Page 13 - FOP BlueNote 2017 May June Issue East FINAL

One of Two 25 Year Retirement Bills Inches Forward
By Jeff Gray – NC FOP Legislative Agent

Much to the surprise of many, not one, but two bills the FOP has had introduced in past years. “Our” version

to allow law enforcement officers to retire after 25 years has always provided for an unreduced benefit for both

of service have been introduced this Session. These bills State and local officers.

have generated a lot of questions such as, “What is the The bill would also allow State and local law enforce-

difference between the two bills?” and “Which one ment officers to collect their Special Separation Allow-

should we support?” ance after 25 years of creditable service. The officer

I became aware of one when a draft version was cir- would still receive 0.85% of the officer’s most recent an-

culated via e-mail among officers and ended up with nual compensation. The officer’s monthly Special Sep-

President Hagler shortly after the session started. After aration Allowance benefit would be less because the of-

talking with the bill sponsor, Dr. Greg Murphy, a fresh- ficer would have worked fewer years, but the officer

man Representative from Pitt County, at length about would collect the benefit for five additional years.

past efforts, he seemed to be more interested in a study Again, the FOP has always advocated for unreduced

of the issues that have caused previous bills to fail. benefits.

When a somewhat similar bill was introduced in the Sen-

ate, the House version was quickly introduced. This House Bill 284, “25-Year LEO Retirement Op-
tion”, is Representative Murphy’s bill and was substan-
House version has now been heard in Committee.

tially similar to Senate Bill 199, “Law Enforcement Of-

The bills currently introduced are as follows: ficer Retirement/25 Years,” above. It was amended in

the House Pensions & Retirement Committee to require

Senate Bill 199, “Law Enforcement Officer Retire- the officer to have completed 15 years services in law
ment/25 Years,” would give law enforcement officers enforcement in order to qualify. House Bill 284 would
who are members of the Teachers’ and State Employees’ reduce “by 1/3 of 1% per month for each month prior to
Retirement System, and the Local Governmental Em- age 55 if the officer” retires between age 50 and 55 with
ployees’ Retirement System the option to retire after 15 years of service. This bill does not allow State and

completing 25 years of creditable service. Currently, of- local law enforcement officers to collect their Special

ficers need to complete 30 or more years of creditable Separation Allowance if they retire after 25 years credi-

service in order to maximize their retirement benefit. ble service and before 30 years credible service. It does,

State law enforcement officers opting to retire after however, create a benefit provision that would allow,

25 years of creditable service would continue to use the but not require, any State or local government em-
current percentage of 1.82% of the officer’s average final ployer to offer a lump sum payout of an officer’s Special

compensation to calculate their retirement pay. The Separation Allowance to the officer if the officer chooses

number arrived at by multiplying this percentage by the to take a reduced retirement (such as the 25 year retire-
officer’s average final compensation would then be mul- ment option). The lump sum payout by the employer
tiplied by the officer’s years of service to get the officer’s would not be able to exceed the total amount of money

retirement pay. Local law enforcement officers would the officer would normally receive in special separation

continue to use the current percentage of 1.85% of the allowance payments had the officer stayed for a full 30
officer’s average final compensation to calculate their re- year retirement.

tirement pay. However, the monthly retirement benefit As a medical doctor, Representative Murphy is espe-

for an officer retiring with only 25 years of creditable cially attuned to the toll taken on the human body by a

service would be less than the monthly benefit for an of- career in law enforcement and is seeking a means to ad-

ficer retiring after 30 years of creditable service because dress those issues. During the committee hearing I

the officer would be working fewer years, and therefore thanked him, as well as the other bills sponsors, for their

would receive less retirement money per month. recognition of the unique and strenuous tasks that law

Introduced by Senator Bill Cook of Dare County, this enforcement officers must perform.

bill has marked differences from the version of a bill that Continued on P. 15

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