Bill
SB 701
Allows certain state/local law enforcement officers to retire and continue working in service, drawing retirement while employed, plus a 30-year special separation option.
Status & Sponsors
- Short title: Bring Back Our Heroes.
- Sponsors: Senators Britt, Bobby (B.) Newton, and Johnson (primary).
- Status (most recent in packet): Passed First Reading (filed March 25–26, 2025); referred to Rules and Operations of the Senate.
- Subject areas: retirement, law enforcement, local government, sheriffs, state employees, pensions.
Purpose
- To allow certain state and local law enforcement and justice officers to begin or continue receiving retirement allowances while remaining (or returning) in active law‑enforcement service, and to provide an additional special separation allowance option for officers with at least 30 years of creditable service.
Key provisions (principal elements)
1. In‑service retirement allowance for specified State law enforcement officers (new G.S. § 135‑5.6)
- A member who is a law enforcement officer and who has reached age 59.5 may elect to begin receiving any retirement allowance for which they are otherwise eligible without first separating from the employer under which they will receive the allowance.
- A retired law enforcement officer who has had a bona fide separation of at least six months may return to service with the same employer and continue to receive the retirement allowance.
- At election, the member must complete any elections and purchase any creditable service required at retirement (e.g., retiree death benefit elections, SRIP transfer elections).
- While receiving the retirement allowance the member ceases accruing additional membership service.
- The member stops making employee retirement contributions; the employer must make payments to the retirement system equal to (i) the employer contribution required under law and (ii) the employee contribution the member otherwise would have made to the Annuity Savings Fund. The member’s gross pay is reduced as if employee contributions were still being deducted.
- Members receiving an in‑service retirement allowance are not eligible for the Disability Income Plan and are not eligible for State contributions to the Supplemental Retirement Income Plan (SRIP); SRIP contributions for that member cease.
- Death, separation, and benefit treatment: if a member receiving the in‑service allowance dies while still employed (without separating), death benefits treat the member as retired; if the member later separates for reasons other than death they are treated as retired for all system purposes on the separation date. Election revocation rules and related administrative provisions are specified.
Parallel in‑service provisions for local law enforcement and justice officers (new G.S. § 128‑27.1 and related amendments)
Special separation allowance option (summary description)
Who is affected
- Active and retired State law enforcement officers covered by the State Retirement System (Article 1 of Chapter 135).
- Local law enforcement and justice officers (Article 3 of Chapter 128), including sheriffs and certified deputies.
- Employers (State agencies and local governments) who must make the additional payments described (employer contributions plus the foregone employee contribution amount while the member receives in‑service benefits).
- Retirement system administrators (policy, payroll, and actuarial impacts).
Procedural/timeline notes
- Introduced and filed in late March 2025 and passed the Senate first reading (per provided docket entries).
- The bill text inserts new sections into the retirement statutes (e.g., G.S. 135‑5.6 and G.S. 128‑27.1).
- Further committee consideration and votes will determine enactment; sponsors seek to provide a means for experienced officers to remain employed while receiving retirement benefits.
Fiscal and policy considerations
- The bill shifts certain employee contribution obligations to employers while a member concurrently receives a retirement allowance, which could raise employer payroll costs and affect retirement system cash flows and actuarial liabilities. The packet does not include a formal fiscal note for North Carolina.
- Other policy impacts include workforce planning (enabling older, experienced officers to remain on the job), potential effects on disability eligibility, SRIP contributions, and death benefit administration.
Notes / Open issues
- Some detailed benefit and eligibility mechanics (e.g., exact special separation allowance formulas) are in truncated sections of the bill text; exact fiscal impact and actuarial cost will depend on implementation details and actuarial review.
- The packet also contains texts from other states’ SB 701 bills (unrelated subjects). This summary focuses on the North Carolina “Bring Back Our Heroes” measure.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
