Section 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.