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Bill

SB 799

Restore State Emp/Teacher Retiree Med Benefit.

2025-2026 Session Introduced by Val Applewhite and 8 co-sponsors

Holds retiree medical benefits for public employees who began service after Jan 1, 2021, preventing their elimination and funding the related costs.

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Bill Summary · SB 799

Summary of North Carolina Senate Bill 799 (2025 Session)

Title

Restore State Employee/Teacher Retiree Medical Benefit

Purpose and intent

SB 799 seeks to prohibit the elimination of retiree medical benefits for members who first earned service on or after January 1, 2021, under North Carolina’s public retirement systems, specifically:
- North Carolina Teachers' and State Employees' Retirement System (TRS)
- Consolidated Judicial Retirement System (CJRS)
- Legislative Retirement System (LRS)
- Optional Retirement Programs (ORP)

In other words, the bill aims to preserve retiree medical benefits for newer members, preventing changes that would otherwise reduce or remove those benefits.

Key provisions

  1. Repeal of certain provisions

    • Subsections (c) and (d) of Section 35.21 of S.L. 2017-57 are repealed.
    • This statutory rollback is the legal mechanism by which the bill intends to restore or protect retiree medical benefits for the specified group of members.

  2. Retroactive effective date

    • Section 1(b) provides that the repeal and related provisions are effective retroactively to December 31, 2020.
    • This retroactivity suggests the intent to apply protections as if they had been in place before 2021.

  3. Appropriation for costs

    • Section 2 appropriates $2,000,000 in recurring General Fund spending to the Department of State Treasurer for the 2026-2027 fiscal year.
    • The funds are designated to address increased costs to the North Carolina State Health Plan for Teachers and State Employees resulting from the continuation of retiree medical benefits under this act.

  4. Effective date

    • Section 3 states that, except as otherwise provided, the act becomes effective July 1, 2026.

Who would be affected

  • Public sector retirees and future retirees of:
    • TRS (Teachers’ and State Employees’ Retirement System)
    • CJRS (Consolidated Judicial Retirement System)
    • LRS (Legislative Retirement System)
    • ORP (Optional Retirement Programs)
  • Specifically, members who first earned service on or after January 1, 2021 would be protected from the elimination of retiree medical benefits.

Financial and implementation considerations

  • The bill allocates $2 million in recurring General Fund dollars for the 2026-2027 fiscal year to mitigate higher costs to the State Health Plan arising from the continued retiree medical benefits for this group.
  • The retroactive effective date to December 31, 2020 means potential alignment with past policies for purposes of eligibility and benefits, subject to the bill’s repeal of the specified subsections.

Procedural timeline

  • Filed: April 21, 2026
  • First Reading: April 22, 2026 (Senate)
  • Referred: to Rules and Operations of the Senate (April 22, 2026)
  • Effective date provided: July 1, 2026 (with retroactive elements to December 31, 2020)

Notes

  • The bill is sponsored by Senator Waddell (primary) and co-sponsored by several senators.
  • The primary policy goal is preserving retiree medical benefits for a subset of public employees and teachers who began service after 2020, counteracting any recent changes that would eliminate those benefits.
  • As written, the bill does not specify other changes to retirement benefits beyond medical coverage preservation and the related appropriation to offset plan costs.

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

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