SECTIONS 19993-19993.05 - California Statutes

GOVERNMENT CODE

SECTION 19993-19993.05

19993. (a) The department may establish for officers and employees
a deferred compensation plan. Participation in such plan shall be by
written agreement between such officers and employees and the state
which shall provide for deferral of a portion of such officers' or
employees' wages. Officers and employees may authorize deductions to
be made from their wages for the purpose of participating in such
deferred compensation plan.
(b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if such provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.

19993.05. (a) This section shall be known and may be cited as the
Freedom of Financial Choice Act.
(b) The department shall permit officers and employees
participating in a tax-deferred savings plan established by the
department under this chapter or Chapter 9 (commencing with Section
19999.5) to invest in a range of investment options including, but
not limited to, stocks and bonds listed with and traded on the New
York Stock Exchange, the American Stock Exchange, or the National
Market System sponsored by the National Association of Securities
Dealers (NASD) and the National Association of Securities Dealers
Automated Quotations system (NASDAQ), or any successor association,
annuities, and shares or units of open-ended registered investment
companies. However, the department may limit the number of banks,
mutual fund companies, investment brokers, life insurance companies,
and other financial institutions offering investments under the plans
as necessary to ensure the continued qualification of the plan under
the Internal Revenue Code and the cost-efficient and timely
administration of the plans.
(c) No fiduciary of a plan established by the department under
this chapter or Chapter 9 (commencing with Section 19999.5) shall be
liable for any loss that results from any individual investment
choice made by a participant of a plan, except that this subdivision
shall not extend to any malfeasance or misfeasance by any fiduciary
of a plan established by the department under this chapter or Chapter
9 (commencing with Section 19999.5).
(d) Notwithstanding any other provision of law, the Deferred
Compensation Plan Fund (0915) is exempt from the application of
Article 2 (commencing with Section 11270) of Chapter 3 of Part 3 of
Division 3.