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

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

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

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