Part29. Board of Trustees of the North Carolina Public Employee Special Pay Plan.
§ 143B‑426.41. Board of Trustees of the NorthCarolina Public Employee Special Pay Plan.
(a) The Governor shall, by Executive Order, establish a Board ofTrustees of the North Carolina Public Employee Special Pay Plan, which whenestablished shall be constituted as an agency of the State of North Carolinawithin the Department of Administration. The Board shall adopt and implement anInternal Revenue Service approved Special Pay Plan for State employees, whichshall enhance, and not diminish, existing Special Pay benefits. A Special PayPlan is a qualified retirement plan under section 401(a) of the InternalRevenue Code, which is approved by the Internal Revenue Service, that reducesthe federal tax burden on special compensation payments made on behalf of Stateemployees which if paid directly to a State employee would be compensationincome within the meaning of the Internal Revenue Code.
(b) The Board shall consist of seven voting members, as follows:
(1) The State Personnel Director.
(2) The State Budget Officer, who shall serve as chair.
(3) The State Treasurer.
(4) A State employee who has knowledge of benefits and benefitadministration appointed by the Governor.
(5) An employee of a public school system administrative unitwho is knowledgeable about payroll and benefit matters, appointed by theGovernor.
(6) An employee of The University of North Carolina System whois knowledgeable about payroll and benefit matters, appointed by the Governor.
(7) An employee of the Community College System who isknowledgeable about payroll and benefit matters, appointed by the Governor.
Any member may designate in writing, filed with theBoard, any employee of his department to act at any meeting of the Board fromwhich the member is absent, to the same extent that the member could act ifpresent at that meeting. The initial term of the member appointed pursuant tosubdivisions (4) and (5) of this subsection shall end July 1, 2004, and,thereafter, the member shall serve terms of four years. The initial term of themember appointed pursuant to subdivisions (6) and (7) of this subsection shallend July 1, 2006, and, thereafter, the member shall serve terms of four years.
(c) The Board may delegate the performance of its administrativeduties as it deems appropriate, including coordination and administration ofthe Plan. Prior to contracting for such services, the Board shall seek writtenproposals.
(d) The Plan shall be limited to employees age 55 or older whoseSpecial Pay totals five thousand dollars ($5,000) or more per year. The Boardmay designate appropriate investment vehicles, trust services, andadministrative services from any company duly authorized to conduct business inthis State. Prior to contracting for any such services, the Board shall seekwritten proposals. The Board may establish, alter, amend, and modify theSpecial Pay Plan, to the extent it deems necessary or desirable, for thepurpose of facilitating the administration, investment, and maintenance ofassets acquired by the investment of Special Pay Plan funds. The Board ofTrustees, may, however, exclude any categories of compensation or set floors orceilings in order to ameliorate any hardships or unintended consequences.
Prior to implementing a Special Pay Plan, the Board shall investigateparticipation options and weigh the advantages and disadvantages to both theState and State employees of various participation options available.
The Special Pay Plan approved by the Board shall include the followingcomponents:
(1) The Plan shall require permanent savings for all Stateemployees participating in the Special Pay Plan of no less than the lesser ofseven and sixty‑five hundredths percent (7.65%) or the FICA percentageapplicable to all Special Pay subject to the Plan.
(2) State employees who elect and are entitled to immediatedistribution from the Plan shall be guaranteed payment of the entire amount ofSpecial Pay, plus earnings, and less any mandatory income tax withholding in nomore than seven days from the date payment is made to the Plan on behalf of theState employee.
(3) The Plan shall phase in participation in the Special PayPlan by State agencies as directed by the Board.
(e) A majority of the Board shall constitute a quorum for thetransaction of business. (2002‑126, s. 28.6.)
Part29. Board of Trustees of the North Carolina Public Employee Special Pay Plan.
§ 143B‑426.41. Board of Trustees of the NorthCarolina Public Employee Special Pay Plan.
(a) The Governor shall, by Executive Order, establish a Board ofTrustees of the North Carolina Public Employee Special Pay Plan, which whenestablished shall be constituted as an agency of the State of North Carolinawithin the Department of Administration. The Board shall adopt and implement anInternal Revenue Service approved Special Pay Plan for State employees, whichshall enhance, and not diminish, existing Special Pay benefits. A Special PayPlan is a qualified retirement plan under section 401(a) of the InternalRevenue Code, which is approved by the Internal Revenue Service, that reducesthe federal tax burden on special compensation payments made on behalf of Stateemployees which if paid directly to a State employee would be compensationincome within the meaning of the Internal Revenue Code.
(b) The Board shall consist of seven voting members, as follows:
(1) The State Personnel Director.
(2) The State Budget Officer, who shall serve as chair.
(3) The State Treasurer.
(4) A State employee who has knowledge of benefits and benefitadministration appointed by the Governor.
(5) An employee of a public school system administrative unitwho is knowledgeable about payroll and benefit matters, appointed by theGovernor.
(6) An employee of The University of North Carolina System whois knowledgeable about payroll and benefit matters, appointed by the Governor.
(7) An employee of the Community College System who isknowledgeable about payroll and benefit matters, appointed by the Governor.
Any member may designate in writing, filed with theBoard, any employee of his department to act at any meeting of the Board fromwhich the member is absent, to the same extent that the member could act ifpresent at that meeting. The initial term of the member appointed pursuant tosubdivisions (4) and (5) of this subsection shall end July 1, 2004, and,thereafter, the member shall serve terms of four years. The initial term of themember appointed pursuant to subdivisions (6) and (7) of this subsection shallend July 1, 2006, and, thereafter, the member shall serve terms of four years.
(c) The Board may delegate the performance of its administrativeduties as it deems appropriate, including coordination and administration ofthe Plan. Prior to contracting for such services, the Board shall seek writtenproposals.
(d) The Plan shall be limited to employees age 55 or older whoseSpecial Pay totals five thousand dollars ($5,000) or more per year. The Boardmay designate appropriate investment vehicles, trust services, andadministrative services from any company duly authorized to conduct business inthis State. Prior to contracting for any such services, the Board shall seekwritten proposals. The Board may establish, alter, amend, and modify theSpecial Pay Plan, to the extent it deems necessary or desirable, for thepurpose of facilitating the administration, investment, and maintenance ofassets acquired by the investment of Special Pay Plan funds. The Board ofTrustees, may, however, exclude any categories of compensation or set floors orceilings in order to ameliorate any hardships or unintended consequences.
Prior to implementing a Special Pay Plan, the Board shall investigateparticipation options and weigh the advantages and disadvantages to both theState and State employees of various participation options available.
The Special Pay Plan approved by the Board shall include the followingcomponents:
(1) The Plan shall require permanent savings for all Stateemployees participating in the Special Pay Plan of no less than the lesser ofseven and sixty‑five hundredths percent (7.65%) or the FICA percentageapplicable to all Special Pay subject to the Plan.
(2) State employees who elect and are entitled to immediatedistribution from the Plan shall be guaranteed payment of the entire amount ofSpecial Pay, plus earnings, and less any mandatory income tax withholding in nomore than seven days from the date payment is made to the Plan on behalf of theState employee.
(3) The Plan shall phase in participation in the Special PayPlan by State agencies as directed by the Board.
(e) A majority of the Board shall constitute a quorum for thetransaction of business. (2002‑126, s. 28.6.)
Part29. Board of Trustees of the North Carolina Public Employee Special Pay Plan.
§ 143B‑426.41. Board of Trustees of the NorthCarolina Public Employee Special Pay Plan.
(a) The Governor shall, by Executive Order, establish a Board ofTrustees of the North Carolina Public Employee Special Pay Plan, which whenestablished shall be constituted as an agency of the State of North Carolinawithin the Department of Administration. The Board shall adopt and implement anInternal Revenue Service approved Special Pay Plan for State employees, whichshall enhance, and not diminish, existing Special Pay benefits. A Special PayPlan is a qualified retirement plan under section 401(a) of the InternalRevenue Code, which is approved by the Internal Revenue Service, that reducesthe federal tax burden on special compensation payments made on behalf of Stateemployees which if paid directly to a State employee would be compensationincome within the meaning of the Internal Revenue Code.
(b) The Board shall consist of seven voting members, as follows:
(1) The State Personnel Director.
(2) The State Budget Officer, who shall serve as chair.
(3) The State Treasurer.
(4) A State employee who has knowledge of benefits and benefitadministration appointed by the Governor.
(5) An employee of a public school system administrative unitwho is knowledgeable about payroll and benefit matters, appointed by theGovernor.
(6) An employee of The University of North Carolina System whois knowledgeable about payroll and benefit matters, appointed by the Governor.
(7) An employee of the Community College System who isknowledgeable about payroll and benefit matters, appointed by the Governor.
Any member may designate in writing, filed with theBoard, any employee of his department to act at any meeting of the Board fromwhich the member is absent, to the same extent that the member could act ifpresent at that meeting. The initial term of the member appointed pursuant tosubdivisions (4) and (5) of this subsection shall end July 1, 2004, and,thereafter, the member shall serve terms of four years. The initial term of themember appointed pursuant to subdivisions (6) and (7) of this subsection shallend July 1, 2006, and, thereafter, the member shall serve terms of four years.
(c) The Board may delegate the performance of its administrativeduties as it deems appropriate, including coordination and administration ofthe Plan. Prior to contracting for such services, the Board shall seek writtenproposals.
(d) The Plan shall be limited to employees age 55 or older whoseSpecial Pay totals five thousand dollars ($5,000) or more per year. The Boardmay designate appropriate investment vehicles, trust services, andadministrative services from any company duly authorized to conduct business inthis State. Prior to contracting for any such services, the Board shall seekwritten proposals. The Board may establish, alter, amend, and modify theSpecial Pay Plan, to the extent it deems necessary or desirable, for thepurpose of facilitating the administration, investment, and maintenance ofassets acquired by the investment of Special Pay Plan funds. The Board ofTrustees, may, however, exclude any categories of compensation or set floors orceilings in order to ameliorate any hardships or unintended consequences.
Prior to implementing a Special Pay Plan, the Board shall investigateparticipation options and weigh the advantages and disadvantages to both theState and State employees of various participation options available.
The Special Pay Plan approved by the Board shall include the followingcomponents:
(1) The Plan shall require permanent savings for all Stateemployees participating in the Special Pay Plan of no less than the lesser ofseven and sixty‑five hundredths percent (7.65%) or the FICA percentageapplicable to all Special Pay subject to the Plan.
(2) State employees who elect and are entitled to immediatedistribution from the Plan shall be guaranteed payment of the entire amount ofSpecial Pay, plus earnings, and less any mandatory income tax withholding in nomore than seven days from the date payment is made to the Plan on behalf of theState employee.
(3) The Plan shall phase in participation in the Special PayPlan by State agencies as directed by the Board.
(e) A majority of the Board shall constitute a quorum for thetransaction of business. (2002‑126, s. 28.6.)
