|ACT OF THE GENERAL ASSEMBLY||2007-2008|
NO. 162. AN ACT RELATING TO PUBLIC AGENCY DEFERRED COMPENSATION PLANS.
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 3 V.S.A. § 650 is amended to read:
§ 650. DEFINITIONS
The following definitions shall apply throughout this chapter unless the context requires otherwise:
means the Vermont state retirement board. (2) “Deferred
compensation agreement” means any agreement authorized by this chapter entered
into between a public agency and an employee of that agency providing for a
reduction in the employee’s compensation in return for the agency’s promise to
make deferred payments in the future. (3)(2) “Employee”
means any employee of a public agency whether appointed, elected or under
contract to whom compensation is paid.
(3) “Other public agency” means a public agency described in subdivision (4)(B) or (C) of this section.
(4) “Public agency” means:
(A) the state, acting as a single unit employer on behalf of the general assembly and state agencies, departments, boards or commissions;
a county or municipality as defined in section subdivision
4303(4) of Title 24; and
a school district as defined in section subdivision
11(a)(10) of Title 16 or a supervisory union as defined in subdivision
11(a)(23) of Title 16.
(5) “State board” means the Vermont state retirement board.
(6) “Teachers’ board” means the Vermont state teachers’ retirement board.
Sec. 2. 3 V.S.A. § 651 is amended to read:
§ 651. DEFERRED COMPENSATION PLANS AUTHORIZED
to collective bargaining rights of
state employees involved, the state
or any county, municipality, or 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.
state board and other public agencies, which have or will establish a
contribution deferred compensation plan, shall create a trust to conform
with Section 457 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 Subsection 403(b) of the Internal Revenue Code with
assets and income which have been or shall be
withheld or deferred
deposited pursuant to this chapter by the state of Vermont or its
political subdivisions other public agencies shall be held in trust
in any funding vehicle permitted by Subsection 403(b) and Section 457 of
the Internal Revenue Code for the exclusive benefit of the plan’s 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
such 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 Subsection 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.
Sec. 3. EFFECTIVE DATE
This act shall take effect upon passage.
Approved: May 20, 2008
The Vermont General Assembly
115 State Street