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GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 3
HOUSE BILL 272
Committee Substitute Favorable 3/26/25
Committee Substitute #2 Favorable 4/8/25
Short Title: The Sergeant Mickey Hutchens Act. (Public)
Sponsors:
Referred to:
March 5, 2025
*H272-v-3*
A BILL TO BE ENTITLED 1
AN ACT TO ALLOW LAW ENFORCEMENT, PROBATI ON/PAROLE, AND 2
CORRECTIONAL OFFICERS WHO HOLD AN ADVANC ED LAW ENFORCEMENT 3
OR CORRECTIONS CERTIFICATE ISSUED BY THE NORTH CAROLINA CRIMINAL 4
JUSTICE EDUCATION AN D TRAINING STANDARDS COMMISSION OR THE 5
ADVANCED LAW ENFORCE MENT CERTIFICATE ISS UED BY THE NORTH 6
CAROLINA SHERIFFS' EDUCATION AND TRAINING STANDARDS COMMISSION 7
TO PURCHASE, AT FULL COST, UP TO FOUR YE ARS' CREDITABLE SERVICE IN 8
THE TEACHERS' AND ST ATE EMPLOYEES' RETIR EMENT SYSTEM OR THE 9
LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM. 10
The General Assembly of North Carolina enacts: 11
SECTION 1.(a) G.S. 135-4.5 is amended by adding a new subsection to read: 12
"(h) Purchases of Service Credit for Advanced Law Enforcement or Advanced 13
Corrections Certificates. – Notwithstanding any other provision of this Article to the contrary, a 14
member in service with five or more years of membership service who has been awarded either 15
(i) the Advanced Law Enforcement Cer tificate issued by either the North Carolina Criminal 16
Justice Education and Training Standards Commission under the authority granted under Chapter 17
17C of the General Statutes or the North Carolina Sheriffs ' Education and Training Standards 18
Commission under the authority granted under Chapter 17E of the General Statutes or (ii) the 19
Advanced Corrections Certificate issued by the North Carolina Criminal Justice Education and 20
Training Standards Commission under the authority granted under Chapter 17C of the General 21
Statutes may purchase creditable service subject to all of the following: 22
(1) The member may purchase up to a total of four years of creditable service 23
under this subsection. 24
(2) Service may only be purchased under this subsection upon or after receipt of 25
the applicable certificate. 26
(3) G.S. 135-4(b) does not apply to purchases under this subsection. 27
(4) Purchases of service under this subsection shall be made by paying a lump 28
sum amount to the Annuity Savings Fund. Purchases shall not be associated 29
with any specific compensation or period of time. The amount payable shall 30
be equal to the full liability increase of the Retirement System due to the 31
additional service credits purchased plus an administrative fee that is set by 32
the Board of Trustees. The full liability increase shall be calculated on the 33
basis of the same assumptions used for the purposes of the actuarial valuation 34
of the liabilities o f the Retirement System, except for the following 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 272-Third Edition
assumptions specific to this calculation: (i) the allowance shall be assumed to 1
commence at the earliest age at which the member could retire on an 2
unreduced retirement allowance and (ii) there shall be ass umed annual 3
postretirement allowance increases set by the Board of Trustees upon the 4
advice of the consulting actuary, and there shall be assumed an anti-selection 5
risk and a commensurate surcharge. 6
(5) An employer may pay all or part of the cost of a purchase of service under this 7
subsection. To the extent that the purchase is paid by the employer, the amount 8
paid by the employer shall be credited to the Pension Accumulation Fund. To 9
the extent that the purchase is paid by the member, the amount paid by th e 10
member shall be credited to the member 's accumulated contributions and 11
interest in the Annuity Savings Fund." 12
SECTION 1.(b) G.S. 135-4(b) reads as rewritten: 13
"(b) In Unless specifically provided under G.S. 135-4.5, in no case shall more than one 14
year of service be creditable for all services in one year. Service rendered for the regular school 15
year in any district shall be equivalent to one year's service. Service rendered by a school 16
employee in a job-sharing position shall be credited at the rate of on e-half year for each regular 17
school year of employment." 18
SECTION 2.(a) G.S. 128-26.5 is amended by adding a new subsection to read: 19
"(h) Purchases of Service Credit for Advance d Law Enforcement Certificate. – 20
Notwithstanding any other provision of this Article to the contrary, a member in service with five 21
or more years of membership service who has been awarded the Advanced Law Enforcement 22
Certificate issued by either the North Carolina Criminal Justice Education and Training 23
Standards Commission under the authority granted under Chapter 17C of the General Statutes or 24
the North Carolina Sheriffs' Education and Training Standards Commission under the authority 25
granted under Chapter 17E of the General Statutes may purchase creditable service subject to all 26
of the following: 27
(1) The member may purchase up to a total of four years of creditable service 28
under this subsection. 29
(2) Service may only be purchased under this subsection upon or after receipt of 30
the applicable certificate. 31
(3) G.S. 128-26(b) does not apply to purchases under this subsection. 32
(4) Purchases of service under this subsection shall be made by paying a lump 33
sum amount to the Annuity Savings Fund. Purchases shall not be associated 34
with any specific compensation or period of time. The amount p ayable shall 35
be equal to the full liability increase of the Retirement System due to the 36
additional service credits purchased plus an administrative fee that is set by 37
the Board of Trustees. The full liability increase shall be calculated on the 38
basis of the same assumptions used for the purposes of the actuarial valuation 39
of the liabilities of the Retirement System, except for the following 40
assumptions specific to this calculation: (i) the allowance shall be assumed to 41
commence at the earliest age at which the member could retire on an 42
unreduced retirement allowance and (ii) there shall be assumed annual 43
postretirement allowance increases set by the Board of Trustees upon the 44
advice of the consulting actuary, and there shall be assumed an anti-selection 45
risk and a commensurate surcharge. 46
(5) An employer may pay all or part of the cost of a purchase of service under this 47
subsection. To the extent that the purchase is paid by the employer, the amount 48
paid by the employer shall be credited to the Pension Accumulation Fund. To 49
the extent that the purchase is paid by the member, the amount paid by the 50
General Assembly Of North Carolina Session 2025
House Bill 272-Third Edition Page 3
member shall be credited to the member 's accumulated contributions and 1
interest in the Annuity Savings Fund." 2
SECTION 2.(b) G.S. 128-26(b) reads as rewritten: 3
"(b) In Unless specifically provided under G.S. 128-26.5, in no case shall more than one 4
year of service be creditable for all service in one calendar year." 5
SECTION 3.(a) The State Treasurer shall seek a favorable private letter ruling from 6
the Internal Reven ue Service to determine that this act does not jeopardize the status of the 7
Teachers' and State Employees' Retirement System by January 1 of the following calendar year 8
or within 120 days from this act becoming law, whichever is later. 9
SECTION 3.(b) If the State Treasurer has met the obligation under Section 3(a) of 10
this act, and the Internal Revenue Service declines to make a private letter ruling or does not 11
issue a response by 15 days prior to the effective date of this act, then this act is repealed. T he 12
State Treasurer shall notify the Revisor of Statutes that the Internal Revenue Service declines to 13
make a private letter ruling or did not issue a response. Within three business days of notifying 14
the Revisor of Statutes, the State Treasurer shall notify all employers of the repeal of this act and 15
shall publicly notice the receipt of this information on the Department of State Treasurer's 16
website. 17
SECTION 3.(c) If the Internal Revenue Service fails to make a favorable 18
determination that this act does not jeopardize the status of the Teachers' and State Employees' 19
Retirement System of North Carolina under the Internal Revenue Code, then this act is repealed 20
on the last day of the month following the month of receipt of that determination by the State 21
Treasurer. Upon receipt of that determination, the State Treasurer shall notify the Revisor of 22
Statutes of the determination and the date of receipt. Within three business days of not receiving 23
a determination that is favorable, the State Treasurer shall notify all employers of the repeal of 24
this act and shall publicly notice the receipt of this information on the Department of State 25
Treasurer's website. 26
SECTION 3.(d) Notwithstanding any other provision of law to the contrary, in order 27
to pay costs associated with the administration of the provisions of this act, the Retirement 28
Systems Division of the Department of State Treasurer may increase receipts from the retirement 29
assets of the Teachers' and State Employees' Retirement System or pay costs associated with the 30
administration directly from the retirement assets. 31
SECTION 4.(a) The State Treasurer shall seek a favorable private letter ruling from 32
the Internal Revenue Service to determine that this act does not jeopardize the status of the Local 33
Governmental Employees' Retirement System by January 1 of the following calendar yea r or 34
within 120 days from this act becoming law, whichever is later. 35
SECTION 4.(b) If the State Treasurer has met the obligation under Section 4(a) of 36
this act, and the Internal Revenue Service declines to make a private letter ruling or does not 37
issue a response by 15 days prior to the effective date of this act, then this act is repealed. The 38
State Treasurer shall notify the Revisor of Statutes that the Internal Revenue Service declines to 39
make a private letter ruling or did not issue a response. Within three business days of notifying 40
the Revisor of Statutes, the State Treasurer shall notify all employers of the repeal of this act and 41
shall publicly notice the receipt of this information on the Department of State Treasurer's 42
website. 43
SECTION 4.(c) If t he Internal Revenue Service fails to make a favorable 44
determination that this act does not jeopardize the status of the Local Governmental Employees' 45
Retirement System of North Carolina under the Internal Revenue Code, then this act is repealed 46
on the last day of the month following the month of receipt of that determination by the State 47
Treasurer. Upon receipt of that determination, the State Treasurer shall notify the Revisor of 48
Statutes of the determination and the date of receipt. Within three business days of not receiving 49
a determination that is favorable, the State Treasurer shall notify all employers of the repeal of 50
General Assembly Of North Carolina Session 2025
Page 4 House Bill 272-Third Edition
this act and shall publicly notice the receipt of this information on the Department of State 1
Treasurer's website. 2
SECTION 4.(d) Notwithstanding any other provision of law to the contrary, in order 3
to pay costs associated with the administration of the provisions of this act, the Retirement 4
Systems Division of the Department of State Treasurer may increase receipts from the retirement 5
assets of the Local Governmental Employees' Retirement System or pay costs associated with 6
the administration directly from the retirement assets. 7
SECTION 5. Sections 1 and 2 of this act become effective January 1, 2027. The 8
remainder of this act is effective when it becomes law. 9