§ 16-211. Deferred compensation plan.

(a)

The purpose of this Section is to enable all permanent status employees to participate in a voluntary tax sheltered income deferment plan and to obtain the tax advantages inherent in such a plan as authorized by Section 457 of the Internal Revenue Code of 1986, as amended.

(b)

The County Executive or the County Executive's designee shall develop a deferred compensation plan for the benefit of all employees described in Subsection (a), above, which shall meet the criteria for approval by the Internal Revenue Service. Upon the development of said plan, the County Executive shall be authorized, by executive order, to promptly effectuate and implement the plan, without the need for further legislative action thereon. However, nothing in this Section shall be construed to preclude the County Council from adopting further legislation with respect to said plan.

(c)

The plan may provide for a Board of Trustees to exercise overall supervision over the administration of the plan, and, to that end, the executive order may provide for the establishment of an indenture of trust for the plan and a Board of Trustees to superintend the administration thereof. The Board of Trustees or such other official or entity charged with superintending the administration of the plan, shall be designated and appointed by the County Executive, and shall have the following powers:

(1)

To do such acts as may be necessary to implement, maintain, and administer the plan;

(2)

To receive the amount of compensation deferred pursuant to Subsection (d), below, and to use such proceeds, in accordance with any investment election permitted the employee under the plan, to purchase a fixed or variable life insurance or annuity contract, or such other investment or savings options as may be permitted under the plan, or a combination of the same, all to be held by the superintending board, official, or entity. Each such fixed or variable life insurance and annuity contract shall be purchased from one (1) or more insurance companies licensed to write insurance in the State of Maryland; and,

(3)

To take such other and further actions as may be necessary to carry out the purposes of this Section.

(d)

The County Executive or the County Executive's designee may, by contract, agree with any of the employees described in Subsection (a), above, to defer, in whole or in part, any such employee's authorized salary or compensation.

(e)

The deferred compensation plan authorized by this Section shall exist and serve in addition to any other retirement, pension, or benefit system established by the State or County and no deferral of income under such deferred compensation plan shall effect a reduction of the amount of any such retirement, pension, or other benefit provided by law. Any sum deferred under such deferred compensation plan shall be included in the employee's compensation for purposes of computing FICA contributions and contributions to a State or County retirement system, but shall not be included for the purposes of computing Federal or State taxes withheld on behalf of any such employee.

(CB-1-1976; CB-22-2000)