New Jersey § 18a:66-190

§ 18a:66-190.

The Board of Governors of Rutgers, The State University, the Board of Trustees of

the New Jersey Institute of Technology, the Board of Trustees of Rowan University,

the Board of Trustees of Montclair State University, the Board of Trustees of Kean University , and the boards of trustees of State and county colleges, are hereby authorized to

enter into an agreement with each employee participating in the alternate benefit

program whereby the employee agrees to take a reduction in salary with respect to

amounts earned after the effective date of such agreement in return for the agreement

of the respective institution to use a corresponding amount to purchase an annuity

for such employee so as to obtain the benefits afforded under section 403(b) of the federal Internal Revenue Code , as amended. Any such agreement shall specify the amount of such reduction, the effective date

thereof, and shall be legally binding and irrevocable with respect to amounts earned

while the agreement is in effect; provided, however, that such agreement may be terminated

after it has been in effect for a period of not less than one year upon notice in

writing by either party, and provided further that not more than one such agreement

shall be entered into during any taxable year of the employee. For the purposes of this section, any annuity or other contract which meets the

requirements of section 403(b) of the federal Internal Revenue Code , as amended, may be utilized. The amount of the reduction in salary under any agreement entered into between the

institutions and any employee pursuant to this section shall not exceed the limitations

set forth in P.L.93-406 (Employment Retirement Income Security Act of 1974) 1 and Section 415(c) of the Internal Revenue Code of 1954 2 as amended for such year. Amounts payable pursuant to this section by an institution on behalf of an employee

for a pay period shall be transmitted and credited not later than the fifth business

day after the date on which the employee is paid for that pay period. 1

29 U.S.C.A. § 1001 et seq. 2

26 U.S.C.A. § 415(c).