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Bills and Amendments: General Index     Bill History: General Index

Senate Study Bill 1141

Bill Text

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 COMPENSATION PROGRAM PROGRAMS 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 establish a
  1 11 deferred compensation program programs under this section.
  1 12 The contributions made on behalf of an employee who chooses to
  1 13 participate in the a 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 less 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 ten companies authorized to
  1 27 issue 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                           EXPLANATION
  2 13    This bill provides that a governing body, county board of
  2 14 supervisors, or other public entity authorized to establish a
  2 15 deferred compensation program under Code section 509A.12 may
  2 16 establish more than one deferred compensation program under
  2 17 the section.  In addition, the bill requires that if a program
  2 18 or programs are established, the entirety of the programs
  2 19 offered shall permit an employee to select as their investment
  2 20 option from not less than 10 insurance companies through their
  2 21 agents and from not less than 10 mutual funds.  The bill also
  2 22 permits an insurance company to other mutual funds if the
  2 23 company ordinarily offers such funds.  The bill further
  2 24 provides that if more than one program is established, the
  2 25 marketing provisions of every program offered shall be
  2 26 substantially similar.  
  2 27 LSB 2379SC 78
  2 28 ec/jw/5
     

Text: SSB01140                          Text: SSB01142
Text: SSB01100 - SSB01199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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