§651. Deferred compensation plans authorized

Link to law: http://legislature.vermont.gov/statutes/section/03/022/00651
Published: 2015

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The Vermont Statutes Online



Title

03

:
Executive






Chapter

022

:
DEFERRED COMPENSATION PROGRAMS











 

§

651. Deferred compensation plans authorized

(a) Subject to

collective bargaining rights of employees involved, the state or any county,

municipality, school district, or supervisory union may, through any public

agency, enter into a contractual agreement with any employee of that agency to

defer, in whole or in part, that employee's compensation. Payroll reductions

shall be made, in each instance, by the appropriate payroll officer.

(b) The state

board may establish and administer a plan that conforms with Section 457 of the

Internal Revenue Code for the purpose of providing a deferred compensation

program for state employees, including members of the general assembly, and for

the employees of other public agencies that elect to participate in the state

plan.

(c) Other public

agencies may establish and administer a plan for the purpose of providing a

deferred compensation program for their employees.

(d) The state

board and other public agencies, which have or will establish a deferred

compensation plan, shall create a trust to conform with the appropriate

sections of the Internal Revenue Code. The teachers' board may create an

investment program that will provide public agencies set forth in subdivision

650(4)(C) of this title operating plans under Section 403(b) of the Internal

Revenue Code with investment options.

(e) All assets

and income which have been or shall be deposited pursuant to this chapter by

the state of Vermont or other public agencies shall be held in trust in any

funding vehicle permitted by Section 403(b) and Section 457 of the Internal

Revenue Code for the exclusive benefit of the plans' participants and their

beneficiaries until such time as the funds are distributed to the participant

or the beneficiary of the participant in accordance with the terms of the

deferred compensation plan.

(f) For state

employees, including members of the general assembly, the state board shall be

the trustees of the deferred compensation plan that conforms to Section 457 of

the Internal Revenue Code, and the state treasurer shall be the custodian of

the funds in the trust. All payments from the funds shall be made by the state

treasurer or the treasurer's authorized agent. An investment program

established by the teachers' board shall be optional for public agencies set

forth in subdivision 650(4)(C) of this title. The public agency shall be the

trustees of its plans created under Section 403(b) of the Internal Revenue

Code.

(g) Any

political subdivision administering a plan as a trust shall be required to name

one or more persons as trustees of such plan, and to establish provisions

relating to the removal or resignation of a trustee, the appointment of a

successor and the methods by which the trustee may take necessary action as

required under the plan. (Added 1973, No. 175 (Adj. Sess.), § 1, eff. July 1,

1973; amended 1979, No. 59, §§ 17, 17a; 1997, No. 68 (Adj. Sess.), § 6, eff.

March 1, 1998; 2007, No. 162 (Adj. Sess.), § 2, eff. May 20, 2008.)
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