House Study Bill 675 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON COMMERCE BILL BY CHAIRPERSON PETERSEN) A BILL FOR An Act concerning discontinuing investment options in certain 1 qualified retirement plans offered by an employer. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5029HC (2) 83 ec/sc

H.F. _____ Section 1. NEW SECTION . 8A.433A Deferred compensation plans 1 —— investment options. 2 1. For purposes of this section: 3 a. “Authorized investment option” means an investment option 4 that may be offered to employees within an eligible retirement 5 plan. 6 b. “Eligible retirement plan” means a retirement plan 7 qualified under sections 401, 403, 408, and 457 of the Internal 8 Revenue Code. 9 2. An eligible retirement plan offered by the state to 10 eligible employees shall provide that contributions by an 11 employee to an authorized investment option shall not be 12 discontinued or disallowed if the employee was contributing to 13 that investment option at the time the department discontinued 14 the investment option within the eligible retirement plan 15 offered by the employer. 16 Sec. 2. NEW SECTION . 91A.15 Qualified retirement plans —— 17 investment options. 18 1. For purposes of this section: 19 a. “Authorized investment option” means an investment option 20 that may be offered to employees within an eligible retirement 21 plan. 22 b. “Eligible retirement plan” means a retirement plan 23 qualified under sections 401, 403, 408, and 457 of the Internal 24 Revenue Code. 25 2. An employer offering an eligible retirement plan to 26 employees shall not discontinue or disallow contributions by 27 an employee to an authorized investment option if the employee 28 was contributing to that investment option at the time the 29 employer discontinued the investment option within the eligible 30 retirement plan offered by the employer. 31 EXPLANATION 32 This bill concerns investment options provided employees 33 within an eligible retirement plan offered by the department of 34 administrative services or by a private employer. 35 -1- LSB 5029HC (2) 83 ec/sc 1/ 2

H.F. _____ The bill defines an eligible retirement plan as a retirement 1 plan that is qualified under sections 401, 403, 408, and 457 of 2 the Internal Revenue Code. The bill also defines an authorized 3 investment option as an option that can be offered to employees 4 through an eligible retirement plan. 5 The bill provides that an employer offering an eligible 6 retirement plan to employees shall not discontinue or disallow 7 contributions by an employee to an authorized investment option 8 if the employee was contributing to that investment option at 9 the time the employer discontinued the investment option within 10 the plan offered by the employer. This provision relative 11 to employers is also made applicable to plans offered by the 12 state. 13 -2- LSB 5029HC (2) 83 ec/sc 2/ 2