GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 1 SENATE BILL 302 Short Title: The Sergeant Mickey Hutchens Act. (Public) Sponsors: Senators Hanig, Jones, and Hise (Primary Sponsors). Referred to: Rules and Operations of the Senate March 18, 2025 *S302 -v-1* A BILL TO BE ENTITLED 1 AN ACT TO ALLOW LAW ENFORCEMENT, PROBATI ON/PAROLE, AND 2 CORRECTIONAL OFFICER S WHO HOLD AN ADVANC ED LAW ENFORCEMENT 3 OR CORRECTIONS CERTIFICATE ISSUED BY THE NORTH CAROLINA CRIM INAL 4 JUSTICE EDUCATION AN D TRAINING STANDARDS COMMISSION OR THE 5 ADVANCED LAW ENFORCE MENT CERTIFICATE ISS UED BY THE NORTH 6 CAROLINA SHERIFFS' EDUCATION AND TRAININ G STANDARDS COMMISSI ON 7 TO PURCHASE, AT FULL COST, UP TO FOUR YEARS' CREDITABLE SERVICE IN 8 THE TEACHERS' AND ST ATE EMPLOYEES' RETIR EMENT SYSTEM OR THE 9 LOCAL GOVERNMENTAL EMPLO YEES' RETIREMENT SYSTEM. 10 The General Assembly of North Carolina enacts: 11 SECTION 1.(a) G.S. 135-4.5 is amended by adding a new subsection to read: 12 "(h) Purchases of Service Credit for Advanced Law Enforcement or Advanced 13 Corrections Certificates. – Notwithstanding any other provision of this Article to the contrary, a 14 member in service with five or more years of membership service who has been awarded either 15 (i) the Advanced Law Enforcement Certificate issued by either the North Carolina Criminal 16 Justice Education and Training Standards Commission under the authority granted under Chapter 17 17C of the General Statutes or the North Carolina Sheriffs' Education and Training Standards 18 Commission under the authority granted under Chapter 17E of the General Statutes or (ii) the 19 Advanced Corrections Certificate issued by the North Carolina Criminal Justice Education and 20 Training Standards Commission under the authority granted under Chapter 17C of the General 21 Statutes may purchase creditable service subject to all of the following: 22 (1) The member may purchase up to a total of four years of creditable service 23 under this subsection. 24 (2) Service may only be purchased under this subsection upon or after receipt of 25 the applicable certificate. 26 (3) G.S. 135-4(b) does not apply to purchases under this subsection. 27 (4) Purchases of service under this subsection shall be made by paying a lump 28 sum amount to the Annuity Savings Fund. Purchases shall not be associated 29 with any specific compensation or period of time. The amount payable shall 30 be equal to the full liability increase of the Retirement System due to the 31 additional service credits purchased plus an administrative fee that is set by 32 the Board of Trustees. The full liability increase shall be calculated on the 33 basis of the same assumptions used for the purposes of the actuarial valuation 34 of the liabilities of the Retirement System, except for the following 35 assumptions specific to this calculation: (i) the allowance shall be assumed to 36 General Assembly Of North Carolina Session 2025 Page 2 Senate Bill 302-First Edition commence at the earliest age at which the member could retire on an 1 unreduced retirement allowance and (ii) there shall be assumed annual 2 postretirement allowance increases set by the Board of Trustees upon the 3 advice of the consulting actuary. 4 (5) An employer may pay all or part of the cost of a purchase of service under this 5 subsection. To the extent that the purchase is paid by the employer, the amount 6 paid by the employer shall be credited to the Pension Accumulation Fund. To 7 the extent that the purchase is paid by the member, the amount paid by the 8 member shall be credited to the member's accumulated contributions and 9 interest in the Annuity Savings Fund." 10 SECTION 1.(b) G.S. 135-4(b) reads as rewritten: 11 "(b) In Unless specifically provided under G.S. 135-4.5, in no case shall more than one 12 year of service be creditable for all services in one year. Service rendered for the regular school 13 year in any district shall be equivalent to one year's service. Service rendered by a school 14 employee in a job-sharing position shall be credited at the rate of one-half year for each regular 15 school year of employment." 16 SECTION 2.(a) G.S. 128-26.5 is amended by adding a new subsection to read: 17 "(h) Purchases of Service Credit for Advanced Law Enforcement Certificate. – 18 Notwithstanding any other provision of this Article to the contrary, a member in service with five 19 or more years of membership service who has been awarded the Advanced Law Enforcement 20 Certificate issued by either the North Carolina Criminal Justice Education and Training 21 Standards Commission under the authority granted under Chapter 17C of the General Statutes or 22 the North Carolina Sheriffs' Education and Training Standards Commission under the authority 23 granted under Chapter 17E of the General Statutes may purchase creditable service subject to all 24 of the following: 25 (1) The member may purchase up to a total of four years of creditable service 26 under this subsection. 27 (2) Service may only be purchased under this subsection upon or after receipt of 28 the applicable certificate. 29 (3) G.S. 128-26(b) does not apply to purchases under this subsection. 30 (4) Purchases of service under this subsection shall be made by paying a lump 31 sum amount to the Annuity Savings Fund. Purchases shall not be associated 32 with any specific compensation or period of time. The amount payable shall 33 be equal to the full liability increase of the Retirement System due to the 34 additional service credits purchased plus an administrative fee that is set by 35 the Board of Trustees. The full liability increase shall be calculated on the 36 basis of the same assumptions used for the purposes of the actuarial valuation 37 of the liabilities of the Retirement System, except for the following 38 assumptions specific to this calculation: (i) the allowance shall be assumed to 39 commence at the earliest age at which the member could retire on an 40 unreduced retirement allowance and (ii) there shall be assumed annual 41 postretirement allowance increases set by the Board of Trustees upon the 42 advice of the consulting actuary. 43 (5) An employer may pay all or part of the cost of a purchase of service under this 44 subsection. To the extent that the purchase is paid by the employer, the amount 45 paid by the employer shall be credited to the Pension Accumulation Fund. To 46 the extent that the purchase is paid by the member, the amount paid by the 47 member shall be credited to the member's accumulated contributions and 48 interest in the Annuity Savings Fund." 49 SECTION 2.(b) G.S. 128-26(b) reads as rewritten: 50 General Assembly Of North Carolina Session 2025 Senate Bill 302-First Edition Page 3 "(b) In Unless specifically provided under G.S. 128-26.5, in no case shall more than one 1 year of service be creditable for all service in one calendar year." 2 SECTION 3. This act becomes effective July 1, 2025. 3