North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S320 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 320
	3	+	S D
	4	+	SENATE BILL DRS45170-MRp-13B
	5	+
5	6
6	7
7	8		Short Title: LEO Special Separation Allowance Options. (Public)
8	9		Sponsors: Senators Berger, Sawyer, and Ford (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 18, 2025~~
11		-	~~S320 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS45170 -MRp-13B
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT PROVIDING AN ADDITIONAL SPECIAL SEPARATION ALLOWANCE OPTION 2
14	15		FOR STATE AND LOCAL LAW ENFORCEMENT OFFICERS WITH AT LEAST 3
15	16		THIRTY YEARS OF CREDITABLE SERVICE. 4
16	17		The General Assembly of North Carolina enacts: 5
17	18		SECTION 1. G.S. 143-166.41 reads as rewritten: 6
18	19		"§ 143-166.41. Special separation allowance.allowance options for State law enforcement 7
19	20		officers. 8
20	21		(a) Annual Special Separation Allowance. – Notwithstanding any other provision of law, 9
21	22		every sworn law-enforcement officer as defined by G.S. 135-1(11c) or G.S. 143-166.30(a)(4) 10
22	23		employed by a State department, agency, or institution who qualifies under this section shall 11
23	24		receive, receive an annual special separation allowance beginning in the month in which he the 12
24	25		officer retires on a basic service retirement under the provisions of G.S. 135-5(a), an annual 13
25	26		separation allowance equal to eighty-five hundredths percent (0.85%) of the annual equivalent 14
26	27		of the base rate of compensation most recently applicable to him for each year of creditable 15
27	28		service. G.S. 135-5(a). The allowance shall be paid in equal installments on the payroll frequency 16
28	29		used by the employer. To qualify for the allowance the officer shall: 17
29	30		(1) Have (i) completed 30 or more years of creditable service or, (ii) have attained 18
30	31		55 years of age and completed five or more years of creditable service; and 19
31	32		(2) Not have attained 62 years of age; and 20
32	33		(3) Have completed at least five years of continuous service as a law enforcement 21
33	34		officer as herein defined immediately preceding a service retirement. Any 22
34	35		break in the continuous service required by this subsection because of 23
35	36		disability retirement or disability salary continuation benefits shall not 24
36	37		adversely affect an officer's qualification to receive the allowance, provided 25
37	38		the officer returns to service within 45 days after the disability benefits cease 26
38	39		and is otherwise qualified to receive the allowance.employer from which the 27
39	40		officer retired. 28
40	41		(a1) Repealed by Session Laws 2014-88, s. 3(j), effective July 30, 2014. 29
41	42		(b) As used in this section, "creditable service" means the Definitions. – The following 30
42	43		definitions apply in this section: 31
43	44		(1) Allowance. – The annual special separation allowance for State law 32
44	45		enforcement officers provided for under this section. 33
45	46		(2) Creditable service. – The service for which credit is allowed under the 34
46		-	retirement system of which the officer is a member, provided that at least fifty 35 General Assembly Of North Carolina Session 2025
47		-	Page 2 Senate Bill 320-First Edition
	47	+	retirement system of which the officer is a member, provided that at least fifty 35
	48	+	FILED SENATE
	49	+	Mar 17, 2025
	50	+	S.B. 320
	51	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRS45170-MRp-13B
48	53		percent (50%) of the service is as a law enforcement officer as herein defined 1
49	54		or as a probation/parole officer as defined in G.S. 135-1(17a).officer. 2
50	55		(3) Law enforcement officer. – As defined in either G.S. 135-1 or 3
51	56		G.S. 143-166.30(a). 4
52	57		(4) Officer. – A law enforcement officer. 5
53	58		(5) Probation/parole officer. – As defined in G.S. 135-1. 6
54	59		(b1) Eligibility for Allowance and Calculation of Allowance Amount. – To be eligible for 7
55	60		an allowance under this section, an officer is required to meet one of the following sets of criteria 8
56	61		that shall also determine the allowance amount: 9
57	62		(1) For officers meeting all of the following criteria, the annual special separation 10
58	63		allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the 11
59	64		annual base rate of compensation most recently applicable to the officer for 12
60	65		each year of that officer's creditable service: 13
61	66		a. The officer (i) has completed 30 or more years of creditable service or 14
62	67		(ii) is 55 years of age or older and completed five or more years of 15
63	68		creditable service. 16
64	69		b. The officer is less than 62 years of age. 17
65	70		c. The officer has completed at least five years of continuous service as 18
66	71		a law enforcement officer immediately preceding the officer's service 19
67	72		retirement. Any break in this required continuous service that is a 20
68	73		result of disability retirement or disability salary continuation benefits 21
69	74		shall not adversely affect an officer's qualification to receive an 22
70	75		allowance under this subdivision so long as the officer returned to 23
71	76		service within 45 days after the disability benefits had ceased and is 24
72	77		otherwise qualified to receive the allowance. 25
73	78		(2) For officers meeting all of the following criteria, the annual special separation 26
74	79		allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the 27
75	80		annual equivalent of the base rate of compensation at the time the officer 28
76	81		attained 30 years of service multiplied by 30: 29
77	82		a. The officer has completed 30 or more years of creditable service prior 30
78	83		to attaining 62 years of age. 31
79	84		b. The officer has completed at least five years of continuous service as 32
80	85		a law enforcement officer immediately preceding the officer's service 33
81	86		retirement. Any break in this required continuous service that is a 34
82	87		result of disability retirement or disability salary continuation benefits 35
83	88		shall not adversely affect an officer's qualification to receive an 36
84	89		allowance under this subdivision so long as the officer returned to 37
85	90		service within 45 days after the disability benefits had ceased and is 38
86	91		otherwise qualified to receive the allowance. 39
87	92		If an officer meets all of the criteria under each subdivision of this subsection, then the 40
88	93		employer making the allowance payments shall allow the officer to choose which of the two 41
89	94		calculation formulas to use for that officer's allowance. This election by the officer is a one-time, 42
90	95		irrevocable election and shall be made prior to the first allowance payment. If no election is made 43
91	96		by the officer, then the calculation amount under subdivision (2) of this subsection shall be used. 44
92	97		(c) Cessation of Payment. – Payment of the allowance to a retired officer under the 45
93	98		provisions of this section shall cease at the first of:occurrence of one of the following: 46
94	99		(1) The death of the officer;officer. 47
95	100		(2) The last day of the month in which either of the following applies: 48
96	101		a. If the officer is receiving an allowance in an amount determined under 49
97	102		subdivision (b1)(1) of this section, the officer attains 62 years of age; 50
98	103		orage. 51 General Assembly Of North Carolina Session 2025
99		-	~~Senate Bill 320-First Edition~~ Page 3
	104	+	DRS45170-MRp-13B Page 3
100	105		b. If the officer is receiving an allowance in an amount determined under 1
101	106		subdivision (b1)(2) of this section, there has been a period of receiving 2
102	107		the allowance that is equivalent to the total of 62 years minus the age 3
103	108		at which the officer first completed 30 years of creditable service. 4
104	109		(3) The first day of reemployment by any State department, agency, or institution, 5
105	110		except that this subdivision does not apply to an officer returning to State 6
106	111		employment in a position exempt from the North Carolina Human Resources 7
107	112		Act in an agency other than the agency from which that officer retired. 8
108	113		(d) Impact of Other Benefits or Actions. – This section does not affect the benefits to 9
109	114		which an individual may be entitled from State, federal, or private retirement systems. The 10
110	115		benefits payable under this section shall not be subject to any increases in salary or retirement 11
111	116		allowances that may be authorized by the General Assembly for employees of the State or retired 12
112	117		employees of the State. 13
113	118		(e) Eligibility Determinations. – The head of each State department, agency, or institution 14
114	119		shall determine the eligibility of employees for the benefits provided herein.under this section. 15
115	120		(f) Transfer of Funds. – The Director of the Budget may authorize from time to time the 16
116	121		transfer of funds within the budgets of each State department, agency, or institution necessary to 17
117	122		carry out the purposes of this Article. section. These funds shall be taken from those funds 18
118	123		appropriated to the department, agency, or institution for salaries and related fringe benefits. 19
119	124		(g) Responsibility for Payment. – The head of each State department, agency, or 20
120	125		institution shall make the payments set forth in subsection (a) this section to those persons 21
121	126		certified under subsection (e) of this section from funds available under subsection (f).(f) of this 22
122	127		section." 23
123	128		SECTION 2. G.S. 143-166.42 reads as rewritten: 24
124	129		"§ 143-166.42. Special separation allowances allowance options for local law enforcement 25
125	130		officers. 26
126	131		(a) Annual Special Separation Allowance. – On and after January 1, 1987, every sworn 27
127	132		law enforcement officer as defined by G.S. 128-21(11d) or G.S. 143-166.50(a)(3) employed by 28
128	133		a local government employer who qualifies under this section shall receive, receive an annual 29
129	134		special separation allowance beginning in the month in which the officer retires on a basic service 30
130	135		retirement under the provisions of G.S. 128-27(a), an annual separation allowance equal to 31
131	136		eighty-five hundredths percent (0.85%) of the annual equivalent of the base rate of compensation 32
132	137		most recently applicable to the officer for each year of creditable service. G.S. 128-27(a). The 33
133	138		allowance shall be paid in equal installments on the payroll frequency used by the employer. To 34
134	139		qualify for the allowance, the officer shall: 35
135	140		(1) Have (i) completed 30 or more years of creditable service or (ii) have attained 36
136	141		55 years of age and completed five or more years of creditable service; and 37
137	142		(2) Not have attained 62 years of age; and 38
138	143		(3) Have completed at least five years of continuous service as a law enforcement 39
139	144		officer as herein defined immediately preceding a service retirement. Any 40
140	145		break in the continuous service required by this subsection because of 41
141	146		disability retirement or disability salary continuation benefits shall not 42
142	147		adversely affect an officer's qualification to receive the allowance, provided 43
143	148		the officer returns to service within 45 days after the disability benefits cease 44
144	149		and is otherwise qualified to receive the allowance.employer from which the 45
145	150		officer retired. 46
146	151		(b) As used in this section, "creditable service" means the service Definitions. – The 47
147	152		following definitions apply in this section: 48
148	153		(1) Allowance. – The annual special separation allowance for local law 49
149	154		enforcement officers provided for under this section. 50 General Assembly Of North Carolina Session 2025
150		-	Page 4 ~~Senate Bill 320-First Edition~~
	155	+	Page 4 DRS45170-MRp-13B
151	156		(2) Creditable service. – The service for which credit is allowed under the 1
152	157		retirement system of which the officer is a member, provided that at least fifty 2
153	158		percent (50%) of the service is as a law enforcement officer as herein 3
154	159		defined.officer. 4
155	160		(3) Law enforcement officer. – As defined in G.S. 128-21 or G.S. 143-166.50(a). 5
156	161		(4) Officer. – Law enforcement officer. 6
157	162		(b1) Qualification for Allowance and Calculation of Allowance. – To be eligible for an 7
158	163		allowance under this section, an officer is required to meet one of the following sets of criteria, 8
159	164		which shall also determine the allowance amount: 9
160	165		(1) For officers meeting all of the following criteria, the annual special separation 10
161	166		allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the 11
162	167		annual base rate of compensation most recently applicable to the officer for 12
163	168		each year of that officer's creditable service: 13
164	169		a. The officer (i) has completed 30 or more years of creditable service or 14
165	170		(ii) is 55 years of age or older and completed five or more years of 15
166	171		creditable service. 16
167	172		b. The officer is less than 62 years of age. 17
168	173		c. The officer has completed at least five years of continuous service as 18
169	174		a law enforcement officer immediately preceding the officer's service 19
170	175		retirement. Any break in this required continuous service that is a 20
171	176		result of disability retirement or disability salary continuation benefits 21
172	177		shall not adversely affect an officer's qualification to receive an 22
173	178		allowance under this subdivision so long as the officer returned to 23
174	179		service within 45 days after the disability benefits had ceased and is 24
175	180		otherwise qualified to receive the allowance. 25
176	181		(2) For officers meeting all of the following criteria, the annual special separation 26
177	182		allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the 27
178	183		annual equivalent of the base rate of compensation at the time the officer 28
179	184		attained 30 years of service multiplied by 30: 29
180	185		a. The officer has completed 30 or more years of creditable service prior 30
181	186		to attaining 62 years of age. 31
182	187		b. The officer has completed at least five years of continuous service as 32
183	188		a law enforcement officer immediately preceding the officer's service 33
184	189		retirement. Any break in this required continuous service that is a 34
185	190		result of disability retirement or disability salary continuation benefits 35
186	191		shall not adversely affect an officer's qualification to receive an 36
187	192		allowance under this subdivision so long as the officer returned to 37
188	193		service within 45 days after the disability benefits had ceased and is 38
189	194		otherwise qualified to receive the allowance. 39
190	195		If an officer meets all of the criteria under each subdivision of this subsection, then the 40
191	196		employer making the allowance payments shall allow the officer to choose which of the two 41
192	197		calculation formulas to use for that officer's allowance. This election by the officer is a one-time, 42
193	198		irrevocable election and shall be made prior to the first allowance payment. If no election is made 43
194	199		by the officer, then the calculation amount under subdivision (2) of this subsection shall be used. 44
195	200		(c) Cessation of Payment. – Payment of the allowance to a retired officer under the 45
196	201		provisions of this section shall cease at the first of:occurrence of one of the following: 46
197	202		(1) The death of the officer;officer. 47
198	203		(2) The last day of the month in which either of the following applies: 48
199	204		a. If the officer is receiving an allowance in an amount determined under 49
200	205		subdivision (b1)(1) of this section, the officer attains 62 years of age; 50
201	206		orage. 51 General Assembly Of North Carolina Session 2025
202		-	~~Senate Bill 320-First Edition~~ Page 5
	207	+	DRS45170-MRp-13B Page 5
203	208		b. If the officer is receiving an allowance in an amount determined under 1
204	209		subdivision (b1)(2) of this section, there has been a period of receiving 2
205	210		the allowance that is equivalent to the total of 62 years minus the age 3
206	211		at which the officer first completed 30 years of creditable service. 4
207	212		(3) The first day of reemployment by a local government employer in any 5
208	213		capacity. 6
209	214		(c1) Exceptions to the Cessation of Payments. – Notwithstanding the provisions of 7
210	215		subdivision (3) of subsection (c) of this section, payments to a retired officer shall not cease when 8
211	216		a local government employer employs a retired officer for any of the following:in any of the 9
212	217		following manners: 10
213	218		(1) In a public safety position in a capacity not requiring participation in the Local 11
214	219		Governmental Employees' Retirement System. 12
215	220		(2) In service to a county board of elections on an election day or during the hours 13
216	221		for early voting under Part 5 of Article 14A of Chapter 163 of the General 14
217	222		Statutes in a capacity that complies with G.S. 128-21(19) and does not result 15
218	223		in cessation or suspension of the retiree's benefit from the Local Government 16
219	224		Employees' Retirement System. 17
220	225		(d) Impact of Other Benefits or Actions. – This section does not affect the benefits to 18
221	226		which an individual may be entitled from State, local, federal, or private retirement systems. The 19
222	227		benefits payable under this section shall not be subject to any increases in salary or retirement 20
223	228		allowances that may be authorized by local government employers or for retired employees of 21
224	229		local governments. 22
225	230		(e) Eligibility Determinations. – The governing body of each local employer shall 23
226	231		determine the eligibility of employees for the benefits provided herein.under this section. 24
227	232		(f) Responsibility for Payment. – The governing body of each local employer shall make 25
228	233		the payments set forth in subsection (a) of this section to those persons certified under subsection 26
229	234		(e) of this section from funds available." 27
230	235		SECTION 3. This act becomes effective July 1, 2025, and applies to law 28
231	236		enforcement officers retiring on or after that date. 29