54-52.2 Deferred Compensation Plan for Public Employees - North Dakota Statutes

Download pdf

Loading PDF...

CHAPTER 54-52.2DEFERRED COMPENSATION PLAN FOR PUBLIC EMPLOYEES54-52.2-01. Deferred compensation program for public employees - Contract. Thestate or any county, city, or other political subdivision may, by contract, agree with any employee
to defer, in whole or in part, any portion of that employee's compensation and may subsequently,
with the consent of the employee, fund a deferred compensation program for the employee. The
deferred compensation program may consist of a contract, purchase, or investment in a fixed or
variable life insurance or annuity contract from any life underwriter duly licensed by this state who
represents an insurance company licensed to contract business in this state, a savings account
at a federally insured financial institution or the Bank of North Dakota, an account with or
managed by a dealer registered under chapter 10-04, or any combination of contracts or
accounts authorized by this section, as specified by the employee.The public employeesretirement board shall specify methods of payment of deferred compensation funds to be
selected by individual employees.That board shall determine the number of employeesparticipating in a deferred compensation program necessary to qualify for automatic payroll
deduction.54-52.2-02.Deferred employee's compensation - Agreements.The publicemployees retirement board, acting on behalf of each state agency, department, board,
commission, or institution, may enter into contractual agreements with employees of a state
agency, department, board, commission, or institution on behalf of the state to defer any portion
of that employee's compensation allowed under section 457 of the Internal Revenue Code
[26 U.S.C. 457].54-52.2-03.Deferred compensation program - Administration - Contract forservices.The administration of the deferred compensation program for each state agency,department, board, commission, or institution is under the direction of the public employees
retirement board. Each county, city, or other political subdivision shall designate an officer to
administer the deferred compensation program or appoint the public employees retirement board
to administer the program on its behalf. Payroll reductions must be made in each instance by the
appropriate payroll officer. The public employees retirement board shall administer the deferred
compensation program based on one or more plans in compliance with the appropriate
provisions of the Internal Revenue Code and regulations adopted under those provisions. Not
later than January 1, 1999, all plan assets and income must be held in trust, custodial accounts,
or contracts as described in section 401(f) of the Internal Revenue Code [26 U.S.C. 401(f)] for the
exclusive benefit of participants and their beneficiaries as required by section 457 of the Internal
Revenue Code [26 U.S.C. 457]. Once the trust, custodial account, or contract is established as
required by this section, the board shall act as fiduciary of the plan to the extent required by
section 457 of the Internal Revenue Code [26 U.S.C. 457] and the board is authorized to do all
things necessary for the proper administration of the plan to ensure that the plan maintains its
qualified status.54-52.2-03.1.Deferred compensation program - Executive director - Staff -Funding. Repealed by S.L. 1987, ch. 653,