Sec. 1224.
(1) At the request of an employee and as part of the employee's compensation arrangement, the board of a school district may purchase a tax-deferred investment for an employee for retirement or other purposes and may make payroll allocations in accordance with the arrangement to pay for the tax-deferred investment. The allocation shall be made in a manner which will qualify all or part of the tax-deferred investment for the benefit afforded under the federal internal revenue code or other federal income tax law. The employee shall own the tax-deferred investment. The employee's rights under it shall be nonforfeitable except for failure to make required payments.
(2) The board shall not have liability because of its purchase of tax-deferred investments for employees.
(3) This section shall be applied in a nondiscriminatory manner to employees of the school district.
(4) As used in this section, “tax-deferred investment” means an annuity contract, interest in a mutual fund, or other investment device that qualifies for deferral of federal income taxes under the federal internal revenue code or other federal income tax law.
History: 1976, Act 451, Imd. Eff. Jan. 13, 1977 ;-- Am. 1992, Act 19, Imd. Eff. Mar. 19, 1992 Popular Name: Act 451
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