House committee substitute to the 1st edition makes the following changes. Makes conforming changes to act’s long title.

Modifies the shortened separation period barring a member of the Teachers and State Employees Retirement System (TSERS) in GS 135-1(20)(defining retirement) from performing paid work from 30 days after retirement to two months for retired assistant public defenders and retired assistant district attorney who are certified to have earned at least five years of membership service in either of those roles and who becomes employed by the Judicial Branch (previously no service requirement or reemployment by Judicial Branch required). Makes conforming changes to GS 135-3(d)(changes to effective date of retirement based on work during the required separation period).

Clarifies that the State Treasurer must seek a favorable private letter ruling (was, just private letter ruling) from the IRS to determine if the act itself (was the modification to the separation period above) jeopardizes the TSERS status. Directs the Treasurer to do so by January 1, 2026, or 120 days of the act becoming law, whichever is later. Directs that if the Treasurer sought a private letter ruling on the impact of the act on TSERS, and the Internal Revenue Service declines to make a private letter ruling or does not issue a response by December 17, 2026, then the act is repealed. Provides for notice by the Treasurer to the Revisor of Statutes, its employees, and on its website in the event of the act’s repeal.  Makes technical, organizational, and conforming changes. Specifies that these provisions and the part of the act authorizing TSERS to increase receipts from the retirement assets of the system or pay costs associated with the administration directly from the retirement assets are effective when the act becomes law.

Directs the Administrative Office of the Courts (AOC) and the Director of Indigent Defense Services (IDS) to provide monthly certification to TSERS that the member is employed as a district attorney or public defender. Prevents retired persons reemployed under the act from eligibility for election into a position that would lead the person to be eligible to accrue benefits under GS 135-3. Authorizes the Executive Director to correct any failures of the AOC, the Conference of District Attorneys, or IDS, as specified, with AOC, the Conference of District Attorneys, or IDS to pay for the cost of correction.