LEO Special Separation Allowance Options.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 320

Short Title: LEO Special Separation Allowance Options. (Public)
Sponsors: Senators Berger, Sawyer, and Ford (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 18, 2025
*S320-v-1*
A BILL TO BE ENTITLED 1
AN ACT PROVIDING AN ADDITIONAL SPECIAL SEPARATION ALLOWANCE OPTION 2
FOR STATE AND LOCAL LAW ENFORCEMENT OFFI CERS WITH AT LEAST 3
THIRTY YEARS OF CREDITABLE SERVICE. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. G.S. 143-166.41 reads as rewritten: 6
"§ 143-166.41. Special separation allowance.allowance options for State law enforcement 7
officers. 8
(a) Annual Special Separation Allowance. – Notwithstanding any other provision of law, 9
every sworn law -enforcement officer as defined by G.S. 135-1(11c) or G.S. 143-166.30(a)(4) 10
employed by a State department, agency, or institution who qualifies under this section shall 11
receive, receive an annual special separation allowance beginning in the month in which he the 12
officer retires on a basic service retirement under the provisions of G.S. 135-5(a), an annual 13
separation allowance equal to eighty -five hundredths percent (0.85%) of the annual equivalent 14
of the base rate of compensation most recently applicable to him for each y ear of creditable 15
service. G.S. 135-5(a). The allowance shall be paid in equal installments on the payroll frequency 16
used by the employer. To qualify for the allowance the officer shall: 17
(1) Have (i) completed 30 or more years of creditable service or, (ii) have attained 18
55 years of age and completed five or more years of creditable service; and 19
(2) Not have attained 62 years of age; and 20
(3) Have completed at least five years of continuous service as a law enforcement 21
officer as herein defined immediately p receding a service retirement. Any 22
break in the continuous service required by this subsection because of 23
disability retirement or disability salary continuation benefits shall not 24
adversely affect an officer's qualification to receive the allowance, provi ded 25
the officer returns to service within 45 days after the disability benefits cease 26
and is otherwise qualified to receive the allowance. employer from which the 27
officer retired. 28
(a1) Repealed by Session Laws 2014-88, s. 3(j), effective July 30, 2014. 29
(b) As used in this section, "creditable service" means the Definitions. – The following 30
definitions apply in this section: 31
(1) Allowance. – The annual special se paration allowance for State law 32
enforcement officers provided for under this section. 33
(2) Creditable service. – The service for which credit is allowed under the 34
retirement system of which the officer is a member, provided that at least fifty 35
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 320-First Edition
percent (50%) of the service is as a law enforcement officer as herein defined 1
or as a probation/parole officer as defined in G.S. 135-1(17a).officer. 2
(3) Law enforcement officer. – As defined in either G.S. 135-1 or 3
G.S. 143-166.30(a). 4
(4) Officer. – A law enforcement officer. 5
(5) Probation/parole officer. – As defined in G.S. 135-1. 6
(b1) Eligibility for Allowance and Calculation of Allowance Amount. – To be eligible for 7
an allowance under this section, an officer is required to meet one of the following sets of criteria 8
that shall also determine the allowance amount: 9
(1) For officers meeting all of the following criteria, the annual special separation 10
allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the 11
annual base rate of compensation most recently applicable to the officer for 12
each year of that officer's creditable service: 13
a. The officer (i) has completed 30 or more years of creditable service or 14
(ii) is 55 years of age or older and completed five or more years of 15
creditable service. 16
b. The officer is less than 62 years of age. 17
c. The officer has completed at least five years o f continuous service as 18
a law enforcement officer immediately preceding the officer's service 19
retirement. Any break in th is required continuous service that is a 20
result of disability retirement or disability salary continuation benefits 21
shall not adversely affect an officer 's qualification to receive an 22
allowance under this subdivision so long as the officer returned to 23
service within 45 days after the disability benefits had ceased and is 24
otherwise qualified to receive the allowance. 25
(2) For officers meeting all of the following criteria, the annual special separation 26
allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the 27
annual equivalent of the base rate of compensation a t the time the officer 28
attained 30 years of service multiplied by 30: 29
a. The officer has completed 30 or more years of creditable service prior 30
to attaining 62 years of age. 31
b. The officer has completed at least five years of continuous service as 32
a law enforcement officer immediately preceding the officer's service 33
retirement. Any break in this required continuous service that is a 34
result of disability retirement or disability salary continuation benefits 35
shall not adversely affect an officer 's qualification to receive an 36
allowance under this subdivision so long as the officer returned to 37
service within 45 days after the disability benefits had ceased and is 38
otherwise qualified to receive the allowance. 39
If an officer meet s all of the criteria un der each subdivision of this subsection, then the 40
employer making the allowance payments shall allow the officer to choose which of the two 41
calculation formulas to use for that officer's allowance. This election by the officer is a one-time, 42
irrevocable election and shall be made prior to the first allowance payment. If no election is made 43
by the officer, then the calculation amount under subdivision (2) of this subsection shall be used. 44
(c) Cessation of Payment. – Payment of the allowance to a retired officer under the 45
provisions of this section shall cease at the first of:occurrence of one of the following: 46
(1) The death of the officer;officer. 47
(2) The last day of the month in which either of the following applies: 48
a. If the officer is receiving an allowance in an amount determined under 49
subdivision (b1)(1) of this section, the officer attains 62 years of age; 50
orage. 51
General Assembly Of North Carolina Session 2025
Senate Bill 320-First Edition Page 3
b. If the officer is receiving an allowance in an amount determined under 1
subdivision (b1)(2) of this section, there has been a period of receiving 2
the allowance that is equivalent to the total of 62 years minus the age 3
at which the officer first completed 30 years of creditable service. 4
(3) The first day of reemployment by any State department, agency, or institution, 5
except that this subdivision does not apply to an officer returning to State 6
employment in a position exempt from the North Carolina Human Resources 7
Act in an agency other than the agency from which that officer retired. 8
(d) Impact of Other Benefits or Actions. – This section does not affect the benefits to 9
which an individual may be entitled from State, federal, or private retirement systems. The 10
benefits payable under this section shall not be subject to an y increases in salary or retirement 11
allowances that may be authorized by the General Assembly for employees of the State or retired 12
employees of the State. 13
(e) Eligibility Determinations. – The head of each State department, agency, or institution 14
shall determine the eligibility of employees for the benefits provided herein.under this section. 15
(f) Transfer of Funds. – The Director of the Budget may authorize from time to time the 16
transfer of funds within the budgets of each State department, agency, or institution necessary to 17
carry out the purposes of this Article. section. These funds shall be taken from those funds 18
appropriated to the department, agency, or institution for salaries and related fringe benefits. 19
(g) Responsibility for Payment. – The head of each State department, agency, or 20
institution shall make the payments set forth in subsection (a) this section to those persons 21
certified under subsection (e) of this section from funds available under subsection (f).(f) of this 22
section." 23
SECTION 2. G.S. 143-166.42 reads as rewritten: 24
"§ 143-166.42. Special separation allowances allowance options for local law enforcement 25
officers. 26
(a) Annual Special Separation Allowance. – On and after January 1, 1987, every sworn 27
law enforcement officer as defined by G.S. 128-21(11d) or G.S. 143-166.50(a)(3) employed by 28
a local government employer who qualifies under this section shall receive, receive an annual 29
special separation allowance beginning in the month in which the officer retires on a basic service 30
retirement under the provisions of G.S. 128-27(a), an annual separation allowance equal to 31
eighty-five hundredths percent (0.85%) of the annual equivalent of the base rate of compensation 32
most recently applicable to the officer for each year of creditable service. G.S. 128-27(a). The 33
allowance shall be paid in equal installments on the payroll frequency used by the employer. To 34
qualify for the allowance, the officer shall: 35
(1) Have (i) completed 30 or more years of creditable service or (ii) have attained 36
55 years of age and completed five or more years of creditable service; and 37
(2) Not have attained 62 years of age; and 38
(3) Have completed at least five years of continuous service as a law enforcement 39
officer as herein defined immediately preceding a service retirement. Any 40
break in the continuous service required by this subsection because of 41
disability retirement or disability salary continuation benefits shall not 42
adversely affect an o fficer's qualification to receive the allowance, provided 43
the officer returns to service within 45 days after the disability benefits cease 44
and is otherwise qualified to receive the allowance. employer from which the 45
officer retired. 46
(b) As used in this sec tion, "creditable service" means the service Definitions. – The 47
following definitions apply in this section: 48
(1) Allowance. – The annual special separation allowance for local law 49
enforcement officers provided for under this section. 50
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 320-First Edition
(2) Creditable service. – The service for which credit is allowed under the 1
retirement system of which the officer is a member, provided that at least fifty 2
percent (50%) of the service is as a law enforcement officer as herein 3
defined.officer. 4
(3) Law enforcement officer. – As defined in G.S. 128-21 or G.S. 143-166.50(a). 5
(4) Officer. – Law enforcement officer. 6
(b1) Qualification for Allowance and C alculation of Allowance. – To be eligible for an 7
allowance under this section, an officer is required to meet one of the following sets of criteria, 8
which shall also determine the allowance amount: 9
(1) For officers meeting all of the following criteria, the annual special separation 10
allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the 11
annual base rate of compensation most recently applicable to the officer for 12
each year of that officer's creditable service: 13
a. The officer (i) has completed 30 or more years of creditable service or 14
(ii) is 55 years of age or older and completed five or more years of 15
creditable service. 16
b. The officer is less than 62 years of age. 17
c. The officer has completed at least five years of continuous service as 18
a law enforcement officer immediately preceding the officer's service 19
retirement. Any break in this required continuous service that is a 20
result of disability retirement or disability salary continuation benefits 21
shall not adversely affect an officer 's qualification to receive an 22
allowance under this subdivision so long as the officer returned to 23
service within 4 5 days after the disability benefits had ceased and is 24
otherwise qualified to receive the allowance. 25
(2) For officers meeting all of the following criteria, the annual special separation 26
allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the 27
annual equivalent of the base rate of compensation at the time the officer 28
attained 30 years of service multiplied by 30: 29
a. The officer has completed 30 or more years of creditable service prior 30
to attaining 62 years of age. 31
b. The officer has completed at least five years of continuous service as 32
a law enforcement officer immediately preceding the officer's service 33
retirement. Any break in this required continuous service that is a 34
result of disability retirement or disability salary continuation benefits 35
shall not adversely affect an officer 's qualification to receive an 36
allowance under this subdivision so long as the officer returned to 37
service within 45 days after the disability benefits had ceased and is 38
otherwise qualified to receive the allowance. 39
If an officer meets all of the criteria under each subdivision of this subsection, then the 40
employer making the allowance payments shall allow the officer to choose which of the two 41
calculation formulas to use for that officer's allowance. This election by the officer is a one-time, 42
irrevocable election and shall be made prior to the first allowance payment. If no election is made 43
by the officer, then the calculation amount under subdivision (2) of this subsection shall be used. 44
(c) Cessation of Payment. – Payment of the allowance to a retired officer under the 45
provisions of this section shall cease at the first of:occurrence of one of the following: 46
(1) The death of the officer;officer. 47
(2) The last day of the month in which either of the following applies: 48
a. If the officer is receiving an allowance in an amount determined under 49
subdivision (b1)(1) of this section, the officer attains 62 years of age; 50
orage. 51
General Assembly Of North Carolina Session 2025
Senate Bill 320-First Edition Page 5
b. If the officer is receiving an allowance in an amount determined under 1
subdivision (b1)(2) of this section, there has been a period of receiving 2
the allowance that is equivalent to the total of 62 years minus the age 3
at which the officer first completed 30 years of creditable service. 4
(3) The first day of reemployment by a local government employer in any 5
capacity. 6
(c1) Exceptions to the Cessation of Payments. – Notwithstanding the provisions of 7
subdivision (3) of subsection (c) of this section, payments to a retired officer shall not cease when 8
a local government employer e mploys a retired officer for any of the following: in any of the 9
following manners: 10
(1) In a public safety position in a capacity not requiring participation in the Local 11
Governmental Employees' Retirement System. 12
(2) In service to a county board of elections on an election day or during the hours 13
for early voting under Part 5 of Article 14A of Chapter 163 of the General 14
Statutes in a capacity that complies with G.S. 128-21(19) and does not result 15
in cessation or suspension of the retiree's benefit from the Local Government 16
Employees' Retirement System. 17
(d) Impact of Other Benefits or Actions. – This section does not affect the benefits to 18
which an individual may be entitled from State, local, federal, or private retirement systems. The 19
benefits payable under this section shall not be subject to any increases in salary or retirement 20
allowances that may be authorized by local government employers or for retired employees of 21
local governments. 22
(e) Eligibility Determinations. – The governing body of each local em ployer shall 23
determine the eligibility of employees for the benefits provided herein.under this section. 24
(f) Responsibility for Payment. – The governing body of each local employer shall make 25
the payments set forth in subsection (a) of this section to those persons certified under subsection 26
(e) of this section from funds available." 27
SECTION 3. This act becomes effective July 1, 2025, and applies to law 28
enforcement officers retiring on or after that date. 29