Text: HF00693 Text: HF00695 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 331.324, subsection 1, paragraph m, 1 2 Code 1999, is amended to read as follows: 1 3 m. Provide a deferred compensation program or programs for 1 4 any employee, in accordance with section 509A.12. 1 5 Sec. 2. Section 509A.12, Code 1999, is amended to read as 1 6 follows: 1 7 509A.12 DEFERRED COMPENSATIONPROGRAMPROGRAMS FOR 1 8 GOVERNMENTAL EMPLOYEES. 1 9 A governing body, county board of supervisors, or other 1 10 public entity, to the extent allowed by law, may establisha1 11 deferred compensationprogramprograms under this section. 1 12 The contributions made on behalf of an employee who chooses to 1 13 participate inthea program shall be invested at the 1 14 direction of the employee in a life insurance contract, 1 15 annuity contract, mutual fund, security, or any other deferred 1 16 payment contract offered as an investment option under the 1 17 program in which the employee is participating. The program 1 18 or programs established by a governing body, county board of 1 19 supervisors, or other public entity pursuant to this section 1 20 shall, in their entirety, provide employees the option to 1 21 select as an investment option under the program or programs 1 22 from not more than ten companies authorized to issue life 1 23 insurance policies and annuity contracts through their 1 24 respective licensed agents and from not less than ten mutual 1 25 funds. The program or programs established pursuant to this 1 26 section shall not restrict the companies authorized to issue 1 27 life insurance policies and annuity contracts from also 1 28 offering mutual funds if the companies market mutual funds in 1 29 their ordinary course of business. If a governing body, 1 30 county board of supervisors, or other public entity 1 31 establishes more than one program under this section, any 1 32 marketing requirements, restrictions, or other marketing 1 33 provisions of the programs shall be substantially similar and 1 34 equivalent for each program established. The contract 1 35 acquired for an employee shall be in accordance with the plan 2 1 document and shall be acquired from a company, or a 2 2 salesperson for that company, that is authorized to do 2 3 business in this state. When the state of Iowa acquires an 2 4 investment product pursuant to the plan document the state 2 5 does not become a shareholder, stockholder, or owner of a 2 6 corporation in violation of Article VIII, section 3, of the 2 7 Constitution of the State of Iowa or any other provision of 2 8 law. 2 9 This section is in addition to any benefit program provided 2 10 by law for employees of the state or its political 2 11 subdivisions. 2 12 Sec. 3. APPLICABILITY PROVISION. If an agreement with a 2 13 company to provide an investment product under a deferred 2 14 compensation program regulated under section 509A.12, Code 2 15 1999, was executed prior to the effective date of this Act, 2 16 section 509A.12, Code 1999, continues to apply to the 2 17 agreement until the agreement expires. 2 18 EXPLANATION 2 19 This bill provides that a governing body, county board of 2 20 supervisors, or other public entity authorized to establish a 2 21 deferred compensation program under Code section 509A.12 may 2 22 establish more than one deferred compensation program under 2 23 the section. In addition, the bill requires that if a program 2 24 or programs are established, the entirety of the programs 2 25 offered shall permit an employee to select as their investment 2 26 option from not more than 10 insurance companies through their 2 27 agents and from not less than 10 mutual funds. The bill also 2 28 permits an insurance company to offer mutual funds if the 2 29 company ordinarily offers such funds. The bill further 2 30 provides that if more than one program is established, the 2 31 marketing provisions of every program offered shall be 2 32 substantially similar. 2 33 The bill also provides that the requirements of this bill 2 34 do not apply to agreements with companies to provide an 2 35 investment product under a deferred compensation program 3 1 entered into prior to the effective date of this bill. 3 2 LSB 2379HV 78 3 3 ec/jw/5
Text: HF00693 Text: HF00695 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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