Amends the definition of compensation in GS 135-1, as it applies to the retirement system for teachers and state employees, and GS 128-21, as it applies to the retirement system for counties, cities and towns, by adding that for employees or teachers (as applicable) who start earning contributory retirement service in the retirement system on or after January 1, 2024, only the amount of unused vacation leave accruing during the 12-month period immediately preceding the employee's or teacher's retirement is to be counted for the purpose of calculating average final compensation.