Bill
SB 865
Restores educator salary supplements and longevity pay, preserves retiree medical benefits, and expands the NC Teaching Fellows Program starting July 1, 2026.
Title: Restore Benefits to Educators/State Employees
Purpose
- The bill aims to reinstate and restore certain compensation and benefits for educators and state employees, restore retiree medical benefits for long-serving members, and expand the North Carolina Teaching Fellows Program.
Key Provisions and Provisions by Part
Part I – Reinstate Education-Based Salary Supplements for Teachers and Instructional Support Personnel
- Repeals G.S. 115C-302.10 (Section 1(a)).
- For the 2026-2027 fiscal year, the State Board of Education must use policy TCP-A-006 (as it existed on June 30, 2013) to determine:
- Whether teachers and instructional support personnel are paid on the "M" salary schedule.
- Whether they receive a salary supplement for academic preparation at the six-year or doctoral degree level.
- Appropriation: $8,000,000 in recurring General Fund money to the Department of Public Instruction (DPI) starting in 2026-2027 to reinstate education-based salary supplements consistent with the act.
- Effective date: July 1, 2026.
Part II – Restore Longevity Payments for Educators
- Repeals Section 9.1(d) of S.L. 2014-100 (the prior longevity scheme for some staff).
- For 2026-2027:
- Longevity payments for teachers and instructional support personnel are set at:
- 1.5% of base salary for 10–14 years of state service.
- 2.25% for 15–19 years.
- 3.25% for 20–24 years.
- 4.5% for 25+ years.
- Longevity payments are paid as a lump sum once per year.
- For 2026-2027:
- Longevity payments for principals and assistant principals are aligned with state employee rates under the North Carolina Human Resources Act.
- Appropriation: $140,303,000 in recurring General Fund money to DPI beginning in 2026-2027 to restore educator longevity payments.
- Effective date: July 1, 2026.
Part III – Prevent Elimination of Retiree Medical Benefits for Newer Earning Members
- Repeals subsections (c) and (d) of Section 35.21 of S.L. 2017-57 (restoring or maintaining retiree medical benefits for certain members).
- Effective retroactively to December 31, 2020.
- Additional appropriation: $2,000,000 in recurring General Fund money to the Department of State Treasurer for 2026-2027 to address increased costs for the State Health Plan due to continued retiree medical benefits.
- Subsection (a) becomes effective July 1, 2026.
- Purpose: To prevent the elimination or reduction of retiree medical benefits for members who began service before 2021, addressing associated costs.
Part IV – Expand the NC Teaching Fellows Program
- Amends G.S. 116-209.62 to expand the Teaching Fellows Program and its administration.
- Program features and selection criteria:
- The Authority administers the program with up to 11 participating institutions representing a diverse mix of UNC-system and private institutions, including at least N.C. A&T State University (an HBCU).
- Selection standards emphasize:
- High educator effectiveness (value-added metrics, performance-based assessments, edTPA or equivalent).
- Measurable impact of graduates on student learning, and success on licensure exams.
- Leadership and curriculum enhancements, support for diverse learners, classroom management, and assessment.
- Requirement for subject-matter focus with a minor in the teaching field.
- Strong internship/practicum experiences in diverse school environments.
- Program approval by the State Board of Education.
- For elementary-focused programs, alignment with the Science of Reading per statute and third-party biennial evaluation for alignment.
- Forgivable loan provisions for selected students:
- High school seniors: up to $5,000 per semester for up to 8 semesters.
- Transfers into a selected educator program: up to $5,000 per semester for up to 6 semesters.
- Degree-holding individuals seeking licensure: up to $5,000 per semester for up to 4 semesters.
- Re-entrants or changes to an approved program: up to $5,000 per semester for up to 4 semesters.
- Use of forgivable loans includes tuition, fees, books, and licensure-related expenses.
- Effective date: July 1, 2026, applying to the 2026-2027 academic year.
Part V – Effective Date
- General effective date: As provided in the act; most sections become law upon enactment or, where specified, July 1, 2026.
Impacted Parties and Scope
- Educators and instructional support personnel (teachers, principals, assistant principals, and related staff) in North Carolina public schools.
- Retirees and prospective retirees under state retirement systems and the NC State Health Plan beneficiaries.
- Higher education institutions participating in or contracted to administer the Teaching Fellows Program (public UNC and private providers).
- The Department of Public Instruction and the State Treasurer’s Office administer retiree health costs and related benefits.
Fiscal and Timeline Highlights
- 2026-2027 fiscal year: First year for reinstated salary supplements and longevity payments under the act; substantial recurring appropriations begin.
- Recipient agencies: Department of Public Instruction (DPI) and Department of State Treasurer (for retiree health costs).
- Effectiveness: July 1, 2026 for most provisions, with retroactive elements for retiree medical protections.
Notes
- The bill seeks to restore prior compensation structures that may have been altered in earlier budget cycles.
- It includes explicit recurring funding levels and detailed eligibility/structure for longevity and salary supplements, as well as an expanded, targeted Teaching Fellows program with loan forgiveness tied to educator preparation outcomes.
Compiled from official sources — confirm details with the bill’s official record.
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