Bill
SB 962
The bill would raise salaries for teachers, state employees, community college and UNC staff, add COLAs for retirees, and create new retention pay and bonuses with funding to suppo
Investing in North Carolina Act (SB 962) – Summary
Overview
- Jurisdiction: North Carolina
- Session: 2025
- Short Title: Investing in North Carolina Act
- Purpose: A multi-part bill that would (a) raise salaries for teachers, state employees, community college employees, and UNC system employees; (b) provide cost-of-living adjustments (COLA) and retirement COLA for retirees; (c) set forth funding, timing, and administration rules to implement these increases, with contingent provisions if the Current Operations Appropriations Act does not become law. The bill also introduces new retention pay structures and various salary schedules across several state employment sectors.
Key Provisions by Part
Part I – Contingent Effect
- Creates contingent effective dates for Part II (teacher salaries) and Part III (state employees, community colleges, UNC) depending on whether the 2026-2027 Current Operations Appropriations Act becomes law.
- If the 2026-2027 Current Operations Appropriations Act does not become law in the 2025 session, Part II and Part III would take effect on the earlier of:
1) the day after sine die of the 2025 Regular Session, or
2) January 1, 2027.
Part II – Raise Teacher Salaries
- 2026-2027 Teacher Salary Schedule (monthly amounts, base schedule “A” by years of experience) for licensed public school teachers:
- 0 years: $4,600; 1 year: $4,685; 2 years: $4,770; 3 years: $4,855; 4 years: $4,940; 5 years: $5,025; 6 years: $5,110; 7 years: $5,195; 8 years: $5,280; 9 years: $5,365; 10 years: $5,450; 11-19 years: steps ascend to $6,070; 20-22 years: $6,135; 23-25 years: $6,200; 26-28 years: $6,295; 29+ years: $6,370.
- Salary supplements (monthly):
- NBPTS-certified: +12% of monthly A-salary.
- “M” teachers: +10% of monthly A-salary.
- Six-year degree licensure: +$126/month in addition to “M” supplement.
- Doctoral degree licensure: +$253/month in addition to “M” supplement.
- Certified school nurses: +10% of monthly A-salary.
- School counselors (masters or higher): +$100/month.
- Special provisions for certain related positions:
- School psychologists, speech pathologists (master’s level or higher), and audiologists (master’s level or higher) receive:
- First step aligns with the 6th step of A-salary schedule.
- Monthly supplements: 10% of monthly salary (excluding the $126/$253 enhancements for six-year/doctoral licensure, which apply to the relevant categories as described).
- Eligibility for supplements equivalent to six-year/doctoral educator supplements.
- The 26th step is 7.5% higher than the 25th step for these roles.
- Longevity payments: Beginning 2014-2015, longevity payments are folded into the monthly salary schedule for teachers.
- Definitions: “Teacher” includes instructional support personnel.
- Funding: $921,200,000 in recurring funds from the General Fund to DPI for 2026-2027 to implement the teacher raises.
Part III – Pay Raises for State Employees, Community Colleges, UNC; COLA for Retirees
- General 6% compensation adjustment (effective July 1, 2026) for most state-funded employees set under this Part, with limitations:
- Not eligible for certain categories (e.g., local education employees, local community college employees, UNC employees, several court and safety-related roles, certain DHHS/Public Safety/education-linked personnel paid on the Teacher Salary Schedule).
- Permanent part-time employees receive prorated increases.
- No employee can be prevented from receiving the full increase solely because their new salary would exceed the existing maximum of their range.
- Receipt-Supported COLA Reserve:
- Agencies may use funding from this reserve to shift limited receipt-supported positions to net appropriation funding.
- Retention Pay (replacing longevity):
- New retention pay scales based on total years of service (ranging from 1.0% at 2-5 years to 4.5% at 25+ years).
- Retention Bonuses:
- A $500 retention bonus for continuous state/public school unit employment July 1, 2026 – Oct 31, 2026, payable Nov 2026 (and a separate eligibility window for local education employees starting at the first day of the 2026-2027 school year).
- An additional $500 retention bonus payable April 2027 for continuous employment Nov 1, 2026 – Mar 31, 2027.
- An extra $250 bonus payable Nov 2026 and April 2027 for employees earning no more than $75,000, who meet the continuance window criteria.
- Any excess funds for bonuses revert to the Pay Plan Reserve; bonuses are not considered part of annual salary or retirement benefits.
- Community Colleges:
- Across-the-board 6% salary increase for community college faculty and non-faculty, effective July 1, 2026.
- Minimum salaries for nine-month, full-time curriculum community college faculty for 2026-2027: ranges by education level (e.g., Bachelor’s: $49,142; Master’s/Education Specialist: $51,591; Doctoral: $55,120; etc.).
- UNC System:
- SHRA salaries receive increases per Section 3.1 (teacher salary framework) for 2025-2027 biennium.
- EHRA employees may receive merit pay, across-the-board increases, recruitment bonuses, retention increases, and other compensation per UNC Board policies for 2026-2027, with a reporting requirement to the General Assembly by March 1 of each year.
- Correctional Officers and Law Enforcement Pay Scales:
- Specific experience-based salary schedules for Department of Adult Correction and DPS/Juvenile Justice roles (including Youth Counselors, Youth Services Behavioral Specialists) with defined annual salary tables.
- State Law Enforcement Officer and State Highway Patrol salary schedules with explicit annual figures by years of experience.
- Other Provisions:
- State employee pay increases apply to employees paid from state funds, including public schools, community colleges, UNC system, and certain related agencies; specific exclusions described (e.g., certain safety and correctional roles).
- COLA timing and administration flexibility authority granted to the Director of the Budget.
- New cost-of-living increases for retirees of multiple retirement systems (G.S. 135-5, 135-65, and 120-4.22A):
- July 1, 2026: 2% increase in retirement allowance for qualifying beneficiaries; prorated for those who started after July 1, 2025 but before June 30, 2026.
- September 1, 2026 – October 31, 2026: One-time 1% COLA supplement paid to living beneficiaries whose retirement commenced on/before Sept 1, 2026; not prorated; no vested right to future supplements.
- Funding for All Increases (Part III, Section 3.16):
- $701,100,000 in recurring funds (General Fund) and $503,500,000 in nonrecurring funds for the 2026-2027 fiscal year to support pay raises and COLAs.
Part IV – Continuation If Current Operations Act Doesn’t Pass
- Reiterates procedures for enacting pay without a Current Operations Act and applies similar protections for salary schedules and automatic increases, with a 5% automatic increase to salary schedules remaining in effect until a subsequent act is enacted.
Part V – Effective Date
- Generally effective upon becoming law.
Potential Impact
- Substantial pay raises across education (teachers, community college staff, UNC employees) and many state employees, with substantial recurring funding committed.
- Introduction of modernized retention pay, retention bonuses, and new COLAs for retirees, aiming to address recruitment, retention, and cost-of-living pressures.
- Administrative flexibility granted to manage and implement these increases, with reporting requirements to the General Assembly.
- Some categories of employees explicitly excluded from general increases; others receive enhanced supplements tied to credentials or performance measures.
- Contingent design ensures pay increases could proceed even if the regular budget acts fail to pass, preserving labor cost commitments.
Notes for Readers
- The bill contains detailed salary tables and supplements by occupation and credential; exact figures vary by role and education level.
- The act anticipates and addresses potential timing issues with the Current Operations Appropriations Act, applying different effective dates if that act does not become law.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
