Enacts new GS 143-166.4, providing as follows. Allows a sworn law enforcement officer employed by a State department, agency, or institution to elect to receive, beginning in the month in which the officer retires, either the special separation allowance under existing GS 143-166.41, or an annual separation allowance equal to 0.85% of the annual equivalent of the base rate of compensation at 30 years of creditable service. Also allows a sworn law enforcement officer employed by a local government employer to elect to receive, beginning in the month in which the officer retires, either the special separation allowance under existing GS 143-166.42, or an annual separation allowance equal to 0.85% of the annual equivalent of the base rate of compensation most recently applicable to the officer for each year of creditable service. To qualify, requires the officers to have completed: (1) at least 30 but no more than 35 years of creditable service; (2) at least five years of continuous service (as defined) as a law enforcement officer immediately preceding a service retirement. Sets out conditions under which the payments will cease. Provides for conditions under which reemployment by a local government employer will not stop these payments. Requires the governing body of each local employer to determine eligibility of employees for these benefits and requires payments to be made from available funds. Effective July 1, 2023.