Increasing Costs of Teacher Benefits in North Carolina
Published 2025 | BEST NC
In North Carolina, teachers are eligible for a comprehensive benefits package including healthcare and a defined-benefit retirement plan, also called a pension plan. Nationwide and in North Carolina, teacher retirement and healthcare benefits costs have risen sharply over the past two decades and require increasing levels of investment in order to maintain benefit levels and to fully fund pension obligations.
|
In 2023–24, these benefits cost the state an average of $19,073 per teacher for retirement and $7,557 per teacher for healthcare. Teachers are also required to contribute 6% of their annual salary to the state retirement system. Together, the benefits package reflects a 45% cost increase per teacher for every dollar invested in salaries. In other words, for every $1 billion investment in teacher salaries, the actual cost to the state is another $450 million spent on benefits. |
For every $1 spent on teacher salaries, the state spends an additional 45 cents on benefits. |
Between 2013–14 and 2023–24, state expenditures on teacher benefits increased by 88% while state expenditures on teacher salaries have grown by just 33%.
Figure 1: State Expenditure on Instructional Personnel, by Type (2013–14 to 2023–24)
Note: Estimated Matching Benefits includes funds for Social Security, Retirement, and Hospitalization for position allotments for Classroom Teachers, Instructional Support, and School Building Administration.
Current Appropriations Act of 2023; NEA Rankings and Estimates Report 2024
About This Series
This post is part of BEST NC’s 2025 Facts & Figures: Education in North Carolina Spotlight On: series. View the full report at NCEdFacts.org or visit BESTNC.org.