§ 135-23. Plans for coverage of employees of political subdivisions. - North Carolina Statutes

§135‑23.  Plans for coverage of employees of political subdivisions.

(a)        Each politicalsubdivision of the State is hereby authorized to submit for approval by theState agency a plan for extending the benefits of Title II of the SocialSecurity Act, in conformity with applicable provisions of such act, toemployees of such political subdivisions. Each such plan and any amendmentthereof shall be approved by the State agency if it finds that such plan orsuch plan as amended, is in conformity with such requirements as are providedin regulations of the State agency, except that no such plan shall be approvedunless –

(1)        It is in conformitywith the requirements of the Social Security Act and with the agreement enteredinto under G.S. 135‑21.

(2)        It provides that allservices which constitute employment as defined in G.S. 135‑20 and areperformed in the employ of the political subdivision by employees thereof,shall be covered by the plan, except that it may exclude services performed byindividuals to whom section 218(c)(3)(C) of the Social Security Act isapplicable.

(3)        It specifies thesource or sources from which the funds necessary to make the payments requiredby subdivision (1) of subsection (c) and by subsection (d) are expected to bederived and contains reasonable assurance that such sources will be adequatefor such purpose.

(4)        It provides for suchmethods of administration of the plan by the political subdivision as are foundby the State agency to be necessary for the proper and efficient administrationof the plan.

(5)        It provides that thepolitical subdivision will make such reports, in such form and containing suchinformation, as the State agency may from time to time require, and comply withsuch provisions as the State agency or the Secretary of Health, Education andWelfare may from time to time find necessary to assure the correctness andverification of such reports.

(6)        It authorizes theState agency to terminate the plan in its entirety, in the discretion of theState agency, if it finds that there has been a failure to comply substantiallywith any provision contained in such plan, such termination to take effect atthe expiration of such notice and on such conditions as may be provided byregulations of the State agency and may be consistent with the provisions ofthe Social Security Act.

(b)        The State agencyshall not finally refuse to approve a plan submitted by a political subdivisionunder subsection (a), and shall not terminate an approved plan, withoutreasonable notice and opportunity for hearing to the political subdivisionaffected thereby.

(c)        (1) Each politicalsubdivision as to which a plan has been approved under this section shall payinto the contribution fund, with respect to wages (as defined in G.S. 135‑20),at such time or times as the State agency may by regulation prescribe,contributions in the amounts and at the rates specified in the applicableagreement entered into by the State agency under G.S. 135‑21.

(2)        Each politicalsubdivision required to make payments under subdivision (1) of this subsectionis authorized, in consideration of the employee's retention in, or entry upon,employment after enactment of this Article, to impose upon each of itsemployees, as to services which are covered by an approved plan, a contributionwith respect to his wages (as defined in G.S. 135‑20), not exceeding theamount of the employee tax which would be imposed by the Federal Insurance Contributions Act if such services constituted employment within the meaning ofthat act, and to deduct the amount of such contribution from his wages as andwhen paid. Contributions so collected shall be paid into the contribution fundin partial discharge of the liability of such political subdivision orinstrumentality under subdivision (1) of this subsection. Failure to deductsuch contribution shall not relieve the employee or employer of liabilitytherefor.

(d)        Delinquent paymentsdue under subdivision (1) of subsection (c), may, with interest at the rate ofsix per centum (6%) per annum, be recovered by action in the Superior Court ofWake County against the political subdivision liable therefor or may, at therequest of the State agency, be deducted from any other moneys payable to suchsubdivision by any department or agency of the State. (1951,c. 562, s. 3; 1955, c. 1154, ss. 9, 10, 12.)