House Study Bill 45



                                       SENATE/HOUSE FILE       
                                       BY  (PROPOSED TREASURER OF
                                            STATE BILL)


    Passed Senate, Date               Passed House,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for state employee payroll deductions for Iowa
  2    educational savings plan trust contributions.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 1229XD 81
  5 ec/pj/5

PAG LIN



  1  1    Section 1.  NEW SECTION.  70A.17B  PAYROLL DEDUCTION FOR
  1  2 IOWA EDUCATIONAL SAVINGS PLAN TRUST CONTRIBUTIONS.
  1  3    1.  The state officer in charge of any of the state payroll
  1  4 systems shall deduct from the wages or salaries of a state
  1  5 officer or employee an amount specified by the officer or
  1  6 employee for payment to the Iowa educational savings plan
  1  7 trust created in section 12D.2 in a method consistent with
  1  8 current discretionary payroll deductions and on forms
  1  9 prescribed by the payroll administrator.
  1 10    2.  The moneys deducted under this section shall be paid to
  1 11 the Iowa educational savings plan trust for the benefit of the
  1 12 officer's or employee's account no later than thirty days
  1 13 following the payroll deduction from the wages of the officer
  1 14 or employee.  The deduction may be made even though the
  1 15 compensation paid to an officer or employee is reduced to an
  1 16 amount below the minimum prescribed by law.  Payment to an
  1 17 officer or employee of compensation less the deduction shall
  1 18 constitute a full discharge of claims and demands for services
  1 19 rendered by the officer or employee during the period covered
  1 20 by the payment.  The request for the deduction may be
  1 21 withdrawn at any time by filing a written notification of
  1 22 withdrawal with the state officer in charge of any of the
  1 23 state payroll systems.
  1 24                           EXPLANATION
  1 25    This bill provides that state employees may authorize a
  1 26 deduction from their wages in an amount specified by the
  1 27 employee to be contributed to the employee's account in the
  1 28 Iowa educational savings plan trust created in Code section
  1 29 12D.2.  The bill provides that payroll deductions be paid to
  1 30 the trust no later than 30 days following deduction from the
  1 31 employee's wages.  The bill allows an employee to withdraw the
  1 32 request for deduction by written notification to the
  1 33 appropriate payroll officer.
  1 34 LSB 1229XD 81
  1 35 ec/pj/5