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STATE OF NORTH CAROLINA DEPARTMENT OF State treASURER December 20. 1983 M g M 0 R A ~ D U M TO: Local Governments Rep~rting Employees as Members of the Law Enfnrcement OfficersI Retirement System FROM: E.T. Barnes SUBJECT: ~ax,?.Sh-elt~fifi'~6f;,MefiilS~SGofft~ibbti6ns:.tb'::the ,La w-.~.E n for cerne nt-~ O f hcer s .uRet~remen f~.System The Internal Revenue Service, United States Department of the Treasury, has approved our application for determination of the Law Enforcement Officers~ Retirement System as a trust qualified under Section 40t[al of the Internal Revenue Cod~. This action causes certdn memberls contriDutions tO this Retirement System t. be sheltered from current federal and State income taxes effective January 1, 1984. These members are: all State-emph)ye(~ memoers; tnd, those' members employed by focal governments who ::re participating employers in the North Garolina Local Governmental Employees~ Retirement System or who administer so,ne other employees~ trust ~ualified under Sections 401(a). 403{a) .r 405(a) of the Internal Revenue Code of 1954 as amended, md who h=~ve elected to tax shelter contributions for all then' other emph~yees covered ts memoers ~f the North C.~rolifla Loc:il Oovernment~.l Empl,~yees' Retire,nent System or other ouahfied emDl,>vees' trust. Lineal Governmental Emph)yees~ Netlrealent System who his elected tax sheltering of your employees~ cnntril~utiuns payaule to that System, should now elect the s:une tax sheltering ,~I your employees~ c~}ntrtuuti;~ns payable to the Law Enforcement Ufficers~ Retirement System. You must elect tax sheltering in !*otb retirement systems to he in co~npliance with Revenue Rulings 81-35 and 81-~6. If you do not not make the tax sheltering election with regard to the Law Enforc'ement Officers~ Retirement System. your earlier election with regard to the Local Governmental Employees~ Retirement System will be void. The resolution for your governing hoard to adopt is herewith attached, The effective date of the resolution should he January 1, 1984 even though y~ur governing board adopts the resolution after that date. This tax shelter is made possible because of legislation enacted by the 1983 Session of the GenerM Assembly in Senate Bill 293 which was ratified as Ghapter .t68 of the 1983 Session Laws. This legislation restructured this Retirement System to enhance .t favorable determination hy the internal Revenue Service that the System is a qu;dified employees~ trust and made the tax sheltering effective ,rely on the first day ut a month after t favorable letter of determinati.n hv the Service is received md fried with the Secretary of State .f N.rth Carolina. We received a law,rattle letter determination on Dece,n~er 19, 1983 ~nd filed !t on the s:une d~y with the Secretary ,~f State thus theull~anua~2~.,~.l:,q~¢[:t~.l~.4.?.~.feet:iO, ig. Attached for your reference is ~ copy -f section~'-l'0"~[:{~l =fl''oi'' Chapter 468 which contain these provisions ,>f law. (OVER)