I.In this section, "eligible employer" means a governing body of a political subdivision, and any instrumentality whose income is exempt from federal taxation under section 115 of the Internal Revenue Code.
II.All eligible employers are authorized to adopt resolutions establishing deferred compensation plans for their employees under section 457(b) of the Internal Revenue Code; and, further, establishing trusts, custodial accounts, or annuity contracts described in section 401(f) of the Internal Revenue Code to receive all assets and income of deferred compensation plans for the exclusive benefit of employee and retiree participants and their beneficiaries as required by section 457(g) of the Internal Revenue Code.
III.Notwithstanding any other provision of the law to the contrary, all
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I. In this section, "eligible employer" means a governing body of a political subdivision, and any instrumentality whose income is exempt from federal taxation under section 115 of the Internal Revenue Code.
II. All eligible employers are authorized to adopt resolutions establishing deferred compensation plans for their employees under section 457(b) of the Internal Revenue Code; and, further, establishing trusts, custodial accounts, or annuity contracts described in section 401(f) of the Internal Revenue Code to receive all assets and income of deferred compensation plans for the exclusive benefit of employee and retiree participants and their beneficiaries as required by section 457(g) of the Internal Revenue Code.
III. Notwithstanding any other provision of the law to the contrary, all Internal Revenue Code section 457(b) deferred compensation plans adopted and all Internal Revenue Code section 457(g) trusts, accounts, or contracts created by any eligible employer after August 20, 1996, which meet the requirements of this section, are hereby deemed to be qualifying deferred compensation plans under this section.
IV. The eligible employer which establishes a deferred compensation plan trust under section 457(g) of the Internal Revenue Code is hereby authorized to serve as a trustee of such trust and is further authorized to appoint an administrator to administer the deferred compensation plan trust and receive all plan assets and income for such purposes. An administrator may be within or outside the state so long as it administers a deferred compensation plan trust which qualifies as an Internal Revenue Code section 457(b) deferred compensation plan and an Internal Revenue Code section 457(g) trust account or contract. Any appointments made after August 20, 1996 of administrators and investments of plan assets in trusts created by those administrators that meet the requirements of this section are hereby ratified.
V. All amounts deferred under an Internal Revenue Code section 457(b) plan, after a trust has been established, shall be transferred to the trust within a period that is not longer than is reasonably necessary for the proper administration of the accounts of participants. All assets and income held in any deferred compensation plan trust established under this section shall be held, managed, and invested for the exclusive benefit of employee and retiree participants and their beneficiaries and shall not be diverted to any other purpose including any debt or obligation of the eligible employer under state or federal law.