State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_135 > GS_135-68

§135‑68.  Contributions by the members.

(a)        Each member shallcontribute by payroll deduction for each pay period for which he receivescompensation six percent (6%) of his compensation for such period.

(b)        Anything withinthis Article to the contrary notwithstanding, the State, pursuant to theprovisions of section 414(h)(2) of the Internal Revenue Code of 1954 asamended, shall pick up and pay the contributions which would be payable by themembers under subsection (a) of this section with respect to the services ofsuch members rendered after the effective date of this subsection.

The members' contributionspicked up by the State shall be designated for all purposes of the RetirementSystem as member contributions, except for the determination of tax upon adistribution from the System. These contributions shall be credited to theannuity savings fund and accumulated within the fund in a member's accountwhich shall be separately established for the purpose of accounting for picked‑upcontributions.

Member contributions picked upby the State shall be payable from the same source of funds used for thepayment of compensation to a member. A deduction shall be made from a member'scompensation equal to the amount of his contributions picked up by the State. Thisdeduction, however, shall not reduce a member's compensation as defined insubdivision (5) of G.S. 135‑53. Picked up contributions shall betransmitted to the Retirement System monthly for the preceding month by meansof a warrant drawn by the State payable to the Retirement System and shall beaccompanied by a schedule of the picked‑up contributions on such forms asmay be prescribed. (1973, c. 640, s. 1; 1983, c. 469, s. 1.)