NC S320

Creates a second special separation allowance calculation option for state and local law enforcement officers who complete 30 or more years of creditable service before age 62

Officers meeting both sets of eligibility criteria may choose between two allowance formulas: (1) 0.85% of most recent annual base pay multiplied by total years of creditable service, or (2) 0.85% of annual base pay at the time they reached 30 years of service multiplied by 30

The formula election is a one-time, irrevocable choice that must be made before the first allowance payment; if no election is made, the second formula applies by default

Allowance payments cease upon death, reemployment by state/local government (with limited exceptions), or reaching age 62 for Option 1 recipients—or after receiving payments for a period equal to 62 years minus the age when 30 years of service was first completed for Option 2 recipients

Effective July 1, 2025, applying to law enforcement officers retiring on or after that date