GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
H 2
HOUSE BILL 402*
Second Edition Engrossed 5/7/13
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Short Title: TRICARE Supplement for Flex Accounts. |
(Public) |
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Sponsors: |
Representatives Szoka, Dockham, Ramsey, and Floyd (Primary Sponsor). For a complete list of Sponsors, see Bill Information on the NCGA Web Site. |
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Referred to: |
State Personnel, if favorable, Appropriations. |
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March 21, 2013
A BILL TO BE ENTITLED
AN ACT to allow a TRICARE supplement for flexible compensation plans offered by the state.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 115C-341.1 reads as rewritten:
"§ 115C-341.1. Flexible Compensation Plan.
Notwithstanding any other provisions of law relating to the
salaries of employees of local boards of education, the State Board of Education
is authorized to provide a plan of flexible compensation to eligible employees
of local school administrative units for benefits available under Section 125
and related sections of the Internal Revenue Code of 1986 as amended. This plan
shall not include those benefits provided to employees under Articles 1, 3,
3B, and 6 of Chapter 135 of the General Statutes nor any vacation leave,
sick leave, or any other leave that may be carried forward from year to year by
employees as a form of deferred compensation. If a plan of flexible
compensation is offered, then a TRICARE supplement shall be offered. In
providing a plan of flexible compensation, the State Board may authorize local
school administrative units to enter into agreements with their employees for
reductions in the salaries of employees electing to participate in the plan of
flexible compensation provided by this section. Should the State Board decide
to contract with a third party to administer the terms and conditions of a plan
of flexible compensation as provided by this section, it may select such a
contractor only upon a thorough and completely advertised competitive
procurement process."
SECTION 2. G.S. 115D-25.2 reads as rewritten:
"§ 115D-25.2. Flexible Compensation Plan.
Notwithstanding any other provisions of law relating to the
salaries of employees of community college boards of trustees, the State Board
of Community Colleges is authorized to provide a plan of flexible compensation
to eligible employees of constituent institutions for benefits available under
Section 125 and related sections of the Internal Revenue Code of 1986 as
amended. This plan shall not include those benefits provided to employees under
Articles 1, 3, 3B, and 6 of Chapter 135 of the General Statutes
nor any vacation leave, sick leave, or any other leave that may be carried
forward from year to year by employees as a form of deferred compensation. If
a plan of flexible compensation is offered, then a TRICARE supplement shall be
offered. In providing a plan of flexible compensation, the State Board may
authorize constituent institutions to enter into agreements with their
employees for reductions in the salaries of employees electing to participate
in the plan of flexible compensation provided by this section. With the
approval of the Director of the Budget, savings in the employer's share of
contributions under the Federal Insurance Contributions Act on account of the
reduction in salary may be used to pay some or all of the administrative
expenses of the program. Should the State Board decide to contract with a third
party to administer the terms and conditions of a plan of flexible compensation
as provided by this section, it may select such a contractor only upon a
thorough and completely advertised competitive procurement process."
SECTION 3. G.S. 116-17.2 reads as rewritten:
"§ 116-17.2. Flexible Compensation Plan.
Notwithstanding any other provisions of law relating to the
salaries of employees of The University of North Carolina, the Board of
Governors of The University of North Carolina is authorized to provide a plan
of flexible compensation to eligible employees of constituent institutions for
benefits available under Section 125 and related sections of the Internal
Revenue Code of 1986 as amended. This plan shall not include those benefits
provided to employees under Articles 1, 3, 3B, and 6 of Chapter
135 of the General Statutes nor any vacation leave, sick leave, or any other
leave that may be carried forward from year to year by employees as a form of deferred
compensation. If a plan of flexible compensation is offered, then a TRICARE
supplement shall be offered. In providing a plan of flexible compensation,
the Board of Governors may authorize constituent institutions to enter into
agreements with their employees for reductions in the salaries of employees
electing to participate in the plan of flexible compensation provided by this
section. With the approval of the Director of the Budget, savings in the
employer's share of contributions under the Federal Insurance Contributions Act
on account of the reduction in salary may be used to pay some or all of the
administrative expenses of the program. Should the Board of Governors decide to
contract with a third party to administer the terms and conditions of a plan of
flexible compensation as provided by this section, it may select such a
contractor only upon a thorough and completely advertised competitive
procurement process."
SECTION 4. G.S. 126-95(b) reads as rewritten:
"(b) Notwithstanding any
other provisions of law relating to the salaries of officers and employees of
departments, institutions, and agencies of State government, the Director of
the Budget may provide a plan of flexible compensation to eligible officers and
employees of State departments, institutions, and agencies not covered by the
provisions of G.S. 116-17.2 for benefits available under section 125 and
related sections of the Internal Revenue Code of 1986, as amended. This plan
shall not replace, substitute for, or duplicate any benefits provided to
employees and officers under Article 1A of Chapter 120 of the General Statutes
and Articles 1, 3, 3B, 4, and 6 of Chapter 135 of the General
Statutes. The plan may, however, include offerings for products and benefits
that are supplemental or additional to these statutory benefits. If a plan
of flexible compensation is offered, then a TRICARE supplement shall be
offered. In providing a plan of flexible compensation, the Director of the
Budget may authorize State departments, institutions, and agencies to enter
into agreements with their employees for reductions in the salaries of
employees electing to participate in the plan of flexible compensation provided
by this section. With the approval of the Director of the Budget, savings in
the employer's share of contributions under the Federal Insurance Contributions
Act on account of the reduction in salary may be used to pay some or all of the
administrative expenses of the program. Should the Director of the Budget
decide to contract with a third party to administer the terms and conditions of
a plan of flexible compensation as provided by this section, it may select such
a contractor only upon a thorough and completely advertised competitive
procurement process."
SECTION 5. Any State entity that decides to offer a TRICARE supplement option shall use a competitive bid process to award contracts to any third-party provider. The NC Flex plan administered by the Office of State Personnel shall offer a TRICARE supplement no later than January 1, 2015.
SECTION 6. This act is effective when it becomes law.