NC S701

State and local law enforcement officers aged 59.5+ may elect to receive retirement allowances while continuing to work, and retired officers may return to work after a 6-month separation while continuing to receive retirement benefits

Officers receiving in-service retirement allowances stop making employee contributions, with employers covering both employer and employee contribution amounts; these officers cannot accrue additional service credit or participate in the Disability Income Plan

Special separation allowance (0.85% of base compensation per year of service) continues for officers who return to law enforcement positions after retirement, with payments ceasing at age 62, death, or non-law-enforcement reemployment

Officers with 30+ years of creditable service gain an alternative separation allowance calculation option: 0.85% of compensation at the time they reached 30 years, multiplied by 30, with payments continuing for a period equal to 62 minus age at 30 years of service

Appropriates $10 million in recurring funds for fiscal years 2025-2027 to address implementation costs; most provisions become effective October 1, 2025, with key in-service distribution provisions expiring December 31, 2029