NC S396

Creates special separation allowances for state firefighters retiring on basic service retirement, calculated at 0.85% of annual base compensation for each year of creditable service.

Establishes eligibility requirements: firefighter must have completed 30+ years of service OR be age 60+ with 25+ years of service, be under age 62, and have 5+ continuous years of service as a firefighter after July 1, 2017.

Extends identical separation allowance provisions to local firefighters employed by governments participating in the Local Governmental Employees' Retirement System or equivalent locally sponsored retirement plans.

Payments cease upon firefighter's death, attainment of age 62, or reemployment (with limited exceptions for state employees in exempt positions and local employees in non-retirement-participating public safety roles).

Requires state department heads and local government governing bodies to determine eligibility and make payments from their existing salary and fringe benefits budgets, effective upon enactment.