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Bill

SB 441

Relating to biological products.

2025 Regular Session Introduced by Deb Patterson

Allows high-need retired teachers to return to work without losing retirement benefits, with new reporting, certification, and eligibility rules until 2027.

In committee upon adjournment.
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Bill Summary · SB 441

SB 441 — Revive High‑Need Retired Teachers Program (North Carolina)

Status: Passed 1st Reading (Mar 25, 2025). Bill reenacts expired program provisions; statutory changes expire June 30, 2027 (see Section 1).

Purpose / Intent

To reinstate and expand a program that allows retired K–12 educators to be reemployed in “high‑need” schools without suspension or reduction of their Teachers’ and State Employees’ Retirement System (TSERS) retirement allowance, and to clarify related retirement, employment, and reporting rules.

Key provisions and changes

  • Reenactment (temporary): Reenacts G.S. 115C‑302.4 as it existed before expiration; that reenacted provision itself is set to expire on June 30, 2027. (Section 1.)

  • Pension / post‑retirement earnings exception (G.S. 135‑3(a)(8), new sub‑subdivision i.):

    • Earnings while employed as a “high‑need retired teacher” (per G.S. 115C‑302.4(a)) are excluded from the statutory computation of post‑retirement earnings that would otherwise reduce or suspend a retiree’s retirement allowance.
    • A beneficiary reemployed as a high‑need retired teacher will not be “restored to service” as a teacher or employee (i.e., reemployment will not convert them back to active member status).
    • The retirement allowance of those who retired on early or service retirement shall not cease due to such reemployment.
    • Reemployed beneficiaries are not eligible for additional TSERS benefits as a result of this period of employment.

  • Certification and annual notice:

    • The Department of Public Instruction (DPI) must certify to the Retirement System that a retiree is employed as a high‑need retired teacher.
    • Local boards of education must notify the Retirement System no later than September 15 each year if they will not employ any high‑need retired teachers that school year.

  • Employer reporting (amendment to G.S. 135‑3(a)(8)c1.):

    • Employers must, within 90 days after the end of each month in which a beneficiary is reemployed, report monthly details (terms, start date, monthly compensation) to the Retirement System. Existing penalties/board actions apply if reports are late.

  • Definition / coverage adjustments (G.S. 135‑1(10) and G.S. 135‑48.40):

    • “Employee” definitions are adjusted to explicitly exclude high‑need retired teachers for certain coverage or classification purposes.
    • G.S. 135‑48.40(b)(1a) (retiree group coverage) is revised to allow retirees (including high‑need retired teachers employed by an opting unit) to enroll with employer premiums paid by the employing unit, subject to eligibility rules.

  • IRS contingency: If the IRS determines any provision jeopardizes TSERS’ tax‑qualified status, the affected section is automatically repealed at the end of the month following that determination; the State Treasurer must notify the Revisor of Statutes and others if that occurs.

Who is affected

  • Primary: Retired teachers who qualify as “high‑need retired teachers” and wish to return to work in qualifying high‑need schools.
  • Local boards of education and the Department of Public Instruction (administration, certification, annual notices).
  • Teachers’ and State Employees’ Retirement System (administration, recordkeeping, benefit treatment).
  • Employing units (reporting obligations, potential employer retiree‑health premium costs if they elect coverage).

Procedural / timeline notes

  • The reenacted program provisions expire June 30, 2027 unless further extended.
  • Annual local board notification deadline: September 15.
  • Monthly employer reporting: within 90 days after month end for months with reemployed beneficiaries.
  • IRS contingency may trigger repeal of affected provisions if TSERS’ tax status is jeopardized.

Practical impact / considerations

  • Enables experienced teachers to return to high‑need classrooms without losing pension income, potentially easing staffing shortages in targeted schools.
  • Imposes modest administrative duties on DPI, local boards, employers and TSERS (certifications, monthly reporting).
  • May create fiscal obligations for local units that elect to pay employer premiums for retiree health enrollment.
  • IRS contingency clause preserves TSERS’ tax status but could limit the long‑term durability of some provisions.

For copies of the enacted text see the bill sections amending G.S. 115C‑302.4 and G.S. Chapter 135 (noted above).

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

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