North Carolina HB 50: Law Enforcement Officers Special Separation Allowance Options.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025

SESSION LAW 2025-8
HOUSE BILL 50

*H50-v-4*
AN ACT PROVIDING AN ADDITIONAL SPECIAL SEPARATION ALLOWANCE OPTION
FOR STATE AND LOCAL LAW ENFORCEMENT OFFICERS WITH AT LEAST
THIRTY YEARS OF CREDITABLE SERVICE.

The General Assembly of North Carolina enacts:

SECTION 1. G.S. 143-166.41 reads as rewritten:
"§ 143-166.41. Special separation allowance.allowance options for State law enforcement
officers.
(a) Annual Special Separation Allowance. – Notwithstanding any other provision of law,
every sworn law-enforcement officer as defined by G.S. 135-1(11c) or G.S. 143-166.30(a)(4)
employed by a State department, agency, or institution who qualifies under this section shall
receive, receive an annual special separation allowance beginning in the month in which he the
officer retires on a basic service retirement under the provisions of G.S. 135-5(a), an annual
separation allowance equal to eighty-five hundredths percent (0.85%) of the annual equivalent
of the base rate of compensation most recently applicable to him for each year of creditable
service. G.S. 135-5(a). The allowance shall be paid in equal installments on the payroll frequency
used by the employer. To qualify for the allowance the officer shall:
(1) Have (i) completed 30 or more years of creditable service or, (ii) have attained
55 years of age and completed five or more years of creditable service; and
(2) Not have attained 62 years of age; and
(3) Have completed at least five years of continuous service as a law enforcement
officer as herein defined immediately preceding a service retirement. Any
break in the continuous service required by this subsection because of
disability retirement or disability salary continuation benefits shall not
adversely affect an officer's qualification to receive the allowance, provided
the officer returns to service within 45 days after the disability benefits cease
and is otherwise qualified to receive the allowance.employer from which the
officer retired.
(a1) Repealed by Session Laws 2014-88, s. 3(j), effective July 30, 2014.
(b) As used in this section, "creditable service" means the Definitions. – The following
definitions apply in this section:
(1) Allowance. – The annual special separation allowance for State law
enforcement officers provided for under this section.
(2) Creditable service. – The service for which credit is allowed under the
retirement system of which the officer is a member, provided that at least fifty
percent (50%) of the service is as a law enforcement officer as herein defined
or as a probation/parole officer as defined in G.S. 135-1(17a).member.
(3) Law enforcement officer. – As defined in either G.S. 135-1 or
G.S. 143-166.30(a).
(4) Officer. – A law enforcement officer.
(5) Probation/parole officer. – As defined in G.S. 135-1.

Page 2 Session Law 2025-8 House Bill 50
(b1) Eligibility for Allowance and Calculation of Allowance Amount. – To be eligible for
an allowance under this section, an officer is required to meet one of the following sets of criteria
that shall also determine the allowance amount:
(1) For officers meeting all of the following criteria, the annual special separation
allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the
annual base rate of compensation most recently applicable to the officer for
each year of that officer's creditable service:
a. The officer (i) has completed 30 or more years of creditable service or
(ii) is 55 years of age or older and completed five or more years of
creditable service.
b. The officer is less than 62 years of age.
c. The officer has completed at least five years of continuous service as
a law enforcement officer immediately preceding the officer's service
retirement. Any break in this required continuous service that is a
result of disability retirement or disability salary continuation benefits
shall not adversely affect an officer's qualification to receive an
allowance under this subdivision so long as the officer returned to
service within 45 days after the disability benefits had ceased and is
otherwise qualified to receive the allowance.
d. At least fifty percent (50%) of the officer's creditable service is as a
law enforcement officer, or for service prior to July 1, 2017, as a
probation/parole officer.
(2) For officers meeting all of the following criteria, the annual special separation
allowance to be paid is equal to eighty-five hundredths percent (0.85%) of the
annual equivalent of the base rate of compensation at the time the officer
attained 30 years of service multiplied by 30:
a. Prior to attaining 62 years of age, the officer has completed 30 or more
years of creditable service, at least fifty percent (50%) of which was
as a law enforcement officer, or for service prior to July 1, 2017, as a
probation/parole officer.
b. The officer has completed at least five years of continuous service as
a law enforcement officer immediately preceding the officer's