Sec. 5-264a. Deferred compensation plan for state employees or employees of
political subdivisions of the state.
Administration. (a) The state or any political subdivision
of the state may, by contract, agree with any employee to defer, in whole or in part, any
portion of such employee's compensation and may subsequently, with the consent of the
employee, contract for, purchase or otherwise procure, for the purpose of funding a
deferred compensation program for such employee, (1) an investment savings account, (2) a
fixed or variable life insurance or annuity contract from any life underwriter licensed by
this state who represents an insurance company licensed to contract business in this state
or (3) a beneficial interest in an investment trust established by an organization of
public employers, the assets of which are managed by a not-for-profit organization
registered as an investment adviser under applicable federal statutes and regulations,
from an entity registered as a broker-dealer under statutes and regulations of the state
governing the sale of securities, provided the employee shall be furnished prior to
purchase with disclosures substantially comparable to the disclosures required under the
Securities Act of 1933 and the Investment Company Act of 1940 for the sale of similar
nonexempt products. (b) The state comptroller or the officer designated by the chief
executive officer of any other political subdivision is authorized to enter into such
contractual agreements with employees of the state or the political subdivision, as the
case may be, on behalf of the state or the political subdivision to defer any portion of
that employee's compensation. (c) The administration of the deferred compensation program
shall be under the direction of the state comptroller or the officer designated by the
particular political subdivision. Payroll deductions shall be made, in each instance, by
the appropriate payroll officer. The administrator of the deferred compensation program
may contract with a private corporation or institution for providing consolidated billing
and other administrative services with respect thereto. (d) For the purposes of this
section: "Employee" means any person, whether appointed, or elected, including
members of the general assembly, or under contract, providing services for the state or a
political subdivision, for which compensation is paid; and "investment savings
account" means a savings account in a state bank and trust company, national banking
association, mutual savings bank, savings and loan association or federal savings and loan
association or a share account in a credit union or federal credit union established to
receive the deferred compensation of a state employee under the deferred compensation plan
established by the state comptroller or the officer designated by a political subdivision
pursuant to this section. (e) Notwithstanding any other provision of law to the contrary,
those persons designated to administer the deferred compensation program are hereby
authorized to make (1) deposits or payments to such investment savings accounts, (2)
payment of premiums for the purchase of fixed or variable life insurance or annuity
contracts or (3) payments for interests in investment trusts established by an
organization of public employers and managed by a not-for-profit organization registered
as an investment adviser under applicable federal statutes and regulations under the
deferred compensation program. Such payments shall not be construed to be a prohibited use
of the general assets of the state or the other political subdivision.
(P.A. 73-578; P.A. 76-254, S. 10, 11; P.A. 80-22, S. 1;
P.A. 90-208, S. 1; P.A. 91-72, S. 1.)
History: P.A. 76-254 amended definition of
"employee" in Subsec. (d) to include members of general assembly; P.A. 80-22
included purchase of investment savings accounts under Subsecs. (a) and (e) and defined
"savings account" in Subsec. (d); P.A. 90-208 added Subdiv. (3) of Subsecs. (a)
and (e) allowing investment in certain retirement fund and amended the section to apply
only to the state and political subdivisions of the state; P.A. 91-72 amended Subsec. (a)
by replacing existing Subdiv. (3) with new provisions re beneficial interest in certain
investment trusts and amended Subsec. (e) by deleting provisions re retirement funds and
adding provisions re investment trusts in Subdiv. (3).
The commissioner of administrative services shall establish
a dependent care spending account program for state employees in accordance with Section
129 of the Internal Revenue Code of 1986 and regulations adopted pursuant to such section,
and may implement such program with the approval of the secretary of the office of policy
and management and the comptroller. Under such program, the commissioner of administrative
services or the program administrator, upon receipt of the written request of an employee,
shall establish a dependent care spending account for such employee. The comptroller shall
reduce the salary of such employee by the amount designated in such request. Such amount
shall be transferred to the employee's dependent care spending account and shall be used
to reimburse the employee for expenses incurred for dependent care which are eligible for
reimbursement under the provisions of Section 129 of the Internal Revenue Code. The
department of administrative services in consultation with the comptroller may contract
with an administrator for the management of this program.
(P.A. 90-296, S. 1, 4.)
ll funds deposited in this program pursuant to section
5-264b shall be held by the department of administrative services or by a program
administrator as agent for the participating employer. Such funds shall be separately
accounted for and shall remain the property of the employer. All payments from such
account shall be made in accordance with the applicable sections of the Internal Revenue
Code of 1986 and the regulations adopted pursuant to said section. All funds deposited in
this program shall be exempt from the provisions of chapter 66 concerning additional
employee contributions under the tier I retirement plan and additional hazardous duty
employee contributions.
(P.A. 90-296, S. 2, 4.)