AN ACT TO ALLOW COMMUNITY COLLEGES TO PARTICIPATE IN THE 403(B) SUPPLEMENTAL RETIREMENT PLAN.
Amends GS 115D-25 to provide that, in lieu of annuity or related contracts, interests in specified custodial accounts can be purchased by local boards of trustees for the benefit of qualified employees with the funds derived pursuant to the reduction in salaries of such employees. Makes conforming changes to the section catchline.
Enacts new GS 115D-25.4, Department of State Treasurer-sponsored 403(b) option, allowing local boards of trustees to offer the "North Carolina Public School Teachers' and Professional Educators' Investment Plan" (Plan). Sets out seven criteria for the offering of the Plan, including requiring that annuity contracts, trust accounts, and/or custodial accounts are administered by a qualified third-party administrator to provide custodial, record-keeping, and administrative services. Further provides nine requirements of the third-party, including maintaining a written plan document, monitoring maximum contributions, and keeping an updated schedule of vendor fees and commissions as to the Department of State Treasurer's statewide plan. Provides that oversight of the Plan will be performed by the Department of State Treasurer and the Board of Trustees for the NC Supplemental Retirement Plans, also provides that they will solely determine the investment options for the Plan. Sets out additional requirements concerning investment recommendations, payment and disbursement procedures, contributions by the local board of trustees to an employee's account, and design and administration of annuity contracts, trust accounts, and custodial accounts.
Effective October 1, 2015.