House committee substitute replaces the content of the 1st edition with the following.

Amends GS 128-27 (Local Governmental Employees Retirement System) and GS 135-5 (Teachers and State Employees' Retirement System) to allow justice officers (LGERS) and law enforcement officers (LGERS and TSERS) who are 59.5 or a normal retirement age safe harbor designated by the Internal Revenue Code to receive any retirement allowance for which they are otherwise eligible even if they have not retired or otherwise separated from service. 

Amends GS 128-24 (LGERS) and GS 135-3 (TSERS) to require payment of a retirement allowance without restriction to beneficiaries who retired on an early or service retirement as a justice officer (LGERS) or law enforcement officer (LGERS and TSERS) and are subsequently employed as a justice officer (LGERS) or a law enforcement officer (LGERS and TSERS) following a bona fide separation from service lasting at least one month. Requires the employer to pay into the System the member's and employer's contribution for the duration of the employment. Prohibits counting this service as membership service that increases the beneficiary's retirement benefits. Details the criteria that must be satisfied for a bona fide separation, including the employer and beneficiary filing sworn affidavits with the System regarding the beneficiary's retirement. Also requires payment of a retirement allowance without restriction when the beneficiary is subsequently employed as a justice officer (LGERS) or a law enforcement officer (LGERS and TSERS) with an employer other than the employer the beneficiary was employed by at the time of retirement.

Amends GS 143-166.41(c) (State law enforcement officers) and GS 143-166.42(c1) (law enforcement officers employed by a local government employer) pertaining to when payments to retired officers cease under the special separation allowances for law enforcement officers to narrow the exemption for when those officers return to certain reemployment with the State/local government to have it only apply as follows: (1) to State law enforcement officers when the reemployment is a public safety position (but not a probation or parole officer) and (2) to local government officers when reemployment is in a public safety position (i.e., a law enforcement officer or justice officer). 

Makes conforming changes to GS 143-166.85 (benefits under the Sheriffs’ Supplemental Pension Fund Act of 1985) to delete the provision requiring monthly pension payments under that act to stop upon certain reemployment.

Provides a severability clause.

Requires expiration of provisions which the IRS deems not in compliance with IRS law or regulation, effective 30 days from receipt of the determination by the State Treasurer. 

Effective October 1, 2023, and expires October 1, 2027.

Changes the act's short title.