NC H985

Extends short-term disability benefits beyond 365 days up to an additional 365 days and treats extended benefits the same as long-term disability for tax purposes under G.S. 135-108.

Changes disability retirement income reporting timelines from 60 days to 120 days for initial response and from 240 days to 180 days before benefit termination for non-compliance.

Excludes armed service credit from the anti-pension-spiking contribution-based benefit cap calculation for both Teachers' and State Employees' Retirement System and Local Government Employees' Retirement System members.

Changes Consumer Price Index adjustment calculations from December to June for the $100,000 average final compensation threshold affecting the contribution-based benefit cap.

Clarifies that retired members can serve on unpaid boards, commissions, and committees without violating the six-month post-retirement employment restriction and removes requirement for Board of Trustees to report annually on special retirement allowance elections.

Removes annual reporting requirement for special retirement allowance elections to the Joint Legislative Commission on Governmental Operations for both retirement systems.