Sec. 4. In this section and in Sections 5, 6, 9, 9A, 9B, 10, 11, and 12 of this Act:

(1) "Educational institution" means a school district or an open-enrollment charter school.

(2) "Eligible qualified investment" means a qualified investment product offered by a company that is eligible to offer the product under Section 6 of this Act.

(3) "Employee" means an employee of an educational institution.

(4) "Qualified investment product" means an annuity or investment that:

(A) meets the requirements of Section 403(b), Internal Revenue Code of 1986, and its subsequent amendments;

(B) complies with applicable federal insurance and securities laws and regulations; and

(C) complies with applicable state insurance and securities laws and rules.

(5) "Salary reduction agreement" means an agreement between an educational institution and an employee to reduce the employee's salary for the purpose of making direct contributions to or purchases of a qualified investment product.