Chapter 704
AN ACT
HB 3183
Relating to employees of educational institutions; amending ORS
243.820; and repealing ORS 243.810.
Be It Enacted by the People of
the State of
SECTION 1. ORS 243.820 is amended to read:
243.820. (1) In order to
obtain the advantages of [section 403(b)
of title 26, United States Code] 26 U.S.C. 403(b), or any equivalent
provision of federal law, an employer [subject
to ORS 243.810 to 243.830] may agree with an [individual employed by it,] employee who performs services
for an educational institution[,]
that:
(a) The employee’s
salary will be reduced monthly by a stated amount, or the employee will forgo
monthly a salary increase of a stated amount; and
(b) On behalf of the
employee, the employer [will] shall
contribute monthly an amount equal to the stated amount determined under
paragraph (a) of this subsection [for
such month,] as premiums for an annuity contract or [for shares of an investment company registered under the federal
Investment Act of 1940 for such employee] to a custodial account for
investment in the stock of regulated investment companies as defined in 26
U.S.C. 403(b)(7) C). The amount contributed by the
employer under this subsection [shall]
may not exceed the stated amount.
(2) Notwithstanding any
other provision of law, pursuant to an agreement under subsection (1) of this
section, the stated amounts shall be forwarded by the employer as annuity
premiums to the company or association with which it has entered into an
annuity contract or to the regulated investment company or its transfer
agent for the benefit of [such]
the employee.
(3) An employer may
make nonelective employer contributions on behalf of an employee who performs
services for an educational institution as premiums for an annuity contract, or
to a custodial account for investment in the stock of regulated investment
companies as defined in 26 U.S.C. 403(b)(7) C), for
the purpose of obtaining the advantages of 26 U.S.C. 403(b) or any equivalent
provision of federal law. Employer contributions under this subsection are in
addition to any employee contributions under subsection (1) of this section.
(4) As used in this
section:
(a) “Educational
institution” means an educational institution that normally maintains a regular
faculty and curriculum and normally has a regularly organized body of students
in attendance at the place where its educational activities are carried on or
an education service district.
(b) “Employer” means the
State Board of Higher Education, any other state agency, a community college
district, a school district, the
SECTION 2. ORS 243.810 is repealed.
Approved by the Governor June 28, 2007
Filed in the office of Secretary of State July 2, 2007
Effective date January 1, 2008
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