§ 208. Authorized individual retirement plans. 1. a. The term "authorized individual retirement plan" as used in this section shall mean an individual retirement plan, as defined in the Economic Recovery Tax Act of 1981 (P.L. 97-34), established and maintained by one or more financial organizations with which a committee established herein has contracted pursuant to this section for the purposes of employee contribution by payroll deductions.

b. The term "financial organization" as used in this section shall mean an organization that is authorized to do business in the state of New York, and is licensed or chartered by the state department of financial services, is chartered by an agency of the federal government, or is subject to the jurisdiction of the securities and exchange commission.

2. The president of the civil service commission is authorized to enter into contracts, on behalf of the state, with one or more financial organizations to provide for authorized individual retirement plans in which employees of the state eligible to authorize payroll deductions by subdivision seven of section two hundred one of this article may participate. Any such contract shall be administered on behalf of the state by the president of the civil service commission and shall be subject to audit by the comptroller. No such contract shall take effect until it has been submitted to and approved by the director of the budget and then approved by the comptroller.