HB 597 — “25-Year Retirement for First Responders” — Bill Summary

Status & procedural history
- Sponsor: Rep. Destin (primary sponsors in different versions include Clampitt et al.).

- Introduced: bill text filed in 2023 (House filing Apr 13, 2023); first reading Apr 17, 2023. (Bill versions appear across sessions; summary below reflects the substantive provisions of the “25‑Year Retirement for First Responders” text.)
- Referred to: Pensions & Retirement (and then Rules/House calendars).

- Note: The bill text amends North Carolina retirement statutes (G.S. Chapter 135 and related LGERS provisions).

Purpose / intent
- To allow qualified first responders who are members of the Teachers’ and State Employees’ Retirement System (TSERS) or the Local Governmental Employees’ Retirement System (LGERS) to retire with unreduced (or less‑reduced) benefits after 25 years of creditable service, and to make related definitional and benefit‑calculation changes.

Key provisions
- New retirement eligibility:
- Any member who is a law enforcement officer, firefighter, or emergency medical services (EMS) personnel and who has completed 25 years of creditable service may elect to retire (application timing guidance included).
- New retirement‑benefit calculation for first responders retiring on or after Jan 1, 2024:
- Primary formula (no early reduction if age/years conditions met): 1.82% of Average Final Compensation (AFC) × years of creditable service.
- If retiring between ages 50 and 55 with 15+ years but fewer than 25 years, two alternate reduced calculations apply; the allowance is the greater of:
- The 1.82% × years formula reduced by 0.333% (1/3 of 1%) per month for early retirement before age 55; or
- The 1.82% × years formula reduced by 5% × (25 − years at retirement).
- Survivor benefit adjustment:
- Revises survivor/alternate benefit rules to account for first responders’ unique eligibility (including provisions when killed in the line of duty).
- Definitions expanded/clarified:
- “Law enforcement officer,” “firefighter,” and “EMS personnel” definitions include full‑time employees such as dispatchers, inspectors, marshals, corrections/detention officers, probation/parole officers, rescue squad workers and others fitting the statutory definitions.
- Conforming changes:
- Amends multiple statutory sections to implement the eligibility, computation, and survivor‑benefit changes for both TSERS and LGERS.

Who is affected
- Primary: active and eligible former law enforcement officers, firefighters, and EMS personnel who are members of TSERS or LGERS. This includes many categories listed in statute (dispatchers, inspectors, corrections officers, rescue squad workers, probation/parole officers, etc.).
- Secondary: pension systems (TSERS, LGERS), state/local employers who contribute to those systems, and beneficiaries (survivors).

Potential fiscal and policy impacts
- Likely increases in pension liabilities and actuarial costs for TSERS and LGERS because members can receive unreduced or less‑reduced benefits earlier (after 25 years regardless of age in some cases). The bill text does not include its own cost estimate; a fiscal note/actuarial analysis would be needed to quantify impacts on employer contribution rates and system funding.
- Recruitment/retention effects: may improve recruitment and retention for first‑responder positions by improving retirement generosity/earlier access to unreduced benefits.

Effective dates & implementation
- The bill text sets January 1, 2024 as the operative date for the new retirement allowance subsection (b22) (i.e., rules governing calculation of benefits for first responders retiring on or after that date). Other conforming statutory changes are implemented as noted in the amended code sections.
- Administrative actions required: retirement systems will need to revise benefit calculation procedures, member communication, and actuarial assumptions.

Summary note
- HB 597 is narrowly targeted to expand retirement flexibility and improve retirement benefit treatment for first responders in state and local retirement systems by enabling unreduced (or relatively less‑reduced) pensions after 25 years of service and by clarifying which public‑safety roles qualify. The most significant practical effect would be increased pension costs unless offset by contribution or plan design changes.