LEOs Return to Work.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 753

Short Title: LEOs Return to Work. (Public)
Sponsors: Representatives Carson Smith, Pyrtle, Greene, and Miller (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Pensions and Retirement, if favorable, Appropriations, if favorable, Rules,
Calendar, and Operations of the House
April 7, 2025
*H753-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ALLOW FOR THE CONTINUATION OF RETIREMENT BENEFITS FOR 2
CERTAIN LAW ENFORCEMENT OFFICERS. 3
The General Assembly of North Carolina enacts: 4
5
PART I. ALLOW FOR TH E CONTINUATION OF RE TIREMENT BENEFITS FO R 6
CERTAIN LAW ENFORCEMENT OFFICERS 7
8
IN SERVICE RETIREMEN T ALLOWANCE DISTRIBU TIONS FOR CERTAIN LA W 9
ENFORCEMENT OFFICERS 10
SECTION 1.1.(a) Article 1 of Chapter 135 of the General Statutes is amended by 11
adding a new section to read: 12
"§ 135-5.8. In service distributions; certain State law enforcement officers. 13
(a) Notwithstanding any provisions of this Article to contrary, both of the following shall 14
apply to a member who is an employed or retired law enforcement officer: 15
(1) If the member is in service as a law enforcement officer who has reached 59.5 16
years of age, the member may elect to receive any retirement allowance for 17
which the member is otherwise eligible if the member has not separated from 18
service as a law enforcement offi cer with the employer under which the 19
member will begin receiving the retirement allowance. 20
(2) If the member is a retired law enforcement officer, after a bona fide separation 21
from service of not less than six months, the member may return to service as 22
a law enforcement officer and continue to receive that retirement allowance. 23
(b) If a member in service elects to begin receiving a retirement allowance under 24
subdivision (a)(1) of this section, then the member is required, at the time of the election to begin 25
receiving the allowance, to make any elections and creditable service purchases that a member 26
would be required to make at, or prior to, retirement. This includes the election to begin making 27
contributions to the retiree death benefit under G.S. 135-5 and the election to transfer Supplement 28
Retirement Income Plan benefits under G.S. 143-166.30(d). 29
(c) A member receiving a retirement allowance in accordance with this section shall not 30
accrue any additional membership service for any employm ent while th e member is receiving 31
the retirement allowance. 32
(d) Notwithstanding any requirement in this Article that a member mak e employee 33
contributions, once a member elects to begin receiving a retirement allowance under subdivision 34
General Assembly Of North Carolina Session 2025
Page 2 House Bill 753-First Edition
(a)(1) of this section or return to service under subdivision (a)(2) of this section, and while 1
receiving a retirement allowance, the member will stop making, or for a return to service will not 2
begin to make, employee contributions to th e Retirement System and the employer will be 3
required to make payments to the Retirement System in an amount equal to (i) the employer 4
contributions required under this Chapter and (ii) the employee contributions the member would 5
have otherwise been required under this Article to make to the Annuity Savings Fund. The gross 6
salary or wage paid to a member who is receiving a retirement allowance under this section shall 7
be reduced as if the member was making the employee contribution otherwise required under 8
this Article. 9
(e) A member receiving a retirement allowance under this section is not eligible to 10
participate in the Disability Income Plan of North Carolina under Article 6 of Chapter 135 of the 11
General Statutes . If the member becomes mentally or physically incapacitated a nd unable to 12
further perform duties of the member's employment while receiving a retirement allowance under 13
this section, then that member will continue to receive the retirement allowance that they ha d 14
elected to receive under this section. 15
(f) A member receiving a retirement allowance under this section is not eligible for State 16
contributions to the Supplemental Retirement Income Plan under G.S. 143-166.30(e). All State 17
contributions to the member 's Supplemental Retirement Income Plan shall cease upon the 18
member's election to receive a retirement allowance under this section. 19
(g) A member receiving a retirement allowance under this section is eligible for benefits 20
under Article 12A of Chapter 143 of the General Statutes provided that the member meets the 21
conditions for eligibility required under the Public Safety Employees' Death Benefits Act. 22
(h) If a member receiving a retirement allowance under this section dies without having 23
otherwise separated from service from the employer, then the member will be treated as retired 24
for the purpose of a d eath benefit under G.S. 135-5 and the member 's designated beneficiaries 25
will receive the benefit as though the member had been retired at the time of death. 26
(i) If a member receiving a retirement allowance under this section separates from 27
service with the employer for reasons other than death, then that member will be treated as retired 28
under the Retirement System for all purposes on the date of separation. If the member returns to 29
work with an employer after this separation from service, then the member shall do so under the 30
provisions of subdivision (a)(2) of this section or all provisions of G.S. 135-3 shall apply. 31
(j) Any changes to the retirement allowances of beneficiaries under this Article shall 32
apply with equal force and effect to retirement allowances of members under this section, unless 33
otherwise specified by law. 34
(k) An election to receive a retirement allowance under subdivision (a)(1) of this section 35
may be revoked by the member only if the member has not yet separated from service from the 36
employer under which the member had begun receiving the retirement allowance. Upon 37
revocation, all of the following shall apply: 38
(1) G.S. 135-3(a)(8)d. 39
(2) The employer is no longer responsible for making contributions in the amount 40
required under subsection (d) of this section . The employer remains 41
responsible for making the employer contributions required under this Article. 42
(3) The member is entitled to make any elections a beneficiary would be entitled 43
to make when being restored to service as an employee. 44
(4) Any special separation allowance paid to the member under G.S. 143-166.41 45
shall cease." 46
SECTION 1.1.(b) G.S. 128-21 reads as rewritten: 47
"§ 128-21. Definitions. 48
The following words and phrases as used in this Article, unless Unless a different meaning is 49
plainly required by the context, shall have the following meanings:all of the following definitions 50
apply in this Article: 51
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House Bill 753-First Edition Page 3
… 1
(11d) "Justice Officer" is as defined under G.S. 17E-2. 2
(11e) "Law Enforcement Officer" means a full-time paid employee of an employer, 3
who possesses the power of arrest, who has taken the law enforcement oath 4
administered under the authority of the State as prescribed by G.S. 11-11, and 5
who is certified as a law enforcement officer under the provisions of Article 1 6
of Chapter 17C of the General Statutes or certified as a deputy sheriff under 7
the provisions of Chapter 17E of the General Statutes. "Law enfo rcement 8
officer" also means the sheriff of the county. The number of paid personnel 9
employed as law enforcement officers by a law enforcement agency may not 10
exceed the number of law enforcement positions approved by the applicable 11
local governing board. 12
…." 13
SECTION 1.1.(c) Article 3 of Chapter 128 of the General Statutes is amended by 14
adding a new section to read: 15
"§ 128-27.1. In service distributions; certain local law enforcement and justice officers. 16
(a) Notwithstanding any provisions of this Article to contrary, both of the following shall 17
apply to a member who is either an employed or retired law enforcement or justice officer: 18
(1) If the member is in service as a law enforcement or justice officer who has 19
reached 59.5 years of age , the member may elect to receive any retirement 20
allowance for which the member is otherwise eligible if the member has not 21
separated from service as a law enforcement or justice officer with the 22
employer under which the member will begin receiving the ret irement 23
allowance. 24
(2) If the member is a retired law enforcement or justice officer, after a bona fide 25
separation from service of not less than one month, the member may return to 26
service as a law enforcement or justice officer and continue to receive tha t 27
retirement allowance. 28
(b) If a member in service elects to begin receiving a retirement allowance under 29
subdivision (a)(1) of this section, then the member is required, at the time of the election to begin 30
receiving the allowance, to make any elections and creditable service purchases that a member 31
would be required to make at, or prior to, retirement. This includes the election to begin making 32
contributions to the death benefit for retired members under G.S. 128-27 and the election to 33
transfer Supplement Retirement Income Plan benefits under G.S. 143-166.50(e). 34
(c) A member receiving a retirement allowance in accordance with this section shall not 35
accrue any additional membership service for any employment while the member is receiving 36
the retirement allowance. 37
(d) Notwithstanding any requirement in this Article requiring a member to make 38
employee contributions, once a member elects to begin receiving a retirement allowance under 39
subdivision (a)(1) of this section or return to service under subdivision (a)(2) of this section, and 40
while receiving a retirement allowance, the member will stop making, or for a return to service 41
will not begin to make, employee contributions to the Retirement System and the employer will 42
be required to make payments to the Retirement System in an amount equal to the total of (i) the 43
employer contributions required under this Article and (ii) the employee contributions the 44
member would have otherwise been required under this Article to make to the Annuity Savings 45
Fund. The gross salary or wage paid to a member who is receiving a retirement allowance under 46
this section shall be reduced as if the member was making the employee contribution otherwise 47
required under this Article. 48
(e) A member receiving a retirement allowance under this section is not eligible for 49
disability benefits under G.S. 128-27. If the member becomes mentally or physically 50
incapacitated and unable to further perform duties of the member's employment while receiving 51
General Assembly Of North Carolina Session 2025
Page 4 House Bill 753-First Edition
a retirement allowance under this section, then that member will continue to receive the 1
retirement allowance that they had elected to receive under this section. 2
(f) A member receiving a retirement allowance under this section is not eligible for 3
employer contributions to the Supplemental Retirement Income Plan under G.S. 143-166.50(e). 4
All employer contributions to the member 's Supplemental Retirement Income Plan shall cease 5
upon the member's election to receive a retirement allowance under this section. 6
(g) A member receiving a retirement allowance under this section is eligible for benefits 7
under Article 12A of Chapter 143 of the General Statutes provided that the member meets the 8
conditions for eligibility required under the Public Safety Employees' Death Benefits Act. 9
(h) If a member receiving a retirement allowance under this section dies without having 10
otherwise separated from service from the employer, the n the member will be treated as retired 11
for the purpose of a death benefit under this Retirement System and the member 's designated 12
beneficiaries will receive the death benefit under G.S. 128-27 as though the member had been 13
retired at the time of death. 14
(i) If a member receiving a retirement allowance under this section separates from 15
service with the employer under which the member had begun receiving the retirement allowance 16
for reasons other than death, then that member will be treated as retired under the Retirement 17
System for all purposes on the date of separation. If the member returns to work with an employer 18
after this separation from service, then the member shall do so under the provisions of subdivision 19
(a)(2) of this section or all provisions of G.S. 128-24 shall apply. 20
(j) Any changes to the retirement allowances of beneficiaries under this Article shall 21
apply with equal force and effect to retirement allowances of members under this section, unless 22
otherwise specified by law. 23
(k) An election to receive a retirement allowance under subdivision (a)(1) of this section 24
may be revoked by the member only if the member has not yet separated from service from the 25
employer under which the member had begun receiving the retirement allowance. Upon 26
revocation, all of the following shall apply: 27
(1) G.S. 128-24(5)d. 28
(2) The employer is no longer responsible for making contributions in the amount 29
required under subsection (d) of this section. The employer remains 30
responsible for making the employer contributions required under this Article. 31
(3) The member is entitled to make any elections a beneficiary would be entitled 32
to make when being restored to service as an employee. 33
(4) Any special separation allowance paid to the member under G.S. 143-166.42 34
shall cease." 35
SECTION 1.2.(a) G.S. 135-3 reads as rewritten: 36
"§ 135-3. Membership. 37
(a) The membership of this Retirement System shall be is composed as follows: 38
… 39
(b) Notwithstanding the provisions of sub -subdivsions c. and d. any provision of 40
subdivision (8) (a)(8) of this section to the contrary, a beneficiary who was a beneficiary retired 41
on an early or service retirement with the Law Enforcement Officers' Retirement System at the 42
time of the transfer of law enforcement officers employed by the State and beneficiaries last 43
employed by the State to this Retirement System on January 1, 1985, and who also was a 44
contributing member of this Retirement System on January 1, 1985, shall continue to be paid his 45
or her retirement allowance without restriction and may continue as a member of this Retirement 46
System with all the rights and privileges appendant to membership. 47
(b1) Notwithstanding any provision of subdivision (a)(8) of this section to the contrary, a 48
beneficiary who retired on an early or service retirement as a law enforcement officer may, upon 49
a return to service, continue to be paid the retirement allowance without restriction if the 50
beneficiary is eligible for distributions while in service under G.S. 135-5.8(a)(2). 51
General Assembly Of North Carolina Session 2025
House Bill 753-First Edition Page 5
… 1
(f) In order to satisfy the Internal Revenue Service requirements tha t a retirement is a 2
bona fide separation from service and to the protect the actuarial integrity of th e Retirement 3
System, a bona fide separation is deemed to occur when a member has severed the employment 4
relationship with the employer and the Board of Trustees has received all applicable termination 5
notifications. In order to maintain this presumption of a bona fide separation, no later than 60 6
days from the date a beneficiary is reemployed with an employer, the employer and the 7
beneficiary shall file original sworn affidavits with the Board of Trustees attesting to the 8
following, as applicable: 9
(1) Prior to the beneficiary's retirement, the employer and the beneficiary did not 10
have an explicit understanding that the beneficiary would be subsequently 11
employed by the employer. 12
(2) The employer and the beneficiary did not reasonably anti cipate that, 13
subsequent to the beneficiary's retirement, the beneficiary would perform for 14
that employer more than twenty percent (20%) of the average level of bona 15
fide services performed by the beneficiary for that employer during the 16
36-month period immediately preceding the beneficiary's retirement." 17
SECTION 1.2.(b) G.S. 128-24 reads as rewritten: 18
"§ 128-24. Membership. 19
(a) The membership of this Retirement System shall be is composed as follows: 20
… 21
(5a)(b) Notwithstanding the any provisions of paragraphs c and d of the subdivision (5) (a)(5) 22
of this section to the contrary, a beneficiary who was a beneficiary retired on an early or service 23
retirement with the Law Enforcement Officers' Retirement System at the time of the transfer of 24
law enforcement officers employed by a participating employer and beneficiaries last employed 25
by a participating employer to this Retirement System on January 1, 1986, and who also was a 26
contributing member of this Retirement System on January 1, 1986, shall continue to be paid his 27
the retirement allowance without restriction and m ay continue as a member of this Retirement 28
System with all the rights and privileges appendant to membership. Any beneficiary who retired 29
on an early or service retirement allowance as an employee of any participating employer under 30
the Law Enforcement Officers' Retirement System and becomes employed as an employee by an 31
employer participating in the Retirement System after January 1, 1986, becomes subject to the 32
provisions of G.S. 128-24(5)c. and G.S. 128-24(5)d. on and after January 1, 1989. 33
(b1) Notwithstanding any provision of subdivision (a)(5) of this section to the contrary, a 34
beneficiary who retired on an early or service retirement as a law enforcement or justice officer 35
may, upon a return to service, continue to be paid the retirement allowance without restriction if 36
the beneficiary is eligible for distributions while in service under G.S. 128-27.1(a)(2). 37
(6)(c) Employees of a sending agency participating in an intergovernmental exchange of 38
personnel under the provisions of Article 10 of Chapter 126 shall remain members entitled to all 39
benefits of the System provided that the requirements of Article 10 of Chapter 126 are met; 40
provided further, that a met. A member may retain membership status while ser ving as an 41
assigned employee or employee on leave under the provisions of Article 10 of Chapter 126 for 42
purposes of receiving the death benefit regardless of whether he the member and his the employer 43
are contributing to his the member's account during the exchange period except that no duplicate 44
benefits shall be paid. 45
(d) In order to satisfy the Internal Revenue Service requirements that a retirement is a 46
bona fide separation from service and to the protect the actuarial integrity of the Retirement 47
System, a bona fide separation is deemed to occur when a member has severed the employment 48
relationship with the employer and the Board of Trustees has received all applicable termination 49
notifications. In order to maintain this presumption of a bona fide separa tion, no later than 60 50
days from the date a beneficiary is reemployed with an employer , the employer and the 51
General Assembly Of North Carolina Session 2025
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beneficiary shall file original sworn affidavits with the Board of Trustees attesting to the 1
following, as applicable: 2
(1) Prior to the beneficiary's retirement, the employer and the beneficiary did not 3
have an explicit understanding that the beneficiary would be subsequently 4
employed by the employer. 5
(2) The employer and the beneficiary did not reasonably anticipate that, 6
subsequent to the beneficiary's retirement, the beneficiary would perform for 7
that employer more than twenty percent (20%) of the average level of bona 8
fide services performed by the benefic iary for that employer during the 9
36-month period immediately preceding the beneficiary's retirement." 10
11
CONTINUATION OF SPECIAL SEPARATION ALLOWANCE 12
SECTION 2.1.(a) G.S. 143-166.41 reads as rewritten: 13
"§ 143-166.41. Special separation allowance.allowance for State law enforcement officers. 14
(a) Annual Special Separation Allowance. – Notwithstanding any other provision of law, 15
every sworn law -enforcement officer as defined by G.S. 135-1(11c) or G.S. 143-166.30(a)(4) 16
employed by a State department, agency, or institution who qualifies under this section shall 17
receive, receive an annual special separation allowance beginning in the month in which he 18
retires on a basic service retirement under the provisions of G.S. 135-5(a), an annual separation 19
allowance equal to eighty-five hundredths percent (0.85%) of the annual equivalent of the base 20
rate of compensation most recently applicable to him for each year of creditable service. The 21
allowance shall be paid in equal installments on the payroll frequency used by the employer. To 22
qualify for the allowance the officer shall:either of the following applies: 23
(1) Have (i) completed 30 or more years of creditable service or, (ii) have attained 24
55 years of age and completed five or more years of creditable service; andThe 25
officer retires on a basic service retirement under the provi sions of 26
G.S. 135-5(a). 27
(2) Not have attained 62 years of age; and The officer elects to begin receiving a 28
retirement allowance while still in service under G.S. 135-5.8(a)(1). 29
(3) Have completed at least five years of continuous service as a law enforcement 30
officer as herein defined immediately preceding a service retirement. Any 31
break in the continuous service required by this subsection because of 32
disability retirement or disability salary continuation benefits shall not 33
adversely affect an officer's qualification to receive the allowance, provided 34
the officer returns to service within 45 days after the disability benefits cease 35
and is otherwise qualified to receive the allowance. 36
… 37
(b) As used in this section, "creditable service" means the Definitions. – The following 38
definitions apply in this section: 39
(1) Allowance. – The annual special se paration allowance for State law 40
enforcement officers provided for under this section. 41
(2) Creditable service. – The service for which credit is allowed under the 42
retirement system of which the officer is a member, provided that at least fifty 43
percent (50%) of the service is as a law enforcement officer as herein defined 44
or as a probation/parole officer as defined in G.S. 135-1(17a).member. 45
(3) Law enforcement officer. – As defined in either G.S. 135-1 or 46
G.S. 143-166.30(a). 47
(4) Officer. – A law enforcement officer. 48
(b1) Eligibility for Allowance. – To be eligible for a n allowance under this section , an 49
officer is required to meet all of the following criteria: 50
General Assembly Of North Carolina Session 2025
House Bill 753-First Edition Page 7
(1) The officer (i) has completed 30 or more years of creditable service or (ii) is 1
55 years of age or older and completed five or more years of creditable service. 2
(2) The officer is less than 62 years of age. 3
(3) The officer has completed at least five years of continuous service as a law 4
enforcement officer immediately preceding the officer 's service retirement. 5
Any break in this required continuous service that is a result of disability 6
retirement or disability salary continuation benefits shall not adversely affect 7
an officer 's qualification to receive an allowance under this subdivision so 8
long as the officer returned to service within 45 days after the disabil ity 9
benefits had ceased and is otherwise qualified to receive the allowance. 10
(4) At least fifty percent (50%) of the officer 's creditable service is as a law 11
enforcement officer, or for service prior to July 1, 2017, as a probation/parole 12
officer. 13
(b2) Allowance Amount . – The amount of the allowance under this section sh all be 14
calculated as follows: 15
(1) For retired officers , the amount of the allowance is equal to eighty -five 16
hundredths percent (0.85%) of the annual equivalent of the base rate of 17
compensation most recently applicable to the officer for each year of 18
creditable service. 19
(2) For officers in service who have elected to receive a retirement allowance as 20
provided for under G.S. 135-5.8(a)(1), the amount of the allowance is equal 21
to eighty-five hundredths percent (0.85%) of the annual equivalent of the base 22
rate of compensation and years of creditable service applicable to the officer 23
at the time the officer makes the election to receive the allowa nce under 24
G.S. 135-5.8. 25
(c) Cessation of Payment. – Payment of the allowance to a retired officer under the 26
provisions of this section shall cease at the first of:occurrence of one of the following: 27
(1) The death of the officer;officer. 28
(2) The last day of the month in which the officer attains 62 years of age; orage. 29
(3) The first day of reemployment by any State department, agency, or institution, 30
except that this subdivision does not apply to an officer returning to State 31
employment in any of the following circumstances: 32
a. The retired officer is reemployed in a public safety position that 33
requires all of the following of the occupant: 34
1. The occupant possesses the power of arrest. 35
2. The occupant has taken the law enforcement oath administered 36
under the authority of the State as prescribed by G.S. 11-11. 37
3. The occupant is certified as a law enforcement officer under 38
the provisions of Article 1 of Chapter 17C of the General 39
Statutes or as deputy sheriff under the provisions of Chapter 40
17E of the General Statutes and exercises the authority of a law 41
enforcement officer or deputy sheriff. 42
b. The retired officer is reemployed in a position exempt from the North 43
Carolina Human Resources Act in an agency other than the agency 44
from which that officer retired. 45
c. The retired officer has elected to receive distributions while in service 46
under G.S. 135-5.8(a)(2) upon the reemployment. 47
(4) If an officer in service has elected to receiv e a retirement allowance under 48
G.S. 135-5.8(a)(1), the revocation of that election . If an officer later retires 49
after a revocation of that election and if the officer otherwise qualifies for the 50
allowance under this section, then the officer shall be paid the separation 51
General Assembly Of North Carolina Session 2025
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allowance under this section as though the officer had not previously received 1
the allowance. 2
(d) Impact of Other Benefits or Actions. – This section does not affect the benefits to 3
which an individual may be entitled from State, federal, or private retirement systems. The 4
benefits payable under this section shall not be subject to any increases in salary or retirement 5
allowances that may be authorized by the General Assembly for employees of the State or retired 6
employees of the State. 7
(e) Eligibility Determinations. – The head of each State department, agency, or institution 8
shall determine the eligibility of employees for the benefits provided herein.under this section. 9
(f) Transfer of Funds. – The Director of the Budget may authorize from time to time the 10
transfer of funds within the budgets of each State department, agency, or institution necessary to 11
carry out the purposes of this Article. section. These funds shall be taken from those funds 12
appropriated to the department, agency, or institution for salaries and related fringe benefits. 13
(g) Responsibility for Payment. – The head of each State department, agency, or 14
institution shall make the payments set forth in subsection ( a) this section to those persons 15
certified under subsection (e) of this section from funds available under subsection (f).(f) of this 16
section. The allowance shall be paid in equal installments on the payroll frequency used by the 17
employer from which the officer retired." 18
SECTION 2.1.(b) G.S. 143-166.42 reads as rewritten: 19
"§ 143-166.42. Special separation allowances for local law enforcement officers. 20
(a) Annual Special Separation Allowance. – On and after January 1, 1987, every sworn 21
law enforcement officer as defined by G.S. 128-21(11d) or G.S. 143-166.50(a)(3) employed by 22
a local government employer who qualifies under this section shall receive, receive an annual 23
special separation allowance beginning in the month in which the either of the following applies: 24
(1) The officer retires on a basic service retirement under the provisions of 25
G.S. 128-27(a), an annual separation allowance equal to eighty -five 26
hundredths percent (0.85%) of the annual equivalent of the base rate of 27
compensation most recently applicable to the o fficer for each year of 28
creditable service. The allowance shall be paid in equal installments on the 29
payroll frequency used by the employer. G.S. 128-27(a). 30
(2) The officer elects to begin receiving a retirement allowance while still in 31
service under G.S. 128-27.1(a)(1). 32
(a1) Eligibility for Allowance. – To qualify for the allowance, the officer shall:shall meet 33
all of the following criteria: 34
(1) Have The officer has (i) completed 30 or more years of creditable service or 35
(ii) have attained is 55 years of age or older and has completed five or more 36
years of creditable service; andservice. 37
(2) Not have attained The officer is less than 62 years of age; andage. 38
(3) Have The officer has completed at least five years of continuous service as a 39
law enforcement officer as herein defined immediately preceding a service 40
retirement. Any break in the this required continuous service required by this 41
subsection because that is a result of disability retirement or disability salary 42
continuation benefits shal l not adversely affect an officer's qualification to 43
receive the allowance, provided the officer returns to service within 45 days 44
after the disability benefits cease and is otherwise qualified to receive the 45
allowance. 46
(4) At least fifty percent (50%) of the officer 's creditable service is as a law 47
enforcement officer. 48
(b) As used in this section, "creditable service" means the service Definitions. – The 49
following definitions apply in this section: 50
General Assembly Of North Carolina Session 2025
House Bill 753-First Edition Page 9
(1) Allowance. – The annual special separation allowance for local law 1
enforcement officers provided for under this section. 2
(2) Creditable service. – The service for which credit is allowed under the 3
retirement system of which the officer is a member, provided that at least fifty 4
percent (50%) of the service i s as a law enforcement officer as herein 5
defined.member. 6
(3) Law enforcement officer. – As defined in G.S. 128-21 or G.S. 143-166.50(a). 7
(4) Officer. – Law enforcement officer. 8
(b1) Calculation of Allowance Amount. – The amount of the allowance under this section 9
shall be calculated as follows: 10
(1) For retired officers , the amount of the allowance is equal to eighty -five 11
hundredths percent (0.85%) of the annual equivalent of the base rate of 12
compensation most recently applicable to the officer for each year of 13
creditable service. 14
(2) For officers in service who have elected to receive a retirement allowance as 15
provided for under G.S. 128-27.1(a)(1), the amount of the allowance is equal 16
to eighty-five hundredths percent (0.85%) of the annual equivalent of the base 17
rate of compensation and years of creditable service applicable to the officer 18
at the time the officer makes the election to receive the allowance under 19
G.S. 128-27.1. 20
(c) Cessation of Pa yment. – Payment of the allowance to a retired officer under the 21
provisions of this section shall cease at the first of:occurrence of any of the following: 22
(1) The death of the officer;officer. 23
(2) The last day of the month in which the officer attains 62 years of age; orage. 24
(3) The first day of reemployment by a local government employer in any 25
capacity.employer, except that this subdivision does not apply to a retired 26
officer returning to local government employment in any of the following 27
circumstances: 28
a. The retired officer is reemployed as the sherif f of a county or in a 29
public safety position that requires all of the following of the occupant: 30
1. The occupant possesses the power of arrest. 31
2. The occupant has taken the law enforcement oath administered 32
under the authority of the State as prescribed by G.S. 11-11. 33
3. The occupant is certified as a law enforcement officer under 34
the provisions of Article 1 of Chapter 17C of the General 35
Statutes or as deputy sheriff under the provisions of Chapter 36
17E of the General Statutes and exercises the authority of a law 37
enforcement officer or deputy sheriff. 38
b. The retired officer is reemployed in service to a county board of 39
elections on an election day or during the hours for early voting under 40
Part 5 of Article 14A of Chapter 163 of the General Statutes in a 41
capacity that complies with G.S. 128-21(19) and does not result in 42
cessation or suspension of the retiree 's benefit from the Local 43
Government Employees' Retirement System. 44
c. The retired officer has elected to receive distributions while in service 45
under G.S. 128-27.1(a)(2) upon the reemployment. 46
(4) If an officer in service has elected to receive a retirement allowance under 47
G.S. 128-27.1(a)(1), the revocation of that election. If an officer later retires 48
after a revocation of that election and if the officer otherwise qualifies for the 49
allowance under this section, then the officer shall be paid the separation 50
General Assembly Of North Carolina Session 2025
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allowance under this section as though the officer had not previously received 1
the allowance. 2
(c1) Notwithstanding the provisions of subdivision (3) of subsection (c) of this section, 3
payments to a retired officer shall not cease when a local government employer employs a retired 4
officer or any of the following: 5
(1) In a public safety position in a capacity not requiring participation in the Local 6
Governmental Employees' Retirement System. 7
(2) In service to a county board of elections on an election day or during the hours 8
for early voting under Pa rt 5 of Article 14A of Chapter 163 of the General 9
Statutes in a capacity that complies with G.S. 128-21(19) and does not result 10
in cessation or suspension of the retiree's benefit from the Local Government 11
Employees' Retirement System. 12
(d) Impact of Other Benefits or Actions. – This section does not affect the benefits to 13
which an individual may be entitled from State, local, federal, or private retirement systems. The 14
benefits payable under this section shall not be subject to any increases in salary or retirement 15
allowances that may be authorized by local government employers or for retired employees of 16
local governments. 17
(e) Eligibility Determinations. – The governing body of each local employer shall 18
determine the eligibility of employees for the benefits provided herein.under this section. 19
(f) Responsibility for Payment. – The governing body of each local employer shall make 20
the payments set forth in subsection (a) of this section to those persons certified under subsection 21
(e) of this section from funds available. The allowance shall be paid in equal installments on the 22
payroll frequency used by the employer from which the officer retired." 23
24
CONTINUATION OF SHERIFFS' SUPPLEMENTAL PENSION 25
SECTION 3.1. G.S. 143-166.84 reads as rewritten: 26
"§ 143-166.84. Eligibility. 27
… 28
(a3) A county sheriff who (i) has completed at least 10 years of eligible service as a sheriff, 29
(ii) is at least 55 years of age or who has attained at least 30 years of creditable service regardless 30
of age , and (ii i) has elected to receive a retirement allowance while in service under 31
G.S. 128-27.1(a)(1) is eligible to receive a monthly supplemental pension benefit under this 32
Article so long as the election to receive a retirement allowance while in service under 33
G.S. 128-27.1(a)(1) has not been subsequently revoked. 34
(b) Each eligible If a retired sheriff as defined in is eligible under subsections (a), (a1), 35
and (a2) of this section relating to age and service shall be entitled to receive a monthly pension 36
benefit under this Article beginning Article, then those monthly benefit payments shall begin 37
with the month immediately following the effective date of retirement. 38
(b2) If a sheriff who is in service is eligible under subsection (a3) of this section to receive 39
a monthly pension benefit under this Article, then those monthly benefit payments shall begin 40
with the month in which the officer elect s to begin receiving the retirement allowance under 41
G.S. 128-27.1(a)(1). 42
…." 43
SECTION 3.2. G.S. 166-85 reads as rewritten: 44
"§ 143-166.85. Benefits. 45
(a) An eligible A retired sheriff entitled to receive a supplemental pension benefit under 46
this Article shall be entitled to and receive an annual pension benefit, payable in equal monthly 47
installments, equal to an amount that, when added to a retired retirement allowance at retirement 48
from the Local Governmental Employees' Retirement System or to the amount he the retired 49
sheriff would have been eligible to receive if service had not been forfeited by the withdrawal of 50
accumulated contributions, is equal to seventy-five percent (75%) of a sheriff's equivalent annual 51
General Assembly Of North Carolina Session 2025
House Bill 753-First Edition Page 11
salary immediately preceding retirement computed on the latest monthly base rate, to a maximum 1
amount that does not exceed (i) one thousand five hundred dollars ($1,500) or (ii) the sh eriff's 2
equivalent annual salary immediately preceding retirement computed on the latest monthly base 3
rate when the benefit described in this subsection is added to the amount of the benefit the sheriff 4
receives under G.S. 143-166.42 and the amount of the sheriff's retired retirement allowance at 5
retirement from the Local Governmental Employees' Retirement System or the amount the 6
sheriff would have been eligible to receive if service had not been forfeited by the withdrawal of 7
accumulated contributions. 8
(a1) A sheriff who is still in service and who is entitled to receive a supplemental pension 9
benefit under this Article shall receive an annual pension benefit, payable in equal monthly 10
installments, equal to an amount that, when added to a retirement allo wance from the Local 11
Governmental Employees ' Retirement System , is equal to seventy -five percent (75%) of a 12
sheriff's equivalent annual salary immediately preceding the sheriff's election to begin receiving 13
a retirement allowance while in service under G.S. 128-27.1 computed on the latest monthly base 14
rate to a maximum amount that does not exceed (i) one thousand five hundred dollars ($1,500) 15
or (ii) the sheriff's equivalent annual salary immediately preceding the sheriff's election to begin 16
receiving a retirement allowance while in service under G.S. 128-27.1 computed on the latest 17
monthly base rate when the benefit described in this subsection is added to the amount of the 18
benefit the sheriff receives under G.S. 143-166.42 and the amount of the sheriff 's retire ment 19
allowance from the Local Governmental Employees' Retirement System. 20
(b) All monthly pensions pension benefits payable under this Article shall be paid on the 21
last business day of each month. 22
(c) At the death of the pensioner, supplemental pension benefits under this Article for the 23
current calendar year will continue and be paid in monthly installments to the decedent's spouse 24
or estate, in accordance with the provisions of Chapter 28A of the General Statutes. Be nefits 25
under this Article will cease upon the last payment being made in December of the current year. 26
(d) Monthly pensions pension benefits payable under this Article will cease upon the at 27
the first occurrence of one of the following: 28
(1) The full-time reemployment of a pensioner with an employer participating in 29
the Local Governmental Employees' Retirement System for as long as the 30
pensioner is so reemployed.reemployed, except under any of the following 31
circumstances: 32
a. The pensioner is reemployed full-time as the sheriff of a county or in 33
a public safety p osition meeting all of the requirements of a public 34
safety position under G.S. 143-166.42(c)(3). 35
b. The pensioner has elected to receive distributions while in service 36
under G.S. 128-27.1(a)(2) upon the reemployment. 37
(2) If a pensioner who is in service has elected to receive a retirement allowance 38
under G.S. 128.27.1(a)(1), the revocation of that election. If a sheriff later 39
retires after the revocation and if the sheriff otherwise qualifies for a 40
supplemental pension benefit under this Article, then the sheriff shall be paid 41
the monthly pension benefit as though the sheriff had not previously received 42
the supplemental pension benefit under this Article. 43
…." 44
45
PART I EFFECTIVE DATE 46
SECTION 3.3. This Part is effective October 1, 2025. 47
48
PART II. TECHNICAL AND CONFORMING CHANGES 49
SECTION 4.1. G.S. 135-103 is amended by adding a new subsection to read: 50
General Assembly Of North Carolina Session 2025
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"(c) Notwithstanding subsection (a) of this section, any member of the Retirement System 1
that has elected to begin receiving a retirement allowance under G.S. 135-5.8 is ineligible to 2
participate in the Disability Income Plan while receiving a retirement allowance." 3
SECTION 4.2. G.S. 143-166.81(a) is repealed. 4
SECTION 4.3. G.S. 134-166.60(a) reads as rewritten: 5
"(a) A Separate Insurance Benefits Plan, hereinafter called the "Plan", is to be an employee 6
welfare benefit plan, established for the benefit of (i) all law enforcement officers, as defined in 7
G.S. 135-1(11c) and G.S. 128-21(11d) G.S. 135-1 and G.S. 128-21, employed by the State and 8
local governments and (ii) all former law-enforcement officers previously employed by the State 9
and local governments, who had 20 or more years of service as an officer or are in receipt of a 10
disability retirement allowance from any State -administered retirement system or are in receipt 11
of a benefit from the Disability Income Plan of North Carolina, who shall be participants." 12
SECTION 4.4.(a) G.S. 143-166.30 is rewritten to read: 13
"§ 143-166.30. Retirement benefits for State law-enforcement officers. 14
(a) Definitions. – The following words and phrases as used definitions apply in this 15
Article, unless a different meaning is plainly required by the context, shall have the follo wing 16
meanings:Article: 17
… 18
(7a) "Plan" means the Supplemental Retirement Income Plan for State Law 19
Enforcement Officers. 20
… 21
(d) Supplemental Retirement Income Plan for State Law-Enforcement Law Enforcement 22
Officers. – As of January 1, 1985, there shall be created a Supplemental Retirement Income Plan, 23
hereinafter called the "Plan," established for the benefit of all law -enforcement All law 24
enforcement officers employed by the State, who shall be participants. The Board of Trustees of 25
the State Retirement System shall administer the Plan and shall, under the terms and conditions 26
otherwise appearing herein, provide Plan benefits either (i) by establishing a separate trust fund 27
in conformance with Section 401(a), Section 401(k) or other sections of the Internal Revenue 28
Code of 1954 as amended or, (ii) by causing the Plan to affiliate with some master trust fund 29
providing the same benefits for participants. The Plan shall be separate and apart from any 30
retirement s ystems.State are participants in the Supplemental Retirement Income Plan as 31
provided by Article 5 of Chapter 135 of the General Statutes. All of the following shall apply: 32
(1) In addition to the contributions transferred from the Law -Enforcement 33
Officers' Retirement System and the contributions otherwise provided for in 34
this Article, participants may make voluntary contributions to the Plan to be 35
credited to the designated individual accounts of participants. 36
(2) All contributions to the Plan shall be credi ted to the individual accounts of 37
participants, and except as provided in subsection (g1) of this section, shall be 38
fully and immediately vested in the name of the participant, and shall be 39
invested according to each participant's election, as provided by the Board of 40
Trustees, including but not limited to time deposits, and both fixed and 41
variable investments. The Plan may provide for loans to participants, at 42
reasonable rates of interest to be charged, from participants' individual 43
accounts, and may provi de for withdrawal of contributions on account of 44
hardship. 45
(3) The benefit to a participant in the Plan shall be either a lump-sum distribution 46
or a distribution in periodic installments of the participant's account payable 47
under retirement, disability, or termination of employment. Upon the death of 48
a participant there shall be paid the same lump -sum distribution or periodic 49
installments to the surviving spouse of the participant or otherwise to the 50
participant's estate; provided, should a participant inst ruct the Board of 51
General Assembly Of North Carolina Session 2025
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Trustees in writing that he the participant does not wish these benefits to be 1
paid to his the participant's spouse or estate, then the benefits shall be paid to 2
the person or persons as the participant may name for this purpose. 3
(4) Upon retirement, retirement or the election to receive a retirement allowance 4
under G.S. 135-5.8(a)(1),a participant in the Plan may elect to transfer any 5
portion of his eligible accumulated contributions, not including any Roth 6
after-tax contributions and the earnings thereon, contributions or earnings, to 7
the Teachers' and State Employees' Retirement System and receive, in 8
addition to his the basic service, early early, or disability retirement allowance 9
allowance, a special retirement al lowance which shall be based on his the 10
participant's eligible accumulated account balance at the date of the transfer 11
of the assets. 12
(e) State Contributions to the Supplemental Retirement Income Plan. – Under all other 13
restrictions as are herein provided, the provided for under this section, the foll owing State 14
contributions shall be made: 15
(1) The State shall contribute monthly to the individual accounts of participants 16
who are employed by the State an amount equal to five percent (5%) of the 17
compensation of each participant. The contributions so paid shall be in 18
addition to the contributions on account of court cost assessments as 19
hereinafter provided. 20
(2) Contributions shall be made to the individual accounts of all participants in 21
the Plan on a per capita basis in equal shares, equal to the sum of the one-half 22
dollar ($0.50) for each cost of court assessed and collected under G.S. 7A-304. 23
If a law enforcement officer elects to receive a retirement allowance under 24
G.S. 135-5.8(a)(1), the contributions under this subsection shall cease. 25
…." 26
SECTION 4.4.(b) G.S. 143-166.50(e) reads as rewritten: 27
"(e) Supplemental Retirement Income Plan for Local Governmental Law -Enforcement 28
Officers. – As of January 1, 1986, all All law-enforcement officers employed by a local 29
government employer, are participating members of the Supplemental Retirement Income Plan 30
as provided by Article 5 of Chapter 135 of the General Statutes. In addition to the contributions 31
transferred from the Law -Enforcement Officers' Retirement Sys tem, participants may make 32
voluntary contributions to the Supplemental Retirement Income Plan to be credited to the 33
designated individual accounts of participants. From July 1, 1987, until July 1, 1988, local 34
government employers of law enforcement officer s shall contribute an amount equal to at least 35
two percent (2%) of participating local officers' monthly compensation to the Supplemental 36
Retirement Income Plan to be credited to the designated individual accounts of participating local 37
officers; and on an d after July 1, 1988, local All of the following appl y to the Supplemental 38
Retirement Income Plan for Local Government Officers: 39
(1) Local government employers of law enforcement officers shall contribute an 40
amount equal to five percent (5%) of participating local officers' monthly 41
compensation to the Supplemental Retirement Income Plan to be credited to 42
the designated individual accounts of participating local officers. 43
(2) Additional contributions shall also be made to the individual accounts o f all 44
participants in the Plan, except for Sheriffs, on a per capita equal -share basis 45
from the sum of one dollar and twenty-five cents ($1.25) for each cost of court 46
collected under G.S. 7A-304. 47
(3) Contributions under subdivisions (1) and (2) of this subsection shall cease 48
upon the officer 's election to receive a retirement allowance under 49
G.S. 128-27.1(a)(1). 50
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(4) Upon retirement, retirement, or the election to receive a retirement allowance 1
under G.S. 128-27.1(a)(1), a participant in the Plan may elect t o transfer any 2
portion of his eligible accumulated contributions, not including any Roth 3
after-tax contributions and the earnings thereon, or earnings, to the Local 4
Governmental Employees' Retirement System and receive, in addition to his 5
the basic service, early early, or disability retirement allowance allowance, a 6
special retirement allowance which shall be that is based on his the 7
participant's eligible accumulated account balance at the date of the transfer 8
of the assets." 9
SECTION 4.5. This Part is effective October 1, 2025. 10
11
PART III. FUNDS TO ADDRESS INCREASED COSTS 12
SECTION 5.1. Effective July 1, 2025, there is appropriated from the General Fund 13
to the Department of State Treasurer the sum of ten million dollars ($10,000,000) in recurri ng 14
funds for each year of the 2025-2027 fiscal biennium to be used to address the increased costs as 15
result of the implementation of this act. 16
17
PART IV. SEVERABILITY AND EFFECTIVE DATE 18
SECTION 6.1.(a) If any provision of this act or its application is hel d invalid, the 19
invalidity does not affect other provisions or applications of this act that can be given effect 20
without the invalid provisions or application and, to this end, the provisions of this act are 21
severable. 22
SECTION 6.1.(b) If the Internal Revenue Service (IRS) notifies the State Treasurer 23
that one or more provisions of this act is not in compliance with federal law or regulations, then 24
each provision to which the IRS notification pertains shall expire 30 days from receipt of the 25
notification by the State Treasurer. The State Treasurer shall notify the Revisor of Statutes of any 26
IRS notification that requires the expiration of a provision of this act in accordance with this 27
section. 28
SECTION 6.2.(a) All of the following expire on December 31, 2029: 29
(1) G.S. 135-5.8. 30
(2) G.S. 135-3(b1). 31
(3) G.S. 128-27.1. 32
(4) G.S. 128-24(b1). 33
(5) G.S. 143-166.41(a)(2), 143 -166.41(b2)(2), 143 -166.41(c)(3)c., and 34
143-166.41(c)(4). 35
(6) G.S. 143-166.42(a)(2), 143 -166.42(b1)(2), 143 -166.42(c)(3)c., and 36
143-166.42(c)(4). 37
(7) Subsections (a3) and (b2) of G.S. 143-166.84. 38
(8) G.S. 143-166.85(a1), 143-166.85(d)(1)b., and 143-166.85(d)(2). 39
(9) G.S. 135-103(c). 40
SECTION 6.2.(b) Any law enforcement officer who is in service and in receipt of a 41
retirement allowance under G.S. 135-5.8 or G.S. 128-27.1 on the date of the expiration of statutes 42
under subsection (a) of this section shall be allowed to continue that service and to receive the 43
retirement allowance. Upon separation from that service, all provisions of G.S. 135-3 and 44
G.S. 128-24 shall apply to any subsequent return to work. 45
SECTION 6.3. Except as otherwise provided, this act is effective when it becomes 46
law. 47