North Carolina SB 936: 2026 DST Admin/Technical/Clarifying Changes.-AB

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 936

Short Title: 2026 DST Admin/Technical/Clarifying Changes.-AB (Public)
Sponsors: Senators Ford, Alexander, and Hanig (Primary Sponsors).
Referred to: Rules and Operations of the Senate
April 30, 2026
*S936-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MAKE ADMINISTRATIVE, TECHNICAL, AND CLARIFYING CHANGES 2
TO THE LAWS RELATED TO THE DEPARTMENT OF STATE TREASURER. 3
The General Assembly of North Carolina enacts: 4
5
PART I. ADMINISTRATIVE CHANGES/RETIREMENT SYSTEMS 6
7
PREVIOUSLY CREDITED MILITARY SERVICE TO BE REINSTATED UPON 8
PURCHASE OF PREVIOUSLY WITHDRAWN SERVICE 9
SECTION 1.1.(a) G.S. 135-4(g) reads as rewritten: 10
"(g) Teachers All of the following apply to teachers and other State employees who served 11
in the uniformed services services, as defined in the Uniformed Services Employment and 12
Reemployment Rights Act of 1994, 38 U.S.C. § 4303, who (i) were not dishonorably discharged, 13
and who discharged and (ii) returned to the service of the State within a period of two years from 14
date of discharge shall discharge: 15
(1) The member shall be credited with prior service for such the period of service 16
in the uniformed services for the maximum period that they are the member 17
is entitled to reemployment under the Uniformed Services Employment and 18
Reemployment Rights Act of 1994, 38 U.S.C. § 4301, et seq., or other federal 19
law, and the law. 20
(2) The salary or compensation of such a the teacher or State employee during 21
that period of service credited under subdivision (1) of this subsection is 22
deemed to be that salary or compensation the employee would have received 23
but for the period of service had the employee remained continuously 24
employed, if the determination of that salary or compensation is reasonably 25
certain. If the determination of the salary or compensation is not reasonably 26
certain, then it is deemed to be that employee's average rate of compensation 27
during the 12-month period immediately preceding the period of service. 28
(3) When a member who has served in the uniformed services returns to work in 29
compliance with the conditions of this subsection, that member's employer 30
shall remit to the System all employer and employee contributions for the full 31
period of that member's military service. 32
(4) If a member forfeited service previously credited under this subsection by 33
electing to receive a return of accumulated contributions, as provided for 34
under G.S. 135-5(f), and subsequently purchases the maximum amount of 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 936-First Edition
service allowed under G.S. 135-4.5(a)(1), then that member shall have the 1
service previously credited under this subsection restored." 2
SECTION 1.1.(b) Subsection (a) of this section is effective January 1, 2027, and 3
applies to members of the Teachers' and State Employees' Retirement System with forfeited 4
service that was previously credited under G.S. 135-4(g) who subsequently purchase the 5
maximum amount of service allowed under G.S. 135-4.5(a)(1) on or after January 1, 2027. 6
SECTION 1.1.(c) G.S. 128-26 is amended by adding a new subsection to read: 7
"(a2) If a member forfeited service previously credited under subsection (a1) of this section 8
by electing to receive a return of accumulated contributions, as provided for under 9
G.S. 128-27(f), and subsequently purchases the maximum amount of service allowed under 10
G.S. 128-26.5(a)(1), then that member shall have the service previously credited under 11
subsection (a1) of this section restored." 12
SECTION 1.1.(d) Subsection (c) of this section is effective January 1, 2027, and 13
applies to members of the Local Governmental Employees' Retirement System with forfeited 14
service that was previously credited under G.S. 128-26(a1) who subsequently purchase the 15
maximum amount of service allowed under G.S. 128-26.5(a)(1) on or after January 1, 2027. 16
17
CONTRIBUTORY DEATH BENEFIT NOT SUBJECT TO OVERPAYMENT OFFSETS 18
SECTION 1.2.(a) G.S. 135-9(b) reads as rewritten: 19
"(b) Notwithstanding any provisions of law to the contrary, any overpayment of benefits 20
or erroneous payments to a member in a State-administered retirement system or the former 21
Disability Salary Continuation Plan or the Disability Income Plan of North Carolina, including 22
any benefits paid to, or State Health Plan premiums or claims paid on behalf of, any member or 23
beneficiary who is later determined to have been ineligible for those benefits or unentitled to 24
those amounts, may be offset against any retirement allowance, return of contributions or any 25
other right accruing under this Chapter to the same person, the person's estate, or designated 26
beneficiary. The ability to offset under this subsection does not apply to the fully contributory 27
death benefit for retired members under G.S. 135-175 or G.S. 135-64(k)." 28
SECTION 1.