HARRY HUGHES, Governor                                     3501

INTELLECTUAL RATHER THAN PHYSICAL OR MANUAL. THE COMPENSATION OF
ANY UNCLASSIFIED EMPLOYEE SHALL BE DETERMINED BY THE BOARD OF
TRUSTEES, WITH THE APPROVAL OF THE BOARD OF PUBLIC WORKS.

(F). EXCEPT AS PROVIDED IN (G), ALL EXPENSES, INCLUDING
EMPLOYEE COSTS, INCURRED FOR THE IMPLEMENTATION, MAINTENANCE, AND
ADMINISTRATION OF THE PLANS SHALL BE PAID FROM THE CONTRIBUTIONS
TO OR THE INCOME OR ASSETS OF THE PLANS. EACH PLAN SHALL PAY ITS
PRO RATA SHARE OF THE EXPENSES. EXPENSES OF ADMINISTERING THE
PLANS SHALL BE AS PROVIDED IN THE ANNUAL STATE BUDGET.

(G) AT THE REQUEST OF THE BOARD OF TRUSTEES, AND SUBJECT TO
AN AGREEMENT CONCERNING THE PAYMENT OF COSTS, A STATE DEPARTMENT
OR AGENCY SHALL PROVIDE ASSISTANCE IN THE IMPLEMENTATION,
ADMINISTRATION, AND MAINTENANCE OF THE PLANS.

3.

(A)  IN THIS SECTION, "EMPLOYEE" MEANS ANY EMPLOYEE:

(1)  OF THE STATE OR OF ANY GOVERNMENTAL ENTITY IN THE
STATE, INCLUDING ANY LOCAL BOARD OF EDUCATION OR MUNICIPALITY;
AND

(2)  WHO IS ELIGIBLE FOR COVERAGE UNDER A TAX DEFERRED
ANNUITY PLAN ESTABLISHED UNDER § 403(B) OF THE INTERNAL REVENUE
CODE.

(B)  (1) THE BOARD OF TRUSTEES SHALL ESTABLISH A TAX
DEFERRED ANNUITY PLAN FOR EMPLOYEES AS PERMITTED UNDER § 403(B)
OF THE INTERNAL REVENUE CODE.

(2) THE TAX DEFERRED ANNUITY PLAN SHALL PROVIDE FOR
THE ROLLOVER, AT THE OPTION OF THE EMPLOYEE, OF THE
CONTRIBUTIONS, WITH ACCUMULATED INTEREST, MADE ON ACCOUNT OF THE
EMPLOYEE WHICH WERE:

(I)  HELD IN THE ANNUITY SAVINGS FUNDS CREATED
UNDER ARTICLE 73B;

(II)  DEPOSITED IN ACCORDANCE WITH CONTRACTS
WITH THE EMPLOYER OF THE EMPLOYEE; AND

(III)  MADE EITHER BY A REDUCTION IN SALARY OR
IN LIEU OF AN INCREASE IN COMPENSATION.

(C)  SUBJECT TO CONDITIONS THAT MAY BE ESTABLISHED BY THE
BOARD OF TRUSTEES, AN EMPLOYEE MAY, IN ACCORDANCE WITH A CONTRACT
WITH THE EMPLOYER, HAVE CONTRIBUTIONS MADE ON THE EMPLOYEE'S
BEHALF, BY A REDUCTION OF SALARY OR IN LIEU OF A SALARY INCREASE,
TO THE TAX DEFERRED ANNUITY PLAN.

(D)  THIS SECTION DOES NOT PROHIBIT A LOCAL BOARD OF
EDUCATION FROM ADOPTING A PLAN FOR EMPLOYEES THAT QUALIFIES UNDER
§ 403(B) OF THE INTERNAL REVENUE CODE.