§ 120-4.19. Contributions by the members. - North Carolina Statutes

§120‑4.19.  Contributions by the members.

Effective upon convening ofthe 1985 Regular Session of the General Assembly, each member shall contributeby payroll deduction for each pay period for which he receives compensationseven percent (7%) of his compensation for the period.

     Anything within this Articleto the contrary notwithstanding, the State, pursuant to the provisions ofSection 414(h)(2) of the Internal Revenue Code of 1954 as amended, shall pickup and pay the contributions which would be payable by the members under thissection with respect to the services of such members rendered after theeffective date of this paragraph.  The members' contributions picked up by theState shall be designated for all purposes of the Retirement System as membercontributions, except for the determination of tax upon a distribution from theSystem.  These contributions shall be credited to the Annuity Savings Fund andaccumulated within the Fund in a member's account which shall be separatelyestablished for the purpose of accounting for picked‑up contributions.Member contributions picked up by the State shall be payable from the samesource of funds used for the payment of compensation to a member.  A deductionshall be made from a member's compensation equal to the amount of hiscontributions picked up by the State. This deduction, however, shall not reducea member's compensation as defined in G.S. 120‑4.8(1).  Picked‑upcontributions shall be transmitted to the Retirement System monthly for thepreceding month by means of a warrant drawn by the State payable to theRetirement System and shall be accompanied by a schedule of the picked‑upcontributions on such forms as may be prescribed. (1983, c. 761, s. 238; 1985,c. 400, s. 8.)