§ 147-9.3. Annuity contracts; salary deductions. - North Carolina Statutes

§ 147‑9.3.  Annuitycontracts; salary deductions.

Notwithstanding the provisionsof G.S. 143B‑426.40A and notwithstanding any provision of law relating tosalaries or salary schedules of State employees, if the employee be onedescribed in section 403(b)(1)(A)(i) or (ii) of the United States InternalRevenue Code, the chief executive officer of such employee, on behalf of theemployer, may enter into an annual contract with the employee which providesfor a reduction in salary below the total established compensation or salaryschedule for a term of one year. The chief executive officer shall use thefunds derived from the reduction in the salary of the employee to purchase anonforfeitable annuity or retirement income contract for the benefit of saidemployee. An employee who has agreed to a salary reduction for this purposeshall not have the right to receive the amount of salary reduction in cash orin any other way except the annuity or retirement income contract. Funds usedfor the purchase of an annuity or retirement income contract shall not be inlieu of any amount earned by the employee before his election for a salaryreduction has become effective. The agreement for salary reduction referred toherein shall be effective under the necessary regulations and proceduresadopted by the chief executive officer and on forms prescribed by him.Notwithstanding any other provision of law, the amount by which the salary ofan employee is reduced pursuant to this section shall not be excluded, butshall be included, in computing and making payroll deductions for socialsecurity and retirement system purposes, if any, and in computing and providingmatching funds for retirement system purposes, if any. (1971, c. 433, s. 2; 1991, c.389, s. 1; 2006‑66, s. 6.19(a);  2006‑203, s. 112; 2006‑221,s. 3A; 2006‑259, s. 40(a).)