Bill > S701

This bill creates innovative retirement options for state and local law enforcement officers, allowing them to receive retirement benefits while continuing to work. Specifically, the bill enables law enforcement officers who are 59.5 years or older to elect to receive retirement benefits without fully separating from service, and also allows retired officers who have been separated from service for at least six months to return to work while continuing to receive their retirement allowance. The bill introduces two calculation methods for special separation allowances for officers with 30 or more years of creditable service, giving them a choice between calculating their allowance based on their most recent compensation or based on their compensation at 30 years of service. Key provisions include maintaining retirement benefits during continued employment, ceasing certain state and employer contributions upon retirement election, and preserving death and other benefits. The bill includes provisions to ensure compliance with Internal Revenue Service regulations and includes sunset provisions for these new retirement options, which will expire on December 31, 2029. To help cover the increased costs of these changes, the bill appropriates $10 million annually from the General Fund to the Department of State Treasurer. The changes aim to provide more flexible retirement options for law enforcement officers while maintaining the fiscal integrity of the retirement system.

https://www.ncleg.gov/BillLookUp/2025/S701