Iowa Administrative Code › Agency 11 - Administrative Services Department › Title IV - Human Resources › Chapter 64 - Benefits › Rule 11-64.6 - Deferred Compensation

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
The following definitions shall apply when used
				in this rule:
"Account"
means any fixed annuity contract,
				  variable annuity contract, life insurance contract, documents evidencing mutual
				  funds, variable or guaranteed investments, or combination thereof provided for
				  in the plan.
"Beneficiary "
means the person or estate
				  entitled to receive benefits under the plan following the death of the
				  participant.
"Director"
means the director of the Iowa
				  department of administrative services.
"Employee "
means a nontemporary (permanent
				  full-time or permanent part-time) employee of the employer, including full-time
				  elected officials and members of the general assembly, except employees of the
				  board of regents. For the purposes of enrollment, elected officials-elect and
				  members-elect of the general assembly shall be considered employees. Persons in
				  a joint employee relationship with the employer shall not be considered
				  employees eligible to participate in the plan.
"Employer "
means the state of Iowa and any
				  other governmental employer that participates in the plan. Effective July 1,
				  2003, "employer" shall also include any governmental entity located within the
				  state of Iowa that enters into an agreement to allow its employees to
				  participate in the plan.
"Fiduciary"
means a person or company that
				  manages money or property for another and that must exercise the standard of
				  care imposed by law or contract. For the purpose of these rules, "fiduciary"
				  means the trustee, the plan administrator, investment providers, and the
				  persons they designate to carry out or help carry out their duties or
				  responsibilities as fiduciaries under the plan.
"Governing body"
means the executive council
				  of the state of Iowa.
"Group"
means one or more employees.
"Investmentprovider "
means a company
				  authorized under this rule to issue an account or administer the records of
				  such an account or accounts under the deferred compensation plan authorized by
				  Iowa Code sections
				  8A.402
				  and
				  509A.12.
"Normal retirement age "
means 65 years of
				  age, unless an employee declares a different age pursuant to the plan's
				  catch-up provision. The age cannot be earlier than a year in which the employee
				  is eligible to receive retirement benefits without an age reduction penalty
				  from the employer-sponsored retirement plan.
"Participating employee"
or
"participant"
means any employee or former employee of the
				  employer who is currently deferring or who has previously deferred compensation
				  under the plan and who retains the right to benefits under the plan.
"Plan "
means the state of Iowa employee
				  contribution plan for deferred compensation as authorized by Internal Revenue
				  Code Section 457 and Iowa Code sections
				  8A.434
				  and
				  509A.12.
"Plan administrator "
means the designee of
				  the director who is authorized to administer the plan.
"Plan year "
means a calendar year.
"Retirement investors' club"
means the
				  voluntary retirement savings program for employees designed to increase
				  personal long-term savings. The program contains three plans, the 457 employee
				  contributions plan, the 401(a) employer contribution plan, and the 403(b)
				  tax-sheltered annuity plan.
"Trust"
means the Iowa state employee
				  deferred compensation trust fund created in the state treasury and under the
				  control of the department.
"Trustee "
means the director of the Iowa
				  department of administrative services.
(2)
Plan administration.
a.
Director's authorization.
The director is authorized by the governing body to administer a deferred
				compensation program for eligible employees and to enter into contracts and
				service agreements with deferred compensation investment providers for the
				benefit of eligible employees and on behalf of the state of Iowa and other
				eligible employers. This rule shall govern all investment options and
				participant activity for the funds placed in the program.
b.
Plan modification.
The
				trustee may at any time amend, modify, or terminate the plan without the
				consent of the participant (or any beneficiary thereof). The plan administrator
				shall provide to participating employees and investment providers sufficient
				notice of all amendments to the plan. No amendment shall deprive participants
				of any of the benefits to which they are entitled under the plan
with respect to deferred amounts credited to their accounts
				  before the effective date of the amendment. If the plan is curtailed or
				  terminated, or the acceptance of additional deferred amounts is suspended
				  permanently, the plan administrator shall nonetheless be responsible for the
				  supervision of the payment of benefits resulting from amounts deferred before
				  the amendment, modification, or termination. Payment of benefits will be
				  deferred until the participant would otherwise have been entitled to a
				  distribution pursuant to the provisions of the plan.
c.
Location of account
				documentation.
The investment providers shall send the original
				annuity policies, contracts or account forms to the plan administrator. Failure
				to do so may result in termination of an investment provider's contract or
				service agreement. The plan administrator shall keep all such original
				documents. Participating employees may review their own documentation during
				normal work hours at the department, but may not under any circumstances remove
				the documentation from the premises.
d.
Not an employment
				contract.
Participation in this plan by an employee shall not be
				construed to give a contract of employment to the participant or to alter or
				amend an existing employment contract of the participant, nor shall
				participation in this plan be construed as affording to the participant any
				representation or guarantee regarding the participant's continued
				employment.
e.
Tax relief
				not guaranteed.
The employer, trustee, and the investment providers do
				not represent or guarantee that any particular federal or state of Iowa income,
				payroll, personal property or other tax consequences will result because of the
				participant's participation in the plan. The participant is obligated to
				consult with the participant's own tax representative regarding all questions
				of federal or state of Iowa income, payroll, personal property or other tax
				consequences arising from participation in the plan.
f.
Investment agents.
The
				investment providers shall, subject to the trustee's consent, have the power to
				appoint agents to act for the investment providers in the administration of
				accounts according to the terms, conditions, and provisions of their contracts
				or service agreements with the plan. Investment providers are responsible for
				the conduct of their agents, including their adherence to the plan document and
				administrative rules. The plan administrator may require an investment provider
				to remove the authority of any agent to provide services to the plan or plan
				participants when cause has been shown that the agent has violated these rules
				or state or federal law or regulation related to the governance of the plan or
				agent conduct.
g.
Plan
				expenses.
Expenses incurred by the plan administrator while
				administering the plan, including fees and expenses approved by the plan
				trustee for investment advisory, custodial, record-keeping, and other plan
				administration and communication services, and any other reasonable and
				necessary expenses or charges allocable to the plan that have been incurred for
				the exclusive benefit of plan participants and that have been approved by the
				plan trustee may be charged to the short-term interest that has accrued in the
				deferred compensation trust fund created by Iowa Code section
				8A.434
				prior to the allocation of funds to a participant's chosen investment provider.
				Such expenses may also be funded from fees assessed to eligible employers who
				choose to offer the plan to their employees.
h.
Time periods.
As
				necessary or desirable to facilitate the proper administration of the plan and
				consistent with the requirements of Section 457 of the Internal Revenue Code
				(IRC), the plan administrator may modify the time periods during which a
				participating employee or beneficiary is required to make any election under
				the plan, and the time periods for processing these elections by the plan
				administrator, including the making or amending of a deferral agreement, the
				making or amending of investment provider selections, the election of
				distribution commencement dates or distribution methods.
i.
Supplementary information and
				procedures.
Any explanatory brochures, pamphlets, or notices
				distributed by the plan shall be distributed for information purposes only and
				shall not override any provision of the plan or give any person any claim or
				right not provided for under the plan. In the event any form or other document
				used in administering the plan, including but not limited to enrollment forms
				and marketing materials, conflicts with the terms of the plan, the terms of the
				plan shall prevail.
j.
Binding plan.
The plan, and any properly adopted amendments,
				shall be binding on the parties and their respective heirs, administrators,
				trustees, successors and assignees and on all beneficiaries of the
				participant.