Agenda - 05-11-1999 - 4 - Laserfiche WebLink

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8 (3) With an across the board contribution, the effective date could be effective on a retroactive or current basis. b. Matching Option (1) A matching option is one in which the County makes a contribution if the employee makes a contribution. A matching contribution may be up to a percentage of salary or a flat dollar amount provided that the employee elects to participate by making a voluntary contribution. (2) The 401(k) matching option is a new provision now available to all local government employers effective January 1, 1998. (3) Of the 242 employers, 43 (18 percent) provide for a matching option. Of the 38 counties, four provide a matching contribution. (4) The minimum employee 401(k) Plan contribution is $10 a pay period for the 24 pay periods in which deductions are made. This would be the minimum required for any matching option. (5) The match may be dollar for dollar up to specified limit such as two percent of salary or it may be that any employee contribution triggers the full employer match such as if the employee contributes $10 a pay period then the employer contributes two percent of salary. (6) A matching option must be effective on a prospective basis and may not be retroactive. (7) The employee may not match by designating a percentage of his or her salary for the contribution. The match must designate a specific dollar amount each pay .period. This means any increase in earnings such as overtime pay or other requires the employee do a change form in order to maximize any match which is based on a percentage of salary. (8) Several examples of employer matches are listed below: Craven County matches voluntary employee contributions up to 2 percent of salary. Harnett County matches a 1 percent employee contribution with a 1 percent match (employee has to contribute 1 percent to get the match). Scotland County matches 3.75 percent of salary if the employee contributes anything.