North Carolina § 147-9 - 3. Annuity contracts; salary deductions.

§ 147-9. 3. Annuity contracts; salary deductions.

Notwithstanding the provisions of G.S. 143B-426.40A and notwithstanding any provision of law relating to salaries or salary schedules of State employees, if the employee be one described in section 403(b)(1)(A)(i) or (ii) of the United States Internal Revenue Code, the chief executive officer of such employee, on behalf of the employer, may enter into an annual contract with the employee which provides for a reduction in salary below the total established compensation or salary schedule for a term of one year. The chief executive officer shall use the funds derived from the reduction in the salary of the employee to purchase a nonforfeitable annuity or retirement income contract for the benefit of said employee. An employee who has agreed to a salary reduction for this purpose shall not have the right to receive the amount of salary reduction in cash or in any other way except the annuity or retirement income contract. Funds used for the purchase of an annuity or retirement income contract shall not be in lieu of any amount earned by the employee before his election for a salary reduction has become effective. The agreement for salary reduction referred to herein shall be effective under the necessary regulations and procedures adopted by the chief executive officer and on forms prescribed by him. Notwithstanding any other provision of law, the amount by which the salary of an employee is reduced pursuant to this section shall not be excluded, but shall be included, in computing and making payroll deductions for social security and retirement system purposes, if any, and in computing and providing matching funds for retirement system purposes, if any. History (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).) Editor's Note. - Session Laws 2006-66, s. 6.19(a), as added by Session Laws 2006-221, s. 3A, substituted "G.S. 143B-426.39D" for "G.S. 143B-426-39A" which had been substituted for "G.S. 143-3.3" by Session Laws 2006-203, s. 112. The reference to G.S. 143B-426.39D has been changed to G.S. 143B-426.40A at the direction of the Revisor of Statutes. Session Laws 2006-66, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2006'." Session Laws 2006-66, s. 28.6, is a severability clause. Session Laws 2006-259, s. 40(a), corrected internal references to recodified sections 143B-426.39D through 143B-426.39F, but was repealed by Session Laws 2006-259, s. 40(i), provided that SB 198, 2005 Regular Session [2006-221] becomes law, which it did. Effect of Amendments. - Session Laws 2006-203, s. 112, effective July 1, 2007, and applicable to the budget for the 2007-2009 biennium and each subsequent biennium thereafter, substituted "G.S. 143B-426.39A" for "G.S. 143-3.3," near the beginning of the section. See Editor's note.