§ 24-51-1402 — Contributions to the voluntary investment program

(1) An
eligible employee pursuant to section 24-51-1401 may participate in the voluntary
investment program authorized in section 24-51-1401 by authorizing his or her
employer, as defined in section 24-51-101 (20), to contribute an amount by payroll
deduction in lieu of receiving such amount as salary or pay. The amount of such
contribution by a participant shall be subject to any limitations established by
federal law. These voluntary contributions, in addition to investment earnings, shall
be exempt from federal and state income taxes until the ultimate distribution of
such contributions has been made to the participant, member, former member, or
beneficiary.

(2) The board may, at its discretion, allow participants in the voluntary
investment program to elect to make after-tax voluntary contributions to the
voluntary investment program by payroll deduction. Investment earnings on such
contributions are exempt from federal and state income taxes until the ultimate
distribution of such contributions has been made to the participant, member, former
member, or beneficiary.

(3) All voluntary contributions by a participating member shall be included in
the salary of such member for the purpose of calculating member and employer
contributions pursuant to the provisions of section 24-51-401. The member
contribution provisions of section 24-51-401 and the matching employer
contribution provisions of section 24-51-408.5 shall not apply to any voluntary
contribution made by a retiree.

(4) The employer shall deliver all voluntary contributions to the service
provider designated by the association within five days after the date that the
participants are paid and consistent with the provisions of section 24-51-401 (1.7)(c)
and (1.7)(d).

(5) (a) Effective July 1, 2009, all assets of the state defined contribution
match plan established pursuant to section 24-52-104, as said section existed prior
to its repeal in 2009, shall be transferred via trustee-to-trustee transfer to the
association's voluntary investment program trust fund created in section 24-51-208
(1)(g), and such defined contribution match plan shall be merged into the
association's voluntary investment program. An individual's account in the state
defined contribution match plan shall become part of the individual's existing 401(k)
plan account if one exists. If the individual does not have an existing 401(k) plan
account, a separate account shall be created for the individual within the trust fund
and administered in accordance with the terms of the voluntary investment
program. The administration of such asset transfer shall be determined by the
board.

(b) For purposes of this subsection (5), existing 401(k) plan account means
a voluntary investment account authorized under 26 U.S.C. sec. 401(k), as amended.

Legislative History

Source: L. 87: Entire article R&RE, p. 1077, � 1, effective July 1. L. 97: (4) amended, p. 778, � 16, effective July 1. L. 2001: (1), (2), and (3) amended, p. 20, � 2, effective July 1. L. 2004: (4) amended, p. 699, � 6, effective July 1; (4) amended, p. 1947, � 22, effective July 1, 2005. L. 2009: Entire section amended, (SB 09-066), ch. 73, p. 256, � 20, effective March 31.