2009 California Government Code - Section 19999.5 :: Chapter 9. Tax-deferred Savings Plans

19999.5.  In order to encourage savings and increase the savings
options available to state employees, the department may establish
and administer tax-deferred savings plans in accordance with Section
401(a) of the Internal Revenue Code, including cash or deferral
arrangements under Section 401(k) of the Internal Revenue Code. The
department may develop specifications and contract for the
administration of the plans to the extent necessary to carry out this
section. These plans shall be provided in addition to the retirement
and deferred compensation programs currently authorized, shall offer
the maximum flexibility available under current federal law, and may
provide for employer as well as employee contributions.