NC lawmakers united behind bill allowing veteran officers to keep benefits
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- Republican, Democrat lawmakers say yes to veteran police officers keeping pension boost.
- New law pauses separation allowance, preserving benefits for active officers past 30 years
- Policy shift could cost up to $3 million yearly after initial savings for governments.
As law enforcement across this state and the country face severe staffing shortages, the General Assembly passed a bill to allow veteran officers to stay on the force longer — without sacrificing thousands of dollars a year.
“Well-trained, veteran officers shouldn’t feel like they’re up against a deadline or forced to leave before they’re ready in order to get their full retirement benefits,” Republican Senate Leader Phil Berger, a primary sponsor of the Senate version of House Bill 50/ Senate Bill 320, said in a press release after the vote.
The bill passed by the Senate and ratified Tuesday afternoon, had unanimous support across that chamber and the House of Representatives. After the vote, Attorney General Jeff Jackson, a Democrat, applauded the General Assembly for supporting law enforcement.
Gov. Josh Stein, a Democrat, signed the bill into law Friday along with five other bills.
If will apply to officers retiring on or after July 1.
‘Special separation allowance’
North Carolina law enforcement leaders from the North Carolina Sheriffs’ Association and the North Carolina Association of Chiefs of Police lobbied for the change, saying they were hoping to delay the retirement of dozens of chiefs, sheriffs and top command staff, who want to continue in their jobs despite their eligibility for retirement.
Law enforcement officers across the state receive the benefit known as the “special separation allowance” after they serve 30 years or turn age 55 with at least five years of service.
If they retire, they start collecting the benefit, typically thousands of dollars a month, until they turn age 62. But if they remain on the force, they forfeit the benefit. The change would essentially pause the benefit until an officer wants to retire.
Law enforcement leaders hope the change would help them retain experienced leaders, Fred Baggett, legislative council for the police chiefs’ association, told The News & Observer last month.
That organization identified nearly 20 chiefs who are retiring in the next few months.
The benefit is based on a formula that multiplies an officer’s final salary by .85% and then by the number of years they were employed. For police chiefs making $100,000 a year after 30 years on the job, that can result in them forfeiting about $25,500 a year until they reach 62, according to the formula.
The change would come at a cost.
It will save state and local governments up to half million dollars per year for the first five years, according to Sam Watts, executive director of the North Carolina Retirement Systems division, which falls under the Department of State Treasurer. But then it would then cost about $2 to $3 million per year.
Virginia Bridges covers criminal justice in the Triangle and across North Carolina for The News & Observer. Her work is produced with financial support from the nonprofit The Just Trust. The N&O maintains full editorial control of its journalism.
This story was originally published June 12, 2025 at 12:22 PM with the headline "NC lawmakers united behind bill allowing veteran officers to keep benefits."