A. The governing body of a city or town may provide through ordinance or resolution a plan or plans for their employees which provide tax deferred annuity and deferred compensation plans as authorized pursuant to title 26, United States Code Annotated.

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Terms Used In Arizona Laws 9-500

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • United States: includes the District of Columbia and the territories. See Arizona Laws 1-215

B. Such plans shall be established to allow voluntary participation by all employees of a city or town.

C. Participating employees shall authorize the city or town to make reductions in their remuneration as provided in an executed deferred compensation agreement.