All Roll Calls
Yes: 380 • No: 0
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: 3 benefits, 0 costs, 3 mixed.
Death benefits move into protected trust
The law creates an irrevocable Benefit Trust to hold all death‑benefit money. Each plan’s money stays separate and can only pay benefits and plan costs, and trust assets are protected from creditors. The Trust covers State and Local Government death‑benefit plans and fully contributory retiree plans, with the State and Local boards serving as trustees. A change to the retiree contributory plan takes effect only if both boards approve the same change. Starting June 13, 2025, the Separate Insurance Benefits Plan’s money also moves into the Trust.
In-service death benefits and payouts
You qualify for in‑service death benefits after one full year of membership if your employer participates. Employers must cover law‑enforcement officers. A death within 180 days after your last work day counts as “in service.” The lump sum is the larger of two pay measures, with a $25,000 minimum and a $50,000 maximum. The law sets how to find your last day of service during leave, military duty, or General Assembly service, which controls the pay used. You must name beneficiaries on a Board form (electronic or duly acknowledged). Death benefits are paid separate from your retirement contributions. For eligibility only, some Legislative or Judicial service can be added to Teachers’ and State Employees’ service, and coverage continues during approved intergovernmental exchanges. The plan does not pay a duplicate benefit if another statute already paid for the same death.
Retiree and surviving spouse benefits
If a retired member dies, a surviving spouse may get a monthly payment equal to one‑half of the member’s last allowance, reduced 2% for each full year the member was older. It ends at the spouse’s remarriage or death. For in‑service deaths in the Judicial system, beneficiaries get a lump sum equal to contributions plus final pay. A surviving spouse age 50+ with at least five years of service may choose monthly survivor payments instead. If those payments stop before total equals the member’s contributions, the extra contributions are paid as a lump sum. A death within 180 days after the last work day counts as in service for this option. A spouse may finish buying service credit the member applied for if death happened before or within 60 days after the cost notice. Disability‑benefit recipients count as in service. All retirees may elect a fully contributory death benefit within 60 days of retirement and pay monthly premiums. If death occurs on or after the first day of the 25th month of coverage, the benefit is $10,000. If death occurs earlier, the beneficiary gets the premiums paid plus interest set by the Board. If a retiree dies and no spouse or monthly‑benefit survivor is on the account, the law pays any remaining contributions at retirement minus payments already made.
Legislators' in-service death benefit
If a legislator dies in service after one year, the beneficiary gets a lump sum equal to the highest annual salary, up to $15,000. “In service” includes serving in the General Assembly and certain uniformed‑service duty begun during the term.
Death benefits while on disability
If you are on workers’ compensation or the Disability Income Plan, you can get a death benefit if you die on or after day 181 after your last work day and before those benefits would have ended. You must not be retired or eligible under another death‑benefit law. Your beneficiary gets a lump sum equal to the higher of two formulas, but never more than the in‑service maximum. The Board pays after receiving proof of death. People whose rights came from the former Disability Salary Continuation Plan are not eligible.
Backup funding for line-of-duty deaths
Beginning July 1, 2025, the Board may set aside up to 0.04% of the State employer contribution rate to pay line‑of‑duty death awards on time. The Treasurer uses this money only after other state funds for those awards are spent. Any unspent amount by June 30 moves to the Benefit Fund.
Sponsors & Cosponsors
Sponsors
Carson Smith
Republican • House
Diane Wheatley
Republican • House
Cosponsors
Garland E. Pierce
Democratic • House
Shelly Willingham
Democratic • House
Roll Call Votes
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: 113 • No: 0 • Other: 6
House vote • 4/29/2025
HB 477: Retirement Death Benefits Rewrite.
Yes: 114 • No: 0 • Other: 6
Actions Timeline
Ch. SL 2025-11
6/13/2025HouseSigned by Gov. 6/13/2025
6/13/2025HousePres. To Gov. 6/5/2025
6/5/2025HouseRatified
6/4/2025HouseOrdered Enrolled
6/3/2025HouseConcurred In S Com Sub
6/3/2025HousePlaced On Cal For 06/03/2025
6/2/2025HouseWithdrawn From Com
6/2/2025HouseRef To Com On Rules, Calendar, and Operations of the House
5/27/2025HouseRegular Message Received For Concurrence in S Com Sub
5/23/2025HouseRegular Message Sent To House
5/23/2025SenatePassed 3rd Reading
5/22/2025SenatePassed 2nd Reading
5/22/2025SenateReptd Fav
5/21/2025SenateRe-ref Com On Rules and Operations of the Senate
5/20/2025SenateCom Substitute Adopted
5/20/2025SenateReptd Fav Com Substitute
5/20/2025SenateRe-ref to Pensions and Retirement and Aging. If fav, re-ref to Rules and Operations of the Senate
5/19/2025SenateWithdrawn From Com
5/19/2025SenateRef To Com On Rules and Operations of the Senate
4/30/2025SenatePassed 1st Reading
4/30/2025SenateRegular Message Received From House
4/30/2025SenateRegular Message Sent To Senate
4/30/2025HouseOrdered Engrossed
4/29/2025HousePassed 3rd Reading
4/29/2025House
Bill Text
Edition 1
Edition 2
Edition 3
Edition 4
Edition 5
Edition 6
Filed
Latest Edition
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