(1) The deferred compensation program established by this chapter is in addition to
retirement, pension, or benefit systems, including plans qualifying under section 403(b) of the Internal Revenue Code, 26 U.S.C. 403(b), as amended, established by the state or a political subdivision, and a deferral
of income under the deferred compensation program may not affect a reduction of any
retirement, pension, or other benefit provided by law.
(2) Except as provided in subsection (3), any sum deferred under the deferred compensation
program is not subject to taxation until distribution is actually made to the participant
or the participant's beneficiary because of severance from employment, retirement,
or unforeseeable emergency.
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