Labor & Employment

This bill proposes administrative and technical updates to North Carolina laws governing state retirement systems, primarily affecting teachers, state employees, and local government workers. It reinstates previously forfeited military service credits for eligible retirees who purchase that service back after January 1, 2027, ensuring their military time counts toward their pension calculations. Additionally, the legislation clarifies that fully contributory death benefits cannot be reduced to cover overpayments or errors in other retirement benefits. The bill also introduces a contribution-based benefit cap to limit pension payments for certain members and modifies rules regarding the offset of erroneous payments against retirement allowances.

HB 389 establishes a two-year pilot program to create free child care workforce academies across North Carolina, directly affecting individuals seeking careers in child care with no prior experience. The program provides free training, credentialing support (including health screenings and background checks), and stipends ($150 upon completion, $500 after one year of employment) to help participants become lead teachers in licensed child care centers. It allocates $738,000 annually from the General Fund for 2025-2027 to cover tuition and stipends, requiring local partnerships to contribute 25% match. The pilot will launch in Johnston and Wayne counties plus 10 additional regions, with progress reports due by 2026 to evaluate expansion potential. (Note: The bill title "Continuing Budget Operations Part III" appears inconsistent with the actual content; the text focuses on child care workforce training.)