Shortens the separation period barring a member of the Teachers and State Employees Retirement System (TSERS) from performing paid work from six months after retirement to 30 days after retirement for retired assistant public defenders and retired assistant district attorney in GS 135-1(20)(defining retirement). Makes conforming changes to GS 135-3(d)(changes to effective date of retirement based on work during the required separation period) and GS 135-106 (long term disability benefits).

Directs the State Treasurer to seek a private letter ruling from the IRS to determine if the modification to the separation period above, jeopardizes TSERS's status. If the IRS determines that the act does jeopardize TSERS’s status, then repeals the changes to the provisions of GS Chapter 135, discussed above on the last day of the month following the month of receipt of that determination by the State Treasurer. If that occurs, instructs the State Treasurer to inform the Revisor of Statutes and publicly notice the receipt of the letter and the repeals on its website as well as notifying all former assistant district attorneys and former assistant public defenders reemployed by that employer of the repeal.

Allows TSERS to increase receipts from the retirement assets of the system or pay costs associated with the administration directly from the retirement assets.

Effective January 1, 2027.

Effective July 1, 2025, appropriates $100,000 for 2025-26 from the General Fund to the Department of the State Treasurer to obtain the private letter ruling discussed above.