House File 310 - Introduced HOUSE FILE 310 BY LOFGREN A BILL FOR An Act relating to the division of retirement and pension 1 accounts in a dissolution of marriage. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2470YH (2) 84 pf/nh
H.F. 310 Section 1. Section 598.21, Code 2011, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 5A. Retirement and pension or defined 3 benefit accounts. 4 a. With the exception of a pension or defined benefit 5 account, retirement accounts shall be divided based on the 6 value of the account on the date of the entry of the final 7 decree, unless otherwise agreed to by both parties. The 8 party who is not the account holder shall receive the amount 9 specified in the final decree based upon the account’s value 10 on the date of the entry of the final decree and the amount 11 shall not be subject to market fluctuations following the entry 12 of the decree. If the party holding the retirement account 13 elects to place the account in a safe or guaranteed market, 14 the party shall not be subject to claims that the party failed 15 to take reasonable steps to maximize the potential return on 16 investments. 17 b. Pension or defined benefit accounts shall be divided 18 based on the value as of the date of entry of the final decree, 19 subject to the divisions method specified in the decree, unless 20 another date is otherwise agreed to by the parties. 21 EXPLANATION 22 This bill relates to the division of retirement and pension 23 accounts in a dissolution of marriage. The bill directs that, 24 with the exception of a pension or a defined benefit account, a 25 retirement account is to be divided based on the value of the 26 account on the date of the entry of the final decree, unless 27 otherwise agreed to by the parties. The amount is not subject 28 to market fluctuations following entry of the decree and if the 29 party holding the retirement account may elect to place the 30 account in a safe or guaranteed market without being subject to 31 claims that the party failed to maximize the potential return 32 on the investment. Under the bill, pensions or defined benefit 33 accounts are to be divided based on the value as of the date 34 of entry of the final decree, and are subject to the method of 35 -1- LSB 2470YH (2) 84 pf/nh 1/ 2
H.F. 310 division specified in the decree, unless another date is agreed 1 to by the parties. 2 -2- LSB 2470YH (2) 84 pf/nh 2/ 2