NORTH CAROLINA GENERAL ASSEMBLY

1963 SESSION

 

 

CHAPTER 582

SENATE BILL 331

 

 

AN ACT TO AUTHORIZE COUNTY AND CITY BOARDS OF EDUCATION TO PURCHASE ANNUITY CONTRACTS FOR THEIR EMPLOYEES.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Article 18 of Chapter 115 of the General Statutes (Volume 3-A, Replacement 1960) is amended by adding immediately after G.S. 115-153 a new Section which shall be designated as Section 115-153.1 and which shall read as follows:

"Sec. 115-153.1.  Authority of County and City Boards of Education to Purchase Annuity Contracts for Their Employees. Notwithstanding the provisions of this Chapter for the adoption of State and local salary schedules for the pay of teachers, principals, superintendents, and other school employees, county and city boards of education may enter into annual contracts with any employee of such board which provide for a reduction in salary below the total established compensation or salary schedule for a term of one (1) year. The county or city board of education shall use the funds derived from the reduction in the salary of the employee to purchase a nonforfeitable annuity 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 the salary reduction in cash or in any other way except the annuity contract. Funds used by the county and city boards of education for the purchase of an annuity 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 reductions referred to herein shall be effected under any necessary regulations and procedures adopted by the State Board of Education and on forms prepared by the State Board of Education.

"Notwithstanding any other provisions of this Section, 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, and in computing and providing matching funds for retirement system purposes."

Sec. 2.  All laws and clauses of laws in conflict with the provisions of this Act are hereby repealed.

Sec. 3.  This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 28th day of May, 1963.