REHIRE HIGH-NEED TEACHERS.

View NCGA Bill Details2019-2020 Session
Senate Bill 399 (Public) Filed Thursday, March 28, 2019
AN ACT TO ALLOW FOR RETIRED TEACHERS TO RETURN TO WORK IN HIGH-NEED SCHOOLS WITHOUT ADVERSELY IMPACTING THE RETIRED TEACHERS' BENEFITS.
Intro. by Horner, Berger, Chaudhuri.

Status: Ch. SL 2019-110 (Jul 11 2019)

Bill History:

S 399/S.L. 2019-110

Bill Summaries:

  • Summary date: Jul 11 2019 - More information

    AN ACT TO ALLOW FOR RETIRED TEACHERS TO RETURN TO WORK IN HIGH-NEED SCHOOLS WITHOUT ADVERSELY IMPACTING THE RETIRED TEACHERS' BENEFITS. SL 2019-110. Enacted July 11, 2019. Effective July 1, 2019.


  • Summary date: Jun 18 2019 - More information

    House committee substitute to the 3rd edition makes the following changes.

    Modifies and adds to the directives set forth in Section 5 as follows. Now directs the State Treasurer to seek a private letter ruling from the IRS to determine if the provisions of the section relating to the computation of postretirement earnings of retired teachers jeopardizes the status of the Teachers' and State Employees' Retirement System (previously, more generally sought the ruling regarding the act's provisions). Maintains the authorization for the Retirement Systems Division to increase receipts from the assets of the Teachers' and State Employees' Retirement System (Retirement System) or pay associated administrative costs directly from the retirement assets to pay costs associated with the administration, but now caps the amount authorized to be used to obtain a private ruling from the IRS at $50,000 rather than $75,000. Additionally, deems any beneficiary of the Retirement System employed to teach by a local board of education (was, a local school administrative unit) as a high-need retired teacher ineligible to elect into a position that would lead him or her to be eligible to accrue any additional benefits under specified state law concerning members retiring on or after July 1, 1963. Requires the Retirement System to correct any failure to comply with this provision, as appropriate, and places correction costs upon the local board of education (was, local school administrative unit). Makes further technical changes.


  • Summary date: May 6 2019 - More information

    Senate committee substitute to the 2nd edition adds the following.

    Directs the State Treasurer to seek a private letter ruling from the IRS regarding the act's provisions (modifying the computation of postretirement earnings of high-need retired teachers). Allows the Retirement Systems Division to increase receipts from the assets of the Teachers' and State Employees' Retirement System (Retirement System) or pay associated administrative costs directly from the plan assets to accomplish the act's purpose, including up to $75,000 to obtain a private ruling from the IRS.

    Deems any beneficiary of the Retirement System that is employed to teach by a local school administrative unit as a high-need retired teacher ineligible to elect into a position that would lead him or her to be eligible to accrue any additional benefits under specified state law concerning members retiring on or after July 1, 1963. Requires the Retirement System to correct any failure to comply with this provision, as appropriate, and places correction costs upon the local school administrative unit. Requires any corrective costs to be transferred to the Pension Accumulation Fund pursuant to rules adopted by the Board of Trustees.


  • Summary date: Apr 17 2019 - More information

    Senate committee substitute to the 1st edition makes the following changes. 

    Amends proposed GS 115C-302.4 to modify the definition of a high-need retired teacher to mean a a beneficiary of the Teachers' and State Employees' Retirement System of North Carolina who: (1) retired on or before February 1, 2019, after attaining the age of at least 65 with five years of creditable service, the age of at least 60 with 25 years of creditable service, or 30 years of creditable service and (2) is reemployed by a local board of education (rather than a local school administrative unit) to teach at a high-need school. Specifies that the statute prohibits giving high-need retired teachers State salary supplements or bonuses, or salary increases (previously did specify State supplements, bonuses or increases). Adds a new requirement for a high-need retired teacher to receive any local salary supplements that are given to employees of the local board of education. Makes conforming changes to the proposed changed to GS 135-3 to refer to high-need teachers employed by local boards of education rather than local administrative units. Makes conforming and technical changes to the directives set out in Section 5 regarding the conditional repeal of the act.


  • Summary date: Mar 28 2019 - More information

    Enacts new GS 115C-302.4 to compensate high-need retired teachers as follows: (1) paid on the first step of the teacher salary schedule and (2) paid on the sixth step of the teacher salary schedule if serving as a teacher in the areas of STEM or special education. Defines a high-need retired teacher as a beneficiary of the Teachers' and State Employees' Retirement System of North Carolina who: (1) retired on or before February 1, 2019, after attaining the age of at least 65 with five years of creditable service, the age of at least 60 with 25 years of creditable service, or 30 years of creditable service and (2) is reemployed by a local school administrative unit to teach at a high-need school (as defined in the act). Prohibits giving high-need retired teachers salary supplements or bonuses, or salary increases. Limits the term of a contract between a local board of education and a high-need retired teacher to no more than one school year. Requires the Superintendent of Public Instruction to provide local school administrative units with a list of STEM and special education licensure areas that qualify for reemployment; requires the local school administrative units to then make the list available to high-need retired teachers. 

    Amends GS 135-3(8), concerning membership in the Teachers' and State Employees' Retirement System of North Carolina, to exclude earnings while employed as a high-need retired teacher from the computation of postretirement earnings for beneficiaries who retired on or before February 1, 2019, and have been retired at least six months. Makes conforming changes.

    Excludes high-need retired teachers from the definition of employee in GS 135-1 for use in provisions under GS Chapter 135 (Retirement System for Teachers and State Employees; Social Security; State Health Plan for Teachers and State Employees). 

    Amends GS 135-48.40 by adding high-need retired teachers to those eligible for coverage under the State Health Plan for Teachers and State Employees, on a partially contributory basis.

    Provides that if the IRS determines that the provisions related to computing postretirement earnings of retired teachers jeopardizes the status of the Teachers' and State Employees' Retirement System of North Carolina under the Internal Revenue Code, then the act is repealed 30 days from receipt of that determination. 

    Effective July 1, 2019, and expires June 30, 2021.


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