NC H944

Creates annual separation allowance of 0.85% of base compensation per year of creditable service for state and local firefighters and rescue squad workers retiring before age 62.

Eligibility requires either 30+ years of service, or age 60+ with 25+ years of service, plus 5 continuous years of service rendered on or after July 1, 2021.

Payments cease upon death, reaching age 62, or reemployment (with limited exceptions for state employees in non-retirement-system positions).

Establishes Firefighters' and Rescue Squad Workers' Separation Allowance Trust Fund within the Department of State Treasurer, funded by General Fund appropriation of $143,000,000 for fiscal year 2021-2022.

Applies to firefighters and rescue squad workers retiring on or after July 1, 2026, with benefits not subject to future salary or retirement allowance increases and not affecting other retirement system benefits.