Establishment of the Government of Guam Deferred Compensation Program;

Participation in Government of Guam Deferred Compensation Program; Limiting Participation in Existing § 457 Plans.

(a)There shall be established the Government of Guam Deferred Compensation Program, hereinafter referred to as “Program,” to which member contributions, in the form of deductions from salary, shall be deposited and to which earnings on investments and other contributions shall also be deposited upon receipt and from which benefits and reasonable administrative fees and expenses authorized by the Board of Trustees shall be paid.

(b)Voluntary Participation. Each member’s participation in the Program shall be completely voluntary. At the request of a member of the Deferred Compensation Program, the employer shall by payroll deduction defer the payment of part of the compensation of the member. The amount to be deferred must be as provided in a written agreement timely executed by and between the member and his or her employing CH. 8 RETIREMENT OF PUBLIC EMPLOYEES unit. This agreement shall be in a form as prescribed by the Director of the Government of Guam Retirement System, approved by the Board of Trustees, and in compliance with the requirements of Code § 457.

(c)Employer’s Failure to Implement Program. Implementation of the Deferred Compensation Program by the employer must be completed within thirty

(30)days of the member’s request as provided in Subsection (b). Beginning on the date of enactment, the Government of Guam Deferred Compensation Program shall be the single § 457 program receiving payroll deductions representing elective deferrals of the compensation of any member of an employer unit other than an employer unit which had established a § 457 program and was receiving payroll deductions prior to the date of enactment. Such excepted employer unit may defer compensation under its existing 457 deferred compensation plan through December 31, 1998. Payroll deductions representing § 457 elective deferrals of any employee of an excepted employer unit must be remitted to the Qualified Custodian of the Government of Guam Deferred Compensation Program after December 31, 1998. The Board of Trustees may order any employer to implement the Deferred Compensation Program provided for in this Section upon receipt of a member’s approved request to undertake that implementation and may enforce that order in appropriate legal proceedings.