North Carolina Senate Advances Bill Expanding Retirement Options for Law Enforcement Officers

A new bill introduced in the North Carolina Senate aims to expand retirement options for law enforcement officers, offering them greater flexibility in planning for their future. Senate Bill 320, titled LEO Special Separation Allowance Options, was introduced by Senators Phil Berger, Vickie Sawyer, and Carl Ford and is currently under review by the Senate’s Rules and Operations Committee.

The proposed legislation would amend existing law to give state and local law enforcement officers who have completed at least 30 years of creditable service a new option for their special separation allowance. Under current law, officers who retire with at least 30 years of service or reach age 55 with five or more years of creditable service receive an annual payment equal to 0.85% of their most recent base salary for each year of creditable service. The new bill maintains that formula while introducing an alternative method for calculating the allowance. Officers who complete 30 or more years of service before turning 62 would have the option to base their allowance on the salary they earned at the time they reached 30 years of service, multiplied by 30.

This change could result in higher payouts for some officers, and those eligible for both formulas would be given a one-time, irrevocable choice in how their allowance is calculated. If no election is made, the bill defaults to the new 30-year salary-based calculation.

Senate Bill 320 was filed on March 17, 2025, passed its first reading on March 18, and was referred to the Senate Committee on Rules and Operations the same day. The bill’s rapid movement through the early stages of the legislative process signals growing support for enhancing law enforcement retirement benefits.

Supporters argue that this proposal provides long-serving officers with additional financial security as they transition into retirement. Senator Vickie Sawyer, one of the primary sponsors, emphasized that the measure gives officers more control over their retirement benefits and recognizes their decades of service. Law enforcement advocacy groups, including the North Carolina Sheriffs’ Association and the North Carolina Police Benevolent Association, have expressed support for the bill, citing its potential to improve recruitment and retention.

However, some concerns have been raised by local government officials about the financial implications of the expanded benefits. Because the special separation allowance is funded by state agencies and local governments, questions remain about whether municipalities will need additional state assistance to meet the increased costs.

With Senate Bill 320 now under review in committee, lawmakers will analyze its potential fiscal impact before it moves forward. If the bill advances through the Senate and House and is signed into law, it will take effect on July 1, 2025, applying to law enforcement officers retiring on or after that date.

As the legislative process continues, law enforcement officers and local governments will be watching closely to see how this proposal shapes the future of retirement benefits for North Carolina’s public safety officials.