North Carolina HB 90: State and Local Government Retirees Cost of Living Adjustment.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 90

Short Title: State & Local Gov't Retirees COLA. (Public)
Sponsors: Representatives Logan, Wheatley, Butler, and Majeed (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
February 11, 2025
*H90-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROVIDE AND APPROPRIATE FUNDS FOR A COST-OF-LIVING 2
ADJUSTMENT FOR RETIREES OF THE TEACHERS' AND STATE EMPLOYEES' 3
RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, 4
THE LEGISLATIVE RETIREMENT SYSTEM, AND THE LOCAL GOVERNMENTAL 5
EMPLOYEES' RETIREMENT SYSTEM. 6
The General Assembly of North Carolina enacts: 7
SECTION 1.(a) G.S. 135-5 is amended by adding a new subsection to read: 8
"(aaaa) Effective July 1, 2025, the retirement allowance payable to, or on account of, 9
beneficiaries whose retirement commenced on or before July 1, 2024, is increased by three 10
percent (3%) of the allowance payable on June 1, 2024, in accordance with subsection (o) of this 11
section. Effective July 1, 2025, the retirement allowance payable to, or on account of, 12
beneficiaries whose retirement commenced after July 1, 2024, but before June 30, 2025, is 13
increased by a prorated amount of three percent (3%), as determined by the Board of Trustees 14
based upon the number of months that a retirement allowance was paid between July 1, 2024, 15
and June 30, 2025." 16
SECTION 1.(b) G.S. 135-65 is amended by adding a new subsection to read: 17
"(ll) Effective July 1, 2025, the retirement allowance payable to, or on account of, 18
beneficiaries whose retirement commenced on or before July 1, 2024, is increased by three 19
percent (3%) of the allowance payable on June 1, 2024. Effective July 1, 2025, the retirement 20
allowance payable to, or on account of, beneficiaries whose retirement commenced after July 1, 21
2024, but before June 30, 2025, is increased by a prorated amount of three percent (3%), as 22
determined by the Board of Trustees based upon the number of months that a retirement 23
allowance was paid between July 1, 2024, and June 30, 2025." 24
SECTION 1.(c) G.S. 120-4.22A is amended by adding a new subsection to read: 25
"(ff) In accordance with subsection (a) of this section, effective July 1, 2025, the retirement 26
allowance payable to, or on account of, beneficiaries whose retirement commenced on or before 27
January 1, 2025, is increased by three percent (3%) of the allowance payable on June 1, 2025. 28
Effective July 1, 2025, the retirement allowance payable to, or on account of, beneficiaries whose 29
retirement commenced after January 1, 2025, but before June 30, 2025, is increased by a prorated 30
amount of three percent (3%), as determined by the Board of Trustees based upon the number of 31
months that a retirement allowance was paid between January 1, 2025, and June 30, 2025." 32
SECTION 1.(d) G.S. 128-27 is amended by adding a new subsection to read: 33
"(hhh) Effective July 1, 2025, the retirement allowance payable to, or on account of, 34
beneficiaries whose retirement commenced on or before July 1, 2024, is increased by three 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 90-First Edition
percent (3%) of the allowance payable on June 1, 2025, in accordance with subsection (k) of this 1
section. Effective July 1, 2025, the retirement allowance payable to, or on account of, 2
beneficiaries whose retirement commenced after July 1, 2024, but before June 30, 2025, is 3
increased by a prorated amount of three percent (3%), as determined by the Board of Trustees 4
based upon the number of months that a retirement allowance was paid between July 1, 2024, 5
and June 30, 2025." 6
SECTION 2. There is appropriated from the General Fund to the Reserve for Retiree 7
Cost-of-Living Adjustments the sum of two hundred fifty million dollars ($250,000,000) in 8
recurring funds for the 2025-2026 fiscal year to implement Section 1 of this act. 9
SECTION 3. This act becomes effective July 1, 2025. 10