North Carolina § 135-1 - Definitions.

§ 135-1. Definitions.

The following words and phrases as used in this Chapter, unless a different meaning is plainly required by the context, shall have the following meanings: "Accumulated contributions" shall mean the sum of all the amounts deducted from the compensation of a member and accredited to his individual account in the annuity savings fund, together with regular interest thereon as provided in G.S. 135-8. "Actuarial equivalent" shall mean a benefit of equal value when computed upon the basis of actuarial assumptions as shall be adopted by the Board of Trustees. "Annuity" shall mean payments for life derived from that "accumulated contribution" of a member. All annuities shall be payable in equal monthly installments. "Annuity reserve" shall mean the present value of all payments to be made on account of any annuity or benefit in lieu of any annuity, computed upon the basis of such mortality tables as shall be adopted by the Board of Trustees, and regular interest. (Effective until July 1, 2022) "Annualized final compensation" means the compensation received during the final year of service that is included in the member's average final compensation. (Effective July 1, 2022) "Authorized representatives who are assisting the Retirement Systems Division staff" means only other staff of the Department of State Treasurer, staff of the Department of Justice, or persons providing internal auditing assistance required under G.S. 143-746(b). (Effective until July 1, 2022) "Authorized representatives who are assisting the Retirement Systems Division staff" means only other staff of the Department of State Treasurer, staff of the Department of Justice, or persons providing internal auditing assistance required under G.S. 143-746(b). "Average final compensation" shall mean the average annual compensation of a member during the four consecutive calendar years of membership service producing the highest such average; but shall not include any compensation, as determined by the Board of Trustees, for the reimbursement of expenses or payments for housing or any other allowances whether or not classified as salary and wages. Payout of vacation leave shall be included in "average final compensation" only if the payout is received by the member during the four consecutive calendar years of membership service producing the highest average annual compensation of the member. In the event a member is or has been in receipt of a benefit under the provisions of G.S. 135-105 or G.S. 135-106, the compensation used in the calculation of "average final compensation" shall be the higher of compensation of the member under the provisions of this Article or compensation used in calculating the payment of benefits under Article 6 of this Chapter as adjusted for percentage increases in the post disability benefit. "Beneficiary" shall mean any person in receipt of a pension, an annuity, a retirement allowance or other benefit as provided by this Chapter. "Board of Trustees" shall mean the Board provided for in G.S. 135-6 to administer the Retirement System. "Compensation" shall mean all salaries and wages prior to any reduction pursuant to sections 125, 401(k), 403(b), 414(h)(2), and 457 of the Internal Revenue Code, not including any terminal payments for unused sick leave, derived from public funds which are earned by a member of the Retirement System for service as an employee or teacher in the unit of the Retirement System for which he is performing full-time work. In addition to the foregoing, "compensation" shall include: (7a) a. "Compensation" shall mean all salaries and wages prior to any reduction pursuant to sections 125, 401(k), 403(b), 414(h)(2), and 457 of the Internal Revenue Code, not including any terminal payments for unused sick leave, derived from public funds which are earned by a member of the Retirement System for service as an employee or teacher in the unit of the Retirement System for which he is performing full-time work. In addition to the foregoing, "compensation" shall include: Performance-based compensation (regardless of whether paid in a lump sum, in periodic installments, or on a monthly basis); Conversion of additional benefits to salary (additional benefits such as health, life, or disability plans), so long as the benefits are other than mandated by State law or regulation; Payment of tax consequences for benefits provided by the employer, so long as they constitute an adjustment or increase in salary and not a "reimbursement of expenses"; Payout of vacation leave so long as such payouts are permitted by applicable law and regulation; Employee contributions to eligible deferred compensation plans; and Effective July 1, 2009, payment of military differential wages. "Compensation" shall not include any payment, as determined by the Board of Trustees, for the reimbursement of expenses or payments for housing or any other allowances whether or not classified as salary and wages. "Compensation" includes all special pay contribution of annual leave made to a 401(a) Special Pay Plan for the benefit of an employee. Notwithstanding any other provision of this Chapter, "compensation" shall not include: Supplement/allowance provided to employee to purchase additional benefits such as health, life, or disability plans; Travel supplement/allowance (nonaccountable allowance plans); Employer contributions to eligible deferred compensation plans; Employer-provided fringe benefits (additional benefits such as health, life, or disability plans); Reimbursement of uninsured medical expenses; Reimbursement of business expenses; Reimbursement of moving expenses; Reimbursement/payment of personal expenses; Incentive payments for early retirement; Bonuses paid incident to retirement; Contract buyout/severance payments; and Payouts for unused sick leave. In the event an employer reports as "compensation" payments not specifically included or excluded as "compensation", such payments shall be "compensation" for retirement purposes only if the employer pays the Retirement System the additional actuarial liability created by such payments. "Compliance investigation" means an independent review or examination by Retirement Systems Division staff or authorized representatives who are assisting the Retirement Systems Division staff of records, activities, actions, or decisions by employers or other affiliated or associated entities having an impact on a Retirement System or benefits administered by the Board of Trustees. The purpose of a compliance investigation is to help detect errors and ensure compliance and full accountability in the use of pension funds. "Consumer Price Index" shall mean the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, all items, not seasonally adjusted, standard reference base, as published by the Bureau of Labor Statistics of the U.S. Department of Labor. "Creditable service" shall mean the total of "prior service" plus "membership service" plus service, both noncontributory and purchased, for which credit is allowable as provided in G.S. 135-4. In no event, however, shall "creditable service" be deemed "membership service" for the purpose of determining eligibility for benefits accruing under this Chapter. "Duly acknowledged" means notarized, including electronic notarization, or verified through an identity authentication service approved by the Department of State Treasurer. "Earnable compensation" shall mean the full rate of the compensation that would be payable to a teacher or employee if he worked in full normal working time. In cases where compensation includes maintenance, the Board of Trustees shall fix the value of that part of the compensation not paid in money. "Employee" shall mean all full-time employees, agents or officers of the State of North Carolina or any of its departments, bureaus and institutions other than educational, whether such employees are elected, appointed or employed: Provided that the term "employee" shall not include any person who is a member of the Consolidated Judicial Retirement System, any member of the General Assembly or any part-time or temporary employee. Notwithstanding any other provision of law, "employee" shall include all employees of the General Assembly except participants in the Legislative Intern Program, pages, and beneficiaries in receipt of a monthly retirement allowance under this Chapter who are reemployed on a temporary basis. "Employee" also includes any participant whose employment is interrupted by reason of service in the Uniformed Services, as that term is defined in section 4303(16) of the Uniformed Services Employment and Reemployment Rights Act, Public Law 103-353, if that participant was an employee at the time of the interruption; if the participant does not return immediately after that service to employment with a covered employer in this System, then the participant shall be deemed "in service" until the date on which the participant was first eligible to be separated or released from his or her involuntary military service. In all cases of doubt, the Board of Trustees shall determine whether any person is an employee as defined in this Chapter. "Employee" shall also mean every full-time civilian employee of the North Carolina National Guard who is employed pursuant to section 709 of Title 32 of the United States Code and paid from federal appropriated funds, but held by the federal authorities not to be a federal employee: Provided, however, that the authority or agency paying the salaries of such employees shall deduct or cause to be deducted from each employee's salary the employee's contribution in accordance with applicable provisions of G.S. 135-8 and remit the same, either directly or indirectly, to the Retirement System; coverage of employees described in this sentence shall commence upon the first day of the calendar year or fiscal year, whichever is earlier, next following the date of execution of an agreement between the Secretary of Defense of the United States and the Adjutant General of the State acting for the Governor in behalf of the State, but no credit shall be allowed pursuant to this sentence for any service previously rendered in the above-described capacity as a civilian employee of the North Carolina National Guard: Provided, further, that the Adjutant General, in the Adjutant General's discretion, may terminate the Retirement System coverage of the above-described North Carolina National Guard employees if a federal retirement system is established for such employees and the Adjutant General elects to secure coverage of such employees under such federal retirement system. Any full-time civilian employee of the North Carolina National Guard described above who is now or hereafter may become a member of the Retirement System may secure Retirement System credit for such service as a North Carolina National Guard civilian employee for the period preceding the time when such employees became eligible for Retirement System coverage by paying to the Retirement System an amount equal to that which would have constituted employee contributions if the employee had been a member during the years of ineligibility, plus interest. Employees of State agencies, departments, institutions, boards, and commissions who are employed in permanent job positions on a recurring basis must work at least 30 hours per week for nine or more months per calendar year in order to be covered by the provisions of this subdivision. On and after August 1, 2001, a person who is a nonimmigrant alien and who otherwise meets the requirements of this subdivision shall not be excluded from the definition of "employee" solely because the person holds a temporary or time-limited visa. "Employer" shall mean the State of North Carolina, the county board of education, the city board of education, the State Board of Education, the board of trustees of the University of North Carolina, the board of trustees of other institutions and agencies supported and under the control of the State, or any other agency of and within the State by which a teacher or other employee is paid. For purposes of reporting under the pronouncements by the Governmental Accounting Standards Board, the Retirement System is a multi-employer plan. "Filing" when used in reference to an application for retirement shall mean the receipt of an acceptable application on a form provided by the Retirement System. "Fraud investigation" means an independent review or examination by Retirement Systems Division staff or authorized representatives who are assisting the Retirement Systems Division staff of records, activities, actions, or decisions by employers or other affiliated or associated entities having an impact on the Retirement System. The purpose of a fraud investigation is to help detect and prevent fraud and to ensure full accountability in the use of pension funds. "Law-Enforcement Officer" means a full-time paid employee of an employer who is actively serving in a position with assigned primary duties and responsibilities for prevention and detection of crime or the general enforcement of the criminal laws of the State of North Carolina or serving civil processes, and who possesses the power of arrest by virtue of an oath administered under the authority of the State. "Law-Enforcement Officer" also means a probation/parole officer as defined in this section with respect to any service rendered on or after July 1, 2017. "Medical board" shall mean the board of physicians provided for in G.S. 135-6. "Member" shall mean any teacher or State employee included in the membership of the System as provided in G.S. 135-3 and 135-4. "Membership service" shall mean service as a teacher or State employee rendered while a member of the Retirement System or membership service in a North Carolina Retirement System that has been transferred into this system. "Pension reserve" shall mean the present value of all payments to be made on account of any pension or benefit in lieu of any pension computed upon the basis of such mortality tables as shall be adopted by the Board of Trustees, and regular interest. "Pensions" shall mean payments for life derived from money provided by the State of North Carolina, and by county or city boards of education. All pensions shall be payable in equal monthly installments. "Prior service" shall mean service rendered prior to the date of establishment of the Retirement System for which credit is allowable under G.S. 135-4; provided, persons now employed by the Board of Transportation shall be entitled to credit for employment in road maintenance by the various counties and road districts prior to 1931. "Probation/Parole Officer" shall mean a full-time paid employee of the Division of Adult Correction and Juvenile Justice of the Department of Public Safety whose duties include supervising, evaluating, or otherwise instructing offenders who have been placed on probation, parole, or post-release supervision or have been assigned to any other community-based program operated by the Division of Adult Correction and Juvenile Justice. "Public school" shall mean any day school conducted within the State under the authority and supervision of a duly elected or appointed city or county school board, and any educational institution supported by and under the control of the State. "Regular interest" shall mean interest compounded annually at such a rate as shall be determined by the Board of Trustees in accordance with G.S. 135-7, subsection (b). "Retirement" under this Chapter, except as otherwise provided, means the commencement of monthly retirement benefits along with termination of employment and the complete separation from active service with no intent or agreement, express or implied, to return to service. A retirement allowance under the provisions of this Chapter may only be granted upon retirement of a member. In order for a member's retirement to become effective in any month, the member must perform no work for an employer, including part-time, temporary, substitute, or contractor work, at any time during the six months immediately following the effective date of retirement. A member who is a full-time faculty member of The University of North Carolina may effect a retirement allowance under this Chapter, notwithstanding the six-month requirement above, provided the member immediately enters the University's Phased Retirement Program for Tenured Faculty as that program existed on May 25, 2011. For purposes of this subdivision, all of the following shall not be considered service or work: Serving as an unpaid bona fide volunteer in a local school administrative unit. Serving as an unpaid bona fide volunteer guardian ad litem in the guardian ad litem program. Serving on an authority, board, commission, committee, council, or other body of the State or of one or more counties, cities, local school administrative units, community colleges, constituent institutions of The University of North Carolina, or other political subdivisions or public corporations in the State, that is authorized to function as legislative, policy-making, quasi-judicial, administrative, or advisory body in a position that does not require membership in the Retirement System. Volunteering in a position normally designated as an unpaid bona fide volunteer position. "Retirement allowance" shall mean the sum of the "annuity and the pensions," or any optional benefit payable in lieu thereof. "Retirement System" shall mean the Teachers' and State Employees' Retirement System of North Carolina as defined in G.S. 135-2. "Service" shall mean service as a teacher or State employee as described in subdivision (10) or (25) of this section. "Social security breakpoint" shall mean the maximum amount of taxable wages under the Federal Insurance Contributions Act as from time to time in effect. "Teacher" shall mean (i) any teacher, helping teacher, teacher in a job-sharing position under G.S. 115C-326.5 except for a beneficiary in that position, librarian, principal, supervisor, superintendent of public schools or any full-time employee, city or county, superintendent of public instruction, or any full-time employee of the Department of Public Instruction, president, dean or teacher, or any full-time employee in any educational institution supported by and under the control of the State; (ii) who works at least 30 or more hours per week for at least nine or more months per calendar year: Provided, that the term "teacher" shall not include any part-time, temporary, or substitute teacher or employee except for a teacher in a job-sharing position, and shall not include those participating in an optional retirement program provided for in G.S. 135-5.1 or G.S. 135-5.4. In all cases of doubt, the Board of Trustees, hereinbefore defined, shall determine whether any person is a teacher as defined in this Chapter. On and after August 1, 2001, a person who is a nonimmigrant alien and who otherwise meets the requirements of this subdivision shall not be excluded from the definition of "teacher" solely because the person holds a temporary or time-limited visa. Notwithstanding the foregoing, the term "teacher" shall not include any nonimmigrant alien employed in elementary or secondary public schools (whether employed in a full-time, part-time, temporary, permanent, or substitute teacher position) and participating in an exchange visitor program designated by the United States Department of State pursuant to 22 C.F.R. Part 62 or by the United States Department of Homeland Security pursuant to 8 C.F.R. Part 214.2(q). "Year" as used in this Article shall mean the regular fiscal year beginning July 1 and ending June 30 in the following calendar year unless otherwise defined by regulation of the Board of Trustees. 10a. Local supplementation as authorized under G.S. 7A-300.1 for Judicial Department employees; History (1941, c. 25, s. 1; 1943, c. 431; 1945, c. 924; 1947, c. 458, s. 6; 1953, c. 1053; 1955, c. 818; c. 1155, s. 81/2; 1959, c. 513, s. 1; c. 1263, s. 1; 1963, c. 687, s. 1; 1965, c. 750; c. 780, s. 1; 1969, c. 44, s. 74; c. 1223, s. 16; c. 1227; 1971, c. 117, ss. 1-5; c. 338, s. 1; 1973, c. 507, s. 5; c. 640, s. 2; c. 1233; 1975, c. 475, s. 1; 1977, c. 574, s. 1; 1979, c. 972, s. 1; 1981, c. 557, ss. 1, 2; 1983, c. 412, ss. 1, 2; 1983 (Reg. Sess., 1984), c. 1034, s. 227; 1985, c. 649, s. 3; 1987, c. 738, ss. 29(a), 36(a); 1991, c. 51, s. 2; 1993 (Reg. Sess., 1994), c. 769, s. 7.31(c); 1998-1, s. 4(g); 2001-424, s. 32.24(b); 2001-426, ss. 2, 3; 2001-513, s. 24; 2002-110, s. 1; 2002-126, ss. 28.6(b), 28.12(a); 2002-174, s. 2; 2003-359, ss. 1, 2; 2004-81, s. 1; 2004-199, s. 34(a); 2005-276, s. 29.28(e); 2006-66, s. 22.21; 2007-143, s. 1; 2009-11, s. 1; 2009-66, s. 6(e), (i); 2009-281, s. 1; 2009-451, s. 26.22; 2010-31, s. 29.7(d); 2011-145, s. 29.24(b); 2011-183, s. 100; 2012-130, s. 6; 2012-185, s. 2(b); 2013-288, ss. 3(a), 4(a); 2013-291, s. 1; 2014-97, s. 4(a); 2015-67, s. 1; 2015-164, s. 4; 2017-57, s. 35.19B(a); 2017-125, s. 1(a); 2017-128, s. 1(a)-(c); 2017-129, s. 4(a); 2017-186, s. 3(a); 2018-85, s. 10; 2019-110, s. 3; 2020-48, s. 1.1(b); 2021-72, s. 2.1(a); 2021-75, s. 3.1(b).) Subdivision (4a) Set Out Twice. - The first version of subdivision (4a) set out above is effective until July 1, 2022. The second version of subdivision (4a) set out above is effective July 1, 2022. Cross References. - For the Legislative Actuarial Note Act, see G.S. 120-112 et seq. Open Enrollment - Contributory Death Benefit. - Session Laws 2007-388, s. 1, provides: "Notwithstanding any section of law or any rules and regulations adopted by the Boards of Trustees to the contrary, the Retirement Systems Division of the Department of State Treasurer shall allow for an open enrollment period in the Contributory Death Benefit for Retired Members of the Teachers' and State Employees' Retirement System, the Local Governmental Employees' Retirement System, the Consolidated Judicial Retirement System, and the Legislative Retirement System. This open enrollment period shall begin February 1, 2008, and end May 31, 2008. The Retirement Systems Division shall send notice by U.S. mail of the open enrollment period to all retirees who elected not to be covered under this benefit or who failed to make any election at the time of their retirement and shall send a second notice by U.S. mail to any such retiree who fails to make an election within 60 days of the notification of the open enrollment period. Notice, at minimum, shall consist of notification of the open enrollment period and the consequences of failure to respond within the specified time frames, informational materials explaining the benefit program and the associated costs, and a preprinted personalized enrollment application to facilitate the enrollment process indicating each individual retiree's contribution rate. The contribution rate for retirees electing coverage during the open enrollment period shall be increased by eleven and one-tenth percent (11.1%) the rate established for retirees who elected coverage when first eligible, at retirement. For retirees electing coverage during this open enrollment period, coverage shall become effective the first of the month following the month in which the election of coverage is received by the Retirement Systems Division but not before February 1, 2008. Contribution rates for coverage shall be based upon the retiree's nearest age as of the effective date of coverage and shall begin by deduction from the retiree's net monthly retirement allowance in the month in which coverage becomes effective. Coverage elected by retirees during this open enrollment period shall be subject to all other laws and rules and regulations adopted by the Board of Trustees governing the Contributory Death Benefit for Retired Members." Third Grade Read to Achieve Teacher Bonus Program. - Session Laws 2016-94, s. 9.7(a)-(e), as amended by Session Laws 2017-57, s. 8.8B(c), provides: "(a) The State Board of Education shall establish the Third Grade Read to Achieve Teacher Bonus Program (program) to reward teacher performance and encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer bonus pay to teachers who have an Education Value-Added Assessment System (EVAAS) student growth index score for third grade reading from the previous school year, beginning with the data from the 2015-2016 school year, as follows: "(1) Of the funds appropriated for the program, five million dollars ($5,000,000) shall be allocated for bonuses to teachers who are in the top twenty-five percent (25%) of teachers in the State according to the EVAAS student growth index score for third grade reading from the previous year. These funds shall be allocated equally among qualifying teachers. "(2) Of the funds appropriated for the program, five million dollars ($5,000,000) shall be allocated to pay bonuses to teachers who are in the top twenty-five percent (25%) of teachers in their respective local school administrative units according to the EVAAS student growth index score for third grade reading from the previous year. These funds shall be split proportionally based on average daily membership for each local school administrative unit and then distributed equally among qualifying teachers in each local school administrative unit, subject to the following conditions: "a. Teachers employed in charter schools and regional schools are not eligible to receive a bonus under this subdivision. "b. Any teacher working in a local school administrative unit that employs three or fewer third grade teachers shall receive a bonus under this subdivision if that teacher has an EVAAS student growth index score for third grade reading from the previous school year that exceeds expected growth. "(3) For EVAAS student growth index score data collected during the 2015-2016 school year and the 2016-2017 school year, bonuses awarded pursuant to subdivisions (1) and (2) of this subsection are payable in January of 2017 and January of 2018, respectively, to qualifying teachers who remain employed teaching in the same local school administrative unit at least from the school year the data is collected until the corresponding school year that the bonus is paid. "(4) A teacher who is eligible to receive a bonus under both subdivisions (1) and (2) of this subsection shall receive both bonuses. The bonus or bonuses awarded to a teacher pursuant to this subsection shall be in addition to any regular wage or other bonus the teacher receives or is scheduled to receive. "(b) Notwithstanding G.S. 135-1 (7a), the compensation bonuses awarded by this section are not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System. "(c) The State Board of Education shall study the effect of the program on teacher performance and retention. The State Board shall report the results of its findings, the distribution of statewide bonuses as among local school administrative units, and the distribution of bonuses within local school administrative units as among individual schools to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division on March 15 of each year. "(d) For the 2017-2018 fiscal year only, the Director of the Budget shall also include in the Base Budget, as defined by G.S. 143C-1-1(d) (1c), the amount of nonrecurring funds needed to support the program. "(e) This section expires June 30, 2018." Session Laws 2017-57, s. 8.8C(a)-(d), as amended by Session Laws 2017-197, s. 2.10(b), and as amended by Session Laws 2018-5, s. 8.10(d), provides: "(a) It is the intent of the State to reward teacher performance and encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer the Third Grade Read to Achieve Teacher Bonus Program (program) to qualifying teachers who have an Education Value-Added Assessment System (EVAAS) student growth index score for third grade reading from the previous school year, as follows: "(1) For purposes of this section, the following definitions shall apply: "a. Eligible Teacher. - A teacher who meets one or both of the following criteria: "1. Is in the top twenty-five percent (25%) of teachers in the State according to the EVAAS student growth index score for third grade reading from the previous school year. "2. Is in the top twenty-five percent (25%) of teachers in the teacher's respective local school administrative unit according to the EVAAS student growth index score for third grade reading from the previous school year. "b. Qualifying Teacher. - An eligible teacher who remains teaching in the same local school administrative unit or, if the teacher is not employed in a local school administrative unit, remains teaching in the same school at least from the school year the data for the EVAAS student growth index score for third grade reading is collected until January 1 of the school year a bonus provided under this subsection is paid. "(2) Of the funds appropriated for this program, the sum of five million dollars ($5,000,000) shall be allocated for bonuses to eligible teachers under sub-sub-subdivision (1)a.1. of this subsection. Funds appropriated for this purpose shall be distributed equally among qualifying teachers. "(3) Of the funds appropriated for this program, the sum of five million dollars ($5,000,000) shall be allocated for bonuses to eligible teachers under sub-sub-subdivision (1)a.2. of this subsection. Funds allocated for this bonus shall be divided proportionally based on average daily membership in third grade for each local school administrative unit and then distributed equally among qualifying teachers in each local school administrative unit, subject to the following conditions: "a. Teachers employed in charter schools, regional schools, and University of North Carolina laboratory schools are not eligible to receive a bonus under this subdivision. "b. Any qualifying teacher who taught in a local school administrative unit that employed in the previous school year three or fewer total third grade teachers shall receive a bonus under this subdivision if that teacher has an EVAAS student growth index score for third grade reading from the previous school year of exceeded expected growth. "(4) Bonuses awarded pursuant to subdivisions (2) and (3) of this subsection are payable in January to qualifying teachers based on EVAAS student growth index score data from the previous school year. "(5) A qualifying teacher may receive a bonus under both subdivisions (2) and (3) of this subsection. "(6) The bonus or bonuses awarded to a qualifying teacher pursuant to this section shall be in addition to any regular wage or other bonus the teacher receives or is scheduled to receive. "(7) A bonus awarded pursuant to either subdivision (2) or subdivision (3) of this subsection shall not exceed three thousand five hundred dollars ($3,500) in any given school year. No teacher shall receive more than seven thousand dollars ($7,000) in total bonus compensation for any given school year. "(b) Notwithstanding G.S. 135-1 (7a), the bonuses awarded by this section are not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System. "(c) The State Board of Education shall study the effect of the bonuses awarded pursuant to this section and Section 9.7 of S.L. 2016-94, as amended by Section 8.8B of this act, on teacher performance and retention. The State Board shall report the results of its findings, the distribution of statewide bonuses as among local school administrative units, and the distribution of bonuses within local school administrative units as among individual schools to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division by March 15 of each year. "(d) This section applies for bonuses awarded in January 2019 and 2020, based on data from the 2017-2018 and 2018-2019 school years, respectively." Study State Employee Compensation and Benefits/Reduce Long-Term Unfunded Health Care Potential Liabilities. - Session Laws 2017-57, s. 35.21(a), (b), as amended by Session Laws 2017-197, s. 8, provides: "(a) The State Employee Compensation and Benefits Committee (Committee) is established to study the compensation and benefits of State employees. Benefits include the value of heath care, retirement, leave, and other flexible benefits. The Committee shall do the following: "(1) Assess the strength of the compensation and benefits of State employees with regards to recruitment and retention of State employees, including a specific evaluation of the retirement benefits available under the Teachers' and State Employees' Retirement System. "(2) Compare the compensation and benefits of State employees with the compensation and benefits provided to other states' employees, as well as large North Carolina employers that may recruit employees with similar skills. "(3) Evaluate the current financial condition and the sustainability of the State pension system. "(4) By February 1, 2019, submit a report to the General Assembly containing the information considered under subdivisions (1) through (3) of this subsection and any findings and recommendations, including any suggested legislation, to the General Assembly. "(b) The Committee shall consist of nine members as follows: "(1) The State Treasurer, who shall serve as chair of the Committee. "(2) The Executive Administrator of the State Health Plan. "(3) The Director of the Office of State Budget and Management. "(4) The Director of Office of State Human Resources. "(5) One member appointed by the Board of Governors of the University of North Carolina. "(6) One member appointed by the State Board of Education. "(7) One member appointed by the State Board of Community Colleges. "(8) One member appointed by the President Pro Tempore of the Senate. "(9) One member appointed by the Speaker of the House of Representatives. "Members serve at the pleasure of the appointing officer and continue to serve until a successor is appointed. Vacancies on the Committee shall be filled by the same appointing authority making the initial appointment. The Committee shall meet upon the joint call of the chair. A quorum of the Committee is five members. The Office of the State Treasurer shall provide support to the Committee. Members of the Committee shall receive subsistence and travel expenses at the rates set forth in G.S. 120-3.1 , 138-5, or 138-6, as appropriate. Advanced Placement/International Baccalaureate/Cambridge AICE Teacher Bonus Program. - Session Laws 2016-94, s. 8.8, as amended by Session Laws 2017-57, s. 8.8B(a), as amended by Session Laws 2017-197, s. 2.10(a), and as amended by Session Laws 2018-5, s. 8.10(a), (b), provides: "(a) The State Board of Education shall establish the Advanced Placement/International Baccalaureate/Cambridge AICE Program (program) to reward advanced course teacher performance and to encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer bonus pay to teachers of advanced courses in public schools, including charter schools, beginning with data from the 2015-2016 school year, in accordance with the following: "(1) A bonus in the amount of fifty dollars ($50.00) for each student taught by an advanced course teacher in each advanced course who receives the following score: "a. For Advanced Placement courses, a score of three or higher on the College Board Advanced Placement Examination. "b. For International Baccalaureate Diploma Programme courses, a score of four or higher on the International Baccalaureate course examination. "c. For the Cambridge Advanced International Certificate of Education (AICE) program, a score of 'C' or higher on the Cambridge AICE program examinations. "(2) No teacher shall be awarded a bonus pursuant to this subsection that exceeds three thousand five hundred dollars ($3,500) in any given school year. The bonus awarded to a teacher pursuant to this subsection shall be in addition to any regular wage or other bonus the teacher receives or is scheduled to receive. "(3) A bonus awarded pursuant to this subsection is payable in January, based on data from the previous school year, to a qualifying teacher who remains employed teaching in the same local school administrative unit or, if the teacher is not employed in a local school administrative unit, remains teaching in the same charter school at least from the school year the data is collected until January 1 of the corresponding school year that the bonus is paid. "(b) For the purposes of this section, an 'advanced course' shall mean an Advanced Placement course, an International Baccalaureate Diploma Programme course, or a Cambridge AICE course. "(c) Notwithstanding G.S. 135-1 (7a), the compensation bonuses awarded under this section are not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System. "(d) Subsections (a) and (b) of this section apply for bonuses awarded in January 2018, 2019, and 2020, based on data from the 2016-2017, 2017-2018, and 2018-2019 school years, respectively. Subsection (c) of this section applies only for bonuses awarded in January 2018, based on data from the 2016-2017 school year. "(e) For the 2017-2018 fiscal year only, the Director of the Budget shall also include in the base budget, as defined by G.S. 143C-1-1(d) (1c), the amount of nonrecurring funds needed to support the program. "(f) Repealed by Session Laws 2017-57, s. 8.8B(a), effective July 1, 2017." Industry Certifications and Credentials Teacher Bonus Program. - Session Laws 2016-94, s. 8.9, as amended by Session Laws 2017-57, s. 8.8B(b), and as amended by Session Laws 2018-5, s. 8.10(c), provides: "(a) The State Board of Education, in collaboration with the Department of Commerce, shall establish the Industry Certifications and Credentials Teacher Bonus Program (program) to reward the performance of teachers in public schools, including charter schools, who teach students earning approved industry certifications or credentials consistent with G.S. 115C-156.2 and to encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer bonus pay to teachers in public schools, including charter schools, who teach students earning approved industry certifications or credentials, beginning with data from the 2015-2016 school year, in accordance with the following: "(1) For teachers who provide direct instruction to students, bonuses shall be provided in the following amounts: "a. A bonus in the amount of twenty-five dollars ($25.00) for each student taught by a teacher who provided instruction in a course that led to the attainment of an industry certification or credential with a twenty-five-dollar ($25.00) value ranking as determined under subdivision (3) of this subsection. "b. A bonus in the amount of fifty dollars ($50.00) for each student taught by a teacher who provided instruction in a course that led to the attainment of an industry certification or credential with a fifty-dollar ($50.00) value ranking as determined under subdivision (3) of this subsection. "(2) No teacher shall be awarded a bonus pursuant to this subsection that exceeds three thousand five hundred dollars ($3,500) in any given school year. The bonus awarded to a teacher pursuant to this subsection shall be in addition to any regular wage or other bonus the teacher receives or is scheduled to receive. "(3) The Department of Commerce, in consultation with the State Board, shall assign a value ranking for each industry certification and credential based on academic rigor and employment value in accordance with this subdivision. Fifty percent (50%) of the ranking shall be based on academic rigor and the remaining fifty percent (50%) on employment value. Academic rigor and employment value shall be based on the following elements: "a. Academic rigor shall be based on the number of instructional hours, including work experience or internship hours, required to earn the industry certification or credential, with extra weight given for coursework that also provides community college credit. "b. Employment value shall be based on the entry wage, growth rate in employment for each occupational category, and average annual openings for the primary occupation linked with the industry certification or credential. "(4) A bonus awarded pursuant to this subsection is payable in January to a qualifying teacher who remains employed teaching in the same local school administrative unit or, if the teacher is not employed in a local school administrative unit, remains teaching in the same charter school at least from the school year the data is collected until January 1 of the corresponding school year that the bonus is paid. "(b) Notwithstanding G.S. 135-1 (7a), the compensation bonuses awarded under this section are not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System. "(c) The State Board of Education shall study the effect of the program on teacher performance and retention. The State Board shall report the results of its findings, the amount of bonuses awarded to teachers who teach students earning approved industry certifications or credentials, and the type of industry certifications and credentials earned by their students to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division by March 15 of each year. "(d) For the 2017-2018 fiscal year only, the Director of the Budget shall also include in the base budget, as defined by G.S. 143C-1-1(d) (1c), the amount of nonrecurring funds needed to support the program. "(e) Repealed by Session Laws 2017-57, s. 8.8B(b), effective July 1, 2017." Fourth and Fifth Grade Reading Teacher Bonus Program for 2017-2018. - Session Laws 2017-57, s. 8.8D(a)-(d), as amended by Session Laws 2018-5, s. 8.11(a), provides: "(a) It is the intent of the State to reward teacher performance and encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer the Fourth and Fifth Grade Reading Teacher Bonus Program (program) to qualifying teachers who have an Education Value-Added Assessment System (EVAAS) student growth index score for fourth or fifth grade reading from the previous school year, as follows: "(1) For purposes of this section, the following definitions shall apply: "a. Eligible Teacher. - A teacher who meets one or both of the following criteria: "1. Is in the top twenty-five percent (25%) of teachers in the State according to the EVAAS student growth index score for fourth or fifth grade reading from the previous school year. "2. Is in the top twenty-five percent (25%) of teachers in the teacher's respective local school administrative unit according to the EVAAS student growth index score for fourth or fifth grade reading from the previous school year. "b. Qualifying Teacher. - An eligible teacher who remains teaching in the same local school administrative unit or, if the teacher is not employed in a local school administrative unit, remains teaching in the same school at least from the school year the data for the EVAAS student growth index score is collected until January 1 of the school year a bonus provided under this subsection is paid. "(2) Of the funds appropriated for this program, the Department of Public Instruction shall allocate the sum of four million two hundred ninety-eight thousand seven hundred thirty-eight dollars ($4,298,738) to award a bonus in the amount of two thousand dollars ($2,000) to each qualifying teacher who is an eligible teacher under sub-sub-subdivision (1)a.1. of this subsection. "(3) Of the funds appropriated for this program, the Department of Public Instruction shall allocate the sum of four million two hundred ninety-eight thousand seven hundred thirty-eight dollars ($4,298,738) to award a bonus in the amount of two thousand dollars ($2,000) to each qualifying teacher who is an eligible teacher under sub-sub-subdivision (1)a.2. of this subsection, subject to the following conditions: "a. Teachers employed in charter schools, regional schools, and University of North Carolina laboratory schools are not eligible to receive a bonus under this subdivision. "b. Any qualifying teacher who taught in a local school administrative unit that employed in the previous school year three or fewer total teachers in the qualifying teacher's grade level shall receive a bonus under this subdivision if that teacher has an EVAAS student growth index score for fourth or fifth grade reading from the previous school year of exceeded expected growth. "(4) Bonuses awarded pursuant to subdivisions (2) and (3) of this subsection are payable in January to qualifying teachers based on EVAAS student growth index score data from the previous school year. "(5) A qualifying teacher may receive a bonus under both subdivisions (2) and (3) of this subsection. "(6) The bonus or bonuses awarded to a qualifying teacher pursuant to this section shall be in addition to any regular wage or other bonus the teacher receives or is scheduled to receive. "(7) No teacher shall receive more than two bonuses pursuant to this section. "(b) Notwithstanding G.S. 135-1 (7a), the bonuses awarded by this section are not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System. "(c) The State Board of Education shall study the effect of the bonuses awarded pursuant to this section on teacher performance and retention. The State Board shall report the results of its findings, the distribution of statewide bonuses as among local school administrative units, and the distribution of bonuses within local school administrative units as among individual schools to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division by March 15 of each year bonuses are awarded." Fourth to Eighth Grade Math Teacher Bonus Program for 2017-2018. - Session Laws 2017-57, s. 8.8E(a)-(c), as amended by Session Laws 2018-5, s. 8.12(a), provides: "(a) It is the intent of the State to reward teacher performance and encourage student learning and improvement. To attain this goal, the Department of Public Instruction shall administer the Fourth to Eighth Grade Mathematics Teacher Bonus Program (program) to qualifying teachers who have an Education Value-Added Assessment System (EVAAS) student growth index score for fourth, fifth, sixth, seventh, or eighth grade mathematics from the previous school year, as follows: "(1) For purposes of this section, the following definitions shall apply: "a. Eligible Teacher. - A teacher who meets one or both of the following criteria: "1. Is in the top twenty-five percent (25%) of teachers in the State according to the EVAAS student growth index score for fourth, fifth, sixth, seventh, or eighth grade mathematics from the previous school year. "2. Is in the top twenty-five percent (25%) of teachers in the teacher's respective local school administrative unit according to the EVAAS student growth index score for fourth, fifth, sixth, seventh, or eighth grade mathematics from the previous school year. "b. Qualifying Teacher. - An eligible teacher who remains teaching in the same local school administrative unit or, if the teacher is not employed in a local school administrative unit, remains teaching in the same school at least from the school year the data for the EVAAS student growth index score is collected until January 1 of the school year a bonus provided under this subsection is paid. "(2) Of the funds appropriated for this program, the Department of Public Instruction shall allocate the sum of seven million one hundred fifty-one thousand two hundred sixty-two dollars ($7,151,262) to award a bonus in the amount of two thousand dollars ($2,000) to each qualifying teacher who is an eligible teacher under sub-sub-subdivision (1)a.1. of this subsection. "(3) Of the funds appropriated for this program, the Department of Public Instruction shall allocate the sum of seven million one hundred fifty-one thousand two hundred sixty-two dollars ($7,151,262) to award a bonus in the amount of two thousand dollars ($2,000) to each qualifying teacher who is an eligible teacher under sub-sub-subdivision (1)a.2. of this subsection, subject to the following conditions: "a. Teachers employed in charter schools, regional schools, and University of North Carolina laboratory schools are not eligible to receive a bonus under this subdivision. "b. Any qualifying teacher who taught in a local school administrative unit that employed in the previous school year three or fewer total teachers in the qualifying teacher's grade level shall receive a bonus under this subdivision if that teacher has an EVAAS student growth index score for fourth, fifth, sixth, seventh, or eighth grade mathematics from the previous school year of exceeded expected growth. (4) Bonuses awarded pursuant to subdivisions (2) and (3) of this subsection are payable in January to qualifying teachers based on EVAAS student growth index score data from the previous school year. "(5) A qualifying teacher may receive a bonus under both subdivisions (2) and (3) of this subsection. "(6) The bonus or bonuses awarded to a qualifying teacher pursuant to this section shall be in addition to any regular wage or other bonus the teacher receives or is scheduled to receive. "(7) No teacher shall receive more than two bonuses pursuant to this section. "(b) Notwithstanding G.S. 135-1 (7a), the bonuses awarded by this section are not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System. "(c) The State Board of Education shall study the effect of the bonuses awarded pursuant to this section on teacher performance and retention. The State Board shall report the results of its findings, the distribution of statewide bonuses as among local school administrative units, and the distribution of bonuses within local school administrative units as among individual schools to the President Pro Tempore of the Senate, the Speaker of the House of Representatives, the Joint Legislative Education Oversight Committee, and the Fiscal Research Division by March 15 of each year bonuses are awarded." Joint Legislative Study Committee on Small Business Retirement Options. - Session Laws 2019-205, ss. 1-5, as amended by Session Laws 2020-3, s. 4.37(a), provides: "SECTION 1. There is created the Joint Legislative Study Committee on Small Business Retirement Options (the Committee). The Committee shall consist of 10 members appointed as follows: "(1) One Representative appointed by the Speaker of the House of Representatives who shall serve as a cochair to the Committee. "(2) One Senator appointed by the President Pro Tempore of the Senate who shall serve as a cochair to the Committee. "(3) One Representative appointed by the Minority Leader of the House of Representatives. "(4) One Senator appointed by the Minority Leader of the Senate. "(5) The Treasurer or the Treasurer's designee. "(6) The Secretary of Revenue or the Secretary's designee. "(7) Two members of the public appointed by the Speaker of the House of Representatives, one of whom is an individual representing an organization for older adults and one of whom is a retiree with professional knowledge of and experience working in the private retirement services industry. "(8) Two members of the public appointed by the President Pro Tempore of the Senate, one of whom is a business owner and one of whom is a labor advocate. "SECTION 2. The Committee shall study all of the following: "(1) Ways the State can reduce the regulatory and operational burden on small businesses that want to offer payroll deduction retirement savings options to employees. "(2) Mechanisms the State could use to assist citizens to be more prepared to retire in a financially secure manner, including the operation of a State-administered Individual Retirement Account or multiple employer plan. "(3) The feasibility and benefits of partnering with other similar programs established in other jurisdictions. "(4) Optimal oversight for any proposed retirement program. "SECTION 3. The Committee shall meet upon the joint call of the cochairs. A majority shall constitute a quorum of the Committee, and no official action may be taken except by a majority vote at a meeting at which a quorum is present. While in the discharge of its official duties, the Committee shall have the powers under G.S. 120-19 and G.S. 120-19 .1 through G.S. 120-19.4 . "SECTION 4. Members of the Committee shall receive subsistence and travel expenses as provided in G.S. 120-3.1 , 138-5, or 138-6, as appropriate. The Committee may contract for consultants or hire employees in G.S. 120-32.02 . The Legislative Services Commission, through the Legislative Services Officer, shall assign professional staff to assist the Committee in its work. Upon the direction of the Legislative Services Commission, the Supervisors of Clerks of the Senate and of the House of Representatives shall assign clerical staff to the Committee. "SECTION 5. The Committee shall report its interim findings and recommendations, including any recommended legislation, to the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Fiscal Research Division no later than March 31, 2020. The Committee shall report its final findings and recommendations, including any recommended legislation, to the Speaker of the House of Representatives, the President Pro Tempore of the Senate, and the Fiscal Research Division no later than December 1, 2020. The Committee shall terminate upon submission of the final report or August 1, 2020, whichever occurs first." Correctional Facility High-Need Salary Supplements. - Session Laws 2019-208, s. 4.1(a)-(g), provides: "(a) Employees of the Department of Public Safety (Department) serving in high-need correctional facilities having the highest numbers of vacant positions are eligible to receive flat-dollar salary supplements, payable monthly, for up to a two-year period. "(b) The base supplement rate shall be an amount calculated by the Department based on the requirements of this section. The minimum base supplement rate that shall be provided to employees serving in a high-need correctional facility is two thousand five hundred dollars ($2,500) annually. "(c) There are three levels of high-need correctional facilities based upon the facility's respective staffing difficulty: "(1) Level I - If the correctional facility has had a vacancy rate of at least twenty percent (20%) for at least 12 months in the prior biennium, employees assigned to this facility shall receive a salary supplement equal to the base supplement rate. "(2) Level II - If the correctional facility has had a vacancy rate of at least twenty-five percent (25%) for at least 12 months in the prior biennium, employees assigned to this facility shall receive a salary supplement equal to twice the base supplement rate. "(3) Level III - If the correctional facility has had a vacancy rate of at least thirty percent (30%) for at least 12 months in the prior biennium, employees assigned to this facility shall receive a salary supplement equal to three times the base supplement rate. "(d) The salary supplement rates assigned to each high-need correctional facility at the beginning of each fiscal biennium by the Department shall remain in effect for the facility throughout the respective fiscal biennium. The Department shall re-designate high-need facilities at the beginning of each subsequent fiscal biennium based on the criteria in subsections (b) and (c) of this section. "(e) The Department may exclude a facility from eligibility to prioritize larger supplements to greater-need facilities or if the vacancy rate does not accurately reflect a facility's actual staffing needs. The Department may assign a lower level to a facility if the assignment would more accurately reflect the facility's needs. The Department shall not provide supplements in facilities that do not meet the minimum criteria specified in subsection (c) of this section. "(f) Funds appropriated for high-need facility salary supplements may only be expended for that purpose. At the end of each fiscal year, any remaining funding appropriated for the supplements shall be distributed proportionally to employees at high-need facilities who were employed at a designated facility for the entire fiscal year. "(g) Notwithstanding G.S. 135-1 (7a), the supplements awarded pursuant to this section are not compensation under Article 1 of Chapter 135 of the General Statutes, Retirement System for Teachers and State Employees." Editor's Note. - The 1998 amendment, effective May 7, 1998, added "Health Insurance Program for Children" to the chapter title. Subdivision designations in subdivision (7a) were set out at the direction of the Revisor of Statutes. Session Laws 2006-77, s. 1, provides: "Notwithstanding any other provision of law, a member of the Teachers' and State Employees' Retirement System who was employed by a community college, who filed for retirement before August 31, 2005, for an effective retirement date of November 1, 2005, and who was provided with incorrect information about the period of time a retired member must wait before returning to employment in order to continue receiving retirement benefits, may be reemployed by the State under the reemployment law that existed at the time the member filed for retirement." At the direction of the Revisor of Statutes, in subdivision (10), "Army" and "Air" were substituted for "army" and "air" when either preceded "National Guard" to conform with Session Laws 2009-281, s. 1. Session Laws 2009-451, s. 26.14E(a)-(f), provides: "(a) The following definitions apply in this section: "(1) Furlough. - A temporary period of leave from employment without pay that (i) is ordered or authorized by the Governor, the Chief Justice, the Legislative Services Commission, the Board of Governors of The University of North Carolina, the Board of the North Carolina Community College System, or a local school board and (ii) is not in connection with a demotion or any other disciplinary action. "(2) Public agency. - A State agency, department, or institution in the executive, legislative, or judicial branches of State government; The University of North Carolina; the North Carolina Community College System; and a local school administrative unit. "(3) Public employee. - An employee employed by a public agency. "(b) Notwithstanding any law to the contrary, if necessary economies in public agency expenditures must be effected by a furlough of public employees, then a public employee on a furlough who is: "(1) A member of any of the State-supported retirement plans administered by the Retirement Systems Division of the Department of State Treasurer, or an Optional Retirement Program (ORP) administered under G.S. 135-5.1 or G.S. 135-5.4 , shall be considered in active service during any period of furlough and shall be entitled to all of the same benefits to which the employee was entitled on the workday immediately preceding the furlough. The member shall suffer no diminution of retirement average final compensation based on being on furlough, and the retirement average final compensation shall be calculated based on the undiminished compensation. During a furlough period, the employer shall pay both employee and employer contributions to the Retirement Systems Division or ORP on behalf of the furloughed employee as though the employee were in active service. "(2) A member of the State Health Plan for Teachers and State Employees shall be considered eligible for coverage under the Plan on the same basis as on the workday immediately preceding the furlough. The public employer shall pay contributions on behalf of the furloughed public employee as though the employee were in active service. "(c) This section holds harmless employees who are subject to furloughs to accomplish economies required by this act as to their retirement and other benefits that normally accrue as a result of employment. This section does not apply to a furlough within a public agency that is designed: "(1) To solely and selectively provide benefits to a public employee or a subset of public employees, or to extend or enhance benefits beyond those that normally accrue to a public employee as a result of employment. "(2) To allow the public agency to settle any claim against the public agency or to gain additional economies not specifically required by this act. "(d) This section shall not be construed as authorizing furloughs. "(e) Whenever the Governor, the Chief Justice, the Legislative Services Commission, the Board of Governors of The University of North Carolina, the Board of the North Carolina Community College System, or a local school board authorizes a furlough of public agency employees, the respective authorizing officer or entity shall report to the State Treasurer, the Director of the Retirement Systems Division, and the Executive Administrator of the State Health Plan the following: "(1) The specifics of the authorized furlough including the applicable reduction in salary and the date the reduction in salary will occur. Examples of other furlough specifics include one-day furlough per month for the next three months, five furlough days during the remainder of the fiscal year, etc. "(2) The positions affected, i.e. all full-time, part-time, temporary and contractual positions, all nonessential personnel, all nonteaching positions, etc. "(3) The individual employees affected, including the applicable reduction in salary and whether the employee is subject to or exempt from the Fair Labor Standards Act. "(4) Certification that the furlough is not in connection with a demotion or any other disciplinary action. "(5) Certification that the furlough is to accomplish economies specifically required by this act, including the specific budget provision or reduction the furlough is intended to address. "(6) Certification that the furlough is not related to the settlement of any claim against a public agency. "(f) This section is effective when it becomes law." Session Laws 2009-451, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2009'." Session Laws 2009-451, s. 28.5, is a severability clause. Session Laws 2010-31, s. 29.1, provides: "(a) The General Assembly finds that: "(1) North Carolina's citizens and businesses are suffering from the effects of a significant State financial crisis. "(2) The financial crisis has resulted in large reductions in revenues projected to be available to fund the State's budget for the 2010-2011 fiscal year. "(3) Each local school administrative unit is required to reduce its budget and should attempt to protect employees when possible. "(4) The implementation of furloughs may be necessary to balance local school administrative unit budgets for the 2010-2011 fiscal year. "(b) In accordance with Section 7.13 of this act, local boards of education may implement furloughs of State-funded public school employees to offset the LEA funding flexibility adjustment. "(c) The following definitions apply in this section: "(1) Furlough. - A temporary period of leave from employment without pay that (i) is ordered by a local board of education and (ii) is not in connection with a demotion or other disciplinary action. "(2) Public school employee. - Any person employed by a local school administrative unit. The term includes public officers. "(d) The provisions of Section 26.14E(b) and (c) of S.L. 2009-451 apply to public school employees furloughed pursuant to the section. "(e) Local school administrative units shall cooperate with the Department of Public Instruction in the implementation of a furlough, if required. "(f) As soon as practicable, and no more than 30 calendar days from the effective date of this section, the State Board of Education shall adopt rules for the implementation of this section in accordance with G.S. 150B-21.1 A, except that notwithstanding G.S. 150B-21.1 A(d), those emergency rules may remain in effect until the expiration of this section. These rules shall be applied by local boards of education in designating the times public school employees may be subject to furlough. These rules shall provide, at a minimum, that: "(1) Employees who work only on instructional days shall not be subject to furlough. "(2) Employees who earn an annual salary of thirty-two thousand dollars ($32,000) or less shall not be subject to furlough. "(3) A furlough for other employees shall be for the same number of days for all such employees and shall be for a maximum of two days. "(4) No teacher shall be subject to a furlough on an instructional day or a protected work day. "(5) A local board of education shall have a public hearing and shall disclose the local school administrative unit's finances before the local board implements a furlough. "(6) The local school administrative unit shall cut all bonus pay before it imposes a furlough. "(7) A local school administrative unit may spread the salary or wage reduction for furloughed employees over the contract period in order to lessen the impact on the employees. "(8) All savings realized as a result of a furlough shall be used to offset the LEA funding flexibility adjustment. "(9) A county in which a local school administrative unit implements a furlough pursuant to this section shall not supplant existing local current expense funds for schools. "(10) Each local board of education shall report to the State Board of Education on the details of any furlough implemented by the local school administrative unit and certify that the furlough complied with the provisions of this section and the rules adopted by the State Board. "(g) The provisions of Section 26.14E(e) of S.L. 2009-451 apply to furloughs under this section. "(h) A furlough as implemented by this section does not constitute a demotion pursuant to Part 3 of Article 22 of Chapter 115C of the General Statutes or under any other personnel law or policy. "(i) Notwithstanding G.S. 115C-273 , 115C-285(b), 115C-302.1(h), and 115C-316(b), or any other provision of law, public school employees who are not paid out of State funds shall receive the same reduction in pay applicable to State-paid employees in the event a furlough is enacted by a local school administrative unit. "(j) This section is effective when it becomes law and expires June 30, 2011." Session Laws 2010-31, s. 29.4(a) through (i), as amended by Session Laws 2010-123, s. 9.1(a) and (b), provide: "(a) Findings. - The General Assembly finds that: "(1) North Carolina's citizens and businesses are suffering from the effects of a significant State financial crisis. "(2) The financial crisis has resulted in large reductions in revenues projected to be available to fund the State's budget for the 2010-2011 fiscal year. "(3) The University of North Carolina and its constituent institutions are required to reduce their budgets and should attempt to protect university employees when possible. "(4) The implementation of furloughs may be necessary to balance The University of North Carolina's and its constituent institutions' budgets for the 2010-2011 fiscal year. "(b) The President of The University of North Carolina may implement furloughs of university employees or delegate furlough authority to a chancellor of a constituent institution. Savings realized as a result of a furlough shall be used in accordance with the policies adopted pursuant to subdivision (f)(5) of this section. "(c) Definitions. - The following definitions apply in this section: "(1) Furlough. - A temporary period of leave from employment without pay that (i) is ordered by the President of The University of North Carolina or a chancellor when delegated and (ii) is not in connection with a demotion or other disciplinary action. "(2) University employee. - Any permanent full-time, permanent part-time, or time-limited employee of The University of North Carolina, including employees exempt from the State Personnel Act [now North Carolina Human Resources Act] under G.S. 126-5(c) , 126-5(c1), 126-5(c7), and 126-5(c8). The term includes public officers. "(d) Compensation and Benefits. - The provisions of Section 26.14E(b) and (c) of S.L. 2009-451 apply to university employees furloughed pursuant to the section. "(e) Cooperation with The University of North Carolina - General Administration. - Constituent institutions shall cooperate with UNC General Administration in the implementation of furloughs, if required. "(f) As soon as practicable, and no more than 30 calendar days from the effective date of this section, the Board of Governors of The University of North Carolina shall adopt policies for the implementation of this section to remain in effect until the expiration of this section. These policies shall be applied by the President and the constituent institutions in implementing a furlough of university employees. These policies shall provide, at a minimum, that: "(1) The President may establish a salary threshold below which university employees shall not be subject to furlough. In no event may any full-time university employee, prorated for any part-time employee, earning an annual salary of thirty-two thousand dollars ($32,000) or less be subject to furlough. "(2) The scheduling of any furlough period shall be at the discretion of the President or the chancellor of the constituent institution when delegated. "(3) Paid leave shall not be used to offset all or any portion of a furlough. "(4) If a holiday falls during the mandatory furlough period, the university employee must be paid for the holiday. "(5) All savings realized as a result of a furlough: "a. Shall be used to offset the Management Flexibility Reduction for The University of North Carolina. "b. May, if it is necessary to implement an additional one percent (1%) Management Flexibility Reduction pursuant to Section 2.3 of this act to backfill enhanced FMAP funds, also be used to offset the additional 1% Management Flexibility Reduction and to meet reversion requirements. "(g) Reporting Requirements. - The provisions of Section 26.14E(e) of S.L. 2009-451 apply to furloughs under this section. "(h) Upon delegation of furlough authority to a chancellor, the constituent institution shall develop a furlough plan to be approved by the President consistent with the policies adopted by the UNC Board of Governors. Access to approved furlough plans shall be provided to all affected employees. "(i) Effective Date. - This section is effective when it becomes law and expires June 30, 2011." Session Laws 2010-31, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2010'." Session Laws 2010-31, s. 32.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2010-2011 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2010-2011 fiscal year." Session Laws 2010-31, s. 32.6, is a severability clause. Session Laws 2011-145, s. 29.18(a)-(e), provides: "(a) The following definitions apply in this section: "(1) Furlough. - A temporary, involuntary period of leave from employment without pay but shall not include any period of involuntary leave resulting from disciplinary action. "(2) Public agency. - A State agency, department, or institution in the executive branch of State government; The University of North Carolina; the North Carolina Community College System; and a local school administrative unit. "(3) Public employee. - An employee employed by the legislative or judicial branches or by a public agency. "(b) Any furlough of a public employee paid with State funds is prohibited unless the furlough is ordered by the Governor while acting to balance the budget pursuant to Section 5 of Article III of the North Carolina Constitution or by the Chief Justice or the Legislative Services Officer, respectively, to balance the judicial branch or legislative branch budget. "The Board of Governors of The University of North Carolina, the State Board of Community Colleges, and each local public school board of education must petition the Governor to furlough its respective employees in order to balance the respective budgets. "(c) If, in accordance with subsection (b) of this section, necessary economies in expenditures must be effected by a furlough of public employees, the employing public agency, the judicial branch, or the legislative branch, respectively, shall report to the State Treasurer, the Director of the Retirement Systems Division, and the Executive Administrator of the State Health Plan the following: "(1) The specifics of the authorized furlough. "(2) The positions affected, including all full-time, part-time, temporary, and contractual positions, all nonessential personnel, and all nonteaching positions. "(3) The individual employees affected, including the applicable reduction in salary and whether the employee is subject to or exempt from the Fair Labor Standards Act. "(d) If, in accordance with subsection (b) of this section, necessary economies in expenditures must be effected by a furlough of public employees, then a public employee on a furlough who is: "(1) A member of any of the State-supported retirement plans administered by the Retirement Systems Division of the Department of State Treasurer or of an Optional Retirement Program (ORP) administered under G.S. 135-5.1 or G.S. 135-5.4 shall be considered in active service during any period of furlough and shall be entitled to all of the same benefits to which the employee was entitled on the workday immediately preceding the furlough. The member shall suffer no diminution of retirement average final compensation based on being on furlough, and the retirement average final compensation shall be calculated based on the undiminished compensation. During a furlough period, the employer shall pay both employee and employer contributions to the Retirement Systems Division or ORP on behalf of the furloughed employee as though the employee were in active service. "(2) A member of the State Health Plan for Teachers and State Employees shall be considered eligible for coverage under the Plan on the same basis as on the workday immediately preceding the furlough. The public employer shall pay contributions on behalf of the furloughed public employee as though the employee were in active service. "(e) The benefits protections provided by this section shall also apply to public employees in the judicial and legislative branches." For prior similar provisions, see Session Laws 2010-31, ss. 29.1 and 29.4. Session Laws 2011-145, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2011.'" Session Laws 2011-145, s. 32.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2011-2013 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2011-2013 fiscal biennium." Session Laws 2011-145, s. 32.5, is a severability clause. At the direction of the Revisor of Statutes, subdivision (5a), as added by Session Laws 2012-185, s. 2(b), was redesignated as subdivision (4a) to maintain alphabetical order. Subdivision (7b) was originally enacted as subdivision (8a) by Session Laws 2014-97, s. 4(a). It has been renumbered as subdivision (7b) to maintain alphabetical order at the direction of the Revisor of Statutes. Session Laws 2015-241, s. 30.18A(b), provides: "Notwithstanding G.S. 135-1 (7a), the compensation bonus awarded by this section [one-time, lump-sum bonus of $750 per employee for the 2015-2016 fiscal year] is not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System." Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'" Session Laws 2015-241, s. 33.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2015-2017 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2015-2017 fiscal biennium." Session Laws 2015-241, s. 33.6, is a severability clause. Session Laws 2016-94, s. 36.1A(a), provides: "Funds for Merit-Based Bonuses. - Of the funds appropriated in this act from the General Fund and Highway Fund to the Compensation Bonus Reserves, nonrecurring funds for the 2016-2017 fiscal year are authorized generally to provide employing agencies with funds to award one-time merit-based bonuses to State-funded personnel in accordance with eligibility policies adopted by the employing agencies. The eligibility policy shall not provide an across-the-board bonus for this purpose. Notwithstanding G.S. 135-1 (7a) and G.S. 135-53(5) , merit-based bonuses awarded under this Part are not compensation under Chapter 135 of the General Statutes." Session Laws 2016-94, s. 36.16(b), provides: "Notwithstanding G.S. 135-1 (7a), the compensation bonus awarded by this section is not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System." Session Laws 2016-94, s. 36.16(a)-(e) provides for a one-time lump sum compensation bonus for employees in State-funded positions as of September 1, 2016, except for teachers paid on a Salary Schedule. Session Laws 2016-94, s. 1.2, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2016.'" Session Laws 2016-94, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2016-2017 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2016-2017 fiscal year." Session Laws 2016-94, s. 39.7, is a severability clause. Session Laws 2017-57, s. 35.19B(c), made the last sentence of subdivision (11c), and subdivision (17a) as added by Session Laws 2017-57, s. 35.19B(a), effective July 1, 2017, and applicable to persons retiring on or after that date. Session Laws 2017-57, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2017.'" Session Laws 2017-57, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2017-2019 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2017-2019 fiscal biennium." Session Laws 2017-57, s. 39.6, is a severability clause. Session Laws 2017-125, s. 9, is a severability clause. Session Laws 2017-128, s. 9, is a severability clause. Session Laws 2017-129, s. 12, is a severability clause. Session Laws 2017-186, s. 3(a), provides: "The Revisor of Statutes shall change any additional references in the General Statutes to the 'Division of Adult Correction' to the 'Division of Adult Correction and Juvenile Justice'." Session Laws 2018-5, s. 8.3(c), provides: "Notwithstanding G.S. 135-1 (7a), the bonus awarded pursuant to this section is not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System." For prior similar provisions, see Session Laws 2017-57, s. 8.4(d). Session Laws 2018-5, s. 8.9(d), provides: "Notwithstanding G.S. 135-1 (7a), the bonuses awarded pursuant to this section are not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System." For prior similar provisions, see Session Laws 2017-57, s. 8.8A(c). Session Laws 2018-5, s. 1.1, provides: "This act shall be known as the 'Current Operations Appropriations Act of 2018.'" Session Laws 2018-5, s. 39.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2018-2019 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2018-2019 fiscal year." Session Laws 2018-5, s. 39.7, is a severability clause. Session Laws 2019-110, s. 5, as amended by Session Laws 2019-212, s. 7(c), provides: "(a) The State Treasurer shall seek a private letter ruling from the Internal Revenue Service to determine if the provisions of this act relating to the computation of postretirement earnings of retired teachers jeopardize the status of the Teachers' and State Employees' Retirement System. "(b) If the Internal Revenue Service determines that the provisions of G.S. 135-3(8) g., as enacted by this act, relating to the computation of postretirement earnings of retired teachers jeopardize the status of the Teachers' and State Employees' Retirement System of North Carolina under the Internal Revenue Code, then this act is repealed on the last day of the month following the month of receipt of that determination by the State Treasurer. Upon receipt of that determination, the State Treasurer shall notify the Revisor of Statutes of the determination and the date of receipt. Within three business days of receipt of the determination, the State Treasurer shall notify all local school administrative units of the repeal of this act and shall publicly notice the receipt of this information on the Department of State Treasurer's Web site. Within three business days of receipt of the notice from the State Treasurer, a local school administrative unit shall notify all high-need retired teachers employed by its local board of education of the repeal of this act. "(c) Notwithstanding any other provision of law to the contrary, in order to pay costs associated with the administration of the provisions of this act, the Retirement Systems Division of the Department of State Treasurer may increase receipts from the retirement assets of the Teachers' and State Employees' Retirement System or pay costs associated with the administration directly from the retirement assets. Costs associated with the administration of the provisions of this act shall not exceed fifty thousand dollars ($50,000) to obtain the private letter ruling from the Internal Revenue Service required under subsection (a) of this section. "(d) Any beneficiary that is employed to teach by a local board of education as a high-need retired teacher, as defined in G.S. 115C-302.4(a)(1) , shall not be eligible to elect into a position that would lead him or her to be eligible to accrue any additional benefits under G.S. 135-3(8) . Any failure of a local board of education or a beneficiary to comply with the foregoing shall be corrected by the Retirement System as it determines may be appropriate under State and federal law. Any costs of the correction, as determined by the Retirement System, shall be the sole responsibility of the local board of education and shall be transferred to the Pension Accumulation Fund under G.S. 135-8 , under rules adopted by the Board of Trustees." Session Laws 2019-247, s. 2.4(c), provides: "Notwithstanding G.S. 135-1 (7a), the bonus awarded pursuant to this section is not compensation under Article 1 of Chapter 135 of the General Statutes, the Teachers' and State Employees' Retirement System." Session Laws 2019-247, s. 2.4 approved principal bonuses for schools in the top 50% of school growth, in addition to regular wages. Session Laws 2020-3, s. 4.22(a)-(d), provides: "(a) This section shall apply to the following General Statutes: "(1) Article 1A of Chapter 120 . "(2) Article 3 of Chapter 128 . "(3) Article 1 of Chapter 135 . "(4) Article 4 of Chapter 135 . "(5) Article 6 of Chapter 135 . "(b) Whenever the medical board, as established under G.S. 128-28(l) , 135-6(k), or 135-102(d), is required to make a determination or certification of eligibility for disability benefits, the Director of the Retirement Systems Division of the Department of State Treasurer, or the Director's designee, may make an interim determination or an interim certification that a member or beneficiary is eligible for disability benefits. The Director may not make a determination or certification that a member or beneficiary is not eligible for disability benefits. "(c) The medical board shall review any interim determinations or interim certifications made in accordance with this section as soon as practicable and shall then make a final determination or final certification for disability benefits. If, subsequent to an interim determination or interim certification, the medical board makes a final determination that a member or beneficiary is not eligible for disability benefits, then any payment to that member or beneficiary shall cease and the determination shall be applied prospectively only so that the final determination will not require any refund by the member or beneficiary to the applicable retirement system or benefit plan for payments or benefits received during the interim period before the final determination is made. "(d) This section is effective when it becomes law [May 4, 2020]. Subsection (b) of this section expires August 1, 2020. Any interim determinations or interim certifications made, as allowed under subsection (b) of this section, will remain valid until a final determination is made, in accordance with subsection (c) of this section." Session Laws 2020-3, s. 4.23(a)-(e), as amended by Session Laws 2020-74, s. 9, and as amended by Session Laws 2020-80, s. 1.1(f), provides: "(a) For individuals who retired under the Teachers' and State Employees' Retirement System (TSERS) on or after October 1, 2019, but before April 1, 2020, the six-month separation from service from an employer that is required under G.S. 135-1(20) in order for a retirement to become effective shall not apply and instead a one-month separation shall be required, provided that the position to which the individual returns is needed due to the COVID-19 pandemic, as certified to the Retirement Systems Division of the Department of State Treasurer by the employing agency. Upon the expiration of this section, all of the following shall apply: "(1) The six-month separation from an employer required under G.S. 135-1(20) shall again be applicable to individuals who retired under TSERS on or after October 1, 2019, but before April 1, 2020. "(2) In order for a member's retirement under TSERS on or after October 1, 2019, but before April 1, 2020, to become effective in any month, the member must perform no work for an employer, including part-time, temporary, substitute, or contractor work, at any time between the expiration of this section and the end of the six months immediately following the effective date of retirement, provided the expiration of the six-month period of separation did not occur while this section was in effect. "(3) For individuals who retired under TSERS on or after October 1, 2019, but before April 1, 2020, any time worked between March 10, 2020, and the time this section expires shall not be considered work for the purposes of the six-month separation required under G.S. 135-1(20) . "(b) For individuals who retired prior to April 1, 2020, any earnings received between March 10, 2020, and the time that this section expires shall not be treated as earned by a TSERS beneficiary under the provisions of G.S. 135-3(8) c., provided those earnings are related to a position needed due to the COVID-19 pandemic, as certified to the Retirement Systems Division of the Department of State Treasurer by the employing agency. "(c) For individuals who retired prior to April 1, 2020, any earnings received between March 10, 2020, and the time that this section expires shall not be treated as earned by a beneficiary of the Local Governmental Employees Retirement System (LGERS) under the provisions of G.S. 128-24(5) c., provided those earnings are related to a position needed due to the COVID-19 pandemic, as certified to the Retirement Systems Division of the Department of State Treasurer by the employing unit. "(d) Any benefits received by or paid to a law enforcement officer or retired law enforcement officer under Article 12D of Chapter 143 of the General Statutes shall not be impacted by any work performed between March 10, 2020, and the time that this section expires, provided that work performed is needed due to the COVID-19 pandemic, as documented by the employing unit or agency. "(e) This section is effective when it becomes law [May 4, 2020] and expires August 31, 2020." Session Laws 2020-3, s. 5, is a severability clause. Session Laws 2020-45, s. 2(d), provides: "Notwithstanding G.S. 135-1 (7a), the bonuses awarded pursuant to this section are not compensation under Article 1 of Chapter 135 of the General Statutes, Retirement System for Teachers and State Employees." Session Laws 2020-45, s. 3(b), provides: "Notwithstanding G.S. 135-1 (7a), any bonuses awarded by the Governor in accordance with this section are not compensation under Article 1 of Chapter 135 of the General Statutes, Retirement System for Teachers and State Employees." Session Laws 2020-45, s. 5(d), provides: "Notwithstanding G.S. 135-1 (7a), the bonuses awarded pursuant to this section are not compensation under Article 1 of Chapter 135 of the General Statutes, Retirement System for Teachers and State Employees." Session Laws 2020-48, s. 6.1, is a severability clause. Session Laws 2020-80, s. 3.5, is a severability clause. Session Laws 2021-72, s. 2.1(d), made the amendment of this section by Session Laws 2021-72, s. 2.1(a), effective July 2, 2021, and expiring on July 1, 2022, and further provides: "This section applies retroactively to retirements occurring on or after January 1, 2019; provided that for any retirements occurring on or after January 1, 2019, through the effective date of this section, for which the Retirement System has notified an employer of its liability under G.S. 135-8(f)(2) f., no additional employer shall be liable for an additional contribution." Session Laws 2021-72, s. 6.1, is a severability clause. Session Laws 2021-75, s. 3.1(c), made the substitution of "computed upon the basis of actuarial assumptions" for "computed at regular interest upon the basis of such mortality tables" in subdivision (2) of this section by Session Laws 2021-75, s. 3.1(b), applicable to benefit calculations performed on or after on or after July 1, 2021. Effect of Amendments. - Session Laws 2004-81, s. 1, effective July 1, 2004, added "or by the United States Department of Homeland Security pursuant to 8 C.F.R. Part 214.2(q)" at the end of subdivision (25). Session Laws 2004-199, s. 34(a), effective August 17, 2004, substituted "teacher in a job-sharing position under G.S. 115C-326.5 " for "classroom teacher in a job-sharing position as defined in G.S. 115C-302(b) " in subdivision 25. Session Laws 2005-276, s. 29.28(e), as amended by Session Laws 2006-66, s. 22.21, effective November 1, 2005, but not applicable to participants in The University of North Carolina Phased Retirement Program until the earlier of June 30, 2010, or 12 months after the issuance of final phased retirement regulations by the Internal Revenue Service, rewrote subdivision (20). Session Laws 2007-143, s. 1, effective June 29, 2007, added the last sentence in subdivision (20). Session Laws 2009-11, s. 1, effective March 26, 2009, added "or as an unpaid bona fide volunteer in a local school administrative unit" near the end of subdivision (20). Session Laws 2009-66, ss. 6(e) and 6(i), effective July 1, 2009, added subdivision (7a)a.6., and made related stylistic and punctuation changes; and added the third sentence of subdivision (10). Session Laws 2009-281, s. 1, effective July 10, 2009, substituted "National Guard" for "national guard" throughout subdivision (10). Session Laws 2010-31, s. 29.7(d), effective July 1, 2010, added sub-sub-subdivision (7a)b.10a. Session Laws 2011-145, s. 29.24(b), effective July 1, 2011, added the last sentence in subdivision (20). Session Laws 2011-183, s. 100, effective June 20, 2011, in subdivision (10), in the fifth sentence, substituted "North Carolina National Guard" for "Army National Guard and Air National Guard of this State" and "in the Adjutant General's discretion" for "in his discretion"; throughout the fifth and sixth sentences, inserted "North Carolina" preceding "National Guard"; and made minor stylistic changes. Session Laws 2012-130, s. 6, effective July 1, 2012, in subdivision (25), inserted "(i)" near the beginning, inserted "the" preceding "Department of Public Instruction," and substituted "State; (ii) who works at least 30 or more hours per week for at least nine or more months per calendar year" for "State." Session Laws 2012-185, s. 2(b), effective July 1, 2012, added subdivision (5a); added subdivision (11b) and redesignated former subdivision (11b) as subdivision (11c). Session Laws 2013-288, ss. 3(a), 4(a), effective July 1, 2013, added "or membership service in a North Carolina Retirement System that has been transferred into this system" in subdivision (14); and, in subdivision (20), inserted "under this Chapter" and "commencement of monthly retirement benefits along with," and substituted "perform no work for an employer" for "render no service," and "work" and "working" for "service." Session Laws 2013-291, s. 1, effective July 1, 2013, in subdivision (20), added "board of trustees of a community college, board of trustees of any constituent institution of The University of North Carolina," added "or as an unpaid bona fide volunteer guardian ad litem in the guardian ad litem program," and made minor punctuation changes. Session Laws 2014-97, s. 4(a), effective January 1, 2015, added subdivision (7b). Session Laws 2015-67, s. 1, effective July 1, 2015, in the next-to-last sentence of subsection (10), substituted "must work at least 30 hours" for "and who work 30 or more hours," and "in order to be covered" for "are covered." Session Laws 2015-164, s. 4, effective October 1, 2015, inserted "except as otherwise provided" near the beginning of the first sentence and inserted "or work, and volunteering in positions normally designated as unpaid bona fide volunteer positions during the six months immediately following the effective date of retirement shall not be considered service" at the end of the next-to-last sentence in subdivision (20). Session Laws 2017-57, s. 35.19B(a), added the last sentence in subdivision (11c); and added subdivision (17a). For effective date and applicability, see editor's note. Session Laws 2017-125, s. 1(a), effective July 20, 2017, added second sentence in subdivision (5). Session Laws 2017-128, s. 1(a)-(c), effective July 20, 2017, added subdivision (7b) and redesignated former subdivision (7b) as subdivision (7c); and inserted "records" in the first sentence of subdivision (11b). Session Laws 2017-129, s. 4(a), effective June 30, 2017, added the second sentence in subdivision (11). Session Laws 2017-186, s. 3(a), effective December 1, 2017, substituted "Division of Adult Correction and Juvenile Justice" for "Division of Adult Correction" twice in subdivision (17a). Session Laws 2018-85, s. 10, effective June 25, 2018, in subdivision (20), rewrote and transferred the former fourth sentence as the last sentence, including subdivisions (20)a. through d. Session Laws 2019-110, s. 3, effective July 1, 2019, and expiring June 30, 2021, in subdivision (10), substituted "General Assembly, any part-time or temporary employee, or any high-need retired teacher as defined under G.S. 115C-302.4(a)(1) " for "General Assembly or any part-time or temporary employee" in the first sentence, and added the exception at the end of the next-to-last sentence. Session Laws 2020-48, s. 1.1(b), effective June 26, 2020, added subdivision (8a). Session Laws 2021-72, s. 2.1(a), redesignated former subdivision (4a) as present subdivision (4b), and added present subdivision (4a). For effective date, expiration, and applicability, see editor's note. Session Laws 2021-75, s. 3.1(b), effective July 1, 2021, substituted "computed upon the basis of actuarial assumptions" for "computed at regular interest upon the basis of such mortality tables" in subdivision (2). For applicability, see editor's note. Legal Periodicals. - For comment on this section, see 19 N.C.L. Rev. 508 (1941). For article, "The Impact of Law on the State Pension Crisis," see 54 Wake Forest L. Rev. 105 (2019).