AN ACT providing a cost‑of‑living adjustment for retirees of the teachers' and state employees' retirement system, the consolidated judicial retirement system, and the legislative retirement system; and appropriating funds for that purpose.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 135‑5 is amended by adding a new subsection to read:

(zzz)   From and after July 1, 2022, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2021, shall be increased by two and one‑half percent (2.5%) of the allowance payable on June 1, 2022, in accordance with subsection (o) of this section. Furthermore, from and after July 1, 2022, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 2021, but before June 30, 2022, shall be increased by a prorated amount of two and one‑half percent (2.5%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2021, and June 30, 2022.

SECTION 2.  G.S. 135‑65 is amended by adding a new subsection to read:

(kk)    From and after July 1, 2022, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before July 1, 2021, shall be increased by two and one‑half percent (2.5%) of the allowance payable on June 1, 2022. Furthermore, from and after July 1, 2022, the retirement allowance to or on account of beneficiaries whose retirement commenced after July 1, 2021, but before June 30, 2022, shall be increased by a prorated amount of two and one‑half percent (2.5%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between July 1, 2021, and June 30, 2022.

SECTION 3.  G.S. 120‑4.22A is amended by adding a new subsection to read:

(ee)     In accordance with subsection (a) of this section, from and after July 1, 2022, the retirement allowance to or on account of beneficiaries whose retirement commenced on or before January 1, 2022, shall be increased by two and one‑half percent (2.5%) of the allowance payable on June 1, 2022. Furthermore, from and after July 1, 2022, the retirement allowance to or on account of beneficiaries whose retirement commenced after January 1, 2022, but before June 30, 2022, shall be increased by a prorated amount of two and one‑half percent (2.5%) of the allowance payable as determined by the Board of Trustees based upon the number of months that a retirement allowance was paid between January 1, 2022, and June 30, 2022.

SECTION 4.  There is appropriated from the General Fund to the Reserve for Retiree Cost‑of‑Living Adjustments the sum of one hundred twenty‑seven million dollars ($127,000,000) for the 2022‑2023 fiscal year to implement the cost‑of‑living adjustments authorized by this act.

SECTION 5.  This act becomes effective July 1, 2022.