§88D-3  Special pay plans; implementation. 
(a)  All accumulated vacation allowance of an employee who separates from
service in a jurisdiction that has established a special pay plan shall be paid
to the special pay plan.



(b)  The employer shall pick up any mandatory
employee contribution of accumulated vacation allowance to the special pay plan
within the meaning of section 414(h)(2) of the Internal Revenue Code.



(c)  No employee shall have the option of
receiving their accumulated vacation allowance in cash in lieu of having a
contribution made to the special pay plan by their employer.



(d)  The
employer shall reimburse employees under the age of fifty-five who elect a
withdrawal of their entire account balance from the special pay plan within
sixty days from the date that the employee separated from service, an amount
equal to the difference between the FICA and medicare tax savings to the
employee, and any early withdrawal penalty imposed by the Internal Revenue
Service. [L 2003, c 109, pt of §2; am L 2004, c 10, §3]