2005 Vermont Code - § 651. — Deferred compensation plans authorized

§ 651. Deferred compensation plans authorized

(a) Subject to collective bargaining rights of state employees involved, the state or any county, municipality or school district 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 board may establish and administer a plan 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.

(d) The board and other public agencies, which have or will establish a defined contribution plan, shall create a trust to conform with Section 457 of the Internal Revenue Code.

(e) All assets and income which have been or shall be withheld or deferred by the state of Vermont or its political subdivisions shall be held in trust in any funding vehicle permitted by Section 457 of the Internal Revenue Code for the exclusive benefit of the plan's 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 board shall be the trustees of the deferred compensation plan and the state treasurer shall be the custodian of the funds in the trust. All payments from such funds shall be made by the state treasurer or the treasurer's authorized agent.

(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. (Added 1973, No. 175 (Adj. Sess.), § 1, eff. July 1, 1973; amended 1979, No. 59, §§ 17, 17a; 1997, No. 68 (Adj. Sess.), § 6, eff. March 1, 1998.)