§ 208. Authorized individual retirement plans. 1. a. The term
"authorized individual retirement plan" as used in this section shall
mean an individual retirement plan, as defined in the Economic Recovery
Tax Act of 1981 (P.L. 97-34), established and maintained by one or more
financial organizations with which a committee established herein has
contracted pursuant to this section for the purposes of employee
contribution by payroll deductions.

b. The term "financial organization" as used in this section shall
mean an organization that is authorized to do business in the state of
New York, and is licensed or chartered by the state department of
financial services, is chartered by an agency of the federal government,
or is subject to the jurisdiction of the securities and exchange
commission.

2. The president of the civil service commission is authorized to
enter into contracts, on behalf of the state, with one or more financial
organizations to provide for authorized individual retirement plans in
which employees of the state eligible to authorize payroll deductions by
subdivision seven of section two hundred one of this article may
participate. Any such contract shall be administered on behalf of the
state by the president of the civil service commission and shall be
subject to audit by the comptroller. No such contract shall take effect
until it has been submitted to and approved by the director of the
budget and then approved by the comptroller.