Section 9 Board of Higher Education 403(b) 1

Section 18A of chapter 15 of the General Laws, as so appearing, is hereby amended by adding the following paragraph:-

The board of higher education may establish, administer and operate plans in accordance with section 403(b) of the Internal Revenue Code of 1986, as amended. Such plans shall be maintained for the exclusive benefit of plan participants and their beneficiaries. Eligible employees, as determined by each plan, may include employees of the executive office of education, the department of higher education, the department of elementary and secondary education, the department of early education and care, the state universities, the state community colleges and any other department identified by the secretary of education that meets the requirements of an eligible employer under said section 403(b). The sole source of contributions to the plans shall be employees' elective contributions. Where applicable and appropriate, the commonwealth shall remit such contributions to the provider selected by the participant from those providers identified by the board of higher education as plan providers. Plan providers identified by the board of higher education may offer annuity or custodial accounts meeting the requirements of said section 403(b). Investments of plan contributions shall be directed by the participant. The board of higher education may promulgate regulations governing the administration of and participation in the plans.