Section 64B. The treasurer or, if there is no treasurer, the chief financial officer by whatever name that person is called, on behalf of any political subdivision, body politic and corporate, or public instrumentality created by the commonwealth or any county, city or town or group thereof by whatever name the body is called, including without limitation, an agency, authority, board, corporation or district, including also without limitation, any regional school, police, fire, refuse or sewage district, and hereinafter referred to as a ''governmental body,'' which is not otherwise subject to any general or special law authorizing deferred compensation contracts with its employees, may contract with an employee of such governmental body to defer a portion of an employee's compensation and may, for the purposes of funding a deferred compensation program for said employee, established under the U.S. Internal Revenue Code, (the ''Code'') invest the deferred portion of the employee's income in a life insurance or annuity contract, mutual fund or a bank investment trust. The treasurer or chief financial officer shall, before making any such investment, solicit bids from insurance companies authorized to conduct business within the commonwealth under chapter 175, mutual fund managers, and banks, which bids shall be sealed, and opened at a time and place designated by the treasurer or chief financial officer. Any bid submitted by an insurance company, mutual fund, or bank investment trust to fund the deferred compensation program shall, where applicable, clearly indicate the interest rate which shall be paid on the deferred funds, any commissions which will be paid to the salesmen, any load imposed for the purpose of administering the funds, mortality projections, expected payouts, tax implications for participating employees and such other information as the treasurer or chief financial officer may require. Any contract entered into between an employee and the governmental body under this section shall include all such information in terms the employee can reasonably be expected to understand.

As used in this section the word ''employee'' shall have the same meaning as the word ''employee'' in section 1 of chapter 32 and shall include consultants and independent contractors who are natural persons paid by the governmental body.

Notwithstanding any general or special law to the contrary, the treasurer or chief financial officer shall not be required to solicit bids to invest the deferred portion of an employee's income provided: (a) the treasurer or chief financial officer elects to invest such funds in the same investment products as are provided through the deferred compensation plan for employees of the commonwealth administered by the state treasurer, provided such plan resulted from the solicitation of bids under bidding requirements comparable to those required under this section; or (b) the treasurer or chief financial officer elects to invest such funds in the investment products offered under a plan developed through a competitive process, provided that such plan resulted from the solicitation of bids by a group of any combination of 3 or more city, town, county or public authority treasurers or treasurers or chief financial officers of governmental bodies covered by this section acting as a ''Common Group'' for purposes of soliciting such proposals under bidding requirements comparable to those required under this section.

An employee may defer compensation; provided, however, that such deferral does not exceed the maximum allowable under the Code, as amended and in effect for the taxable year, and appropriate regulations under the Code.

Such deferred compensation program shall be in addition to and not a part of any retirement program or pension system as provided under said chapter 32 and any other benefit program provided by law for such employee. Any compensation deferred under such a plan shall continue to be included as regular compensation, as defined in section 1 of said chapter 32, for the purpose of computing any retirement and pension benefits earned by any such employee, but any compensation so deferred shall not be included in the computation of any taxes withheld on behalf of any such employee.