The term “exempt governmental deferred compensation plan”, as defined in sec. 3121(v)(3) of the IRC, includes retirement plans or systems established in the United States, by a State or local government, or by an agency or instrumentality of the foregoing for its employees.

The term does not include deferred compensation plans described in secs. 403(b) and 457 of the IRC.

Beginning January 1, 1984, payments into these plans with employer funds and payments out of them are not wages.