(a) Deductions from Salary. Member contributions in the form of deductions from salary shall not exceed the limits prescribed by Code § 457, as amended. The employer shall contribute or pay these member deducted contributions from the same source of funds which is used in paying base pay to the members. Such member contributions shall be deducted from his or her salary by the employer and immediately credited to such member’s account and/or accounts at the normal payroll intervals,

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and shall be remitted to the Qualified Custodian designated by the Board of Trustees to receive such contributions of the Program, no later than ten (10) working days from the date on which such amount would otherwise have been payable to the member in cash.

(b) Purchase of Shares. The amount of compensation so deferred may be used to purchase such forms of investments which are prescribed by the Board of Trustees. Included among such forms of investments which may be provided are:

(1) shares in mutual funds or other managed investment portfolios selected by the Board of Trustees; or

(2) annuity contracts from an insurance company selected by the Board of Trustees, which company is licensed to contract business on Guam and is subject to regulation by the Director of Revenue and Taxation; or

(3) a combination of (1) and (2).

The shares or contracts purchased shall stand in the name of the Qualified Custodian designated by the Board of Trustees for the member whose deferred compensation purchased the shares or contracts until distributed to the member in a manner agreed upon by the member and the Board of Trustees and in accordance with the terms of the deferred compensation plan. The government of Guam, the Board of Trustees, political subdivision, or other employer is not responsible for any loss that may result from investment of the Member’s deferred compensation.