§ 31-15-902 — Deferred compensation plans

(1) Notwithstanding any other
provision of law, a municipality and its employees may participate in the deferred
compensation plan of the international city management association retirement
corporation, a nonprofit corporation approved by the United States internal revenue
service for establishing a retirement plan. No statute restricting the deposit or
investment of municipal money shall be applicable to moneys in such plan.

(2) In addition to the authority granted in subsection (1) of this section, any
municipality may otherwise provide a deferred compensation plan for its employees
and may, by contract, agree with an employee to defer all or a part of the
employee's salary or wages. Funds of such plan may be used to purchase fixed or
variable annuities from any life insurance company duly authorized to do an
insurance and annuity business in this state or may otherwise be deposited and
invested in accordance with any statute applicable to the deposit or investment of
municipal money.

(3) If a municipality participates in or establishes a deferred compensation
plan for its employees pursuant to this section and if such plan is in addition to any
other pension or retirement plan provided by the municipality, the amount of an
employee's deferred compensation shall continue to be counted as part of his total
salary or wages for the purpose of computing any other pension or retirement
contributions or benefits which are based on total salary or wages.

Legislative History

Source: L. 77: Entire section added, p. 1464, � 1, effective May 24.