§ 116‑17. Purchase ofannuity or retirement income contracts for faculty members, officers andemployees.
Notwithstanding any provisionof law relating to salaries and/or salary schedules for the pay of facultymembers, administrative officers, or any other employees of universities,colleges, constituent institutions, and other institutions of higher learningas named and set forth in this Article, and other State agencies qualified aseducational institutions under section 501(c)(3) of the United States InternalRevenue Code, the governing boards of any such universities, colleges,constituent institutions, and other institutions of higher learning mayauthorize the business officer or agent of same to enter into annual contractswith any of the faculty members, administrative officers and employees of saidinstitutions which provide for a reduction in salary below the totalestablished compensation or salary schedule for a term of one year. Thefinancial officer or agent shall use the funds derived from the reduction inthe salary of the faculty member, administrative officer or employee topurchase a nonforfeitable annuity or retirement income contract for the benefitof said faculty member, administrative officer or employee of saiduniversities, colleges and institutions. A faculty member, administrativeofficer or employee who has agreed to a salary reduction for this purpose shallnot have the right to receive the amount of the salary reduction in cash or inany other way except the annuity or retirement income contract. Funds used forthe purchase of an annuity or retirement income contract shall not be in lieuof any amount earned by the faculty member, administrative officer or employeebefore his election for a salary reduction has become effective. The agreementfor salary reductions referred to herein shall be effected under any necessaryregulations and procedures adopted by the various governing boards of thevarious institutions and on forms prepared by said governing boards.Notwithstanding any other provision of this section or law, the amount by whichthe salary of any faculty member, administrative officer or employee is reducedpursuant to this section shall not be excluded, but shall be included, incomputing and making payroll deductions for social security and retirementsystem purposes, and in computing and providing matching funds for retirementsystem purposes.
In lieu of the annuity andrelated contracts provided for under this section, interests in custodialaccounts pursuant to Section 401(f), Section 403(b)(7), and related sections ofthe Internal Revenue Code of 1986 as amended may be purchased for the benefitof qualified employees under this section with the funds derived from thereduction in the salaries of such employees. (1965, c. 365; 1971, c. 1244, s. 3; 1989, c. 526, s.3; 2006‑66, s. 9.11(d).)
§ 116‑17. Purchase ofannuity or retirement income contracts for faculty members, officers andemployees.
Notwithstanding any provisionof law relating to salaries and/or salary schedules for the pay of facultymembers, administrative officers, or any other employees of universities,colleges, constituent institutions, and other institutions of higher learningas named and set forth in this Article, and other State agencies qualified aseducational institutions under section 501(c)(3) of the United States InternalRevenue Code, the governing boards of any such universities, colleges,constituent institutions, and other institutions of higher learning mayauthorize the business officer or agent of same to enter into annual contractswith any of the faculty members, administrative officers and employees of saidinstitutions which provide for a reduction in salary below the totalestablished compensation or salary schedule for a term of one year. Thefinancial officer or agent shall use the funds derived from the reduction inthe salary of the faculty member, administrative officer or employee topurchase a nonforfeitable annuity or retirement income contract for the benefitof said faculty member, administrative officer or employee of saiduniversities, colleges and institutions. A faculty member, administrativeofficer or employee who has agreed to a salary reduction for this purpose shallnot have the right to receive the amount of the salary reduction in cash or inany other way except the annuity or retirement income contract. Funds used forthe purchase of an annuity or retirement income contract shall not be in lieuof any amount earned by the faculty member, administrative officer or employeebefore his election for a salary reduction has become effective. The agreementfor salary reductions referred to herein shall be effected under any necessaryregulations and procedures adopted by the various governing boards of thevarious institutions and on forms prepared by said governing boards.Notwithstanding any other provision of this section or law, the amount by whichthe salary of any faculty member, administrative officer or employee is reducedpursuant to this section shall not be excluded, but shall be included, incomputing and making payroll deductions for social security and retirementsystem purposes, and in computing and providing matching funds for retirementsystem purposes.
In lieu of the annuity andrelated contracts provided for under this section, interests in custodialaccounts pursuant to Section 401(f), Section 403(b)(7), and related sections ofthe Internal Revenue Code of 1986 as amended may be purchased for the benefitof qualified employees under this section with the funds derived from thereduction in the salaries of such employees. (1965, c. 365; 1971, c. 1244, s. 3; 1989, c. 526, s.3; 2006‑66, s. 9.11(d).)
§ 116‑17. Purchase ofannuity or retirement income contracts for faculty members, officers andemployees.
Notwithstanding any provisionof law relating to salaries and/or salary schedules for the pay of facultymembers, administrative officers, or any other employees of universities,colleges, constituent institutions, and other institutions of higher learningas named and set forth in this Article, and other State agencies qualified aseducational institutions under section 501(c)(3) of the United States InternalRevenue Code, the governing boards of any such universities, colleges,constituent institutions, and other institutions of higher learning mayauthorize the business officer or agent of same to enter into annual contractswith any of the faculty members, administrative officers and employees of saidinstitutions which provide for a reduction in salary below the totalestablished compensation or salary schedule for a term of one year. Thefinancial officer or agent shall use the funds derived from the reduction inthe salary of the faculty member, administrative officer or employee topurchase a nonforfeitable annuity or retirement income contract for the benefitof said faculty member, administrative officer or employee of saiduniversities, colleges and institutions. A faculty member, administrativeofficer or employee who has agreed to a salary reduction for this purpose shallnot have the right to receive the amount of the salary reduction in cash or inany other way except the annuity or retirement income contract. Funds used forthe purchase of an annuity or retirement income contract shall not be in lieuof any amount earned by the faculty member, administrative officer or employeebefore his election for a salary reduction has become effective. The agreementfor salary reductions referred to herein shall be effected under any necessaryregulations and procedures adopted by the various governing boards of thevarious institutions and on forms prepared by said governing boards.Notwithstanding any other provision of this section or law, the amount by whichthe salary of any faculty member, administrative officer or employee is reducedpursuant to this section shall not be excluded, but shall be included, incomputing and making payroll deductions for social security and retirementsystem purposes, and in computing and providing matching funds for retirementsystem purposes.
In lieu of the annuity andrelated contracts provided for under this section, interests in custodialaccounts pursuant to Section 401(f), Section 403(b)(7), and related sections ofthe Internal Revenue Code of 1986 as amended may be purchased for the benefitof qualified employees under this section with the funds derived from thereduction in the salaries of such employees. (1965, c. 365; 1971, c. 1244, s. 3; 1989, c. 526, s.3; 2006‑66, s. 9.11(d).)
