§ 399. Special annuity and custodial account programs authorized. 1.\nAn employer is hereby authorized to establish by resolution special\nannuity and custodial account programs which shall provide for the\npurchase of contracts or establishment of custodial accounts providing\nretirement and death benefits for or on behalf of employees electing to\nenter into an agreement with such employer providing for a reduction of\nannual salary for the purpose of purchasing such contracts or for making\ncontributions to such custodial accounts.\n 2. Where the employer has established a special annuity and/or\ncustodial account program authorized by this article, any employee may\nenter into an agreement with his employer for the reduction of his\nsalary which is earned after the effective date of such agreement and\nfor contributions to the purchase of an annuity contract or to a\ncustodial account for such employee by his employer in an amount equal\nto the reduction in salary so agreed on. The employer shall purchase the\nannuity contract or make contributions to the custodial account for such\nemployee entering into such an agreement from the insurer or custodian\ndesignated pursuant to subdivision four of this section. Such annuity\ncontract shall be issued to, and become the property of, such employee\nwhose rights therein shall be non-forfeitable except for failure to pay\nfuture premiums or such custodial account shall be established on behalf\nof such employee whose rights therein are non-forfeitable. Neither the\nstate, or a political subdivision thereof, nor an employer shall be a\nparty to any annuity contract purchased or custodial account established\nin whole or in part with payments pursuant to said agreement, and no\nretirement, death or other benefit shall be payable by the state, or\npolitical subdivision thereof, or by an employer under such agreement or\nsuch annuity contract or custodial account.\n 3. Subject to approval and filing, as hereinafter provided by the\ncomptroller, any such agreement shall specify the amount of such\nreduction, and the effective date thereof, and shall be binding and\nirrevocable as to both parties thereto during the continuation of such\nemployee's employment with the employer; provided, however, that such\nagreement may be terminated in accordance with university guidelines\nupon notice in writing by either party. Such termination shall take\neffect at the beginning of the payroll period the first day of which is\nnearest to the thirtieth day following the day on which such\nnotification of termination was (i) received by the employer, in the\nevent such termination is initiated by the employee, or (ii) sent to the\nemployee in the event such termination is initiated by the employer.\n 4. The board of trustees of state university with respect to the state\nuniversity and the community colleges, and the board of trustees of the\ncity university with respect to employees of the city university of New\nYork, shall designate the insurer or insurers from which such annuity\ncontracts or in the case of custodial accounts, the company or companies\nfrom whom regulated investment company shares shall be purchased. In\nmaking such designation, due consideration shall be given to (a) the\nnature and extent of the rights and benefits to be provided by contracts\nfor such special annuity or custodial account for employees and their\nbeneficiaries, (b) the relation of such rights and benefits to the\namount of contributions to be made for such contracts, (c) the\nsuitability of such rights and benefits to the needs and interests of\nemployees, and to the interests of employers in the employment and\nretention of employees, and (d) the authority and ability of the\ndesignated insurer or insurers or designated company or companies to\nprovide rights and benefits under such contracts or custodial accounts.\n 5. The board of trustees of state university, with respect to the\nstate university and t
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