Bill Text: IA HF189 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act establishing a retirement savings plan trust, and including implementation and effective date provisions.
Spectrum: Partisan Bill (Democrat 8-0)
Status: (Introduced - Dead) 2021-01-22 - Introduced, referred to State Government. H.J. 186. [HF189 Detail]
Download: Iowa-2021-HF189-Introduced.html
House
File
189
-
Introduced
HOUSE
FILE
189
BY
HUNTER
,
OLSON
,
KRESSIG
,
WESSEL-KROESCHELL
,
STAED
,
MASCHER
,
BROWN-POWERS
,
and
EHLERT
A
BILL
FOR
An
Act
establishing
a
retirement
savings
plan
trust,
and
1
including
implementation
and
effective
date
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
12K.1
Purpose
and
definitions.
1
1.
The
general
assembly
finds
that
the
general
welfare
and
2
well-being
of
the
state
are
directly
related
to
the
ability
3
of
the
citizens
of
the
state
to
save
for
their
retirement
4
years,
and
that
a
vital
and
valid
public
purpose
is
served
by
5
the
creation
and
implementation
of
programs
which
encourage
6
and
make
possible
the
attainment
of
financial
security
by
7
the
greatest
number
of
citizens
of
the
state.
In
order
to
8
make
available
to
the
citizens
of
the
state
an
opportunity
to
9
fund
future
retirement
savings
needs,
it
is
necessary
that
a
10
public
trust
be
established
in
which
moneys
may
be
invested
for
11
retirement.
12
2.
As
used
in
this
chapter,
unless
the
context
otherwise
13
requires:
14
a.
“Administrative
fund”
means
the
administrative
fund
15
established
under
section
12K.4.
16
b.
“Employer”
means
a
person
or
entity
engaged
in
a
17
business,
industry,
profession,
trade,
or
other
enterprise
in
18
Iowa.
19
c.
“Internal
Revenue
Code”
means
the
same
as
defined
in
20
section
422.3.
21
d.
“Iowa
retirement
savings
plan
trust”
or
“trust”
means
the
22
trust
created
under
section
12K.2.
23
e.
“Participant”
means
an
individual
that
has
entered
into
a
24
participation
agreement
under
this
chapter
to
contribute
to
an
25
Iowa
retirement
savings
plan.
26
f.
“Participation
agreement”
means
an
agreement
between
a
27
participant
and
the
trust
entered
into
under
this
chapter.
28
g.
“Program
fund”
means
the
program
fund
established
under
29
section
12K.4.
30
Sec.
2.
NEW
SECTION
.
12K.2
Creation
of
the
Iowa
retirement
31
savings
plan
trust.
32
An
Iowa
retirement
savings
plan
trust
as
allowed
by
the
33
Internal
Revenue
Code
is
created
for
the
purpose
of
helping
34
Iowans
save
for
retirement.
The
treasurer
of
state
is
the
35
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trustee
of
the
trust,
and
has
all
powers
necessary
to
carry
out
1
and
effectuate
the
purposes,
objectives,
and
provisions
of
this
2
chapter
pertaining
to
the
trust,
including
the
power
to
do
all
3
of
the
following:
4
1.
Make
and
enter
into
contracts
necessary
for
the
5
administration
of
the
trust.
6
2.
Enter
into
agreements
with
any
financial
institution,
7
the
state,
or
any
federal
or
other
state
agency,
or
other
8
entity
as
required
to
implement
this
chapter.
9
3.
Carry
out
the
duties
and
obligations
of
the
trust
10
pursuant
to
this
chapter.
11
4.
Accept
any
grants,
gifts,
legislative
appropriations,
12
and
other
moneys
from
the
state,
any
unit
of
federal,
state,
or
13
local
government,
or
any
other
person,
firm,
partnership,
or
14
corporation
which
the
treasurer
of
state
shall
deposit
into
the
15
administrative
fund
or
the
program
fund.
16
5.
Carry
out
studies
and
projections
so
the
treasurer
of
17
state
may
advise
participants
regarding
present
and
estimated
18
future
retirement
needs
and
levels
of
financial
participation
19
in
the
trust
required
in
order
to
enable
participants
to
20
achieve
their
retirement
funding
objectives.
21
6.
Participate
in
any
federal,
state,
or
local
governmental
22
program
for
the
benefit
of
the
trust.
23
7.
Procure
insurance
against
any
loss
in
connection
with
the
24
property,
assets,
or
activities
of
the
trust.
25
8.
Enter
into
agreements
with
participants
and
employers.
26
9.
Make
distributions
and
refunds
to
participants
pursuant
27
to
participation
agreements
as
prescribed
by
the
Internal
28
Revenue
Code.
29
10.
Invest
moneys
from
the
program
fund
in
any
investments
30
which
are
determined
by
the
treasurer
of
state
to
be
31
appropriate.
32
11.
Engage
investment
advisors,
if
necessary,
to
assist
in
33
the
investment
of
trust
assets.
34
12.
Contract
for
goods
and
services
and
engage
personnel
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as
necessary,
including
consultants,
actuaries,
managers,
1
legal
counsel,
and
auditors,
for
the
purpose
of
rendering
2
professional,
managerial,
and
technical
assistance
and
advice
3
to
the
treasurer
of
state
regarding
trust
administration
and
4
operation.
5
13.
Establish,
impose,
and
collect
administrative
fees
6
and
charges
in
connection
with
transactions
of
the
trust,
and
7
provide
for
reasonable
service
charges,
including
penalties
for
8
cancellations
and
late
payments
with
respect
to
participation
9
agreements.
10
14.
Administer
the
funds
of
the
trust.
11
15.
Adopt
rules
pursuant
to
chapter
17A
for
the
12
administration
of
the
trust.
13
Sec.
3.
NEW
SECTION
.
12K.3
Limitation
of
liability.
14
The
trust,
the
treasurer
of
state,
and
the
state
of
Iowa
may
15
not
guarantee
any
rate
of
return
or
any
interest
rate
on
any
16
contribution
to
the
trust.
The
trust,
treasurer
of
state,
and
17
the
state
of
Iowa
are
not
liable
for
any
loss
incurred
by
any
18
person
as
a
result
of
participating
in
the
trust.
19
Sec.
4.
NEW
SECTION
.
12K.4
Program
and
administrative
funds
20
——
investment
and
payments.
21
1.
The
treasurer
of
state
shall
segregate
moneys
received
22
by
the
trust
into
two
funds:
the
program
fund
and
the
23
administrative
fund.
24
2.
All
moneys
paid
by
participants
in
connection
with
25
participation
agreements
shall
be
deposited
as
received
into
26
separate
accounts
within
the
program
fund.
27
3.
Contributions
to
the
trust
made
by
participants
may
only
28
be
made
in
the
form
of
cash.
29
Sec.
5.
NEW
SECTION
.
12K.5
Cancellation
of
agreements.
30
A
participant
may
cancel
a
participation
agreement
at
will.
31
Upon
cancellation
of
a
participation
agreement,
a
participant
32
shall
be
entitled
to
the
return
of
the
participant’s
account
33
balance
subject
to
penalties
prescribed
by
the
Internal
Revenue
34
Code.
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Sec.
6.
NEW
SECTION
.
12K.6
Annual
audited
financial
report.
1
1.
The
treasurer
of
state
shall
submit
an
annual
audited
2
financial
report,
prepared
in
accordance
with
generally
3
accepted
accounting
principles,
on
the
operations
of
the
trust
4
by
January
1
to
the
governor
and
the
general
assembly.
5
2.
The
annual
audit
shall
be
made
either
by
the
auditor
6
of
state
or
by
an
independent
certified
public
accountant
7
designated
by
the
auditor
of
state
and
shall
include
direct
and
8
indirect
costs
attributable
to
the
use
of
outside
consultants,
9
independent
contractors,
and
any
other
persons
who
are
not
10
state
employees.
11
3.
The
annual
audit
shall
be
supplemented
by
all
of
the
12
following
information
prepared
by
the
treasurer
of
state:
13
a.
Any
related
studies
or
evaluations
prepared
in
the
14
preceding
year.
15
b.
A
summary
of
the
benefits
provided
by
the
trust,
16
including
the
number
of
participants
in
the
trust.
17
c.
Any
other
information
which
is
relevant
in
order
to
make
18
a
full,
fair,
and
effective
disclosure
of
the
operations
of
the
19
trust.
20
Sec.
7.
NEW
SECTION
.
12K.7
Tax
considerations.
21
For
federal
tax
purposes,
the
Iowa
retirement
savings
plan
22
trust
shall
conform
to
the
requirements
established
by
the
23
Internal
Revenue
Code
to
be
able
to
operate
as
a
retirement
24
plan.
The
plan
may
conform
to
the
requirements
under
section
25
401(a),
section
408,
or
another
section
of
the
Internal
Revenue
26
Code
which
allows
Iowans
the
best
retirement
option
under
the
27
trust
as
determined
by
the
treasurer
of
state.
28
Sec.
8.
NEW
SECTION
.
12K.8
Property
rights
to
assets
in
29
trust.
30
1.
The
assets
of
the
trust
shall
at
all
times
be
preserved,
31
invested,
and
expended
solely
and
only
for
the
purposes
of
the
32
trust
and
shall
be
held
in
trust
for
the
participants.
33
2.
No
property
rights
in
the
trust
shall
exist
in
favor
of
34
the
state.
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3.
The
assets
of
the
trust
shall
not
be
transferred
or
used
1
by
the
state
for
any
purposes
other
than
the
purposes
of
the
2
trust.
3
Sec.
9.
NEW
SECTION
.
12K.9
Construction.
4
This
chapter
shall
be
construed
liberally
in
order
to
5
effectuate
its
purpose.
6
Sec.
10.
IMPLEMENTATION
PROVISION.
The
treasurer
of
state
7
shall
provide
that
when
the
requirements
of
chapter
12K
are
8
enacted,
individuals
may
begin
making
contributions
to
the
Iowa
9
retirement
savings
plan
trust,
as
created
by
section
12K.2,
as
10
enacted
in
this
Act,
no
earlier
than
July
1,
2023.
11
Sec.
11.
EFFECTIVE
DATE.
This
Act
takes
effect
on
July
1,
12
2022.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
creates
the
Iowa
retirement
savings
plan
trust
17
under
the
office
of
treasurer
of
state
for
the
purpose
of
18
helping
Iowans
save
for
retirement.
The
bill
provides
that
19
the
trust
be
operated
so
that,
for
federal
tax
purposes,
it
20
meets
the
requirements
of
a
retirement
plan
as
provided
by
the
21
Internal
Revenue
Code.
22
The
state
treasurer
is
the
trustee
of
the
trust
and
has
23
numerous
powers,
as
specified
in
the
bill,
for
the
purpose
of
24
carrying
out
the
purpose
of
the
trust.
Powers
granted
the
25
treasurer
of
state
to
effectuate
the
purpose
of
the
trust
26
include
entering
into
agreements
with
trust
participants
and
27
employers,
investing
moneys
in
the
trust,
and
entering
into
any
28
agreements
or
contracts
necessary
to
carry
out
the
purposes
of
29
the
trust.
30
The
bill
provides
that
the
state,
the
treasurer
of
state,
31
and
the
trust
may
not
guarantee
any
rate
of
return
on
any
32
contributions
to
the
trust
and
are
not
liable
for
any
loss
33
incurred
by
any
person
as
a
result
of
participating
in
the
34
trust.
The
bill
requires
the
treasurer
to
submit
an
annual
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audited
financial
report
on
the
operations
of
the
trust.
1
The
bill
provides
that
when
the
requirements
of
the
bill
2
are
enacted,
the
treasurer
shall
not
allow
individuals
to
make
3
contributions
to
the
trust
earlier
than
July
1,
2023.
4
The
bill
takes
effect
July
1,
2022.
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