Orange County NC Website
Browse       Search
30 <br /> Retirement System. This change became effective January 1, 1983 for the <br /> N.C. Law Enforcement Officer Retirement System. This is funded by the <br /> same six percent (6%) retirement contribution deducted from a member's <br /> gross salary. Using this arrangement, there is no additional cost to an <br /> employer. The Retirement System will continue to credit the amount of <br /> contribution to the employee's account in the Retirement System. Also, the <br /> Retirement System would continue to recognize an employee's full salary for <br /> purposes of compensation. Should an employee terminate and request a <br /> refund, the total of contributions both before and after the election would be <br /> refunded. Upon a refund, the System will report to the Internal Revenue <br /> Service an employee's contribution made after the election of the pick up as <br /> taxable income in the year of the refund. At retirement, an employee has to <br /> pay Federal income tax on all amounts received over and above the <br /> contributions made prior to the date of election to tax shelter the contributions. <br /> H:\art4401.doc <br /> June 16, 1999 <br />