8-25-103 - Deferred compensation plans Approval of plans Approval of companies providing plans. - Tennessee Statutes

8-25-103. Deferred compensation plans Approval of plans Approval of companies providing plans.

(a)  The state of Tennessee or any Tennessee political subdivision or instrumentality of such subdivision may, by contract, agree with any employee to defer, in whole or in part, any portion of that employee's income and may subsequently purchase or contract with any company licensed to do business in the state of Tennessee to provide a deferred compensation plan, as requested by the employee.

(b)  In case of state employees, including employees of institutions of higher education, prior to participation in any deferred compensation plan, any company providing investment or administrative plan services must be approved by the commissioner of finance and administration, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives and the chair of the consolidated retirement board; and, in the case of all other employees, prior to participation in any such plan, any company providing investment or administrative plan services must be approved by the chief governing body of the governmental unit.

(c)  The commissioner of finance and administration, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives, and the chair of the consolidated retirement board shall serve as trustees of any deferred or tax-sheltered compensation plans established pursuant to this chapter on behalf of state employees, including employees of institutions of higher education. The terms of any deferred or tax-sheltered compensation plans established on behalf of state employees, including employees of institutions of higher education, may be modified by the chair of the consolidated retirement board with the concurrence of the commissioner of finance and administration.

(d)  Any deferred compensation program implemented and operating under the authority of this part shall conform to all applicable laws, rules and regulations of the internal revenue service governing state deferred compensation plans.

(e)  Subsections (b) and (c) shall not apply to deferred or tax-sheltered compensation plans maintained on behalf of employees of institutions of higher education pursuant to § 403(b) of the Internal Revenue Code, codified in 26 U.S.C. § 403(b). The chancellor of the board of regents shall serve as trustee for any § 403(b) plan maintained on behalf of employees of institutions thereunder, and the president of the University of Tennessee shall serve as trustee for any § 403(b) plan maintained on behalf of employees of institutions thereunder. The responsibility for approving any company providing investment or administrative services under any such § 403(b) plan shall rest with the chancellor of the board of regents for any § 403(b) plan maintained on behalf of employees of institutions thereunder, and with the president of the University of Tennessee for any § 403(b) plan maintained on behalf of employees of institutions thereunder.

[Acts 1973, ch. 359, § 3; T.C.A., § 8-4303; Acts 1980, ch. 562, § 1; 1983, ch. 282, § 1; 1993, ch. 67, §§ 5, 6; 2006, ch. 870, § 1; 2008, ch. 674, § 1; 2009, ch. 142, § 8.]