SB 707 — 25-Year LEO Retirement With Full Benefits.

FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA MarSESSION 25, 2025 S.B.S 1 SENATE BILL 707 Short Title:

707 SESSION 2025 PRINCIPAL CLERK S D SENATE BILL DRS15302-MRp-92A Short Title:

Rules and Operations of the Senate March 26, 2025 A BILL TO BE ENTITLED AN ACT ALLOWING LAW ENFORCEMENT OFFICERS WHO ARE MEMBERS OF THE TEACHERS' AND STATE EMPLOYEES' RETIREMENT SYSTEM OR THE LOCAL GOVERNMENTAL EMPLOYEES' RETIREMENT SYSTEM TO RETIRE WITH UNREDUCED BENEFITS AFTER ACHIEVING TWENTY-FIVE YEARS OF CREDITABLE SERVICE AND MAKING CONFORMING CHANGES TO THE RELATED LAWS.

"(4) Any member who is a law-enforcement officer and who (i) attains age 50 and completes 15 or more years of creditable service in this capacity, (ii) attains age 55 and completes five or more years of creditable service in this capacity, or (iii) has completed 25 years of creditable service with a minimum of 15 years of creditable service in a law enforcement capacity may retire upon electronic submission or written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month, not less than one daydaynor nor more than 120 days subsequent to the execution and filing thereof, the member desires to be retired;

*DRS15302-MRp-92A**S707-v-1* General Assembly Of North Carolina Session 2025 (1) A member who is a law enforcement officer or an eligible former law enforcement officer shall receive a service retirement allowance computed as follows:

If the member's service retirement date occurs (i) on or after the member's 50th birthdaybirthdayand and before the member's 55th birthday and (ii) after the completion of 15 or more years of creditable service as a law enforcementofficerbutenforcementofficer beforethecompletionof25yearsofcreditablebut beforethecompletionof25 years ofcreditable service, then the retirement allowance shall be equal to the greater of the following amounts:

If the member's service retirement date occurs (i) on or after the member's 65th birthday and completion of five years of membership service, (ii) after the completion of 30 years of creditable service, or (iii) on or after the member's 60th birthday and completion of 25 years of creditable service, then the allowance shall be equal to one and eighty-two hundredths percent (1.82%) of the member's average final compensation, multiplied bybythe the number of years of creditable service.

If the member's early service retirement date occurs (i) on or after the member's 50th birthdaybirthdayand and before the member's 60th birthday and (ii) after completion of 20 years of creditable service but prior to the completion of 30 years of creditable service, then the early service retirement allowance shall be equal to the greater of the following amounts:

Page 2 DRS15302-MRp-92ASenate Bill 707-First Edition General Assembly Of North Carolina Session 2025 1.

– Upon the death of amember in service, the beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option 2 of subsection (g) above of this section computed by assuming that the member had retired on the first day of the month followingfollowingthedateofthemember's thedateofthemember's death, provided thatall fourofthefollowingfourofthefollowingconditions conditions apply:

Thememberhad attained suchageand/ortheminimumsuchageand/or theminimum age, creditable service amount, or combination of both necessary to be eligible to commence retirement with an early or service retirement allowance, orallowance.

"(5) Any member who is a law enforcement officer and who (i) attains age 50 and completes 15 or more years of creditable service in this capacity, or (ii) attains age 55 and completes five or more years of creditable service in this capacity, or (iii) who has completed 25 years of creditable service with a minimum of 15 years of creditable service in a law enforcement capacity may retire upon electronic submission or written application to the Board of Trustees setting forth at what time, as of the first day of a calendar month, not less than one daydaynor nor more than 120 days subsequent to the execution and filing thereof, the member desires to be retired;

Any member who has met the conditions required by this subdivision but does not retire, and DRS15302-MRp-92ASenate Bill 707-First Edition Page 3 General Assembly Of North Carolina Session 2025 later becomes an employee other than as a law enforcement officer, continues to have the right to commence retirement." SECTION 2.(b) G.S.

If the member's service retirement date occurs (i) on or after the member's 50th birthdaybirthdayand and before the member's 55th birthday and (ii) after the completion of 15 or more years of creditable service as a law enforcementofficerbutenforcementofficer beforethecompletionof25yearsofcreditablebut beforethecompletionof25 yearsofcreditable service, then the retirement allowance shall be equal to the greater of the following amounts:

If the member's service retirement date occurs (i) after the member's 60th birthday and before the member's 65th birthday and (ii) prior to the completion of 25 years or more of creditable service, then the Page 4 DRS15302-MRp-92ASenate Bill 707-First Edition General Assembly Of North Carolina Session 2025 retirement allowance is the amount of the retirement allowance in sub-subdivision a.

If the member's early service retirement date occurs (i) on or after the member's 50th birthdaybirthdayand and before the member's 60th birthday and (ii) after completion of 20 years of creditable service but prior to the completion of 30 years of creditable service, then the early service retirement allowance shall be equal to the greater of the following amounts:

of this subdivision reduced by the sum of five-twelfths of one percent (5/12 of 1%) thereof for each month by which the retirement date precedes the first day of the month coincident with, or next following, the month the member would have attained age 60, plus one-quarter of one percent (1/4 of 1%) thereof for each month by which the member's 60th birthday precedes the first day of the month coincident with, ornext following,following,themember's themember's 65th birthday.

– Upon the death of amember in service, the beneficiary designated to receive a return of accumulated contributions shall have the right to elect to receive in lieu thereof the reduced retirement allowance provided by Option two of subsection (g) above of this section computed by assuming that the member had retired on the first day of the month followingfollowingthedateofthemember's thedateofthemember's death, provided thatall fourofthefollowingfourofthefollowingconditions conditions apply:

Thememberhad attained suchageand/ortheminimumsuchageand/or theminimum age, creditable service amount, or combination of both necessary to be eligible to commence retirement with an early or service retirement allowance, orallowance.

DRS15302-MRp-92ASenate Bill 707-First Edition Page 5 General Assembly Of North Carolina Session 2025 SECTION 3.(b) Subsections (a) and (d) of Section 1 and subsections (a) and (d) of Section 2 of this Part become effective January 1, 2026.

– Notwithstanding anyanyother other provision of law, every sworn law-enforcement officer as defined by G.S.

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 Page 6 DRS15302-MRp-92ASenate Bill 707-First Edition General Assembly Of North Carolina Session 2025 long as the officer returned to service within 45 days after the disability benefits had ceased and is otherwise qualified to receive the allowance.

(3) The first daydayof of reemployment bybyanyState any State department, agency, or institution, except that this subdivision does not apply to an officer returning to State employment in a position exempt from the North Carolina Human Resources Act in an agency other than the agency from which that officer retired.

The benefits payable under this section shall not be subject to any increases in salary or retirement allowances that maymaybe be authorized bybythe the General AssemblyAssemblyfor for employees of the State or retired employees of the State.

143-166.50(a)(3) employed by a local government employer who qualifies under this section shall receive, receive an annual special separation allowance beginningin themonthin whichtheofficerretireswhich ontheofficerretires abasicserviceonabasicservice retirement under the provisions of G.S.

Any break in the this required continuous service required by this DRS15302-MRp-92ASenate Bill 707-First Edition Page 7 General Assembly Of North Carolina Session 2025 subsection because that is a result 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.

(1) In a public safetysafetyposition positioninin a capacitycapacitynot notrequiringparticipation requiring participation in the Local Governmental Employees' Retirement System.

(2) In service to a countycountyboard board of elections on an election day or during the hours for early voting under Part 5 of Article 14A of Chapter 163 of the General Statutes in a capacity that complies with G.S.

The benefits payable under this section shall not be subject to any increases in salary or retirement Page 8 DRS15302-MRp-92ASenate Bill 707-First Edition General Assembly Of North Carolina Session 2025 allowances that may be authorized by local government employers or for retired employees of local governments.

(f) ResponsibilityResponsibilityfor for Payment.

DRS15302-MRp-92ASenate Bill 707-First Edition Page 9