(1) Notwithstanding any other provision of law, a municipality and its employees may participate in the deferred compensation plan of the international city management association retirement corporation, a nonprofit corporation approved by the United States internal revenue service for establishing a retirement plan. No statute restricting the deposit or investment of municipal money shall be applicable to moneys in such plan.(2) In addition to the authority granted in subsection (1) of this section, any municipality may otherwise provide a deferred compensation plan for its employees and may, by contract, agree with an employee to defer all or a part of the employee's salary or wages. Funds of such plan may be used to purchase fixed or variable annuities from any life insurance company duly authorized to do an insurance and annuity business in this state or may otherwise be deposited and invested in accordance with any statute applicable to the deposit or investment of municipal money.(3) If a municipality participates in or establishes a deferred compensation plan for its employees pursuant to this section and if such plan is in addition to any other pension or retirement plan

ey.(3) If a municipality participates in or establishes a deferred compensation plan for its employees pursuant to this section and if such plan is in addition to any other pension or retirement plan provided by the municipality, the amount of an employee's deferred compensation shall continue to be counted as part of his total salary or wages for the purpose of computing any other pension or retirement contributions or benefits which are based on total salary or wages.L. 77: Entire section added, p. 1464, § 1, effective May 24.