Amends GS 115C-341 to authorize local boards of education to purchase interests in custodial accounts pursuant to Section 401(f), Section 403(b)(7), and related sections of the Internal Revenue Code for the benefit of qualified employees with funds derived from the reduction in the salaries of such employees.
Enacts new GS 115C-341A to authorize the Department of State Treasurer to establish a centralized list of approved third-party vendors of annuity contracts and custodial accounts, pursuant to which employees of local school boards may enter into nonforfeitable annuity contracts by way of salary reduction through the Department of State Treasurer. Specifies six criteria that must apply to the Department of State Treasurer's Section 403(b) offerings to employees of local school boards.
Effective July 1, 2011.