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SB 707

Providing increase in salary to WV Birth-to-Three contracted therapists and employees

2025 Regular Session Introduced by Brian Helton and 4 co-sponsors

Allows LEOs in TSERS/LGERS to retire with unreduced full benefits after 25 years of creditable service (including at least 15 LEO years), effective Jan 1, 2026.

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Bill Summary · SB 707

SB 707 — “25‑Year LEO Retirement With Full Benefits” (North Carolina)

Status: Passed 1st Reading (Introduced Feb 21, 2025)
Subject areas: Law enforcement, public employee retirement (TSERS, LGERS), pensions, survivor benefits

Main purpose / intent

Allow law‑enforcement officers (LEOs) who are members of the Teachers’ and State Employees’ Retirement System (TSERS) or the Local Governmental Employees’ Retirement System (LGERS) to retire with an unreduced (full) service retirement benefit after completing 25 years of creditable service. Make conforming changes to retirement benefit computations and related provisions (including survivor benefit language).

Key provisions

  • Eligibility (amend G.S. 135‑5(a)(4)):
    • A member who is a law‑enforcement officer may retire if any of the following apply:
    • age 50 with at least 15 years of LEO creditable service; or
    • age 55 with at least 5 years of LEO creditable service; or
    • completion of 25 years of creditable service, provided at least 15 of those years were in a law enforcement capacity.
  • New benefit computation for members retiring on/after Jan 1, 2026 (adds G.S. 135‑5(b22)):
    • For LEOs (or eligible former LEOs) who retire either at or after age 55 with 5+ years LEO service, or after completion of 25 years of creditable service:
    • service allowance = 1.82% × (average final compensation) × (years of creditable service).
    • For LEOs retiring between ages 50 and 55 with 15+ LEO years but less than 25 total years, the allowance is the greater of:
    • The 1.82% × AFC × years amount reduced by 0.333% (1/3 of 1%) for each month the retirement precedes age 55; or
    • The 1.82% × AFC × years amount reduced by 5% × (25 − years of service at retirement).
  • Conforming changes:
    • Survivor alternative benefit (subsection (m)) and other cross references updated to reflect the new (b22) calculation and eligibility rules.
  • Effective / applicability timing:
    • The new benefit computation language applies to members retiring on or after January 1, 2026 (the bill inserts a new subsection explicitly tied to that date).

Who is affected

  • Primary: law‑enforcement officers who are members of TSERS or LGERS (including “eligible former law enforcement officers”) who will attain 25 years of credible service on or after Jan 1, 2026.
  • Secondary: employers (state and local governments) participating in TSERS/LGERS and beneficiaries/survivors whose benefit options are computed under the modified statute.

Fiscal and policy impacts

  • The change expands an existing early/unreduced retirement pathway (adds unreduced retirement at 25 years regardless of age when minimum LEO service requirement is met) and therefore is likely to increase near‑term and long‑term retirement system liabilities and employer contribution requirements. The bill text does not include an actuarial or fiscal estimate; an actuarial analysis by the retirement systems would be required to quantify the cost (impact depends on member demographics, timing of retirements, and amortization policy).
  • Operational impacts: TSERS/LGERS will need to update administrative rules, benefit calculators, and member communications; employers may face changes in staffing/retirement planning behavior among LEOs.

Procedural notes

  • The bill text amends G.S. 135‑5 and adds a new subsection (b22) specifying benefit computations for members retiring on or after Jan 1, 2026.
  • At the time of this summary the bill has passed its first reading; further committee and floor action (and any fiscal analyses) will determine final form and enactment.

If you want, I can:
- Draft a short explainer estimating potential cost drivers for the retirement systems, or
- Pull out the exact statutory text changes and present side‑by‑side (current law vs. proposed law).

Compiled from official sources — confirm details with the bill’s official record.

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