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NORTH CAROLINA GENERAL STATUTE 128--30(bl) <br /> "(b1 ) pick Up of Employee Contributions.--Anything within this section to <br /> the contrary notwithstanding, effective July 1 , 1982, an employer, pursuant to <br /> the provisions of Section 414(h)(2) of the Internal Revenue Code of 1954 as <br /> amended, may elect to pick up and pay the contributions which would be payable <br /> by the employees as members under subsection (b) of this section with respect to <br /> the service of employees after June 30, 1982. <br /> The members` contributions picked up by an employer shall be designated for <br /> all purposes of the Retirement System as member contributions, except for the <br /> determination of tax upon a distribution from the System. These contributions <br /> shall be credited to the annuity savings fund and accumulated within the fund in <br /> a member's account which shall be separately established for the purpose of <br /> accounting for picked-up contributions. <br /> Member contributions picked up by an employer shall be payable from the same <br /> source of funds used for the payment of compensation to a member. A deduction <br /> shall be made from a member's compensation equal to the amount of his <br /> contributions picked up by his employer. This deduction, however, shall not <br /> reduce his compensation as defined in subdivision (7a) of G.S. 128-21 . picked-up <br /> contributions shall be transmitted to the System monthly for the preceding month <br /> by means of a warrant drawn by the employer and payable to the Local Governmental <br /> Empioyees' Retirement System and shall be accompanied by a schedule of the <br /> picked-up contributions on such forms as may be prescribed. In the case of a <br /> failure to fulfill these conditions the provisions of subsection (f)(3) of this <br /> section shall apply." <br />