Hanig introduces bill proposing updates to retirement, health and investment statutes in North Carolina

State Sen. Bobby Hanig has submitted a bill seeking revisions to North Carolina’s laws on retirement benefits, the State Health Plan and investment management, according to the North Carolina State Senate.

Filed as SB 936 on April 29 during the 2025 regular session, the proposal carries the short title: ‘2026 DST Admin/Technical/Clarifying Changes.-AB’

The following overview is based on the current bill text, with some interpretation to explain its features.

This measure enacts wide-ranging revisions to statutes overseeing the Department of State Treasurer, retirement systems, the State Health Plan and state investment management. Its key provisions restore military service credits lost and later bought back by members; exempt fully contributory retiree death benefits from reductions linked to any previous overpayments; update provisions on pension spiking; and modify limits for reemployment, disability, survivor and deferred-retirement rules. It introduces electronic reporting for firefighters’ pension plans, clarifies loss of supplemental law enforcement benefits for felony convictions, enhances salary and legal counsel options at the Treasurer’s office, standardizes per diem for trustees, revises how LEIA funds may be used, and amends maternity and Medicare coordination regulations for the State Health Plan. The legislation also assigns new custodial, sanctions-compliance, and other investment-related duties to the North Carolina Investment Authority; bars including NCIA performance bonuses within pensionable pay; and ends obsolete or redundant benefit statutes. Major elements, including central retirement rule changes, take effect January 1, 2027, while other components are effective either immediately upon enactment or on specified dates in the statute.

Hanig is one of three sponsors behind the bill and has filed the highest number of bills—58—during the 2025 regular session.

North Carolina bills must go through a procedural sequence before becoming law: After a lawmaker files a bill, it is sent to a committee for evaluation. The legislation then requires three readings in both chambers. Any amendments by one chamber after the other’s approval mean both houses must agree on the final contents. Upon identical passage, the bill proceeds to the governor, who has 10 days to take action (or 30 days when the legislature is not in session) to approve, veto, or let the legislation become law without signature.

Updates and further information on measures filed can be found here.

Hanig, a Republican, began representing North Carolina’s 1st Senate district in 2025, following the term of former Sen. Norman Sanderson.