§ 126-95. Flexible compensation plan. - North Carolina Statutes

Article 16.

Flexible CompensationPlan.

§ 126‑95.  Flexiblecompensation plan.

(a)        The Director of theBudget may provide eligible officers and employees of State departments,institutions, and agencies not covered by the provisions of G.S. 116‑17.2a program of dependent care assistance as available under section 129 andrelated sections of the Internal Revenue Code of 1986, as amended. The Directorof the Budget may authorize State departments, institutions, and agencies toenter into annual agreements with employees who elect to participate in theprogram to provide for a reduction in salary. With the approval of the Directorof the Budget, savings in the employer's share of contributions under theFederal Insurance Contributions Act on account of the reduction in salary maybe used to pay some or all of the administrative expenses of the program.Should the Director of the Budget decide to contract with a third party toadminister the terms and conditions of a program of dependent care assistance,the Director of the Budget may select a contractor only upon a thorough andcompletely competitive procurement process.

(b)        Notwithstanding anyother provisions of law relating to the salaries of officers and employees ofdepartments, institutions, and agencies of State government, the Director ofthe Budget may provide a plan of flexible compensation to eligible officers andemployees of State departments, institutions, and agencies not covered by theprovisions of G.S. 116‑17.2 for benefits available under section 125 andrelated sections of the Internal Revenue Code of 1986, as amended. This planshall not replace, substitute for, or duplicate any benefits provided toemployees and officers under Article 1A of Chapter 120 of the General Statutesand Articles 1, 3, 4, and 6 of Chapter 135 of the General Statutes. The planmay, however, include offerings for products and benefits that are supplementalor additional to these statutory benefits. In providing a plan of flexiblecompensation, the Director of the Budget may authorize State departments,institutions, and agencies to enter into agreements with their employees forreductions in the salaries of employees electing to participate in the plan offlexible compensation provided by this section. With the approval of theDirector of the Budget, savings in the employer's share of contributions underthe Federal Insurance Contributions Act on account of the reduction in salarymay be used to pay some or all of the administrative expenses of the program.Should the Director of the Budget decide to contract with a third party toadminister the terms and conditions of a plan of flexible compensation asprovided by this section, it may select such a contractor only upon a thoroughand completely advertised competitive procurement process. (2007‑117, s. 3.)