North Carolina § 116-17 - 2. Flexible Compensation Plan.

§ 116-17. 2. Flexible Compensation Plan.

Notwithstanding any other provisions of law relating to the salaries of employees of The University of North Carolina, the Board of Governors of The University of North Carolina is authorized to provide a plan of flexible compensation to eligible employees of constituent institutions for benefits available under Section 125 and related sections of the Internal Revenue Code of 1986 as amended. This plan shall not include those benefits provided to employees under Articles 1, 3B, and 6 of Chapter 135 of the General Statutes nor any vacation leave, sick leave, or any other leave that may be carried forward from year to year by employees as a form of deferred compensation. If a plan of flexible compensation is offered, then a TRICARE supplement shall be offered. In providing a plan of flexible compensation, the Board of Governors may authorize constituent institutions to enter into agreements with their employees for reductions in the salaries of employees electing to participate in the plan of flexible compensation provided by this section. With the approval of the Director of the Budget, savings in the employer's share of contributions under the Federal Insurance Contributions Act on account of the reduction in salary may be used to pay some or all of the administrative expenses of the program. Should the Board of Governors decide to contract with a third party to administer the terms and conditions of a plan of flexible compensation as provided by this section, it may select such a contractor only upon a thorough and completely advertised competitive procurement process. History (1989 (Reg. Sess., 1990), c. 1059, s. 3; 1991 (Reg. Sess., 1992), c. 1044, s. 14(h); 1993, c. 561, s. 42; 1993 (Reg. Sess., 1994), c. 769, s. 7.28A; 1997-443, s. 33.20(a); 1999-237, s. 28.27(a); 2013-292, s. 3.) Cross References. - For flexible compensation plan for eligible officers and employees of State departments, institutions, and agencies not covered by the provisions of this section, see G.S. 126-95 . Editor's Note. - The number of this section was assigned by the Revisor of Statutes, the number in Session Laws 1989 (Reg. Sess., 1990), c. 1059, s. 3 having been 116-17.1. Session Laws 2011-145, s. 20.5A, provides: "During the 2011-2013 fiscal biennium, notwithstanding the provisions of G.S. 143C-6-10 , 126-95, 116-17.2, or any other law to the contrary, the sum of one million five hundred thousand dollars ($1,500,000) from the savings in the employer's share of contributions under the Federal Insurance Contributions Act on account of the reduction in salary may be transferred from the NCFlex FICA Fund to the Office of State Personnel [now the Office of Human Resources] to support program components of the HCM System." Session Laws 2012-142, s. 25.2, repealed Session Laws 2011-145, s. 29.8(f), as amended by Session Laws 2011-391, s. 59A, which had provided: "No employee of any other State agency or constituent institution of The University of North Carolina, excluding employees of the University of North Carolina Health Care System and employees participating in a constituent institution's medical faculty practice plan, shall receive compensation bonuses." Session Laws 2011-145, s. 1.1, provides: "This act shall be known as the 'Current Operations and Capital Improvements Appropriations Act of 2011.'" Session Laws 2011-145, s. 32.2, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2011-2013 fiscal biennium, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2011-2013 fiscal biennium." Session Laws 2011-145, s. 32.5, is a severability clause. Session Laws 2012-142, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2012.'" Session Laws 2012-142, s. 27.4, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2012-2013 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2012-2013 fiscal year." Session Laws 2012-142, s. 27.7, is a severability clause. Session Laws 2013-292, s. 5, provides: "State entities shall use a competitive bid process to award contracts to third-party providers for TRICARE supplement options. The NC Flex plan administered by the Office of State Personnel [now the Office of Human Resources] shall offer a TRICARE supplement no later than January 1, 2015." Effect of Amendments. - Session Laws 2013-292, s. 3, effective July 18, 2013, substituted "Articles 1, 3B, and 6" for "Articles, 1, 3, and 6" in the second sentence and added the third sentence. Opinions of Attorney General Voluntary Indemnity Plan. - The statutes that govern the Teachers' and State Employees' Comprehensive Major Medical Plan (now State Health Plan for Teachers and State Employees) and the Statewide Flexible Benefits Program permit the Statewide Flexible Benefits Program to offer a voluntary indemnity plan that provides hospital confinement, short-stay, rehabilitation unit, surgical, heart attack, stroke, coma, paralysis, ambulance, and wellness benefits. See opinion of Attorney General to Mr. Carl Goodwin, Director, Risk Control Services, Office of State Personnel, 2001 N.C. AG LEXIS 40 (10/3/01). The University of North Carolina, or some of its campuses, may not offer a cafeteria plan which allows pre-tax premiums for dependent health coverage as such competition would impair the object of the statute, which was to establish a single statewide plan that did not compete with existing benefits. See opinion of Attorney General to Leslie Winner, Vice President and General Counsel, University of North Carolina, 2002 N.C. AG LEXIS 15 (3/26/02).