38-781

38-781. Supplemental employee deferral plan;
public employees; administration; immunity; definitions

A. A supplemental employee deferral plan is established to provide public
employees, other than state employees, an opportunity to save additional tax-deferred
monies for retirement.

B. ASRS may establish, administer, manage and operate a supplemental employee
deferral plan for employers other than this state.

C. ASRS may:

1. Employ services it deems necessary, including legal services, for the operation
and administration of the plan.

2. Administer the plan through contracts with multiple vendors.

3. Perform all acts, whether or not expressly authorized, that it deems necessary
and proper for the operation and protection of the plan.

4. For the purposes of this section, enter into intergovernmental agreements
pursuant to title 11, chapter 7, article 3.

D. A supplemental employee deferral plan is in addition to and does not replace an
employee's existing state defined benefit retirement plan.

E. If an employer that is not this state elects to participate in the supplemental
employee deferral plan, any employee of the employer who meets the eligibility
requirements that are prescribed by ASRS for participation in the supplemental employee
deferral plan may participate in the supplemental employee deferral plan.

F. Participation in the supplemental employee deferral plan authorizes the
participant's employer to make salary reductions from the participant's compensation and
contribute such salary reductions to the plan. An employer may make employer
contributions to the supplemental employee deferral plan if the plan permits. The
employer shall submit any reports required by the plan. If the participant is an active
member, any compensation deferred by an employee under the plan shall be included as
regular compensation or compensation for the purpose of computing the retirement and
pension benefits provided in this article earned by any employee participating in the
plan.

G. Employee contributions and earnings on employee contributions are immediately
vested. Employer contributions, if any, and the earnings on employer contributions shall
vest according to the schedule established in the plan.

H. Notwithstanding any other law, this state and its officers and employees, the
board and ASRS are immune from civil liability and are not subject to suit directly or by
way of contribution for any act or omission resulting in any damage or injury arising out
of the supplemental employee deferral plan.

I. For the purposes of this section:

1. "State" means this state, including any department, office, board, commission,
agency or university, but does not mean any school district or community college
district.

2. "Supplemental employee deferral plan" means a tax deferred annuity described in
section 403(b) of the internal revenue code, including a custodial account described in
403(b)(7) of the internal revenue code, and an eligible deferred compensation plan
described in section 457(b) of the internal revenue code. A supplemental employee
deferral plan shall comply with all applicable provisions of the section of the internal
revenue code under which such plan is adopted and maintained.