A. The governing body of a city or town may provide through ordinance or resolution a plan or plans for their employees which provide tax deferred annuity and deferred compensation plans as authorized pursuant to title 26, United States Code Annotated.
B. Such plans shall be established to allow voluntary participation by all employees of a city or town.
C. Participating employees shall authorize the city or town to make reductions in their remuneration as provided in an executed deferred compensation agreement.