Oregon Statutes - Chapter 243 - Public Employee Rights and Benefits - Section 243.820 - Agreement for payment of annuity premium or investment in stock of regulated investment company.

(1) In order to obtain the advantages of 26 U.S.C. 403(b), or any equivalent provision of federal law, an employer may agree with an 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 shall contribute monthly an amount equal to the stated amount determined under paragraph (a) of this subsection 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). The amount contributed by the employer under this subsection 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 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 Oregon Health and Science University or an education service district employing an individual who performs services for an educational institution. [1965 c.606 §2; 1981 c.407 §1; 2007 c.704 §1]

Section:  Previous  243.787  243.789  243.791  243.793  243.795  243.800  243.810  243.820  243.830  243.850  243.860  243.862  243.864  243.866  243.868  Next

Last modified: August 7, 2008