Tennessee § 8-25-103 - Deferred compensation plans — Approval of plans — Approval of companies providing plans.

§ 8-25-103. Deferred compensation plans — Approval of plans — Approval of companies providing plans.

The state of Tennessee or any Tennessee political subdivision or instrumentality of such subdivision may, by contract, agree with any employee to defer, in whole or in part, any portion of that employee's income and may subsequently purchase or contract with any company licensed to do business in this state to provide a deferred compensation plan, as requested by the employee. The commissioner of finance and administration, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives, and the chair of the board of trustees for the Tennessee consolidated retirement system shall serve as trustees of any deferred or tax-sheltered compensation plans established pursuant to this chapter on behalf of state employees, including employees of institutions of higher education. For the purposes of this section, the term “state employees” shall not include kindergarten through grade twelve (K-12) teachers and other local education agency employees. Such plans include, but are not limited to, plans established pursuant to § 403(b) of the Internal Revenue Code (26 U.S.C. § 403(b)). The chair of the board of trustees for the Tennessee consolidated retirement system shall develop a plan document for the implementation and administration of deferred or tax-sheltered compensation plans established by the trustees. The terms of any deferred or tax-sheltered compensation plan established on behalf of state employees, including employees of institutions of higher education, may be modified by the chair of the board of trustees for the Tennessee consolidated retirement system with the concurrence of the commissioner of finance and administration. For plans provided to state employees, including employees of institutions of higher education, any company providing administrative plan services must be approved by the trustees prior to the company's participation in any deferred compensation plan. In the case of all other plans, any company providing investment or administrative plan services shall be approved by the chief governing body of the governmental unit. Any deferred compensation program implemented and operating under the authority of this part shall conform to all applicable laws, rules and regulations of the internal revenue service governing state deferred compensation plans. [Deleted by 2018 amendment.] Acts 1973, ch. 359, § 3; T.C.A., § 8-4303; Acts 1980, ch. 562, § 1; 1983, ch. 282, § 1; 1993, ch. 67, §§ 5, 6; 2006, ch. 870, § 1; 2008, ch. 674, § 1; 2009, ch. 142, § 8; 2018, ch. 576, §§ 1-3. Amendments. The 2018 amendment rewrote former (b) and (c) which read: “(b) In case of state employees, including employees of institutions of higher education, prior to participation in any deferred compensation plan, any company providing investment or administrative plan services must be approved by the commissioner of finance and administration, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives and the chair of the consolidated retirement board; and, in the case of all other employees, prior to participation in any such plan, any company providing investment or administrative plan services must be approved by the chief governing body of the governmental unit.“(c) The commissioner of finance and administration, the chair of the finance, ways and means committee of the senate, the chair of the finance, ways and means committee of the house of representatives, and the chair of the consolidated retirement board shall serve as trustees of any deferred or tax-sheltered compensation plans established pursuant to this chapter on behalf of state employees, including employees of institutions of higher education. The terms of any deferred or tax-sheltered compensation plans established on behalf of state employees, including employees of institutions of higher education, may be modified by the chair of the consolidated retirement board with the concurrence of the commissioner of finance and administration.”; and deleted former (e) which read: “(e) Subsections (b) and (c) shall not apply to deferred or tax-sheltered compensation plans maintained on behalf of employees of institutions of higher education pursuant to § 403(b) of the Internal Revenue Code ( 26 U.S.C. § 403(b) ). The chancellor of the board of regents shall serve as trustee for any § 403(b) plan maintained on behalf of employees of institutions thereunder, and the president of the University of Tennessee shall serve as trustee for any § 403(b) plan maintained on behalf of employees of institutions thereunder. The responsibility for approving any company providing investment or administrative services under any such § 403(b) plan shall rest with the chancellor of the board of regents for any § 403(b) plan maintained on behalf of employees of institutions thereunder, and with the president of the University of Tennessee for any § 403(b) plan maintained on behalf of employees of institutions thereunder.” Effective Dates. Acts 2018, ch. 576, § 14. March 16, 2018. Attorney General Opinions. The Focus on College and University Success (“FOCUS”) Act does not amend or alter the Government Employees Deferred Compensation Plan Act with respect to the eligibility of employees of state universities in Tennessee’s state university and community college system to participate in the board of regents’ 403(b) plan. OAG 17-33, 2017 Tenn. AG LEXIS 33 (6/13/2017).