§ 391. Optional retirement program established. 1. There is hereby
established an optional retirement program which shall provide for the
purchase of contracts providing retirement and death benefits for or on
behalf of electing employees. Under such program the state or an
electing employer and such employees shall contribute, to the extent
authorized or required, towards the purchase of such contracts, which
shall be issued to, and become the property of, such employees. The
board of trustees of a community college may elect to offer the optional
retirement program to eligible employees of such college by resolution,
which shall become effective upon approval of the local sponsor acting
through its local legislative body or board or other appropriate
governing agency.

2. The board shall designate the insurer or insurers to which payment
of such contributions may be made and shall approve the form and content
of such contracts. In making such designation and giving such approval
the board shall give due consideration to (i) the nature and extent of
the rights and benefits to be provided by such contracts for electing
employees and their beneficiaries, (ii) the relation of such rights and
benefits to the amount of contributions to be made under this article,
(iii) the suitability of such rights and benefits to the needs and
interests of electing employees and to the interests of state university
and of electing employers in the employment and retention of eligible
employees, and (iv) the authority and ability of the designated insurer
or insurers to provide rights and benefits under such contracts.

3. The board is hereby authorized to provide for the administration of
such optional retirement program and to perform or authorize the
performance of such functions as may be necessary for such purposes in
accordance with this article.