Attached is the Governor’s Executive Order dated February 8, 2001, which directs the Office of the State Controller (OSC) to receive the employer portion of retirement contributions for all State funded retirement systems and to deposit such funds in a special reserve as established by the Office of State Budget, Planning and Management.  State funded retirement systems have been defined as the Teachers’ and State Employees’ Retirement System, the Consolidated Judicial Retirement System and the Legislative Retirement System.  Budget code 19941 titled General Fund Reserve – Easley Executive Order No. 3 has been established with the OSC to receive the employer share of the retirement contributions.  The employer shares of the retirement contributions have been defined as follows:
 

Retirement System	% of Subject Wages	or	% of Total Employer Contribution
Teachers’ and State Employees	5.33%		74.75%  (5.33/7.13)
Consolidated Judicial	18.58%		92%       (18.58/20.38)
Legislative Retirement	22.70%		93%       (22.70/24.5)

The Retiree Health Benefits and Disability portions of your monthly contribution will continue to be remitted to the Department of the State Treasurer.

In compliance with the Governor’s directive you should immediately implement the following procedures for each payroll processing center:

CENTRAL PAYROLL AGENCIES AND UNIVERSITITES:
The Central Payroll section of the Office of State Controller will forward the employer share of the retirement contributions to the General Fund Reserve budget code 19941.  Each payroll unit will complete the attached form (OSC FORM-EPR 1A) identifying the source of funds supporting the retirement contribution.  For example, state and auxiliary funds may support a university position or state and federal funds may support an agency position.  The form should be remitted through email to Denise Driver  ddriver@mail.osc.state.nc.us.

ENTITIES NOT USING CENTRAL PAYROLL:

1.	Refer to attached Form 111S “Monthly Summary Report of Subject Wages and Retirement Contributions.
2.	Complete the form monthly for all payroll processed beginning with payrolls paid after January 31, 2001.
3.	The employee contribution noted on lines 1-3 will be remitted to the Department of the State Treasurer, Teachers’ and State Employees’ Retirement System.  Contact the Department of the State Treasurer for any questions on the employee contributions.
4.	Procedures for completion of employer contributions noted on lines 4 –6:  a. On line 4,  the rate will be the percentage to be remitted for the employer retirement contribution as noted in paragraph 1.  This calculation will support the amount remitted to OSC. b. Entities on the Cash Management Control System (CMCS) will electronically transfer the funds to General Fund Reserve budget code 19941, department code 9941. c. Entities not utilizing the CMCS will remit checks payable to the OSC-GF Reserve Code 19941 mailing address:  Office of State Controller 1410 Mail Service Center Raleigh, NC 27699-1410 Attention: Denise Driver Central Compliance Section d. Submit a copy of form 111s and the form titled “OSC FORM-EPR 1A” electronically to Denise Driver at ddriver@mail.osc.state.nc.us or mail to the above address.
5.	Contributions and attached forms are due to OSC no later than the fifth State government working day of the month succeeding the month for which the contributions are required.
6.	Please note: a copy of Form 111S will be remitted to the OSC and State Treasurer.  Continue to forward all retirement related information to the State Treasurer.

We appreciate your assistance in complying with the Governor’s Executive Order.  For further assistance, contact Amber Young at 919-981-5481 or ayoung@mail.osc.state.nc.us or Denise Driver at 919-981-5496.
 

Attachments:

Executive Order # 3 - Budget Administration

OSC Form - EPR 1A

• Excel Format - has formulas that will calculate for you (you must open and save to your machine to use).

• Acrobat Format - does not contain formulas, has to be completed manually and submitted.

Form 111S - Monthly Summary Report of Subject Wages and Retirement Contributions
 
Note: The Acrobat Reader software will not allow you to save files. PDF forms can be filled out online, but will need to be printed. Then you can either mail the form in, or scan it back into an electronic format for emailing.