NORTH CAROLINA GENERAL ASSEMBLY

1965 SESSION

 

 

CHAPTER 366

SENATE BILL 111

 

 

AN ACT TO AUTHORIZE THE PURCHASE OF ANNUITY CONTRACTS FOR THE EMPLOYEES OF COMMUNITY COLLEGES, TECHNICAL INSTITUTES, AND INDUSTRIAL EDUCATION CENTERS.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Amend Article 2 of Chapter 115 A of the General Statutes, as the same appears in the 1963 Cumulative Supplement to Volume 3A, by adding at the end of said Article 2 a new Section which shall be designated as Section 115A-17.1, and which new Section shall read as follows:

"Sec. 115A-17.1.  Authority of Boards of Trustees to Authorize the Purchase of Annuity or Retirement Income Contracts for Employees. Notwithstanding any provision of law relating to salaries and /or salary schedules for the pay of faculty members, administrative officers, or any other employees, of Community Colleges, Technical Institutes or Industrial Education Centers, the Board of Trustees of any of the above institutions may authorize the business officer or agent of same to enter into annual contracts with any of the above officers, agents and employees which provide for a reduction in salary below the total established compensation or salary schedule for a term of one (1) year. The financial officer or agent shall use the funds derived from the reduction in the salary of the officer, agent or employee to purchase a nonforfeitable annuity or retirement income contract for the benefit of said officer, agent or employee. An officer, agent or 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 or retirement income contract. Funds used for the purchase of an annuity or retirement income contract shall not be in lieu of any amount earned by the officer, agent or 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 or law, the amount by which the salary of any officer, agent or 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 this Act are hereby repealed.

Sec. 3.  This Act shall become effective upon its ratification.

In the General Assembly read three times and ratified, this the 29th day of April, 1965.