4. Any employee who is a member of a State administered retirement system may enter into an agreement with the employee’s employer whereby the employee agrees to a reduction in salary in return for the employer’s agreement to use the amount of such reduction in salary to purchase on behalf of such employee from the Supplemental Annuity Collective Trust of New Jersey an annuity, provided that any such annuity qualifies under section 403(b) of the Internal Revenue Code of 1986, as amended. The amount of the reduction in salary under any agreement entered into between an employee and the employee’s employer pursuant to this section shall not exceed the maximum contribution amount permitted under section 403(b) of the federal Internal Revenue Code, 26 U.S.C. § 403(b). Any such agreement shall remain in effect for at least one year. If an agreement is entered into between an employee and the employee’s employer pursuant to this section, the employer shall pay the premiums for the annuity purchased directly to the Supplemental Annuity Collective Trust in accordance with rules and regulations promulgated by the council.

Amounts payable pursuant to this section by an employer on behalf of an employee for a pay period shall be transmitted and credited not later than the fifth business day after the date on which the employee is paid for that pay period.

L.1965,c.90,s.4; amended 1999, c.247,s.3; 2005, c.256,s.2.