House committee substitute to the 1st edition makes the following changes.

Divides the provision of new GS 143-166.4 into two new statutes, GS 143-166.4, applicable to State law enforcement officers, and new GS 143-166.5, applicable to local law enforcement officers, and makes the following changes to those provisions.

For State law enforcement officers, amends the amount of the separation allowance so that it is equal to 0.85% of the annual equivalent of the base rate of compensation at the time the officer attained 30 years of service times 30 (was, equal to 0.85% of the annual equivalent of the base rate of compensation at 30 years of creditable service). Defines creditable service to mean the service for which credit is allowed under the retirement system of which the officer is a member, provided that at least 50% of the service is as a law enforcement officer or as a probation/parole officer (probation/parole officer was not previously included). Excludes the first day of reemployment by any State department, agency, or institution of an officer returning to State employment in a position exempt from the North Carolina Human Resources Act in any agency other than the agency from which that officer retired from the events that trigger stoppage of the payments. Allows the Director of the Budget to authorize from time to time the transfer of funds within the budgets of each State department, agency, or institution necessary to carry out the purposes of this Article; requires the funds to be taken from those appropriated to the department, agency, or institution for salaries and related fringe benefits. Makes conforming changes throughout the statute to make provisions applicable at a state, instead of local, level. Makes additional technical changes. 

Amends new GS 143-166.5, applicable to local law enforcement officers, as follows. Amends the amount of the separation allowance so that it is equal to 0.85% of the annual equivalent of the base rate of compensation at the time the officer attained 30 years of service times 30 (was, equal to 0.85% of the annual equivalent of the base rate of compensation at 30 years of creditable service). Makes additional technical changes.

Amends the act's titles.