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Bill

HB 1111

Military Service Buyback Reduction: Teachers.

2025-2026 Session Introduced by Eric Ager and 29 co-sponsors

Create a discounted option for veteran public school teachers to buy up to four years of military service credit in TSERS, with the member paying 25% and the state covering 75%, fo

Passed 1st Reading
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Bill Summary · HB 1111

Summary of HB 1111 (Session 2025) – North Carolina

Title

Military Service Buyback Reduction: Teachers

Purpose

To reduce the cost for veterans employed as full-time public school teachers in North Carolina to purchase credit for active military service under the Teachers' and State Employees' Retirement System (TSERS).

Key provisions

  • New provision added to TSERS statute (G.S. 135-4): A new subsection titled “Discounted Military Service Credit for Public School Employees.”
    • Eligible participants:
    • Must have performed active duty service in the United States Armed Forces.
    • Must be employed as a full-time public school employee in North Carolina.
    • Benefit:
    • Eligible to purchase up to four years of creditable military service.
    • Cost structure:
    • The member would pay 25% of the actuarial liability for the purchased military service.
    • The remaining 75% of the cost would be funded from General Assembly appropriations (i.e., state funds), not out of the individual member’s payment.
    • Maximum benefit: up to four years of military service credit can be bought under this discounted arrangement.

Implementation and administration

  • Administrative rulemaking: The Department of State Treasurer and the Retirement Systems Division are required to adopt rules necessary to implement the act.
  • The act does not specify a timetable for the rules themselves beyond the effective date (see below).

Effective date and applicability

  • Effective date: July 1, 2027.
  • Applicability: Applies to purchases of service credit made on or after July 1, 2027.

Who is affected

  • Primary beneficiaries: Veterans employed as full-time public school teachers in North Carolina who are members of TSERS seeking to purchase military service credit.
  • Funding source: The state (General Assembly) would fund 75% of the cost of the eligible military service purchases; the member would cover 25%.

Potential impacts

  • Teacher retirement benefits: Potentially higher or earlier retirement benefit for eligible veterans who purchase military service credit, since additional credit increases years of service and may advance or raise benefit calculations.
  • State cost: Introduces an ongoing state-funded subsidy (75% of eligible costs) for these purchases, contingent on appropriation.
  • Enrollment and participation: Could encourage more eligible veterans in public schools to purchase military service credit due to reduced personal cost.
  • Fiscal planning: Requires annual or multi-year appropriation decisions by the General Assembly to cover the 75% subsidy.

Summary in one sentence

HB 1111 would create a discounted option for public school teachers who are military veterans to buy up to four years of military service credit in TSERS, with the member paying 25% of the actuarial cost and the state funding the remaining 75%, effective for service purchases made on or after July 1, 2027, with rules to be established by the Treasurer’s office and Retirement Systems Division.

Compiled from official sources — confirm details with the bill’s official record.

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