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North CarolinaHB 4772025-2026 SessionHouseWALLET

AN ACT TO RECODIFY AND STANDARDIZE THE LAWS RELATING TO THE DEATH BENEFIT PLAN, INCLUDING BY MAKING TECHNICAL, CLARIFYING, AND CONFORMING CHANGES, UNDER THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM, THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM, THE CONSOLIDATED JUDICIAL RETIREMENT SYSTEM, AND THE LEGISLATIVE RETIREMENT SYSTEM, TO MAKE CHANGES TO THE SURVIVOR'S ALTERNATE BENEFIT UNDER THOSE RETIREMENT SYSTEMS, AND TO ENSURE SUFFICIENT FUNDING FOR LINE OF DUTY DEATH BENEFITS.

Sponsored By: Carson Smith (Republican), Diane Wheatley (Republican)

Signed by Governor

CJRSDEATH & DYINGDEATH BENEFITSFUNDS & ACCOUNTSGENERAL ASSEMBLYINSURANCEINSURANCE, LIFEJUDGESLGERSLOCAL GOVERNMENTLRSMAGISTRATESPRESENTEDPUBLICRATIFIEDRETIREMENTSALARIES & BENEFITSSTATE EMPLOYEESTEACHERSTSERSCHAPTEREDGOVERNMENT EMPLOYEESLOCAL GOVERNMENT EMPLOYEES

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 5 benefits, 0 costs, 1 mixed.

Standard in-service death benefit for public workers

Active members with at least one full year of service get a lump-sum death benefit. It equals the larger of last year’s covered pay or the highest 12 months of covered pay in the prior 24 months. The payment is at least $25,000 and no more than $50,000. Law enforcement officers are covered and employers must fund it. Non‑law‑enforcement coverage starts only after the employer signs up. The law sets how to decide the last day of service, including special rules for military duty and approved leave. Members on approved intergovernmental exchanges keep death benefit protection during the exchange.

Retiree-paid $10,000 death benefit option

Retirees can elect a fully contributory death benefit within 60 days of retirement. Monthly premiums are deducted from the pension. After 24 months of payments, your beneficiary gets $10,000. If death happens earlier, they receive your paid premiums plus Board‑set interest.

Backup fund for line-of-duty deaths

Beginning July 1, 2025, the Board can set aside up to 0.04% of the State employer contribution rate each year for line‑of‑duty death payments. This money is used only after other State funds for these payments are spent. Any amount left on June 30 moves to the Benefit Fund as an extra employer contribution.

Local death plan and trust protections

A Local Governmental Death Benefit Plan now provides group life coverage separate from the pension plan. The Board runs the plan and its rules; decisions on the contributory retiree benefit must match the state teachers’ and employees’ board. All contributions and earnings for these benefits go into the Benefit Trust. Money in the Trust is irrevocable, used only for benefits and reasonable admin costs, and protected from creditors.

More flexible survivor benefit timing rules

For the survivor’s alternate benefit, a member is treated as in service if death is within 180 days of the last day of actual service. A surviving spouse may buy service credit the member applied for in writing before death if death happened before or within 60 days after the cost notice.

Name beneficiaries; death pay is separate

You must name a beneficiary for each death benefit. File it online or by a signed form with the Board. If no named person is alive, payment goes to your legal representative. Death benefits are paid on top of your own retirement contributions.

Sponsors & Cosponsors

Sponsors

  • Carson Smith

    Republican • House

  • Diane Wheatley

    Republican • House

Cosponsors

  • Rodney D. Pierce

    Democratic • House

  • Shelly Willingham

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 380 • No: 0

House vote • 6/3/2025

HB 477: Retirement Death Benefits Rewrite.

Yes: 113 • No: 0 • Other: 6

Senate vote • 5/22/2025

HB 477: Retirement Death Benefits Rewrite.-AB

Yes: 40 • No: 0 • Other: 10

House vote • 4/29/2025

HB 477: Retirement Death Benefits Rewrite.

Yes: 114 • No: 0 • Other: 6

House vote • 4/29/2025

HB 477: Retirement Death Benefits Rewrite.

Yes: 113 • No: 0 • Other: 6

Actions Timeline

  1. Ch. SL 2025-11

    6/13/2025House

  2. Signed by Gov. 6/13/2025

    6/13/2025House

  3. Pres. To Gov. 6/5/2025

    6/5/2025House

  4. Ratified

    6/4/2025House

  5. Ordered Enrolled

    6/3/2025House

  6. Concurred In S Com Sub

    6/3/2025House

  7. Placed On Cal For 06/03/2025

    6/2/2025House

  8. Withdrawn From Com

    6/2/2025House

  9. Ref To Com On Rules, Calendar, and Operations of the House

    5/27/2025House

  10. Regular Message Received For Concurrence in S Com Sub

    5/23/2025House

  11. Regular Message Sent To House

    5/23/2025Senate

  12. Passed 3rd Reading

    5/22/2025Senate

  13. Passed 2nd Reading

    5/22/2025Senate

  14. Reptd Fav

    5/21/2025Senate

  15. Re-ref Com On Rules and Operations of the Senate

    5/20/2025Senate

  16. Com Substitute Adopted

    5/20/2025Senate

  17. Reptd Fav Com Substitute

    5/20/2025Senate

  18. Re-ref to Pensions and Retirement and Aging. If fav, re-ref to Rules and Operations of the Senate

    5/19/2025Senate

  19. Withdrawn From Com

    5/19/2025Senate

  20. Ref To Com On Rules and Operations of the Senate

    4/30/2025Senate

  21. Passed 1st Reading

    4/30/2025Senate

  22. Regular Message Received From House

    4/30/2025Senate

  23. Regular Message Sent To Senate

    4/30/2025House

  24. Ordered Engrossed

    4/29/2025House

  25. Passed 3rd Reading

    4/29/2025House

Bill Text

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