54-52.3 Pretax Benefits Program - North Dakota Statutes

Download pdf

Loading PDF...

CHAPTER 54-52.3PRETAX BENEFITS PROGRAM54-52.3-01. Pretax benefits program for public employees. The public employeesretirement system board may establish a pretax benefits program for all state employees and
employees of district health units, including members of the legislative assembly, under which an
employee may reduce the employee's salary and elect benefits to the extent of the reduction. A
participating district health unit shall comply with the program conditions and pay all fees
established by the board.54-52.3-02. Authority of board. The board shall determine benefits to be offered underthe pretax benefits program, accept proposals from qualified providers, retain consultants, and do
all things necessary to administer the pretax benefits program and preserve its tax-exempt
status.54-52.3-03. Employer savings used to defray expenses of administering program -Continuing appropriation. The office of management and budget shall transfer funds from the
savings accruing to the agencies' salaries and wages line item, as a result of the diminution of
the state's employer contribution for the Federal Insurance Contribution Act tax, to a payroll
clearing account. The office of management and budget shall transfer funds from the payroll
clearing account to the board as necessary to defray the reasonable expenses of administering
the pretax benefits program established under this chapter, including expenses associated with
the program's medical spending account. Any revenue collected by the board from participating
district health units must be used, and is hereby appropriated, to defray the expenses of
administering the program. The amount necessary to pay consultants retained by the board, any
insurance costs associated with the medical spending account, and medical reimbursements for
the medical spending account if funds are insufficient to pay claims are hereby appropriated from
the savings and revenue generated by the program. All other expenses of administering the
program must be paid in accordance with the agency's appropriation authority as established by
the legislative assembly. The director of the office of management and budget may decrease or
suspend the transfer of the savings accruing to the agencies' salaries and wages line item to the
payroll clearing account upon determination that the funds deposited under this section are
sufficient to offset anticipated obligations. Notwithstanding other provisions in this section, the
public employees retirement system board, or any successor state agency, may not establish,
enroll, or administer any pretax benefits program for a political subdivision or any other public or
private business or entity, except for any program established specifically for employees of the
state and employees of district health units.54-52.3-04. Effect of participation on other state-administered employee benefitsprograms.For all purposes under any state-administered retirement program, disabilityprogram, life insurance program, or other employee benefits program, the compensation or gross
compensation of any employee participating in any pretax benefits program is deemed to be the
compensation or gross compensation which the employee would have received if the employee
was not participating in the pretax benefits program.54-52.3-05.Confidentiality of program records.Any records and informationpertaining to a public employee's medical and dependent care reimbursement under the pretax
benefits program are confidential and are not public records subject to section 44-04-18 and
section 6 of article XI of the Constitution of North Dakota. The records and information may be
disclosed, under rules adopted by the board, only to:1.A person to whom the employee has given written authorization to have the
information disclosed.2.A person legally representing the employee, upon proper proof of representation.3.A person authorized by a court order.Page No. 14.A person or entity to which the board is required to disclose information pursuant to
federal or state statutes or regulations.5.Any person or entity if the purpose of the disclosure is for health care treatment,
payment, or operations.54-52.3-06.Deposit of program moneys - Appropriation.All moneys collectedpursuant to elections made by public employees under the pretax benefits program for the
medical spending account and the dependent care account must be deposited in an account with
the Bank of North Dakota. All moneys deposited in the account, not otherwise appropriated, are
hereby appropriated for the purpose of making payments to employees participating in the
program. The board shall transfer any surplus in the pretax benefits account at the end of the
plan year to the payroll clearing account.Page No. 2Document Outlinechapter 54-52.3 pretax benefits program