Bill Text: NC H402 | 2013-2014 | Regular Session | Chaptered
Bill Title: TRICARE Supplement for Flex Accounts
Spectrum: Moderate Partisan Bill (Republican 10-3)
Status: (Passed) 2013-07-18 - Ch. SL 2013-292 [H402 Detail]
Download: North_Carolina-2013-H402-Chaptered.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
SESSION LAW 2013-292
HOUSE BILL 402
AN ACT to require a TRICARE supplement to be offered if a plan of flexible compensation is 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. State entities shall use a competitive bid process to award contracts to third‑party providers for TRICARE supplement options. 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.
In the General Assembly read three times and ratified this the 10th day of July, 2013.
s/ Daniel J. Forest
President of the Senate
s/ Thom Tillis
Speaker of the House of Representatives
s/ Pat McCrory
Governor
Approved 6:16 p.m. this 18th day of July, 2013