Bill
SB 831
Creates a 25-year unreduced retirement option for eligible NC first responders (LEO, firefighter, EMS) under TSERS/LGERS, with updated post-2027 benefit formulas.
Title: 25-Year Retirement for First Responders
Purpose
- Allow certain first responders to retire with unreduced benefits after 25 years of creditable service.
- Applies to members of the Teachers’ and State Employees’ Retirement System (TSERS) or the Local Governmental Employees’ Retirement System (LGERS) who are either law enforcement officers, firefighters, or emergency medical services personnel (EMS).
Key Provisions
1) Definitions and Eligibility (Sections 1 and 2)
- Expands definitions to include EMS personnel as eligible for special retirement provisions (EMS personnel defined for both TSERS and LGERS).
- The term “firefighter,” “law enforcement officer,” and “EMS personnel” cover full-time state or local employees with primary duties in fire prevention/suppression, crime prevention/enforcement, or emergency medical services, including related roles such as dispatchers and marshals where applicable.
2) Early-25-Year Retirement Option (Section 1(a)/(b))
- New subsection (G.S. 135-5(a) as amended) allows a member who is a law enforcement officer, firefighter, or EMS personnel and has completed 25 years of creditable service to retire by submitting an application (electronic or written) to the Board of Trustees.
- The retirement can be effective on the first day of a calendar month, with a retirement date chosen to be at least one day and no more than 120 days after filing.
- If a member qualifies for 25 years but does not retire, and later returns to work in a role other than the one held during the 25-year period, they retain the right to initiate retirement later.
3) Modified Benefit Formulas for First Responders (Sections 1(c)-(1(e), 2(d)-(2e))
- The bill revises service retirement allowances for first responders retiring on or after January 1, 2027 (and provides phased changes for those retiring after July 1, 2019 and before January 1, 2027).
- For first responders retiring on/after January 1, 2027:
- Primary formula (b22 for LGERS, b23 for TSERS) sets:
- If retirement date is on/after the member’s 55th birthday and after at least 5 years of creditable service as a LEO/firefighter/EMS, or after 25 years of creditable service: 1.85% (currently 1.82% in earlier version) of the member’s average final compensation times the years of creditable service.
- If retirement date is on/after the member’s 50th birthday but before 55th, with 15+ years but less than 25, the allowance is the greater of:
a) The above 1.85% formula reduced by 1/3 of 1% for each month the retirement date precedes age 55,
b) The above 1.85% formula reduced by 5% times the difference between 25 years and the actual creditable service at retirement.
- For non-first-responder members, the text indicates continuation of existing formulas (unchanged by the new subsections) with the note that the new first-responder formulas apply to eligible members.
- Death-in-the-line-of-duty provisions (b1, b1 sections under 1e and 2e) reference recalculations under the new b22/b23 formulas where applicable.
4) Application Timing and Individuals Covered (Sections 1(a), 2(a))
- The changes specifically apply to first responders who are members of TSERS or LGERS.
- The 25-year unreduced retirement option creates a separate path from the standard unreduced retirement based on age or longer service, with a defined timeline for when new benefit calculations take effect (effective January 1, 2027, with certain transitional references to retirements occurring after 2019 but before 2027).
5) Effective Date (Section 4)
- The act becomes effective January 1, 2027.
- Applicable to eligible retirements occurring on or after January 1, 2027.
Impact and Who is Affected
- Affects state and local government employees who work as law enforcement officers, firefighters, or EMS personnel and are members of TSERS or LGERS.
- Provides an independent option to retire after 25 years of creditable service with unreduced benefits, plus a revised calculation formula for post-2027 retirements that generally increases the monthly allowance relative to prior structures (subject to age and years-of-service thresholds).
- May influence workforce planning, allowing long-serving first responders to exit with stable, unreduced benefits, potentially affecting vacancy rates, recruitment, and succession.
Procedural/Timeline Notes
- Eligible members may apply up to 120 days before the intended retirement date.
- For service after January 1, 2027, the enhanced benefit formula applies; the act provides transitional references for retirements occurring between 2019 and 2027.
- The act requires conforming changes to statutes governing definitions and benefit calculations across TSERS and LGERS.
Overall, SB 831 codifies a 25-year unreduced retirement path for first responders within North Carolina’s state and local retirement systems, and updates benefit calculations for post-2027 retirements to reflect longer-tenured service in high-risk roles.
Compiled from official sources — confirm details with the bill’s official record.
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