Bring Back Our Heroes.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 701

Short Title: Bring Back Our Heroes. (Public)
Sponsors: Senators Britt, B. Newton, and Johnson (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S701-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ALLOW FOR THE CONTINUATION OF RETIREMENT BENEFITS FOR 2
CERTAIN LAW ENFORCEM ENT OFFICERS AND TO PROVIDE AN ADDITIONA L 3
SPECIAL SEPARATION A LLOWANCE OPTION FOR STATE AND LOCAL LAW 4
ENFORCEMENT OFFICERS WITH AT LEAST THIRT Y YEARS OF CREDITABLE 5
SERVICE. 6
The General Assembly of North Carolina enacts: 7
8
PART I. ALLOW FOR TH E CONTINUATION OF RE TIREMENT BENEFITS FO R 9
CERTAIN LAW ENFORCEMENT OFFICERS 10
11
IN SERVICE RETIREMEN T ALLOWANCE DISTRIBU TIONS FOR CERTAIN LA W 12
ENFORCEMENT OFFICERS 13
SECTION 1.1.(a) Article 1 of Chapter 135 of the General Statutes is amended by 14
adding a new section to read: 15
"§ 135-5.6. In service distributions; certain State law enforcement officers. 16
(a) Notwithstanding any provisions of this Article to contrary, both of the following shall 17
apply to a member who is an employed or retired law enforcement officer: 18
(1) If the member is in service as a law enforcement officer who has reached 59.5 19
years of age, the member may elect to receive any retirement allowance for 20
which the member is otherwise eligible if the member has not separated from 21
service as a law enforcement officer with the employer under which the 22
member will begin receiving the retirement allowance. 23
(2) If the member is a retired law enforcement officer, after a bona fide separation 24
from service of not less than six months, the member may return to service as 25
a law enforcement officer with the employer under which the member began 26
receiving a retirement allowance and continue to receive that retirement 27
allowance. 28
(b) If a member in service elects to begin receiving a retirement allowance under this 29
subsection, then member is required, at the time of the election to begin receiving the allowance, 30
to make any elections and creditable service purchases that a member would be required to make 31
at, or prior to, retirement. This includes the election to begin making contributions to the retiree 32
death benefit under G.S. 135-5 and the election to transfer Supplement Retirement Income Plan 33
benefits under G.S. 143-166.30(d). 34
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 701-First Edition
(c) A member receiving a retirement allowance in accordance with this subsection shall 1
not accrue any additional membership service for any employment while the member is receiving 2
the retirement allowance. 3
(d) Notwithstanding any requirement in this Article requiring a member to make 4
employee contributions, once a member elects to be gin receiving a retirement allowance under 5
this section , and while receiving that retirement allowance, the member will stop making 6
employee contributions to th e Retirement System and the employer will be required to make 7
payments to the Retirement System in an amount equal to (i) the employer contributions required 8
under this Chapter, and (ii) the employee contributions the member would have otherwise been 9
required under this Article to make to the Annuity Savings Fund. The gross salary or wage paid 10
to a member who is receiving a retirement allowance under this section shall be reduced as if the 11
member was making the employee contribution otherwise required under this Article. 12
(e) A member receiving a retirement allowance under this section is not eligible to 13
participate in the Disability Income Plan of North Carolina under Article 6 of Chapter 135 of the 14
General Statutes . If the member becomes mentally or physically incapacitated and unable to 15
further perform duties of the member's employment while receiving a retirement allowance under 16
this section, then that member will continue to receive the retirement allowance that they ha d 17
elected to receive under this section. 18
(f) A member receiving a retirement allowance under this section is not eligible for State 19
contributions to the Supplemental Retirement Income Plan under G.S. 143-166.30(e). All State 20
contributions to the member 's Supplemental Retirement Income Plan shall cease upon the 21
member's election to receive a retirement allowance under this section. 22
(g) A member receiving a retirement allowance under this section is eligible for benefits 23
under Article 12A of Chapter 143 of the General Statutes provided that the mem ber meets the 24
conditions for eligibility required under the Public Safety Employees' Death Benefits Act. 25
(h) If a member receiving a retirement allowance under this section dies without having 26
otherwise separated from service from the employer under which the member had begun 27
receiving the retirement allowance, then the member will be treated as retired for the purpose of 28
a d eath benefit under G.S. 135-5 and the member 's designated beneficiaries will receive the 29
benefit as though the member had been retired at the time of death. 30
(i) If a member receiving a retirement allowance under this section separates from 31
service with the employer under which the member had begun receiving the retirement allowance 32
for reasons other than death, then that member will be t reated as retired under th e Retirement 33
System for all purposes on the date of separation. If the member returns to work with any other 34
employer, then all provisions of G.S. 135-3 apply. 35
(j) Any changes to the retirement allowances of beneficiaries under this Article shall 36
apply with equal force and effect to retirement allowances of members under this section, unless 37
otherwise specified by law. 38
(k) An election to receive a retirement allowance under subdivision (a)(1) of this section 39
may be revoked by the member only if the member has not yet separated from service from the 40
employer under which the member had begun receiving the retirement allowance. Upon 41
revocation, all of the following shall apply: 42
(1) G.S. 135-3(a)(8)(d). 43
(2) The employer is no longer responsible for making contributions in the amount 44
required under subsection (d) of this section . The employer remains 45
responsible making the employer contributions required under this Article. 46
(3) The member is entitled to make any elections a beneficiary would be entitled 47
to make when being restored to service as an employee. 48
(4) Any special separation allowance paid to the member under G.S. 143-166.41 49
shall cease." 50
SECTION 1.1.(b) G.S. 128-21 reads as rewritten: 51
General Assembly Of North Carolina Session 2025
Senate Bill 701-First Edition Page 3
"§ 128-21. Definitions. 1
The following words and phrases as used in this Article, unless Unless a different meaning is 2
plainly required by the context, shall have the following meanings:all of the following definitions 3
apply in this Article: 4
… 5
(11d) "Justice Officer" is as defined under G.S. 17E-2. 6
(11e) "Law Enforcement Officer" means a full-time paid employee of an employer, 7
who possesses the power of arrest, who has taken the law enforcement oath 8
administered under the authority of the State as prescribed by G.S. 11-11, and 9
who is certified as a law enforcement officer under the provisions of Article 1 10
of Chapter 17C of the General Statutes or certified as a deputy sheriff under 11
the provisions of Chapter 17E of the General Statutes. "Law enfo rcement 12
officer" also means the sheriff of the county. The number of paid personnel 13
employed as law enforcement officers by a law enforcement agency may not 14
exceed the number of law enforcement positions approved by the applicable 15
local governing board. 16
…." 17
SECTION 1.1.(c) Article 3 of Chapter 128 of the General Statutes is amended by 18
adding a new section to read: 19
"§ 128-27.1. In service distributions; certain local law enforcement and justice officers. 20
(a) Notwithstanding any provisions of this Article to contrary, both of the following shall 21
apply to a member who is either an employed or retired law enforcement or justice officer: 22
(1) If the member is in service as a law enforcement or justice officer who has 23
reached 59.5 years of age , the member may elect to receive any retirement 24
allowance for which the member is otherwise eligible if the member has not 25
separated from service as a law enforcement or justice officer with the 26
employer under which the member will begin receiving the ret irement 27
allowance. 28
(2) If the member is a retired law enforcement or justice officer, after a bona fide 29
separation from service of not less than six months, the member may return to 30
service as a law enforcement or justice officer with the employer under which 31
the member began receiving a retirement allowance and continue to receive 32
that retirement allowance. 33
(b) If a member in service elects to begin receiving a retirement allowance under this 34
subsection, then the member is required, at the time of the elec tion to begin receiving the 35
allowance, to make any elections and creditable service purchases that a member would be 36
required to make at, or prior to, retirement . This includes the election to begin making 37
contributions to the death benefit for retired mem bers under G.S. 128-27 and the election to 38
transfer Supplement Retirement Income Plan benefits under G.S. 143-166.50(e). 39
(c) A member receiving a retirement allowance in accordance with this subsection shall 40
not accrue any additional membership service for any employment while the member is receiving 41
the retirement allowance. 42
(d) Notwithstanding any requirement in this Article requiring a member to make 43
employee contributions, once a member elects to begin receiv ing a retirement allowance under 44
this section, and while receiving that retirement allowance, the member will stop making 45
employee contributions to the Retirement System and the employer will be required to make 46
payments to the Retirement System in an amou nt equal to the total of (i) the employer 47
contributions required under this Chapter, and (ii) the employee contributions the member would 48
have otherwise been required under this Article to make to the Annuity Savings Fund. The gross 49
salary or wage paid to a member who is receiving a retirement allowance under this section shall 50
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 701-First Edition
be reduced as if the member was making the employee contribution otherwise required under 1
this Article. 2
(e) A member receiving a retirement allowan ce under this section is not eligible for 3
disability benefits under G.S. 128-27. If the member becomes mentally or physically 4
incapacitated and unable to further perform duties of the member's employment while receiving 5
a retirement allowance under this se ction, then that member will continue to receive the 6
retirement allowance that they had elected to receive under this section. 7
(f) A member receiving a retirement allowance under this section is not eligible for 8
employer contributions to the Supplemental Retirement Income Plan under G.S. 143-166.50(e). 9
All employer contributions to the member 's Supplemental Retirement Income Plan shall cease 10
upon the member's election to receive a retirement allowance under this section. 11
(g) A member receiving a retirement allowance under this section is eligible for benefits 12
under Article 12A of Chapter 143 of the General Statutes provided that the member meets the 13
conditions for eligibility required under the Public Safety Employees' Death Benefits Act. 14
(h) If a member receiving a retirement allowance under this section dies without having 15
otherwise separated from service from the employer under which the member had begun 16
receiving the retirement allowance, then the member will be treated as retired for the purpose of 17
a death benefit under this Retirement System and the member 's designated beneficiaries will 18
receive the death benefit under G.S. 128-27 as though the member had been retired at the time 19
of death. 20
(i) If a member receiving a retirement allowance under this section separates from 21
service with the employer under which the member had begun receiving the retirement allowance 22
for reasons other than death, then that member will be treated as retired under the Retirement 23
System for all purposes on the date of separation. If the member returns to work with any other 24
employer, then all provisions of G.S. 128-24 apply. 25
(j) Any changes to the retirement allowances of beneficiaries under this Article shall 26
apply with equal force and effect to retirement allowances of members under this section, unless 27
otherwise specified by law. 28
(k) An election to receive a retirement allowance under subdivision (a)(1) of this section 29
may be revoked by the member only if the member has not yet separated from service from the 30
employer under which the member had begun receiving the retirement allowance. Upon 31
revocation, all of the following shall apply: 32
(1) G.S. 128-24(5)(d). 33
(2) The employer is no longer responsible for making contributions in the amount 34
required under subsection (d) of this section. The employer remains 35
responsible making the employer contributions required under this Article. 36
(3) The member is entitled to make any elections a beneficiary would be entitled 37
to make when being restored to service as an employee. 38
(4) Any special separation allowance paid to the member under G.S. 143-166.42 39
shall cease." 40
SECTION 1.2.(a) G.S. 135-3 reads as rewritten: 41
"§ 135-3. Membership. 42
(a) The membership of this Retirement System shall be is composed as follows: 43
… 44
(b) Notwithstanding the provisions of sub -subdivsions c. and d. any provision of 45
subdivision (8) (a)(8) of this section to the contrary, a beneficiary who was a beneficiary retired 46
on an early or service retirement with the Law Enforcement Officers' Retirement System at the 47
time of the transfer of law enforcement officers employed by the State and beneficiar ies last 48
employed by the State to this Retirement System on January 1, 1985, and who also was a 49
contributing member of this Retirement System on January 1, 1985, shall continue to be paid his 50
General Assembly Of North Carolina Session 2025
Senate Bill 701-First Edition Page 5
or her retirement allowance without restriction and may continue as a member of this Retirement 1
System with all the rights and privileges appendant to membership. 2
(b1) Notwithstanding any provision of subdivision (a)(8) of this section to the contrary, a 3
beneficiary who retired on an early service retirement as a law enforcement officer shall, upon a 4
return to service, continue to be paid the retirement allowance without restriction if the 5
beneficiary is eligible for distributions while in service under G.S. 135-5.6(a)(2). 6
… 7
(f) In order to satisfy the Internal Revenue Service requirements that a retirement is a 8
bona fide separation from service and to the protect the actuarial integrity of th e Retirement 9
System, a bona fide separation is deemed to occur when a member has severed the employment 10
relationship with the employer and the Board of Trustees has received all applicable termination 11
notifications. In order to maintain this presumption of a bona fide separation, no later than 60 12
days from the date a beneficiary is reemployed with an employer, the employer and the 13
beneficiary shall file original sworn affidavits with Board of Trustees attesting to the following, 14
as applicable: 15
(1) Prior to the beneficiary's retirement, the employer and the beneficiary did not 16
have an explicit understanding that the beneficiary would be subsequently 17
employed by the employer. 18
(2) The employer and the beneficiary did not reasonably anti cipate that, 19
subsequent to the beneficiary's retirement, the beneficiary would perform for 20
that employer more than twenty percent (20%) of the average level of bona 21
fide services performed by the beneficiary for that employer during the 22
36-month period immediately preceding the beneficiary's retirement." 23
SECTION 1.2.(b) G.S. 128-24 reads as rewritten: 24
"§ 128-24. Membership. 25
(a) The membership of this Retirement System shall be is composed as follows: 26
… 27
(5a)(b) Notwithstanding the any provisions of paragraphs c and d of the subdivision (5) (a)(5) 28
of this section to the contrary, a beneficiary who was a beneficiary retired on an early or service 29
retirement with the Law Enforcement Officers' Retirement System at the time of the transfer of 30
law enforcement officers employed by a participating employer and beneficiaries last employed 31
by a participating employer to this Retirement System on January 1, 1986, and who also was a 32
contributing member of this Retirement System on January 1, 1986, shall continue to be paid his 33
the retirement allowance without restriction and may continue as a member of this Retirement 34
System with all the rights and privileges appendant to membership. Any beneficiary who retired 35
on an early or service retirement allowance as an employee of any participating employer under 36
the Law Enforcement Officers' Retirement System and becomes employed as an employee by an 37
employer participating in the Retirement System after January 1, 1986, becomes subject to the 38
provisions of G.S. 128-24(5)c. and G.S. 128-24(5)d. on and after January 1, 1989. 39
(b1) Notwithstanding any provision of subdivision (a)(5) of this section to the contrary, a 40
beneficiary who retired on an early service retirement as a law enforcement or justice officer 41
shall, upon a return to service, continue to be paid the retirement allowance without restriction if 42
the beneficiary is eligible for distributions while in service under G.S. 128-27.1(a)(2). 43
(6)(c) Employees of a sending agency participating in an intergovernmental exchange of 44
personnel under the provisions of Article 10 of Chapter 126 shall remain members entitled to all 45
benefits of the System provided that the requirements of Article 10 of Chapter 126 are met; 46
provided further, that a met. A member may retain membership status while serving as an 47
assigned employee or employee on leave under the provisions of Article 10 of Chapter 126 for 48
purposes of receiving the death benefit regardless of whether he the member and his the employer 49
are contributing to his the member's account during the exchange period except that no duplicate 50
benefits shall be paid. 51
General Assembly Of North Carolina Session 2025
Page 6 Senate Bill 701-First Edition
(d) In order to satisfy the Internal Revenue Service requirements that a retirement is a 1
bona fide s eparation from service and to the protect the actuarial integrity of the Retirement 2
System, a bona fide separation is deemed to occur when a member has severed the employment 3
relationship with the employer and the Board of Trustees has received all applicable termination 4
notifications. In order to maintain this presumption of a bona fide separation, no later than 60 5
days from the date a beneficiary is reemployed with an employer , the employer and the 6
beneficiary shall file original sworn affidavits with the Board of Trustees attesting to the 7
following, as applicable: 8
(1) Prior to the beneficiary's retirement, the employer and the beneficiary did not 9
have an explicit understanding that the beneficiary would be subsequently 10
employed by the employer. 11
(2) The employer and the beneficiary did not reasonably anticipate that, 12
subsequent to the beneficiary's retirement, the beneficiary would perform for 13
that employer more than twenty perc ent (20%) of the average level of bona 14
fide services performed by the beneficiary for that employer during the 15
36-month period immediately preceding the beneficiary's retirement." 16
17
CONTINUATION OF SPECIAL SEPARATION ALLOWANCE 18
SECTION 2.1.(a) G.S. 143-166.41 reads as rewritten: 19
"§ 143-166.41. Special separation allowance.allowance for State law enforcement officers. 20
(a) Annual Special Separation Allowance. – Notwithstanding any other provision of law, 21
every sworn law -enforcement officer as defined by G.S. 135-1(11c) or G.S. 143-166.30(a)(4) 22
employed by a State department, agency, or institution who qualifies under this section shall 23
receive, receive an annual special separation allowance beginning in the month in which he 24
retires on a basic service retirement under the provisions of G.S. 135-5(a), an annual separation 25
allowance equal to eighty-five hundredths percent (0.85%) of the annual equivalent of the base 26
rate of compensation most recently applicable to him for each year of creditable service. The 27
allowance shall be paid in equal installments on the payroll frequency used by the employer. To 28
qualify for the allowance the officer shall:either of the following applies: 29
(1) Have (i) completed 30 or more years of creditable service or, (ii) have attained 30
55 years of age and completed five or more years of creditable service; andThe 31
officer retires on a basic service retirement under the provi sions of 32
G.S. 135-5(a). 33
(2) Not have attained 62 years of age; and The officer elects to begin receiving a 34
retirement allowance while still in service under G.S. 135-5.6(a)(1). 35
(3) Have completed at least five years of continuous service as a law enforcement 36
officer as herein defined immediately preceding a service retirement. Any 37
break in the continuous service required by this subsection because of 38
disability retirement or disability salary continuation benefits shall not 39
adversely affect an officer's qualification to receive the allowance, provided 40
the officer returns to service within 45 days after the disability benefits cease 41
and is otherwise qualified to receive the allowance. 42
… 43
(b) As used in this section, "creditable service" means the Definitions. – The following 44
definitions apply in this section: 45
(1) Allowance. – The annual special se paration allowance for State law 46
enforcement officers provided for under this section. 47
(2) Creditable service. – The service for which credit is allowed under the 48
retirement system of which the officer is a member, provided that at least fifty 49
percent (50%) of the service is as a law enforcement officer as herein defined 50
or as a probation/parole officer as defined in G.S. 135-1(17a).member. 51
General Assembly Of North Carolina Session 2025
Senate Bill 701-First Edition Page 7
(3) Law enforcement officer. – As defined in either G.S. 135-1 or 1
G.S. 143-166.30(a). 2
(4) Officer. – A law enforcement officer. 3
(b1) Eligibility for Allowance. – To be eligible for a n allowance under this section , an 4
officer is required to meet all of the following criteria: 5
(1) The officer (i) has completed 30 or more years of creditable service or (ii) is 6
55 years of age or older and completed five or more years of creditable service. 7
(2) The officer is less than 62 years of age. 8
(3) The officer has completed at least five years of continuous service as a law 9
enforcement officer immediately preceding the officer 's service retirement. 10
Any break in this required continuous service that is a result of disability 11
retirement or disability salary continuation benefits shall not adversely affect 12
an officer 's qualification to receive an allowance under this subdivision so 13
long as the officer re turned to service within 45 days after the disability 14
benefits had ceased and is otherwise qualified to receive the allowance. 15
(4) At least fifty percent (50%) of the officer 's creditable service is as a law 16
enforcement officer, or for service prior to July 1, 2017, as a probation/parole 17
officer. 18
(b2) Allowance Amount . – The amount of the allowance under this section sh all be 19
calculated as follows: 20
(1) For retired officers , the amount of the allowance is equal to eighty -five 21
hundredths percent (0.85%) of the annual equivalent of the base rate of 22
compensation most recently applicable to the officer for each year of 23
creditable service. 24
(2) For officers in service who have elected to receive a retirement allowance as 25
provided for under G.S. 135-5.6(a)(1), the amount of the allowance is equal 26
to eighty-five hundredths percent (0.85%) of the annual equivalent of the base 27
rate of compensation and years of creditable service applicable to the officer 28
at the time the officer makes the election to receive the all owance under 29
G.S. 135-5.6. 30
(c) Cessation of Payment. – Payment of the allowance to a retired officer under the 31
provisions of this section shall cease at the first of:occurrence of one of the following: 32
(1) The death of the officer;officer. 33
(2) The last day of the month in which the officer attains 62 years of age; orage. 34
(3) The first day of reemployment by any State department, agency, or institution, 35
except that this subdivision does not apply to an officer returning to State 36
employment in any of the following circumstances: 37
a. The retired officer is reemployed in a public safety position that 38
requires all of the following of the occupant: 39
1. The occupant possesses the power of arrest. 40
2. The occupant has taken the law enforcement oath administered 41
under the authority of the State as prescribed by G.S. 11-11. 42
3. The occupant is certified as a law enforcement officer under 43
the provisions of Article 1 of Chapter 17C of the General 44
Statutes or as deputy sheriff under the provisions of Chapter 45
17E of the General Statutes and exercises the authority of a law 46
enforcement officer or deputy sheriff. 47
b. The retired officer is reemployed in a position exempt from the North 48
Carolina Human Resources Act in an agency other than the agency 49
from which that officer retired. 50
General Assembly Of North Carolina Session 2025
Page 8 Senate Bill 701-First Edition
c. The retired officer has elected to receive distributions while in service 1
under G.S. 135-5.6(a)(2) upon the reemployment. 2
(4) If an officer in service has elected to receiv e a retirement allowance under 3
G.S. 135-5.6(a)(1), the revocation of that election . If an officer later retires 4
after a revocation of that election and if the officer otherwise qualifies for the 5
allowance under this section, then the officer shall be paid the separation 6
allowance under this section as though the officer had not previously received 7
the allowance. 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 any 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. The allowance shall be paid in equal installments on the payroll frequency used by the 23
employer from which the officer retired." 24
SECTION 2.1.(b) G.S. 143-166.42 reads as rewritten: 25
"§ 143-166.42. Special separation allowances for local law enforcement 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 either of the following applies: 30
(1) The officer retires on a basic service retiremen t under the provisions of 31
G.S. 128-27(a), an annual separation allowance equal to eighty -five 32
hundredths percent (0.85%) of the annual equivalent of the base rate of 33
compensation most recently applicable to the officer for each year of 34
creditable service. The allowance shall be paid in equal installments on the 35
payroll frequency used by the employer.G.S. 128-27(a). 36
(2) The officer elects to begin receiving a retirement allowance while still in 37
service under G.S. 128-27.1(a)(1). 38
(a1) Eligibility for Allowance. – To qualify for the allowance, the officer shall:shall meet 39
all of the following criteria: 40
(1) Have The officer has (i) completed 30 or more years of creditable service or 41
(ii) have attained is 55 years of age or older and has completed five or more 42
years of creditable service; andservice. 43
(2) Not have attained The officer is less than 62 years of age; andage. 44
(3) Have The officer has completed at least five years of continuous service as a 45
law enforcement officer as herein defined immediately preceding a service 46
retirement. Any break in the this required continuous service required by this 47
subsection because that is a result of disability retirement or disability salary 48
continuation benefits shall not adversely affect an officer's q ualification to 49
receive the allowance, provided the officer returns to service within 45 days 50
General Assembly Of North Carolina Session 2025
Senate Bill 701-First Edition Page 9
after the disability benefits cease and is otherwise qualified to receive the 1
allowance. 2
(4) At least fifty percent (50%) of the officer 's creditable service is a s a law 3
enforcement officer. 4
(b) As used in this section, "creditable service" means the service Definitions. – The 5
following definitions apply in this section: 6
(1) Allowance. – The annual special separation allowance for local law 7
enforcement officers provided for under this section. 8
(2) Creditable service. – The service for which credit is allowed under the 9
retirement system of which the officer is a member, provided that at least fifty 10
percent (50%) of the service is as a law enforcement officer as h erein 11
defined.member. 12
(3) Law enforcement officer. – As defined in G.S. 128-21 or G.S. 143-166.50(a). 13
(4) Officer. – Law enforcement officer. 14
(b1) Calculation of Allowance Amount. – The amount of the allowance under this section 15
shall be calculated as follows: 16
(1) For retired officers the amount of the allowance is equal to eighty -five 17
hundredths percent (0.85%) of the annual equivalent of the base rate of 18
compensation most recently applicable to the officer for each year of 19
creditable service. 20
(2) For officers in service who have elected to receive a retirement allowance as 21
provided for under G.S. 128-27.1(a)(1), the amount of the allowance is equal 22
to eighty-five hundredths percent (0.85%) of the annual equivalent of the base 23
rate of compensation and years of creditable service applicable to the officer 24
at the time the officer makes the election to receive the allowance under 25
G.S. 128-27.1. 26
(c) Cessation of Payment. – Payment of the allowance to a retired officer under the 27
provisions of this section shall cease at the first of:occurrence of any of the following: 28
(1) The death of the officer;officer. 29
(2) The last day of the month in which the officer attains 62 years of age; orage. 30
(3) The first day of reemployment by a local government employer in any 31
capacity.except that this subdivision does not apply to a retired officer 32
returning to local government employment in any of the following 33
circumstances: 34
a. The retired officer is reemployed as the sheriff of a county or in a 35
public safety position that requires all of the following of the occupant: 36
1. The occupant possesses the power of arrest. 37
2. The occupant has taken the law enforcement oath administered 38
under the authority of the State as prescribed by G.S. 11-11. 39
3. The occupant is certified as a law enforcement officer under 40
the provisions of Article 1 of Chapter 17C of the General 41
Statutes or as deputy sheriff under the provisions of Chapter 42
17E of the General Statutes and exercises the authority of a law 43
enforcement officer or deputy sheriff. 44
b. The retired officer is reemployed in service to a county board of 45
elections on an election day or during the hours for early voting under 46
Part 5 of Article 14A of Chapter 163 of the General Statutes i n a 47
capacity that complies with G.S. 128-21(19) and does not result in 48
cessation or suspension of the retiree 's benefit from the Local 49
Government Employees' Retirement System. 50
General Assembly Of North Carolina Session 2025
Page 10 Senate Bill 701-First Edition
c. The retired officer has elected to receive distributions while in service 1
under G.S. 128-27.1(a)(2) upon the reemployment. 2
(4) If an officer in service has elected to receive a retirement allowance under 3
G.S. 128-27.1(a)(1), the revocation of that election. If an officer later retires 4
after a revocation of that election and if the officer otherwise qualifies for the 5
allowance under this section, then the officer shall be paid the separation 6
allowance under this section as though the officer had not previously received 7
the allowance. 8
(c1) Notwithstanding the provisions of sub division (3) of subsection (c) of this section, 9
payments to a retired officer shall not cease when a local government employer employs a retired 10
officer or any of the following: 11
(1) In a public safety position in a capacity not requiring participation in the Local 12
Governmental Employees' Retirement System. 13
(2) In service to a county board of elections on an election day or during the hours 14
for early voting under Part 5 of Article 14A of Chapter 163 of the General 15
Statutes in a capacity that complies with G .S. 128-21(19) and does not result 16
in cessation or suspension of the retiree's benefit from the Local Government 17
Employees' Retirement System. 18
(d) Impact of Other Benefits or Actions. – This section does not affect the benefits to 19
which an individual may be entitled from State, local, federal, or private retirement systems. The 20
benefits payable under this section shall not be subject to any increases in salary or retirement 21
allowances that may be authorized by local government employers or for retired emplo yees of 22
local governments. 23
(e) Eligibility Determinations. – The governing body of each local employer shall 24
determine the eligibility of employees for the benefits provided herein.under this section. 25
(f) Responsibility for Payment. – The governing body of each local employer shall make 26
the payments set forth in subsection (a) of this section to those persons certified under subsection 27
(e) of this section from funds available. The allowance shall be paid in equal installments on the 28
payroll frequency used by the employer from which the officer retired." 29
30
CONTINUATION OF SHERIFFS' SUPPLEMENTAL PENSION 31
SECTION 3.1. G.S. 143-166.84 reads as rewritten: 32
"§ 143-166.84. Eligibility. 33
… 34
(a3) A county sheriff who (i) has completed at least 10 years of eligible service as a sheriff, 35
(ii) is at least 55 years of age or who has attained at least 30 years of creditable service regardless 36
of age , and (ii i) has elected to receive a retirement allowance while in service under 37
G.S. 128-27.1(a)(1) is eligible to receive to a monthly supplemental pension benefit under this 38
Article so long as the election to receive a retirement allowance while in service under 39
G.S. 128-27.1(a)(1) has not been subsequently revoked. 40
(b) Each eligible If a retired sheriff as defined in is eligible under subsections (a), (a1), 41
and (a2) of this section relating to age and service shall be entitled to receive a monthly pension 42
benefit under this Article beginning Article, then those monthly benefit payments shall begin 43
with the month immediately following the effective date of retirement. 44
(b2) If a sheriff who is in service is eligible under subsection (a3) of this section to receive 45
a monthly pension benefit under this Article, then those monthly benefit payments shall begin 46
with the month in which the officer elect s to begin receiving the retirement allowance under 47
G.S. 128-27.1(a)(1). 48
…." 49
SECTION 3.2. G.S. 166-85 reads as rewritten: 50
"§ 143-166.85. Benefits. 51
General Assembly Of North Carolina Session 2025
Senate Bill 701-First Edition Page 11
(a) An eligible A retired sheriff entitled to receive a supplemental pension benefit under 1
this Article shall be entitled to and receive an annual pension benefit, payable in equal monthly 2
installments, equal to an amount that, when added to a retired retirement allowance at retirement 3
from the Local Governmental Employees' Retirement System or to the amount he the retired 4
sheriff would have been eligible to receive if service had not been forfeited by the withdrawal of 5
accumulated contributions, is equal to seventy-five percent (75%) of a sheriff's equivalent annual 6
salary immediately preceding retirement computed on the latest monthly base rate, to a maximum 7
amount that does not exceed (i) one thousand five hundred dollars ($1,500) or (ii) the sh eriff's 8
equivalent annual salary immediately preceding retirement computed on the latest monthly base 9
rate when the benefit described in this subsection is added to the amount of the benefit the sheriff 10
receives under G.S. 143-166.42 and the amount of the sheriff's retired retirement allowance at 11
retirement from the Local Governmental Employees' Retirement System or the amount the 12
sheriff would have been eligible to receive if service had not been forfeited by the withdrawal of 13
accumulated contributions. 14
(a1) A sheriff who is still in service and who is entitled to receive a supplemental pension 15
benefit under this Article shall receive an annual pension benefit, payable in equal monthly 16
installments, equal to an amount that, when added to a retirement allo wance from the Local 17
Governmental Employees ' Retirement System is equal to seventy -five percent (75%) of a 18
sheriff's equivalent annual salary immediately preceding the sheriff's election to begin receiving 19
a retirement allowance while in service under G.S. 128-27.1 computed on the latest monthly base 20
rate, to a maximum amount that does not exceed (i) one thousand five hundred dollars ($1,500) 21
or (ii) the sheriff's equivalent annual salary immediately preceding the sheriff's election to begin 22
receiving a retirement allowance while in service under G.S. 128-27.1 computed on the latest 23
monthly base rate when the benefit described in this subsection is added to the amount of the 24
benefit the sheriff receives under G.S. 143-166.42 and the amou nt of the sheriff 's retire ment 25
allowance from the Local Governmental Employees' Retirement System. 26
(b) All monthly pensions pension benefits payable under this Article shall be paid on the 27
last business day of each month. 28
(c) At the death of the pensioner, supplemental pension benefits under this Article for the 29
current calendar year will continue and be paid in monthly installments to the decedent's spouse 30
or estate, in accordance with the provisions of Chapter 28A of the General Statutes. Benefits 31
under this Article will cease upon the last payment being made in December of the current year. 32
(d) Monthly pensions pension benefits payable under this Article will cease upon the at 33
the first occurrence of one of the following: 34
(1) The full-time reemployment of a pensioner with an employer participating in 35
the Local Governmental Employees' Retirement System for as long as the 36
pensioner is so reemployed.reemployed, except under any of the following 37
circumstances: 38
a. The pensioner is reemployed full-time as the sheriff of a county or in 39
a public safety p osition meeting all of the requirements of a public 40
safety position under G.S. 166.42(c)(1). 41
b. The pensioner has elected to receive distributions while in service 42
under G.S. 128-27(a)(2) upon the reemployment. 43
(2) If a pensioner who is in service has elected to receive a retirement allowance 44
under G.S. 128.27.1(a)(1), the revocation of that election. If a sheriff later 45
retires after the revocation and if the sheriff otherwise qualifies for a 46
supplemental pension benefit under this Article, then the sheriff shall be paid 47
the monthly pension benefit as though the sheriff had not previously received 48
the supplemental pension benefit under this Article. 49
…." 50
51
General Assembly Of North Carolina Session 2025
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TECHNICAL AND CONFORMING CHANGES 1
SECTION 4.1. G.S. 135-103 is amended by adding a new subsection to read: 2
"(c) Notwithstanding subsection (a) of this section, any member of the Retirement System 3
that has elected to begin receiving a retirement allowance under G.S. 135-5.6 is ineligible to 4
participate in the Disability Income Plan while receiving a retirement allowance." 5
SECTION 4.2. G.S. 143-166.81(a) is repealed. 6
SECTION 4.3. G.S. 134-166.60(a) reads as rewritten: 7
"(a) A Separate Insurance Benefits Plan, hereinafter called the "Plan", is to be an employee 8
welfare benefit plan, established for the benefit of (i) all law enforcement officers, as defined in 9
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 10
local governments and (ii) all former law-enforcement officers previously employed by the State 11
and local governments, who had 20 or more years of service as an officer or are in receipt of a 12
disability retirement allowance from any State -administered retirement system or are in receipt 13
of a benefit from the Disability Income Plan of North Carolina, who shall be participants." 14
SECTION 4.4.(a) G.S. 143-166.30 is rewritten to read: 15
"§ 143-166.30. Retirement benefits for State law-enforcement officers. 16
(a) Definitions. – The following words and phrases as used definitions apply in this 17
Article, unless a different meaning is plainly required by the context, shall have the following 18
meanings:Article: 19
… 20
(7a) "Plan" means the Supplemental Retirement Income Plan for State Law 21
Enforcement Officers. 22
… 23
(d) Supplemental Retirement Income Plan for State Law-Enforcement Law Enforcement 24
Officers. – As of January 1, 1985, there shall be created a Supplemental Retirement Income Plan, 25
hereinafter called the "Plan," established for the benefit of all law -enforcement All law 26
enforcement officers employed by the State, who shall be participants. The Board of Trustees of 27
the State Retirement System shall administer the Plan and shall, under the terms and conditions 28
otherwise appearing herein, provide Plan benefits either (i) by establishing a separate trust fund 29
in conformance with Section 401(a), Section 401(k) or other sections of the Internal Revenue 30
Code of 1954 as amended or, (ii) by causing the Plan to affiliate with some master trust fund 31
providing the same benefits for participants. The Plan shall be separate and apart from any 32
retirement systems. State are participants in the Supplemental Retirement Inco me Plan as 33
provided by Article 5 of Chapter 135 of the General Statutes. All of the following shall apply: 34
(1) In addition to the contributions transferred from the Law -Enforcement 35
Officers' Retirement System and the contributions otherwise provided for in 36
this Article, participants may make voluntary contributions to the Plan to be 37
credited to the designated individual accounts of participants. 38
(2) All contributions to the Plan shall be credited to the individual accounts of 39
participants, and except as provided in subsection (g1) of this section, shall be 40
fully and immediately vested in the name of the participant, and shall be 41
invested according to each participant's election, as provided by the Board of 42
Trustees, including but not limited to time deposits , and both fixed and 43
variable investments. The Plan may provide for loans to participants, at 44
reasonable rates of interest to be charged, from participants' individual 45
accounts, and may provide for withdrawal of contributions on account of 46
hardship. 47
(3) The benefit to a participant in the Plan shall be either a lump-sum distribution 48
or a distribution in periodic installments of the participant's account payable 49
under retirement, disability, or termination of employment. Upon the death of 50
a participant there shall be paid the same lump -sum distribution or periodic 51
General Assembly Of North Carolina Session 2025
Senate Bill 701-First Edition Page 13
installments to the surviving spouse of the participant or otherwise to the 1
participant's estate; provided, should a participant instruct the Board of 2
Trustees in writing that he the participant does not wish these benefits to be 3
paid to his the participant's spouse or estate, then the benefits shall be paid to 4
the person or persons as the participant may name for this purpose. 5
(4) Upon retirement, retirement or the election to receive a retirement allowance 6
under G.S. 135-5.6(a)(1),a participant in the Plan may elect to transfer any 7
portion of his eligible accumulated contributions, not including any Roth 8
after-tax contributions and the earnings thereon, contributions or earnings, to 9
the Teachers' and State Employees' Retirement System and receive, in 10
addition to his the basic service, early early, or disability retirement allowance 11
allowance, a special retirement allowance which shall be based on his the 12
participant's eligible accumulated account balance at the date of the transfer 13
of the assets. 14
(e) State Contributions to the Supplemental Retirement Income Plan. – Under all other 15
restrictions as are herein provided, the provided for under this section, the foll owing State 16
contributions shall be made: 17
(1) The State shall contribute monthly to the individual accounts of participants 18
who are employed by the State an amount equal to five percent (5%) of the 19
compensation of each participant. The contributions so paid shall be in 20
addition to the contributions on account of court cost assessments as 21
hereinafter provided. 22
(2) Contributions shall be made to the individual accounts of all participants in 23
the Plan on a per capita basis in equal shares, equal to the sum of the one-half 24
dollar ($0.50) for each cost of court assessed and collected under G.S. 7A-304. 25
If a law enforcement officer elects to receive a retirement allowance under 26
G.S. 135-5.6(a)(1), the contributions under this subsection shall cease. 27
…." 28
SECTION 4.4.(b) G.S. 143-166.50(e) reads as rewritten: 29
"(e) Supplemental Retirement Income Plan for Local Governmental Law -Enforcement 30
Officers. – As of January 1, 1986, all All law-enforcement officers employed by a local 31
government employer, are participating members of the Supplemental Retirement Income Plan 32
as provided by Article 5 of Chapter 135 of the General Statutes. In addition to the contributions 33
transferred from the Law -Enforcement Officers' Retirement System, participants may make 34
voluntary contributions to the Supplemental Retirement Income Plan to be credited to the 35
designated individual accounts of participants. From July 1, 1987, until July 1, 1988, local 36
government employers of law enforcement officers shall contribute an amount equal to at least 37
two percent (2%) of participating local officers' monthly compensation to the Supplemental 38
Retirement Income Plan to be credited to the designated individual accounts of participating local 39
officers; and on and after July 1, 1988, local All of the following applies to the Supplemental 40
Retirement Income Plan for Local Government Officers: 41
(1) Local government employers of law enforcement officers shall contribute an 42
amount equal to five percent (5%) of participating local officers' monthly 43
compensation to the Supplemental Retirement Income Plan to be credited to 44
the designated individual accounts of participating local officers. 45
(2) Additional contributions shall also be made to the individual accounts of all 46
participants in the Plan, except for Sheriffs, on a per capita equal -share basis 47
from the sum of one dollar and twenty-five cents ($1.25) for each cost of court 48
collected under G.S. 7A-304. 49
General Assembly Of North Carolina Session 2025
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(3) Contributions under subdivision s (1) and (2) of this subsection shall cease 1
upon the officer 's election to receive a retirement allowance under 2
G.S. 128-27.1(a)(1). 3
(4) Upon retirement, retirement, or the election to receive a retirement allowance 4
under G.S. 128-27.1(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, or earnings, to the Local 7
Governmental Employees' Retirement System and receive, in addition to 8
histhe basic service, early early, or disability retirement allowance allowance, 9
a special retirement allowance which shall be that is based on his the 10
participant's eligible accumulated account balance at the date of the transfer 11
of the assets." 12
13
FUNDS TO ADDRESS INCREASED COSTS 14
SECTION 5.1. Effective July 1, 2025, there is appropriated from the General Fund 15
to the Department of State Treasurer the sum of ten million dollars ($10,000,000) in recurring 16
funds for each year of the 2025-2027 fiscal biennium to be used to address the increased costs as 17
result of the implementation of this Part. 18
19
SEVERABILITY AND EFFECTIVE DATE 20
SECTION 6.1.(a) If any provision of this act or its application is held invalid, the 21
invalidity does not affect other provisions or applications of this act that can be given effect 22
without the invalid provisions or application, and to this end the provisions of this act are 23
severable. 24
SECTION 6.1.(b) If the Internal Revenue Service (IRS) notifies the State Treasurer 25
that one or more provisions of this act is not in compliance with federal law or regulations, then 26
each provision to which the IRS notification pertains shall expire 30 days from receipt of the 27
notification by the State Treasurer. The State Treasurer shall notify the Revisor of Statutes of any 28
IRS notification that requires the expiration of a provision of this act in accordance with this 29
section. 30
SECTION 6.2. All of the following expire on December 31, 2029: 31
(1) G.S. 135-5.6. 32
(2) G.S. 135-3(b1) 33
(3) G.S. 128-27.1. 34
(4) G.S. 128-24(b2). 35
(5) G.S. 143-166.41(a)(2), G.S. 143-166.41(b2)(2), G.S. 143-166.41(c)(3)c., and 36
G.S. 143-166.41(c)(4). 37
(6) G.S. 143-166.42(a)(2), G.S. 143-166.42(b1)(2), G.S. 143-166.42(c)(3)c., and 38
G.S. 143-166.42(c)(4). 39
(7) Subsections (a3) and (b2) of G.S. 143-166.85. 40
(8) G.S. 143-166.85(a1), G.S. 143-166.85(d)(1)b., and G.S. 143-166.85(d)(2). 41
(9) G.S. 135-103(c) 42
SECTION 6.3. This Part becomes effective October 1, 2025. 43
44
PART II. ADDITIONAL SPECIAL SEPARATION A LLOWANCE OPTION FOR 45
STATE AND LOCAL LAW ENFORCEMENT OFFICERS WITH AT L EAST THIRTY 46
YEARS OF CREDITABLE SERVICE 47
SECTION 7.1.(a) G.S. 143-166.41, as amended by Section 2.1(a) of this act, reads 48
as rewritten: 49
"§ 143-166.41. Special separation allowance for State law enforcement officers. 50
… 51
General Assembly Of North Carolina Session 2025
Senate Bill 701-First Edition Page 15
(b1) Eligibility for Allowance.Allowance and Calculation of Allowance Amount. – To be 1
eligible for an allowance under this section, an officer is required to meet all one of the following 2
criteria:sets of criteria that shall also determine the allowance amount 3
(1) For officers eligible under this subsection, t he annual special separation 4
allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the 5
annual base rate of compensation most recently applicable to the officer for 6
each year of that officer's creditable service , except if an officer in service 7
elected to receive a retirement allowance as provided for under 8
G.S. 135-5.6(a)(1). For an officer in service who elected to receive a 9
retirement allowance under G.S. 135-5.6(a)(1), the amount of the allowance 10
is equal to eighty-five hundredths percent (0.85%) of the annual equivalent of 11
the base rate of compensation and years of creditable service applicable to the 12
officer at the time the officer makes the election to receive the allowance under 13
G.S. 135-5.6. To be eligible for an allowance under this subdivision, all of the 14
follow shall apply: 15
a. The officer (i) has completed 30 or more years of creditable service or 16
(ii) is 55 years of age or older and completed five or more years of 17
creditable service. 18
(2)b. The officer is less than 62 years of age. 19
(3)c. The officer has completed at least five years of continuous service as 20
a law enforcement officer immediately preceding the officer's service 21
retirement. Any break in this required cont inuous service that is a 22
result of disability retirement or disability salary continuation benefits 23
shall not adversely affect an officer's qualification to receive an 24
allowance under this subdivision so long as the officer returned to 25
service within 45 da ys after the disability benefits had ceased and is 26
otherwise qualified to receive the allowance. 27
(4)d. At least fifty percent (50%) of the officer's creditable service is as a 28
law enforcement officer, or for service prior to July 1, 2017, as a 29
probation/parole officer. 30
(2) For officers meeting all of the following criteria, the annual special separation 31
allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the 32
annual equivalent of the base rate of compensation at the time th e officer 33
attained 30 years of service multiplied by 30: 34
a. Prior to attaining 62 years of age, the officer has completed 30 or more 35
years of creditable service, at least fifty percent (50%) of which was 36
as a law enforcement officer or, for service prior t o July 1, 2017, as a 37
probation/parole officer. 38
b. The officer has completed at least five years of continuous service as 39
a law enforcement officer immediately preceding the officer's service 40
retirement. Any break in this required continuous service that is a 41
result of disability retirement or disability salary continuation benefits 42
shall not adversely affect an officer 's qualification to receive an 43
allowance under this subdivision so long as the officer returned to 44
service within 45 days after the disabilit y benefits had ceased and is 45
otherwise qualified to receive the allowance. 46
If an officer meets all of the criteria under each subdivision of this subsection, then the 47
employer making the allowance payments shall allow the officer to choose which of the two 48
calculation formulas to use for that officer's allowance. This election by the officer is a one-time, 49
irrevocable election and shall be made prior to the first allowance payment. If no election is made 50
by the officer, then the calculation amount under subdivision (2) of this subsection shall be used. 51
General Assembly Of North Carolina Session 2025
Page 16 Senate Bill 701-First Edition
(b2) Allowance Amount. – The amount of the allowance under this section shall be 1
calculated as follows: 2
(1) For retired officers, the amount of the allowance is equal to eighty -five 3
hundredths percent (0.85%) of the annual equivalent of the base rate of 4
compensation most recently applicable to the officer for each year of 5
creditable service. 6
(2) For officers in service who have elected to receive a retirement allowance as 7
provided for under G.S. 135-5.6(a)(1), the amount of the allowance is equal 8
to eighty-five hundredths percent (0.85%) of the annual equivalent of the base 9
rate of compensation and years of creditable service applicable to the officer 10
at the time the officer makes the election to receive the all owance under 11
G.S. 135-5.6. 12
(c) Cessation of Payment. – Payment of the allowance to a retired officer under the 13
provisions of this section shall cease at the first occurrence of one of the following: 14
(1) The death of the officer. 15
(2) The last day of the month in which either of the following applies: 16
a. If the officer is receiving an allowance in an amount determined under 17
subdivision (b1)(1) of this section, the officer attains 62 years of age; 18
orage. 19
b. If the officer is receiving an allowance in an amount determined under 20
subdivision (b1)(2) of this section, there has been a period of receiving 21
the allowance that is equivalent to the total of 62 years minus the age 22
at which the officer first completed 30 years of creditable service. 23
…." 24
SECTION 7.1.(b) G.S. 143-166.42, as amended by Section 2.1.(b) of this act, reads 25
as rewritten: 26
"§ 143-166.42. Special separation allowances for local law enforcement officers. 27
… 28
(a1) Eligibility for Allowance. Allowance and Calculation of Allowance Amount. – To 29
qualify for the allowance, the officer shall meet all one of the following criteria:sets of criteria, 30
which shall also determine the allowance amount: 31
(1) For officers eligible under this subsection, the annual special separation 32
allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the 33
annual base rate of compensation most recently applicable to the officer for 34
each year of that officer 's creditable service, except if an officer in service 35
elected to receive a retirement allowance as provide d for under 36
G.S. 128-27.1(a)(1). For an officer in service who elected to receive a 37
retirement allowance under G.S. 128-27.1(a)(1), the amount of the allowance 38
is equal to eighty-five hundredths percent (0.85%) of the annual equivalent of 39
the base rate of compensation and years of creditable service applicable to the 40
officer at the time the officer makes the election to receive the allowance under 41
G.S. 128-27.1. To be eligible for an allowance under this subdivision, all of 42
the follow shall apply: 43
a. The officer has (i) completed 30 or more years of creditable service or 44
(ii) is 55 years of age or older and has completed five or more years of 45
creditable service. 46
(2)b. The officer is less than 62 years of age. 47
(3)c. The officer has completed at least five y ears of continuous service as 48
a law enforcement officer immediately preceding a service retirement. 49
Any break in this required continuous service that is a result of 50
disability retirement or disability salary continuation benefits shall not 51
General Assembly Of North Carolina Session 2025
Senate Bill 701-First Edition Page 17
adversely affec t an officer's qualification to receive the allowance, 1
provided the officer returns to service within 45 days after the 2
disability benefits cease and is otherwise qualified to receive the 3
allowance. 4
(4)d. At least fifty percent (50%) of the officer's credi table service is as a 5
law enforcement officer. 6
(2) For officers meeting all of the following criteria, the annual special separation 7
allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the 8
annual equivalent of the base rate of compen sation at the time the officer 9
attained 30 years of service multiplied by 30: 10
a. Prior to attaining 62 years of age, the officer has completed 30 or more 11
years of creditable service, at least fifty percent (50%) of which was 12
as a law enforcement officer. 13
b. The officer has completed at least five years of continuous service as 14
a law enforcement officer immediately preceding the officer's service 15
retirement. Any break in this required continuous service that is a 16
result of disability retirement or disability salary continuation benefits 17
shall not adversely affect an officer 's qualification to receive an 18
allowance under this subdivision so long as the officer returned to 19
service within 45 days after the disability benefits had ceased and is 20
otherwise qualified to receive the allowance. 21
If an officer meets all of the criteria under each subdivision of this subsection, then the 22
employer making the allowance payments shall allow the officer to choose which of the two 23
calculation formulas to use for that officer's allowance. This election by the officer is a one-time, 24
irrevocable election and shall be made prior to the first allowance payment. If no election is made 25
by the officer, then the calculation amount under subdivision (2) of this subsection shall be used. 26
… 27
(b1) Calculation of Allowance Amount. – The amount of the allowance under this section 28
shall be calculated as follows: 29
(1) For retired officers the amount of the allowance is equal to eighty -five 30
hundredths percent (0.85%) of the annual equivalent of the base rate of 31
compensation most recently applicable to the officer for each year of 32
creditable service. 33
(2) For officers in service who have elected to receive a retirement allowance as 34
provided for under G.S. 128-27.1(a)(1), the amount of the allowance is equal 35
to eighty-five hundredths percent (0.85%) of the annual equivalent of the base 36
rate of compensation and years of creditable service applicable to the officer 37
at the time the officer makes the election to receive the allowance under 38
G.S. 128-27.1. 39
(c) Cessation of Payment. – Payment of the allowance to a retired officer under the 40
provisions of this section shall cease at the first occurrence of any of the following: 41
(1) The death of the officer. 42
(2) The last day of the month in which either of the following applies: 43
a. If the officer is receiving an allowance in an amount determined under 44
subdivision (b1)(1) of this section, the officer attains 62 years of age; 45
orage. 46
b. If the officer is receiving an allowance in an amount determined under 47
subdivision (b1)(2) of this section, there has been a period of receiving 48
the allowance that is equivalent to the total of 62 years minus the age 49
at which the officer first completed 30 years of creditable service. 50
…." 51
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SECTION 7.1.(c) This section becomes effective October 1, 2025, and applies to 1
law enforcement officers retiring on or after that date. 2
3
PART III. EFFECTIVE DATE. 4
SECTION 8.1. Except as otherwise provided, this act is effective when it becomes 5
law. 6