NC H340

Creates a special separation allowance for state firefighters and rescue squad workers who retire on basic service retirement, paid at 0.85% of base compensation annually for each year of creditable service.

Requires recipients to have either 30+ years of creditable service or be age 60+ with 25+ years of service, not yet age 62, and have completed 5+ years of continuous service rendered after July 1, 2017.

Establishes identical separation allowance provisions for local government firefighters and rescue squad workers participating in the Local Governmental Employees' Retirement System or equivalent locally sponsored plans.

Payments cease upon death, when recipient reaches age 62, or upon reemployment (with limited exceptions for state employees in exempt positions and local employees in non-retirement-system public safety positions).

Effective upon enactment and applies to firefighters and rescue squad workers retiring on or after July 1, 2022, with at least five years of continuous service rendered after July 1, 2017.