Section 37
35.11 of S.L. 2013-360 based on the teacher's current years of service. 38
c. The annual bonus provided in Section 9.1(e) of S.L. 2014-100. 39
(3) For teachers who were not eligible for longevity for the 2013 -2014 school 40
year, the sum of the salary and annual bonus the teacher rece ived in the 41
2014-2015 school year pursuant to Section 9.1 of S.L. 2014-100. 42
SECTION 2.1.(f) As used in this section, the term "teacher" shall also include 43
instructional support personnel. 44
45
REINSTATE EDUCATION-BASED SALARY SUPPLEMENTS FOR TEACHERS AND 46
INSTRUCTIONAL SUPPORT PERSONNEL 47
SECTION 2.2.(a) G.S. 115C-302.10 is repealed. 48
SECTION 2.2.(b) Notwithstanding any other provision of law, for the 2025 -2026 49
fiscal year, State Board of Education policy TCP -A-006, as it was in effect on June 30, 2013, 50
shall be used to determine (i) whether teachers and instructional support personnel are paid on 51
General Assembly Of North Carolina Session 2025
Senate Bill 599-Fifth Edition Page 5
the "M" salary schedule and (ii) whether they receive a salary supplement for academic 1
preparation at the six-year or doctoral degree level. 2
3
CONSOLIDATED TEACHER BONUS PROGRAM 4
SECTION 2.3.(a) Establish Consolidated Bonus Program. – The State Board of 5
Education shall establish a consolidated teacher bonus program for the 2025 -2026 fiscal year to 6
reward teacher performance and encourage student learning and improveme nt. To attain this 7
goal, the Department of Public Instruction shall administer bonus pay to qualifying teachers 8
whose salaries are supported from State funds in January of 2026, based on data from the 9
2024-2025 school year, in accordance with this section. 10
SECTION 2.3.(b) Definitions. – For purposes of this section, the following 11
definitions shall apply: 12
(1) Eligible advanced course teacher. – A teacher of Advanced Placement 13
courses, International Baccalaureate Diploma Programme courses, or the 14
Cambridge Advanced International Certificate of Education (AICE) program 15
who meets the following criteria: 16
a. Is employed by, or retired having last held a position at, one or more 17
of the following: 18
1. A qualifying public school unit. 19
2. The North Carolina Virtual Public School program. 20
b. Taught one or more students who received a score listed in subsection 21
(c) of this section. 22
(2) Eligible career and technical education (CTE) teacher. – A teacher who meets 23
the following criteria: 24
a. Is employed by, or retired having last held a position at, a qualifying 25
public school unit. 26
b. Taught one or more students who attained approved industry 27
certifications or credentials consistent with G.S. 115C-156.2. 28
(3) Eligible growth teacher. – A teacher who meets at least one of the f ollowing 29
criteria: 30
a. Is employed by, or retired having last held a position at, a qualifying 31
public school unit and meets one of the following criteria: 32
1. Is in the top twenty-five percent (25%) of teachers in the State 33
according to the EVAAS student gro wth index score for third 34
grade reading from the previous school year. 35
2. Is in the top twenty-five percent (25%) of teachers in the State 36
according to the EVAAS student growth index score for fourth 37
or fifth grade reading from the previous school year. 38
3. Is in the top twenty-five percent (25%) of teachers in the State 39
according to the EVAAS student growth index score for fourth, 40
fifth, sixth, seventh, or eighth grade mathematics from the 41
previous school year. 42
b. Is employed by, or retired having last held a position at, a local school 43
administrative unit and meets one of the following criteria: 44
1. Is in the top twenty -five percent (25%) of teachers in the 45
teacher's respective local school administrative unit according 46
to the EVAAS student growth index scor e for third grade 47
reading from the previous school year. 48
2. Is in the top twenty -five percent (25%) of teachers in the 49
teacher's respective local school administrative unit according 50
General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 599-Fifth Edition
to the EVAAS student growth index score for fourth or fifth 1
grade reading from the previous school year. 2
3. Is in the top twenty -five percent (25%) of teachers in the 3
teacher's respective local school administrative unit according 4
to the EVAAS student growth index score for fourth, fifth, 5
sixth, seventh, or eighth grade mathematics from the previous 6
school year. 7
c. Was employed by a local school administrative unit that employed in 8
the previous school year three or fewer total teachers in that teacher's 9
grade level as long as the teacher has an EVAAS student growth index 10
score from the previous school year of exceeded expected growth in 11
one of the following subject areas: 12
1. Third grade reading. 13
2. Fourth or fifth grade reading. 14
3. Fourth, fifth, sixth, seventh, or eighth grade mathematics. 15
(4) EVAAS. – The Education Value-Added Assessment System. 16
(5) Qualifying public school unit. – Any of the following: 17
a. A local school administrative unit. 18
b. A charter school. 19
c. A regional school. 20
d. A school providing elementary or secondary instruction operated by 21
The University of North Carolina under Article 29A of Chapter 116 of 22
the General Statutes. 23
(6) Qualifying teacher. – An eligible teacher who meets one of the following 24
criteria: 25
a. Remains employed teaching in the same qualifying public school unit, 26
or, if an eligible advanced cour se teacher is only employed by the 27
North Carolina Virtual Public School program, remains employed 28
teaching in that program, at least from the school year the data is 29
collected until January 1 of the corresponding school year that the 30
bonus is paid. 31
b. Retired, between the last day of the school year in which the data is 32
collected and January 1 of the corresponding school year in which the 33
bonus is paid, after attaining one of the following: 34
1. The age of at least 65 with five years of creditable service. 35
2. The age of at least 60 with 25 years of creditable service. 36
3. Thirty years of creditable service. 37
SECTION 2.3.(c) Advanced Course Bonuses. – A bonus in the amount of fifty 38
dollars ($50.00) shall be provided to qualifying advanced course teachers for each student taught 39
in each advanced course who receives the following score: 40
(1) For Advanced Placement courses, a score of three or higher on the College 41
Board Advanced Placement Examination. 42
(2) For International Baccalaureate Diploma Programme courses, a score of four 43
or higher on the International Baccalaureate course examination. 44
(3) For the Cambridge AICE program, a score of "E" or higher on the Cambridge 45
AICE program examinations. 46
SECTION 2.3.(d) CTE Bonuses. – For qualifying career and technical educ ation 47
teachers, bonuses shall be provided in the following amounts: 48
(1) A bonus in the amount of twenty-five dollars ($25.00) for each student taught 49
by a teacher who provided instruction in a course that led to the attainment of 50
General Assembly Of North Carolina Session 2025
Senate Bill 599-Fifth Edition Page 7
an industry certification or credential with a twenty-five dollar ($25.00) value 1
ranking as determined under subsection (e) of this section. 2
(2) A bonus in the amount of fifty dollars ($50.00) for each student taught by a 3
teacher who provided instruction in a course that led to the attainment of an 4
industry certification or credential with a fifty dollar ($50.00) value ranking 5
as determined under subsection (e) of this section. 6
SECTION 2.3.(e) CTE Course Value Ranking. – The Department of Commerce, in 7
consultation with the State Board, shall assign a value ranking for each industry certification and 8
credential based on academic rigor and employment value in accordance with this subsection. 9
Fifty percent (50%) of the ranking shall be based on academic rigor and the remaining fifty 10
percent (50%) on employment value. Academic rigor and employment value shall be based on 11
the following elements: 12
(1) Academic rigor shall be based on the number of instructional hours, including 13
work experience or internship hours, required to earn the industry certification 14
or credential, with extra weight given for coursework that also provides 15
community college credit. 16
(2) Employment value shall be based on the entry wage, growth rate in 17
employment for each occupational category, and average annual openings for 18
the primary occupation linked with the industry certification or credential. 19
SECTION 2.3.(f) Statewide Growth Bonuses. – Of the funds appropriated for the 20
program, bonuses shall be provided to qualifying teachers who are eligible teachers under 21
sub-subdivision a. of subdivision (3) of subsection (b) of this section, as follows: 22
(1) The sum of five million dollars ($5,000,000) shall be allocated for bonuses to 23
eligible teachers under sub -sub-subdivision a.1. of subdivision (3) of 24
subsection (b) of this section. These funds shall be distributed equally among 25
qualifying teachers. 26
(2) A bonus in the amount of two thousand dollars ($2,000) shall be awarded to 27
each qualifying teacher who is an eligible teacher under sub -sub-subdivision 28
a.2. of subdivision (3) of subsection (b) of this section. 29
(3) A bonus in the amount of two thousand dollars ($2,000) shall be awarded to 30
each qualifying teacher who is an eligible teacher under sub -sub-subdivision 31
a.3. of subdivision (3) of subsection (b) of this section. 32
SECTION 2.3.(g) Local Growth Bonuses. – Of the funds appropriated for the 33
program, bonuses shall be provided to eligible teachers under sub -subdivisions b. and c. of 34
subdivision (3) of subsection (b) of this section, as follows: 35
(1) The sum of five million dollars ($5,000,000) shall be allocated for bonuses to 36
eligible EVAAS teachers under sub -sub-subdivisions b.1. and c.1. of 37
subdivision (3) of subsection (b) of this section. These funds shall be divided 38
proportionally based on average daily membership in third grade for each 39
local school administrative unit and then distributed equally among qualifying 40
third grade reading teachers in each local school administrative unit. 41
(2) A bonus in the amount of two thousand dollars ($2,000) shall be awarded to 42
each qualifying teacher who is an eligible teacher under sub -sub-subdivision 43
b.2. or c.2. of subdivision (3) of subsection (b) of this section. 44
(3) A bonus in the amount of two thousand dollars ($2,000) shall be awarded to 45
each qualifying teacher who is an elig ible teacher under sub-sub-subdivision 46
b.3. or c.3. of subdivision (3) of subsection (b) of this section. 47
SECTION 2.3.(h) Limitations and Other Criteria. – The following additional 48
limitations and other criteria shall apply to the program: 49
(1) Bonus funds awarded to a teacher pursuant to subsection (c), subsection (d), 50
subdivision (1) of subsection (f), and subdivision (1) of subsection (g) of this 51
General Assembly Of North Carolina Session 2025
Page 8 Senate Bill 599-Fifth Edition
section shall not exceed three thousand five hundred dollars ($3,500) per 1
subsection or subdivision in any given school year. 2
(2) A qualifying teacher who is an eligible teacher under sub-sub-subdivision a.1., 3
b.1., or c.1. of subdivision (3) of subsection (b) of this section may receive a 4
bonus under both subdivision (1) of subsection (f) and subdivision (1) of 5
subsection (g) of this section but shall not receive more than seven thousand 6
dollars ($7,000) pursuant to subdivision (1) of subsection (f) and subdivision 7
(1) of subsection (g) of this section in any given school year. 8
(3) A qualifying teacher who is an eligible teacher under sub-sub-subdivision a.2., 9
b.2., or c.2. of subdivision (3) of subsection (b) of this section may receive a 10
bonus under both subdivision (2) of subsection (f) and subdivision (2) of 11
subsection (g) of this section but shall not receive more than two bonuses 12
pursuant to subdivision (2) of subsection (f) and subdivision (2) of subsection 13
(g) of this section in any given school year. 14
(4) A qualifying teacher who is an eligible teacher under sub-sub-subdivision a.3., 15
b.3., or c.3. of subdivision (3) of subsection (b) of this section may receive a 16
bonus under both subdivision (3) of subsection (f) and subdivision (3) of 17
subsection (g) of this section but shall not receive more than two bonuses 18
pursuant to subdivision (3) of subsection (f) and subdivision (3) of subsection 19
(g) of this section in any given school year. 20
SECTION 2.3.(i) Bonuses Not Compensation. – Bonuses awarded to a teacher 21
pursuant to this section shall be in addition to any regular wage or other bonus the teacher receives 22
or is scheduled to receive. Notwithstanding G.S. 135-1(7a), the bonuses awarded under this 23
section are not compensation under Article 1 of Chapter 135 of the General Statutes, Retirement 24
System for Teachers and State Employees. 25
SECTION 2.3.(j) Study and Report. – The State Board of Education shall study the 26
effect of the program on teacher performance and retention. The State Board shall report the 27
results of its findings and the amount of bonuses awarded to the President Pro Tempore of the 28
Senate, the Speaker of the House of Representatives, the Joint Legislative Education Oversight 29
Committee, and the Fiscal Research Division by March 15, 2026. The report shall include, at a 30
minimum, the following information: 31
(1) Number of students enrolled and taking examinations in each of the following 32
categories of courses: 33
a. Advanced Placement. 34
b. International Baccalaureate Diploma Programme. 35
c. Cambridge AICE program. 36
d. Courses needed for the attainment of an industry certification or 37
credential. 38
(2) Number of studen ts receiving outcomes on examinations resulting in the 39
award of a bonus for a teacher in each category of courses identified in 40
sub-subdivision a. of subdivision (1) of this subsection. 41
(3) Number of teachers receiving a bonus in each category of courses i dentified 42
in sub-subdivision a. of subdivision (1) of this subsection. 43
(4) The amounts awarded to teachers for each category of courses identified in 44
sub-subdivision a. of subdivision (1) of this subsection. 45
(5) The type of industry certifications and credentials earned by the students, the 46
value ranking for each certification and credential, the number of bonuses 47
earned for each certification or credential, and the total bonus amount awarded 48
for each certification or credential. 49
General Assembly Of North Carolina Session 2025
Senate Bill 599-Fifth Edition Page 9
(6) Average bonus amount awarded to each qualifying teacher who is an eligible 1
teacher under sub -sub-subdivision a.1., b.1., or c.1. of subdivision (3) of 2
subsection (b) of this section. 3
(7) The percentage of teachers who received a bonus pursuant to this section and 4
were eligible to receive a bonus for teaching in the same grade level or course 5
in January 2022 or January 2023, or both, where applicable, pursuant to one 6
of the following programs: 7
a. The Advanced Course and CTE Bonus Program provided in Section 8
7A.4 of S.L. 2021-180. 9
b. The Growth-Based Teacher Bonus Program provided in Section 7A.2 10
of S.L. of 2022-74. 11
(8) The percentage of teachers who received a bonus pursuant to this section and 12
received a bonus for teaching in the same grade level or course in either 13
January 2022 or January 2023 pursuant to one of the programs listed in 14
subdivision (7) of this subsection. 15
(9) The percentage of teachers who received a bonus pursuant to this section and 16
received a bonus for teaching in the same grade level or course in January 17
2022 o r January 2023, or both, where applicable, pursuant to one of the 18
programs listed subdivision (7) of this subsection. 19
(10) The statistical relationship between a teacher receiving a bonus in January 20
2026 pursuant to this section and receiving a bonus pursuant to a predecessor 21
bonus program. For purposes of this subdivision, the following are 22
predecessor programs: 23
a. Bonuses awarded pursuant to Section 7A.4(c) of S.L. 2021 -180 are 24
predecessors to bonuses awarded pursuant to subsection (c) of this 25
section. 26
b. Bonuses awarded pursuant to Section 7A.4(d) of S.L. 2021 -180 are 27
predecessors to bonuses awarded pursuant to subsection (d) of this 28
section. 29
c. Bonuses awarded pursuant to subdivision (1) of subsection (c) and 30
subdivision (1) of subsection (d) of Section 7A.2 of S.L. 2022-74 are 31
predecessors to bonuses awarded pursuant to subdivision (1) of 32
subsection (f) and subdivision (1) of subsection (g) of this section. 33
d. Bonuses awarded pursuant to subdivision (2) of subsection (c) and 34
subdivision (2) of subsection (d) of Section 7A.2 of S.L. 2022 -74 are 35
predecessors to bonuses awarded pursuant to subdivision (2) of 36
subsection (f) and subdivision (2) of subsection (g) of this section. 37
e. Bonuses awarded pursuant to subdivision (c)(3) and subdivision (d)(3) 38
of Section 7A.2 of S.L. 2022-74 are predecessors to bonuses awarded 39
pursuant to subdivision (3) of subsection (f) and subdivision (3) of 40
subsection (g) of this section. 41
f. Bonuses awarded pursuant to the Consolidated Teacher Bonus 42
Program provided in Section 7A.3 of S.L. 2023-134. 43
(11) The distribution of statewide and local growth bonuses awarded pursuant to 44
this section as among qualifying public school units and, where applicable, 45
schools within those units. 46
47
SUPPLEMENTAL FUNDS FOR TEACHER COMPENSATION 48
SECTION 2.4.(a) Use of Funds. – For the 2025-2026 fiscal year, except as provided 49
in subsection (g) of this section, the State Board of Education shall allocate funds pursuant to this 50
section to eligible local school administrative units to provide salary supplements to teachers and 51
General Assembly Of North Carolina Session 2025
Page 10 Senate Bill 599-Fifth Edition
qualifying school administrators in those units. Allocation of salary supplements among teachers 1
and qualifying school administrators within each eligible local school administrative unit, 2
including whether a teacher or qualifying school administrator receives a salary supplement and 3
the amount of the supplement provided to that person, shall be determined in the discretion of 4
the local board of education of the eligible unit, except that no individual salary supplement shall 5
exceed the p er teacher funding amount awarded to that unit pursuant to subdivision (4) of 6
subsection (c) of this section. 7
SECTION 2.4.(b) Definitions. – As used in this section, the following definitions 8
shall apply: 9
(1) Adjusted market value of taxable real property. – A county's assessed taxable 10
real property value, using the latest available data published by the 11
Department of Revenue, divided by the county's sales assessment ratio 12
determined under G.S. 105-289(h). 13
(2) Composite value. – For each eligible county, the sum of the following: 14
a. The taxable real property factor multiplied by sixty -five percent 15
(65%). 16
b. The median household income factor multiplied by twenty -five 17
percent (25%). 18
c. The effective tax rate factor multiplied by ten percent (10%). 19
(3) County allocation factor. – For each eligible county, the supplement factor for 20
that county divided by the sum of all supplement factors for the State. 21
(4) Effective tax rate. – The actual county tax rate multiplied by the most recent 22
annual sales assessment ratio for that county. 23
(5) Effective tax rate factor. – For each eligible county, the effective tax rate for 24
that county divided by the median effective tax rate in the State. 25
(6) Eligible county. – A county that has an adjusted market value of taxabl e real 26
property of less than sixty-three billion dollars ($63,000,000,000). 27
(7) Eligible local school administrative unit. – A local school administrative unit 28
located in whole or in part in an eligible county. 29
(8) Eligible school. – A public school that i s located in an eligible county and 30
governed by a local school administrative unit. 31
(9) Maintenance of effort amount. – For each local school administrative unit in 32
each fiscal year, the supplant factor multiplied by the total State and non-State 33
funds expended for salaries for teachers from the fiscal year for which the 34
most recent salary data are available. 35
(10) Median household income. – A county's median household income for the 36
most recent 12 months for which data are available, as that term is used in 37
G.S. 143B-437.08. 38
(11) Median household income factor. – For each eligible county, the median 39
household income in the State divided by the median household income for 40
that county. 41
(12) Non-State funds. – Any funds held by a local school administrative unit, other 42
than nonrecurring federal funds received as a result of legislation enacted by 43
Congress in response to COVID-19, that are not State funds. 44
(13) Qualifying school administrator. – Any of the following: 45
a. Assistant principals paid pursuant to G.S. 115C-285(a)(8). 46
b. Principals paid pursuant to G.S. 115C-285(a)(8a). 47
(14) Supplant factor. – For each local school administrative unit in each fiscal year 48
of the fiscal biennium, the total non -State funds expended for salary 49
supplements for teachers i n the 2020 -2021 fiscal year divided by the total 50
General Assembly Of North Carolina Session 2025
Senate Bill 599-Fifth Edition Page 11
State and non-State funds expended for salaries for teachers in the 2020-2021 1
fiscal year. 2
(15) Supplement factor. – For each eligible county, the composite value multiplied 3
by the number of State -funded teachers employed in a school in the county 4
that is governed by a local school administrative unit. 5
(16) Taxable real property factor. – For each eligible county, the median adjusted 6
market value of taxable real property in the State divided by the adjusted 7
market value of taxable real property for that county. 8
(17) Teacher. – Teachers and instructional support personnel. 9
SECTION 2.4.(c) Allocation of Funds. – The State Board of Education shall allocate 10
funds for salary supplements to eligible local school ad ministrative units according to the 11
following procedure: 12
(1) County allocation. – For each eligible county, the State Board shall determine 13
a county allocation by multiplying the county allocation factor for that county 14
by the funding amount appropriated pursuant to this section for the applicable 15
fiscal year. 16
(2) Per teacher funding amount. – For each eligible county, the State Board shall 17
determine a per teacher funding amount by dividing the county allocation 18
amounts determined pursuant to subdivision (1) of this subsection by the total 19
number of State -funded teachers employed in all eligible schools in that 20
county. 21
(3) Unit funding amount. – For each eligible local school administrative unit, the 22
State Board shall determine the funding amount for that unit based on the per 23
teacher funding amount or amounts for the eligible county or counties where 24
the unit is located. For each county with an eligible school governed by the 25
unit, the State Board shall multiply the applicable per teacher funding amount 26
for that county determined pursuant to subdivision (2) of this subsection by 27
the number of State -funded teachers employed in the eligible school in that 28
county. If the unit is located in multiple eligible counties, the State Board shall 29
aggregate those amounts. 30
(4) Allocation and funding cap. – The State Board shall allocate the amount 31
determined pursuant to subdivision (3) of this subsection to each eligible local 32
school administrative unit for each applicable fiscal year, up to a maximum of 33
five thousand dollars ($5,000) per State-funded teacher. 34
SECTION 2.4.(d) Charter Schools. – Funds appropriated to the Department of 35
Public Instruction pursuant to this section shall be subject to the allocation of funds for charter 36
schools described in G.S. 115C-218.105. T he General Assembly encourages charter schools 37
receiving funds pursuant to this section to provide salary supplements to teachers and qualifying 38
school administrators in the charter school in accordance with the requirements of this section. 39
SECTION 2.4.(e) Formula for Distribution of Supplemental Funding Pursuant to 40
this Section Only. – The formula in this section is solely a basis for distribution of supplemental 41
funding to eligible local school administrative units and is not intended to reflect any measure of 42
the adequacy of the educational program or funding for public schools. The formula is also not 43
intended to reflect any commitment by the General Assembly to appropriate any additional 44
supplemental funds for eligible local school administrative units. 45
SECTION 2.4.(f) Nonsupplant Requirement. – A local school administrative unit 46
that receives funds under this section shall use those funds to supplement non -State funds 47
provided for salary supplements for teachers and qualifying school administrators a nd shall not 48
use any State funds, including funds received under this section, Section 7A.4 of S.L. 2023-134, 49
or Section 7A.12 of S.L. 2021-180, to supplant non-State funds provided for salary supplements 50
for teachers and qualifying school administrators. For purposes of this section, a local school 51
General Assembly Of North Carolina Session 2025
Page 12 Senate Bill 599-Fifth Edition
administrative unit has supplanted non -State funds if the State Board finds that the amount of 1
non-State funds expended by the unit for salary supplements was less than ninety -five percent 2
(95%) of the maintenance of effort amount for the local school administrative unit. 3
SECTION 2.4.(g) Nonsupplant Enforcement. – The State Board of Education shall 4
not allocate any funds under this section to a local school administrative unit if it determines that 5
the unit has supplanted non-State funds in violation of subsection (f) of this section. 6
SECTION 2.4.(h) Reports. – No later than April 15, 2026, the State Board of 7
Education shall report the following information for the applicable fiscal year to the Joint 8
Legislative Education Oversight Committee and the Fiscal Research Division: 9
(1) A list of all eligible counties and eligible local school administrative units. 10
(2) Funds allocated to each eligible local school administrative unit. 11
(3) The percentage and amount of tea chers and qualifying school administrators 12
in each eligible local school administrative unit receiving salary supplements. 13
(4) The average salary supplement amount in each eligible local school 14
administrative unit. 15
(5) The range of salary supplement amount s in each eligible local school 16
administrative unit. 17
(6) The effect of the salary supplements on the retention of teachers and 18
qualifying school administrators in eligible local school administrative units. 19
(7) The identity of any local school administrati ve unit that the State Board 20
determines has supplanted funds. 21
22
PRINCIPAL SALARY SCHEDULE 23
SECTION 2.5.(a) The following annual salary schedule for principals shall apply 24
for the 2025-2026 fiscal year, beginning July 1, 2025: 25
2025-2026 Principal Annual Salary Schedule 26
Avg. Daily Membership Base Met Growth Exceeded Growth 27
0-200 $79,737 $87,709 $95,684 28
201-400 $83,723 $92,095 $100,467 29
401-700 $87,709 $96,481 $105,252 30
701-1,000 $91,698 $100,866 $110,037 31
1,001-1,600 $95,684 $105,252 $114,821 32
1,601+ $99,670 $109,637 $119,604 33
A principal's placement on the salary schedule shall be determined according to the 34
average daily membership of the school supervised by the principal, as described in subsection 35
(b) of this section, and the school growth scores, calculated pursuant to G.S. 115C-83.15(c), for 36
each school the principal supervised in at least two of the prior three school years, as described 37
in subsection (c) of this section, regardless of a break in service, and provided the principal 38
supervised each school as a principal for at least a majority of the school year, as follows: 39
(1) A principal shall be paid according to the Exceeded Growth column of the 40
schedule if the school growth scores show the school or schools exceeded 41
expected growth in at least two of the prior three school years. 42
(2) A principal shall be paid according to the Met Growth column of the schedule 43
if any of the following apply: 44
a. The school growth scores show the school or schools met expected 45
growth in at least two of the prior three school years. 46
b. The school growth scores show the school or schools met expected 47
growth in at least one of the prior three school years and exceeded 48
expected growth in one of the prior three school years. 49
c. The principal supervised a school in at least two of the prior three 50
school years that was not eligible to receive a school growth score. 51
General Assembly Of North Carolina Session 2025
Senate Bill 599-Fifth Edition Page 13
(3) A principal shall be paid according to the Base column if any of the following 1
apply: 2
a. The school growth scores show the school or schools did no t meet 3
expected growth in at least two of the prior three school years. 4
b. The principal has not supervised any school as a principal for a 5
majority of the school year in at least two of the prior three school 6
years. 7
SECTION 2.5.(b) For purposes of determ ining the average daily membership of a 8
principal's school, the allotted average daily membership for the school for the applicable school 9
year shall be used. For purposes of this section, the allotted average daily membership of a 10
principal's school shall include any prekindergarten students in membership at that school. 11
SECTION 2.5.(c) For purposes of determining the school growth scores for each 12
school the principal supervised in one or more prior school years, the following school growth 13
scores shall be used during the following time periods: 14
(1) For the first six months of the applicable fiscal year, the school growth scores 15
from the first, second, and third years. 16
(2) For the second six months of the applicable fiscal year, the school growth 17
scores from the second, third, and fourth years. 18
(3) If a principal does not have a school growth score from any of the school years 19
identified in this subsection, the most recent available growth scores, up to the 20
fourth year, shall be used. 21
SECTION 2.5.(d) Beginning with the 2017 -2018 fiscal year, in lieu of providing 22
annual longevity payments to principals paid on the principal salary schedule, the amounts of 23
those longevity payments are included in the annual amounts under the principal salary schedule. 24
SECTION 2.5.(e) A principal compensated in accordance with this section for the 25
2025-2026 fiscal year shall receive an amount equal to the greater of the following: 26
(1) The applicable amount on the principal salary schedule for the applicable 27
fiscal year. 28
(2) For principals who were eligible for longevity in the 2016 -2017 fiscal year, 29
the sum of the following: 30
a. The salary the principal received in the 2016-2017 fiscal year pursuant 31
to Section 9.1 or Section 9.2 of S.L. 2016-94. 32
b. The longevity that the principal would have received as provided for 33
State employees under the North Carolina Human Resources Act for 34
the 2016 -2017 fiscal year based on the principal's current years of 35
service. 36
(3) For principals who were not eligible for longevity in the 2016 -2017 fiscal 37
year, the salary the principal received in the 2016-2017 fiscal year pursuant to 38
Section 9.1 or Section 9.2 of S.L. 2016-94. 39
SECTION 2.5.(f) For purposes of this section, the following definitions apply: 40
(1) First year. – The school year immediately preceding the second year. 41
(2) Fourth year. – The school year immediately preceding the applicable school 42
year. 43
(3) Second year. – The school year immediately preceding the third year. 44
(4) The applicable fiscal year. – The 2025-2026 fiscal year. 45
(5) The applicable school year. – The 2025-2026 school year. 46
(6) Third year. – The school year immediately preceding the fourth year. 47
48
BONUSES FOR PRINCIPALS 49
SECTION 2.6.(a) The Department of Public Instruction shall administer a bonus in 50
the 2025-2026 fiscal year to any principal who supervised a school as a principal for a majority 51
General Assembly Of North Carolina Session 2025
Page 14 Senate Bill 599-Fifth Edition
of the previous school year if that school was in the top fifty percent (50%) of school growth in 1
the State during the previous school year, calculated by the State Board pursua nt to 2
G.S. 115C-83.15(c), as follows: 3
2025-2026 Principal Bonus Schedule 4
Statewide Growth Percentage Bonus 5
Top 5% $15,000 6
Top 10% $10,000 7
Top 15% $5,000 8
Top 20% $2,500 9
Top 50% $1,000 10
A principal shall receive no more than one bonus pursuant to this subsection. The 11
bonus shall be paid at the highest amount for which the principal qualifies. 12
SECTION 2.6.(b) The bonus awarded pursuant to this section shall be in addition to 13
any regular wage or other bonus the principal receives or is scheduled to receive. 14
SECTION 2.6.(c) Notwithstanding G.S. 135-1(7a), the bonuses awarded pursuant 15
to this section are not compensation under Article 1 of Chapter 135 of the General Statutes, 16
Retirement System for Teachers and State Employees. 17
SECTION 2.6.(d) It is the in tent of the General Assembly that funds provided 18
pursuant to this section will supplement principal compensation and not supplant local funds. 19
SECTION 2.6.(e) The bonus provided pursuant to this section shall be paid no later 20
than October 31, 2025, to qualifying principals employed as of October 1, 2025. 21
22
ASSISTANT PRINCIPAL SALARIES 23
SECTION 2.7.(a) For the 2025-2026 fiscal year, beginning July 1, 2025, assistant 24
principals shall receive a monthly salary based on the salary schedule for teachers who are 25
classified as "A" teachers plus nineteen percent (19%). An assistant principal shall be placed on 26
the step on the salary schedule that reflects the total number of years of experience as a certified 27
employee of the public schools. For purposes of this secti on, an administrator with a one -year 28
provisional assistant principal's certificate shall be considered equivalent to an assistant principal. 29
SECTION 2.7.(b) Assistant principals with certification based on academic 30
preparation at the six -year degree level shall be paid a salary supplement of one hundred 31
twenty-six dollars ($126.00) per month and at the doctoral degree level shall be paid a salary 32
supplement of two hundred fifty-three dollars ($253.00) per month. 33
SECTION 2.7.(c) Participants in an approved full-time master's in school 34
administration program shall receive up to a 10-month stipend during the internship period of the 35
master's program. The stipend shall be at the beginning salary of an assistant principal or, for a 36
teacher who becomes an intern , at least as much as that person would earn as a teacher on the 37
teacher salary schedule. The North Carolina Principal Fellows Program or the school of education 38
where the intern participates in a full-time master's in school administration program shall supply 39
the Department of Public Instruction with certification of eligible full-time interns. 40
SECTION 2.7.(d) Beginning with the 2017 -2018 fiscal year, in lieu of providing 41
annual longevity payments to assistant principals on the assistant principal salary schedule, the 42
amounts of those longevity payments are included in the monthly amounts provided to assistant 43
principals pursuant to subsection (a) of this section. 44
SECTION 2.7.(e) An assistant principal compensated in accordance with this section 45
for the 2025-2026 fiscal year shall receive an amount equal to the greater of the following: 46
(1) The applicable amount on the salary schedule for the applicable year. 47
(2) For assistant principals who were eligible for longevity in the 2016-2017 fiscal 48
year, the sum of the following: 49
a. The salary the assistant principal received in the 2016-2017 fiscal year 50
pursuant to Section 9.1 or Section 9.2 of S.L. 2016-94. 51
General Assembly Of North Carolina Session 2025
Senate Bill 599-Fifth Edition Page 15
b. The longevity that the assistant principal would have received as 1
provided for State employees under the North Carolina Human 2
Resources Act for the 2016 -2017 fiscal year based on the assistant 3
principal's current years of service. 4
(3) For assistant principals who were not eligible for longevity in the 2016 -2017 5
fiscal year, the salary the assistant princi pal received in the 2016-2017 fiscal 6
year pursuant to Section 9.1 or Section 9.2 of S.L. 2016-94. 7
8
CENTRAL OFFICE SALARIES 9
SECTION 2.8.(a) For the 2025-2026 fiscal year, beginning July 1, 2025, the annual 10
salary for superintendents, assistant superintende nts, associate superintendents, 11
directors/coordinators, supervisors, and finance officers whose salaries are supported from State 12
funds shall be increased by two and one-half percent (2.5%). 13
SECTION 2.8.(b) The monthly salary maximums that follow apply to assistant 14
superintendents, associate superintendents, directors/coordinators, supervisors, and finance 15
officers for the 2025-2026 fiscal year, beginning July 1, 2025: 16
2025-2026 Fiscal Year 17
Maximum 18
School Administrator I $7,762 19
School Administrator II $8,225 20
School Administrator III $8,715 21
School Administrator IV $9,055 22
School Administrator V $9,417 23
School Administrator VI $9,974 24
School Administrator VII $10,373 25
The local board of education shall determine the appropriate category and placement 26
for each assistant superintendent, associate superintendent, director/coordinator, supervisor, or 27
finance officer within the maximums and within funds appropriated by the General Assembly 28
for central office administrators and superintendents. The category in which an employee is 29
placed shall be included in the contract of any employee. 30
SECTION 2.8.(c) The monthly salary maximums that follow apply to 31
superintendents for the 2025-2026 fiscal year, beginning July 1, 2025: 32
2025-2026 Fiscal Year 33
Maximum 34
Superintendent I $10,995 35
Superintendent II $11,650 36
Superintendent III $12,350 37
Superintendent IV $13,092 38
Superintendent V $13,880 39
The local board of education shall determine the appropriate category and placement 40
for the superintendent based on the average daily membership of the local school administrative 41
unit and within funds appropriated by the General Assembly for central office administrators and 42
superintendents. 43
SECTION 2.8.(d) Longevity pay for superintendents, assistant superintendents, 44
associate superintendents , directors/coordinators, supervisors, and finance officers shall be as 45
provided for State employees under the North Carolina Human Resources Act. 46
SECTION 2.8.(e) Superintendents, assistant superintendents, associate 47
superintendents, directors/coordinators, supervisors, and finance officers with certification based 48
on academic preparation at the six -year degree level shall receive a salary supplement of one 49
hundred twenty -six dollars ($126.00) per month in addition to the compensation provided 50
pursuant to this section. Superintendents, assistant superintendents, associate superintendents, 51
General Assembly Of North Carolina Session 2025
Page 16 Senate Bill 599-Fifth Edition
directors/coordinators, supervisors, and finance officers with certification based on academic 1
preparation at the doctoral degree level shall receive a salary supplement o f two hundred 2
fifty-three dollars ($253.00) per month in addition to the compensation provided for under this 3
section. 4
SECTION 2.8.(f) The State Board of Education shall not permit local school 5
administrative units to transfer State funds from other funding categories for salaries for public 6
school central office administrators. 7
8
NONCERTIFIED PERSONNEL SALARIES 9
SECTION 2.9. For the 2025 -2026 fiscal year, beginning July 1, 2025, the annual 10
salary for noncertified public school employees whose salaries are supported from State funds 11
shall be increased as follows: 12
(1) For permanent, full -time employees on a 12 -month contract, by two and 13
one-half percent (2.5%). 14
(2) For the following employees, by an equitable amount based on the amount 15
specified in subdivision (1) of this section: 16
a. Permanent, full -time employees on a contract for fewer than 12 17
months. 18
b. Permanent, part-time employees. 19
c. Temporary and permanent hourly employees. 20
21
PART III. SALARY AND BENEFITS INCREASES 22
23
ELIGIBLE STATE -FUNDED EMPLOYEES AWARDED LEGISLATIVE SALARY 24
INCREASES 25
SECTION 3.3.(a) Effective July 1, 2025, except as provided by subsection (b) of 26
this section, a person (i) whose salary is set by this Part, pursuant to the North Carolina Human 27
Resources Act, or as otherwise authorized in this act and (ii) who is employed in a State-funded 28
position on June 30, 2025, is awarded a legislative salary increase in the 2025 -2026 fiscal year, 29
as follows: 30
(1) A cost-of-living adjustment in the amount of two and one half percent (2.5%) 31
for State employees. 32
(2) An additional cost -of-living adjustment in the amount of ten and one -half 33
percent (10.5%) for sworn State law enforcement officers. 34
(3) Any other salary adjustment otherwise allowed or provided by law. 35
SECTION 3.3.(b) Effective July 1, 2025, the following persons are not eligible to 36
receive the legislative salary increases provided by subsection (a) of this section: 37
(1) Employees of local boards of education. 38
(2) Local community college employees. 39
(3) Employees of The University of North Carolina. 40
(4) Clerks of superior court compensated under G.S. 7A-101. 41
(5) Officers and employees to which Section 3.15 of this Part applies. 42
(6) Officers and employees to which Section 3.16 of this Part applies. 43
(7) Officers and employees to which Section 3.18 of this Part applies. 44
(8) Employees of schools operated by the Department of Health and Human 45
Services, the Department of Public Safety, th e Department of Adult 46
Correction, the Governor Morehead School for the Blind, the Eastern North 47
Carolina School for the Deaf, the North Carolina School for the Deaf, and the 48
State Board of Education who are paid based on the Teacher Salary Schedule. 49
General Assembly Of North Carolina Session 2025
Senate Bill 599-Fifth Edition Page 17
SECTION 3.3.(c) The additional increases awarded to sworn State law enforcement 1
officers includes increases for officers serving in the executive, legislative, or judicial branches, 2
or employed by The University of North Carolina or its constituent institutions. 3
SECTION 3.3.(d) Part-time employees shall receive the increases authorized by this 4
section on a prorated and equitable basis. 5
SECTION 3.3.(e) No eligible State -funded employee shall be prohibited from 6
receiving the full salary increases provided in this section solely because the employee's salary 7
after applying the legislative salary increase is above the maximum of the salary range prescribed 8
by the State Human Resources Commission. 9
10
GOVERNOR AND COUNCIL OF STATE 11
SECTION 3.4.(a) Effective July 1, 2025, G.S. 147-11(a) reads as rewritten: 12
"§ 147-11. Salary and expense allowance of Governor; allowance to person designated to 13
represent Governor's office. 14
(a) The salary of the Governor shall be two hundred three thousand seventy-three dollars 15
($203,073) two hundred eight thousand one hundred fifty dollars ($208,150) annually, payable 16
monthly." 17
SECTION 3.4.(b) Effective July 1, 2025, the annual salaries for members of the 18
Council of State, payable monthly, are set as follows: 19
Council of State Annual Salary 20
Lieutenant Governor $172,594 21
Attorney General 172,594 22
Secretary of State 172,594 23
State Treasurer 172,594 24
State Auditor 172,594 25
Superintendent of Public Instruction 172,594 26
Agriculture Commissioner 172,594 27
Insurance Commissioner 172,594 28
Labor Commissioner 172,594 29
30
CERTAIN EXECUTIVE BRANCH OFFICIALS 31
SECTION 3.5. Effective July 1, 2025, the annual salaries, payable monthly, for the 32
following executive branch officials are as follows: 33
34
Executive Branch Officials Annual Salary 35
Chairman, Alcoholic Beverage Control Commission $144,365 36
State Controller 201,022 37
Commissioner of Banks 162,028 38
Chair, Board of Review, Division of Employment Security 158,931 39
Members, Board of Review, Division of Employment Security 156,989 40
Chairman, Parole Commission 158,931 41
Full-time Members of the Parole Commission 146,948 42
Chairman, Utilities Commission 180,159 43
Members of the Utilities Commission 162,028 44
Executive Director, North Carolina Agricultural Finance Authority 140,590 45
State Fire Marshal 142,526 46
47
JUDICIAL BRANCH 48
SECTION 3.6.(a) Effective July 1, 2025, the annual salaries, payable monthly, for 49
the following judicial branch officials are as follows: 50
Judicial Branch Officials Annual Salary 51
General Assembly Of North Carolina Session 2025
Page 18 Senate Bill 599-Fifth Edition
Chief Justice, Supreme Court $208,150 1
Associate Justice, Supreme Court 202,747 2
Chief Judge, Court of Appeals 199,541 3
Judge, Court of Appeals 194,362 4
Judge, Senior Regular Resident Superior Court 178,606 5
Judge, Superior Court 173,353 6
Chief Judge, District Court 171,737 7
Judge, District Court 166,686 8
Chief Administrative Law Judge 148,354 9
District Attorney 171,520 10
Assistant Administrative Officer of the Courts 155,610 11
Public Defender 171,520 12
Director of Indigent Defense Services 172,779 13
SECTION 3.6.(b) The district attorney of a judicial district, with the approval of the 14
Administrative Officer of the Courts, and the public defender of a judicial district, with the 15
approval of the Commission on Indigent Defense Services, shall set the salaries of assistant 16
district attorneys and assistant publi c defenders in that district such that the average salary of 17
those assistants in that district does not exceed one hundred three thousand eight hundred 18
thirty-one dollars ($103,831) and the minimum salary of any assistant is at least fifty -five 19
thousand seven hundred twenty-eight dollars ($55,728), effective July 1, 2025. 20
21
CLERKS OF SUPERIOR COURT 22
SECTION 3.7. Effective July 1, 2025, G.S. 7A-101(a) reads as rewritten: 23
"§ 7A-101. Compensation. 24
(a) The clerk of superior court is a full -time employee of the State and shall receive an 25
annual salary, payable in equal monthly installments, based on the number of State -funded 26
assistant and deputy clerks of court as determined by the Administrative Office of Court's 27
workload formula, according to the following schedule: 28
Assistants and Deputies Annual Salary 29
0-19 $111,726$114,519 30
20-29 123,488126,575 31
30-49 135,248138,629 32
50-99 147,010150,685 33
100 and above 149,949153,698 34
If the number of State -funded assistant and deputy clerks of court as determined by the 35
Administrative Office of Court's workload formula changes, the salary of the clerk shall be 36
changed, on July 1 of the fiscal year for which the change is reported, to the salary appropriate 37
for that new number, except that the salary of an incumbent clerk shall not be decreased by any 38
change in that number during the clerk's continuance in office." 39
40
ASSISTANT AND DEPUTY CLERKS OF COURT 41
SECTION 3.8. Effective July 1, 2025, G.S. 7A-102(c1) reads as rewritten: 42
"(c1) A full-time assistant clerk or a full-time deputy clerk, and up to one full-time deputy 43
clerk serving as head bookkeeper per county, shall be paid an annual salary subject to the 44
following minimum and maximum rates: 45
46
Assistant Clerks and Head Bookkeeper Annual Salary 47
Minimum $40,482$41,494 48
Maximum 74,79276,662 49
50
Deputy Clerks Annual Salary 51
General Assembly Of North Carolina Session 2025
Senate Bill 599-Fifth Edition Page 19
Minimum $36,315$37,223 1
Maximum 58,74060,209" 2
3
MAGISTRATES 4
SECTION 3.9. Effective July 1, 2025, G.S. 7A-171.1(a)(1) reads as rewritten: 5
"(1) A full-time magistrate shall be paid the annual salary indicated in the table set 6
out in this subdivision. A full-time magistrate is a magistrate who is assigned 7
to work an average of not less than 40 hours a week during the term of office. 8
The Administrative Officer of the Courts shall designate whether a magistrate 9
is full-time. Initial appointment shall be at the entry rate. A magistrate's salary 10
shall increase to the next step every two years on the anniversary of the date 11
the magistrate was originally appointed for increases to Steps 1 through 3, and 12
every four years on the anniversary of the date the magistrate was originally 13
appointed for increases to Steps 4 through 6: 14
Table of Salaries of Full-Time Magistrates 15
Step Level Annual Salary 16
Entry Rate $47,228$48,409 17
Step 1 $50,714$51,982 18
Step 2 $54,475$55,837 19
Step 3 $58,457$59,918 20
Step 4 $63,228$64,809 21
Step 5 $68,973$70,694 22
Step 6 $75,415.$77,300." 23
24
LEGISLATIVE EMPLOYEES 25
SECTION 3.10.(a) Effective July 1, 2025, the annual salaries of the Legislative 26
Services Officer and of nonelected employees of the General Assembly in effect on June 30, 27
2025, shall be legislatively increased by two and one-half percent (2.5%). 28
SECTION 3.10.(b) Nothing in this act limits any of the provisions of G.S. 120-32. 29
30
GENERAL ASSEMBLY PRINCIPAL CLERKS 31
SECTION 3.11. Effective July 1, 2025, G.S. 120-37(c) reads as rewritten: 32
"(c) The principal clerks shall be full -time officers. Each principal clerk shall be entitled 33
to other benefits available to permanent legislative employees and shall be paid an annual salary 34
of one hundred thirty -three thousand nine hundred thirty -six dollars ($133,936), one hundred 35
thirty-seven thousand two hundred eighty-four dollars ($ 137,284), payable monthly. Each 36
principal clerk shall also receive such additional compensation as approved by the Speaker of the 37
House of Representatives or the President Pro Tempore of the Senate, respectively, for additional 38
employment duties beyond those provided by the rules of their House. The Legislative Services 39
Commission shall review the salary of the principal clerks prior to submission of the proposed 40
operating budget of the General Assembly to the Governor and shall make appropriate 41
recommendations for changes in those salaries. Any changes enacted by the General Assembly 42
shall be by amendment to this paragraph.subsection." 43
44
SERGEANTS-AT-ARMS AND READING CLERKS 45
SECTION 3.12. Effective July 1, 2025, G.S. 120-37(b) reads as rewritten: 46
"(b) The sergeant at arms and the reading clerk in each house shall be paid a salary of five 47
hundred twenty-eight dollars ($528.00) five hundred forty-one dollars ($541.00) per week plus 48
subsistence at the same daily rate provided for members of the General Ass embly, plus mileage 49
at the rate provided for members of the General Assembly for one round trip only from their 50
homes to Raleigh and return. The sergeants at arms shall serve during sessions of the General 51
General Assembly Of North Carolina Session 2025
Page 20 Senate Bill 599-Fifth Edition
Assembly and at such time prior to the convening o f, and subsequent to adjournment or recess 1
of, sessions as may be authorized by the Legislative Services Commission. The reading clerks 2
shall serve during sessions only." 3
4
COMMUNITY COLLEGES 5
SECTION 3.13.(a) Effective July 1, 2025, the State Board of Community Colleges 6
shall provide community college faculty and non -faculty personnel with an across -the-board 7
salary increase in the amount of two and one-half percent (2.5%). 8
SECTION 3.13.(b) Effective July 1, 2025, the minimum salaries for nine -month, 9
full-time curriculum community college faculty are as follows: 10
Educational Level Minimum Salary 11
Vocational Diploma/Certificate or Less $44,198 12
Associate Degree or Equivalent 44,813 13
Bachelor's Degree 47,479 14
Master's Degree or Education Specialist 49,845 15
Doctoral Degree 53,255 16
SECTION 3.13.(c) No full-time faculty member shall earn less than the minimum 17
salary for the faculty member's education level. The pro rata hourly rate of the minimum salary 18
for each education level shall be used to determine the minimum sa lary for part -time faculty 19
members. 20
21
UNIVERSITY OF NORTH CAROLINA 22
SECTION 3.14. Effective July 1, 2025, the Board of Governors of The University 23
of North Carolina shall provide SHRA employees, EHRA employees, and teachers employed by 24
the North Carolina School of Science and Mathematics with an across-the-board salary increase 25
in the amount of two and one-half percent (2.5%). 26
27
CORRECTIONAL OFFICERS/YOUTH COUNSELORS/YOUTH COUNSELOR 28
TECHNICIANS/YOUTH SERVICES BEHAVIORAL SPECIALISTS – SALARY 29
SCHEDULE 30
SECTION 3.15.(a) Effective July 1. 2025, State employees serving as correctional 31
officers in the Department of Adult Correction shall be compensated at a specific pay rate on the 32
basis of a salary schedule determined according to the duration of the employee's correctional 33
officer work experience pursuant to the salary schedule in subsection (b) of this section. 34
SECTION 3.15.(a1) Effective July 1, 2025, State employees serving in the 35
Department of Public Safety, Division of Juvenile Justice and Delinquency Prevention, shall be 36
compensated at a specific pay rate set on the basis of a salary s chedule determined according to 37
the duration of the employee's work experience, as follows: 38
(1) Youth Counselor Technicians shall be paid under the Correctional Officer I 39
salary schedule, as established in subsection (b) of this section. 40
(2) Youth Services Behavioral Specialists shall be paid under the Correctional 41
Officer II salary schedule, as established in subsection (b) of this section. 42
(3) Youth Counselors shall be paid under the Correctional Officer III salary 43
schedule, as established in subsection (b) of this section. 44
SECTION 3.15.(b) Effective July 1, 2025, the following annual salary schedule will 45
apply for the 2025-2027 fiscal biennium under subsections (a) and (a1) of this section: 46
47
Experience COI COII COIII 48
49
0 $42,512 $43,911 $46,961 50
1 $45,486 $46,983 $50,249 51
General Assembly Of North Carolina Session 2025
Senate Bill 599-Fifth Edition Page 21
2 $48,217 $49,852 $53,265 1
3 $50,627 $52,293 $55,928 2
4 $52,651 $54,385 $58,164 3
5 $54,232 $56,015 $59,909 4
6+ $55,317 57,136 $61,108 5
6
SECTION 3.15.(c) If an employee will not receive a salary increase under this 7
section because the employee's salary exceeds the scheduled salary level, then the employee shall 8
receive an annual salary increase equal to the amount of the across -the-board legislative salary 9
increase authorized in this Part. 10
SECTION 3.15.(d) Regarding the Department of Adult Correction and Division of 11
Juvenile Justice, these salary funds are granted with the administrative flexibility necessary to 12
address salary compression and related issues connected with these increases, including adjusting 13
the salaries of supervisors and other employees who have, when considering classification, 14
significantly more experience and length of service compared to other employees receiving this 15
pay increase. 16
17
STATE HIGHWAY PATROL SALARY SCHEDULE/STATE LAW ENFORCEMENT 18
OFFICER SALARY SCHEDULE/INCREASES 19
SECTION 3.16.(a) Effective July 1, 2025, law enforcement officers of the State 20
Highway Patrol, State Bureau of Investigation, and Alcohol Law Enforcement compensated 21
pursuant to an experience -based salary schedule shall be compensated based on the officer's 22
respective work experience pursuant to the salary schedule in subsection (b) of this section. 23
SECTION 3.16.(b) Effective July 1, 2025, the following annual salary schedule 24
applies under subsection (a) of this section for the 2025-2027 fiscal biennium: 25
26
Years of Experience FY 2025-27 27
0 $62,150 28
1 $66,190 29
2 $70,492 30
3 $75,074 31
4 $79,953 32
5 $85,150 33
6+ $90,685 34
35
SECTION 3.16.(c) If an emp loyee will not receive a salary increase under this 36
section because the employee's salary exceeds the scheduled salary level, then the employee shall 37
receive an annual salary increase equal to the amount of the across -the-board legislative salary 38
increase authorized in this Part. 39
40
PROBATION AND PAROLE OFFICERS/JUVENILE COURT COUNSELORS – 41
SALARY SCHEDULE 42
SECTION 3.18.(a) Effective July 1, 2025, probation and parole officers shall be 43
compensated pursuant to the experience -based salary schedule based on the o fficer's respective 44
work experience, as established in subsection (b) of this section. 45
SECTION 3.18.(a1) Effective July 1, 2025, State employees serving in the 46
Department of Public Safety, Division of Juvenile Justice and Delinquency Prevention, as 47
Juvenile Court Counselors shall be compensated under the probation and parole officer salary 48
schedule, as established in subsection (b) of this section. 49
SECTION 3.18.(b) Effective July 1, 2025, the following annual salary schedule 50
applies for the 2025-2027 fiscal biennium under subsections (a) and (a1) of this section: 51
General Assembly Of North Carolina Session 2025
Page 22 Senate Bill 599-Fifth Edition
1
Years of Experience FY 2025-26 2
0 $48,374 3
1 $51,518 4
2 $54,869 5
3 $58,434 6
4 $62,233 7
5 $66,278 8
6+ $70,586 9
10
SECTION 3.18.(c) If an employee will not receive a salary increase under this 11
section because the employee's salary exceeds the scheduled salary level, then the employee shall 12
receive an annual salary increase equal to the amount of the across -the-board legislative salary 13
increase authorized in this Part. 14
15
STATE AGENCY TEACHERS 16
SECTION 3.19. Effective July 1, 2025, employees of schools operated by the 17
Department of Health and Human Services, the Department of Public Safety, the Department of 18
Adult Correction, the Governor Mo rehead School for the Blind, the Eastern North Carolina 19
School for the Deaf, the North Carolina School for the Deaf, and the State Board of Education 20
who are paid based on the Teacher Salary Schedule shall be paid as authorized under this act. 21
22
MOST STATE EMPLOYEES 23
SECTION 3.20. Effective July 1, 2025, unless otherwise expressly provided by this 24
Part, the annual salaries in effect for the following persons on June 30, 2025, shall be legislatively 25
increased as provided by this act: 26
(1) Permanent, full -time State officials and persons whose salaries are set in 27
accordance with the State Human Resources Act. 28
(2) Permanent, full-time State officials and persons in positions exempt from the 29
State Human Resources Act. 30
(3) Permanent, part-time State employees. 31
(4) Temporary and permanent hourly State employees. 32
33
ALL STATE-SUPPORTED PERSONNEL 34
SECTION 3.21.(a) The legislative salary increases authorized by this act shall be 35
paid effective on July 1, 2025, and do not apply to persons separated from service due to 36
resignation, dismissal, reduction in force, death, or retirement or whose last workday is prior to 37
June 30, 2025. 38
SECTION 3.21.(b) The Director of the Budget is granted flexibility to administer 39
the compensation increases enacted by this act. The State employer contribution rates enacted by 40
this act for retirement and related benefits may be deemed by the Director of the Budget for 41
administrative purposes to become effective after July 1 to provide flexibility in the collection 42
and reconciliation of salary -related contributions as required by law, provided the estimated 43
amount contributed to any affected employee benefit trust equals the amount that would have 44
been contributed to the employee benefit trust if the enacted employer contribution rates had 45
been effective on July 1. 46
SECTION 3.21.(c) This section applies to all employees paid from State funds, 47
whether or not subject to or exempt from the North Carolina Human Resources Act, including 48
employees of public schools, community colleges, and The University of North Carolina. 49
50
USE OF FUNDS APPROPRIATED FOR LEGISLATIVELY MANDATED INCREASES 51
General Assembly Of North Carolina Session 2025
Senate Bill 599-Fifth Edition Page 23
SECTION 3.22.(a) The Office of State Budget and Management shall ensure that 1
the appropriations made by this act for legislatively mandated salary increases and employee 2
benefits are used only for those purposes. 3
SECTION 3.22.(b) If the Director of the Budget determines that funds appropriated 4
to a State agency for legislatively mandated salary increases and employee benefits exceed the 5
amount required by that agency for those purposes, the Director may reallocate those funds to 6
other State agencies that received insufficient funds for legislatively mandated salary increases 7
and employee benefits. 8
SECTION 3.22.(c) Funds appropriated for legislatively mandated salary and 9
employee benefit increases may not be used to adjust the budgeted salaries of vacant positions, 10
to provide salary increases in excess of those required by the General Assembly, or to increase 11
the budgeted salary of filled positions to the minimum of the position's respective salary range. 12
SECTION 3.22.(d) Any funds appropriated for legislatively mandated salar y and 13
employee benefit increases in excess of the amounts required to implement the increases shall be 14
credited to the Pay Plan Reserve. 15
SECTION 3.22.(e) No later than May 1, 2026, the Office of State Budget and 16
Management shall report to the Fiscal Resea rch Division on the expenditure of funds for 17
legislatively mandated salary increases and employee benefits. This report shall include at least 18
the following information for each State agency: 19
(1) The total amount of funds that the agency received for legislatively mandated 20
salary increases and employee benefits. 21
(2) The total amount of funds transferred from the agency to other State agencies 22
pursuant to subsection (b) of this section. This section of the report shall 23
identify the amounts transferred to each recipient State agency. 24
(3) The total amount of funds used by the agency for legislatively mandated salary 25
increases and employee benefits. 26
(4) The amount of funds credited to the Pay Plan Reserve. 27
28
LOCAL LAW ENFORCEMENT OFFICER SUPPLEMENTAL PAY/BONUS 29
SECTION 3.23.(a) For the 2025 -2026 fiscal year, a sworn local law enforcement 30
officer employed on June 30, 2025, is eligible to receive a compensation bonus in the amount of 31
one thousand seven hundred fifty dollars ($1,750), payable during the month of November 2025. 32
SECTION 3.23.(b) For the 2026 -2027 fiscal year, a sworn local law enforcement 33
officer employed on June 30, 2026, is eligible to receive a compensation bonus in the amount of 34
one thousand seven hundred fifty dollars ($1,750), payable during the month of November 2026. 35
SECTION 3.23.(c) The funds appropriated for bonuses in excess of the amounts 36
required to implement these bonuses shall revert to the General Fund. The compensation bonuses 37
awarded by this section are not compensation for the purpos es of any retirement system 38
administered by the State. The compensation bonuses awarded by this section are not part of 39
annual salary and shall be paid out separately. The compensation bonus shall be awarded to 40
eligible officers without regard to an office r's placement within the salary range, including 41
employees at the top of the salary range. The compensation bonus shall be adjusted pro rata for 42
permanent part-time employees. 43
SECTION 3.23.(d) The State Bureau of Investigation (SBI) shall award these local 44
law enforcement compensation bonuses as provided by this section. The SBI shall report on the 45
administration of the awards to the Fiscal Research Division annually by March 15, 2026, and 46
March 15, 2027. 47
48
ONE-TIME, COST-OF-LIVING SUPPLEMENT PAYMENT FOR RE TIREES OF THE 49
TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE 50
General Assembly Of North Carolina Session 2025
Page 24 Senate Bill 599-Fifth Edition
CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE 1
RETIREMENT SYSTEM 2
SECTION 3.24.(a) G.S. 135-5 is amended by adding the following new subsection 3
to read: 4
"(aaaa) After October 1, 2025, but on or before November 30, 2025, a one-time, cost-of-living 5
supplement payment shall be made to, or on account of, beneficiaries who are living as of October 6
1, 2025, and whose retirement commenced on or before October 1, 2025. The payment shall be 7
one percent (1%) of the beneficiary's annual retirement allowance payable as of October1, 2025, 8
and shall not be prorated for date of retirement commencement. If the beneficiary dies before the 9
payment is made, then the payment shall be payable to the member 's legal representative. No 10
beneficiary shall have a vested right to any future supplemental payments under this Article. 11
(bbbb) After September 1, 2026, but on or before October 31, 2026, a one-time, 12
cost-of-living supplement payment shall be made to, or on account of, beneficiaries who are 13
living as of September 1, 202 6, and whose retirement commenced on or before September 1, 14
2026. The payment shall be two percent (2%) of the beneficiary 's annual retirement allowance 15
payable as of September 1, 2026, and shall not be prorated for date of retirement commencement. 16
If the beneficiary dies before the payment is made, then the payment shall be payable to the 17
member's legal representative. No beneficiary shall have a vested right to any future 18
supplemental payments under this Article." 19
SECTION 3.24.(b) G.S. 135-65 is amended by adding the following new subsection 20
to read: 21
"(ll) After October 1, 2025, but on or before November 30, 2025, a one-time, cost-of-living 22
supplement payment shall be made to, or on account of, beneficiaries who are living as of 23
October1, 2025, and whose retirement commenced on or before October 1, 2025. The payment 24
shall be one percent ( 1%) of the beneficiary's annual retirement allowance payable as of 25
October1, 202 5, and shall not be prorated for date of retirement commencement. If the 26
beneficiary dies before the payment is made, then the payment shall be payable to the member's 27
legal representative. No beneficiary shall have a vested right to any future supplemental payments 28
under this Article. 29
(mm) After September 1, 2026, but on or before October 31, 2026, a one -time, 30
cost-of-living supplement payment shall be made to, or on account of, beneficiaries who are 31
living as of September 1, 202 6, and whose retirement commenced on or before September 1, 32
2026. The payment shall be two percent (2%) of the beneficiary 's annual retirement allowance 33
payable as of September 1, 2026, and shall not be prorated for date of retirement commencement. 34
If the beneficiary dies before the payment is made, then the payment shall be payable to the 35
member's legal representative. No beneficiary shall have a vested right to any future 36
supplemental payments under this Article." 37
SECTION 3.24 .(c) G.S. 120-4.22A is amended by adding the following new 38
subsection to read: 39
"(ff) In accordance with subsection (a) of this section, after October 1, 2025, but on or 40
before November 30, 2025, a one-time, cost-of-living supplement payment shall be made to, or 41
on account of, beneficiaries who are living as of October 1, 202 5, and whose retirement 42
commenced on or before October 1, 202 5. The payment shall be one percent ( 1%) of the 43
beneficiary's annual retirement allo wance payable as of October 1, 202 5, and shall not be 44
prorated for date of retirement commencement. If the beneficiary dies before the payment is 45
made, then the payment shall be payable to the member 's legal representative. No beneficiary 46
shall have a vested right to any future supplemental payments under this Article. 47
(gg) In accordance with subsection (a) of this section, after September 1, 2026, but on or 48
before October 31, 2026, a one-time, cost-of-living supplement payment shall be made to, or on 49
account of, beneficiaries who are living as of September 1, 202 6, and whose retirement 50
commenced on or before September 1, 202 6. The payment shall be two percent (2%) of the 51
General Assembly Of North Carolina Session 2025
Senate Bill 599-Fifth Edition Page 25
beneficiary's annual retirement allowance payable as of September 1, 202 6, and sha ll not be 1
prorated for date of retirement commencement. If the beneficiary dies before the payment is 2
made, then the payment shall be payable to the member 's legal representative. No beneficiary 3
shall have a vested right to any future supplemental payments under this Article." 4
SECTION 3.24.(d) There is appropriated from the General Fund to the Retiree 5
Supplement Reserve in the Office of State Budget and Management the sum of forty-one million 6
thirty-eight thousand seven hundred eighty-three dollars ($41,038,783) in nonrecurring funds for 7
the 2025-2026 fiscal year and the sum of eighty-two million seventy-seven thousand five hundred 8
sixty-six dollars ($82,077,566) in nonrecurring funds for the 2026 -2027 fiscal year to be 9
distributed accordingly to implement this section. 10
11
UPDATES TO SALARY-RELATED CONTRIBUTIONS 12
SECTION 3.25.(a) Section 3.6(b) of S.L. 2025-89 reads as rewritten: 13
"SECTION 3.6.(b) Effective July 1, 2025, the State's employer contribution rates budgeted 14
for retirement, health, and related benefits as a percentage of covered salaries for the 2025-2026 15
fiscal year for teachers and State employees, State law enforcement officers (LEOs ), the 16
University and Community Colleges Optional Retirement Programs (ORPs), the Consolidated 17
Judicial Retirement System (CJRS), and the Legislative Retirement System (LRS) are as set forth 18
below: 19
Teachers State ORPs CJRS LRS 20
and State LEOs 21
Employees 22
Retirement 17.14%17.44%17.14%17.44% 6.84% 37.73%38.36%18.26%18.90% 23
Health 7.33% 7.33% 7.33% 7.33% 7.33% 24
Disability 0.07% 0.07% 0.07% 0.00% 0.00% 25
Death 0.13% 0.13% 0.00% 0.00% 0.00% 26
NC 401(k) 0.00% 5.00% 0.00% 0.00% 0.00% 27
28
Total Contribution 29
Rate 24.67%24.97%29.67%29.97%14.24% 45.06%45.69%25.59%26.23% 30
The rate for health includes two and four-tenths percent (2.40%) for the Public Employee 31
Health Benefit Fund and four and ninety-three hundredths percent (4.93%) for the Retiree 32
Health Benefit Fund." 33
SECTION 3.25.(b) When setting the salary-related contribution rates for the 2026-34
2027 fiscal yar, it is the intent of the General Assembly to incorporate the appropriate 35
contribution rate for the one-time supplement provided for that fiscal year under this section. 36
37
PART IV. MISCELLANEOUS 38
39
STATE BUDGET ACT APPLICABILITY 40
SECTION 4.1. If any provision of this act and S.L. 2025-89 or G.S. 143C-5-4 are in 41
conflict, the provisions of this act shall prevail. The appropriations and the authorizations to 42
allocate and spe nd funds which are set out in this act shall remain in effect until the Current 43
Operations Appropriations Act for the applicable fiscal year becomes law, at which time that act 44
shall become effective and shall govern appropriations and expenditures. When t he Current 45
Operations Appropriations Act for that fiscal year becomes law, the Director of the Budget shall 46
adjust allotments to give effect to that act from July 1 of the fiscal year. 47
48
EFFECTIVE DATE 49
SECTION 4.2. This section is effective when it becomes law. The remainder of this 50
act is effective July 1, 2025, upon enactment of a bill denominated a "Current Operations 51
General Assembly Of North Carolina Session 2025
Page 26 Senate Bill 599-Fifth Edition
Appropriations Act" meeting the definition of that term as set forth in G.S. 143C-1-1 for the 1
2025-2026 Fiscal Year. 2