This page summarizes some of your compliance responsibilities as a participating employer in the NC 401(k) and NC 457 Plans, which are offered by the State of North Carolina to state and local governmental employees. The Plans are administered by the Department of State Treasurer and the Supplemental Retirement Board of Trustees and are subject to North Carolina law, the U.S. Internal Revenue Code, U.S. Treasury regulations, and the plan documents and policies adopted by the Board. While the Department and the Board handle most compliance responsibilities, as a participating employer in the Plans, you also play an important compliance role. 

The Department and the Board have contracted with Empower to provide recordkeeping and communications services for the Plans. Empower is your main point of contact for compliance matters, and Empower provides counselors to assist the Plans’ employers and participants. See Contact Your Counselor for dedicated assistance.

Summary of Employers’ Compliance Responsibilities

• ALL of your employees are eligible to participate in the Plans, including part-time, temporary, and non-pension employees.
   
• ALL of your employees are permitted to make on pre-tax and/or after-tax (Roth) contributions and to take loans. 
   
• Promptly remit all employee contributions, employer contributions, and loan repayments to Empower for every payroll period during the year and in the format and by the process required by Empower. Notify Empower of any changes to your payroll frequency.
   
• Remit employee contributions and loan repayments in the amounts provided on the Plan Service Center.
   
• If you mistakenly submit contributions, request a refund within 12 months of such mistake.
   
• Notify Empower of any highly compensated employees whose catch-up contributions must be made after-tax (Roth), and remit only after-tax (Roth) catch-up contributions for these employees. (site resource coming soon)
   
• Comply with the restrictions on employer contributions to the NC 401(k) Plan that are in the plan document and N.C. Gen. Stat. §§ 143-166.50(e) (Local LEOs) and 143-166.30(e) (State LEOs). 
   
• Calculate employee and employer contributions on employees’ compensation, as determined for each Plan. 
   
• Complete the Employer Participation Form and if applicable, the Employer Contributions Program Form.
   
• Maintain a complete and accurate list of your current employees and their contact information and employment status (e.g., retirement, leave, LEO) on the Plan Service Center.
   
• Prior to each payroll date, review the employee deferral rate change, loan, and court cost allocation reports on the Plan Service Center.
   
• Refer your employees to myNCPlans.com if they want to update their employee contributions or other account information.
   
• Correct any errors you make, including making corrective payments to participants, as required by the Department.
   
• Cooperate with the Department, Empower, and the Plans’ auditor, including providing requested information.