State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2035: deferred compensation plans; governing committee

PRIME SPONSOR: Representative Livingston, LD 22

BILL STATUS: Chaptered

               

Legend: Committee – Governing Committee for Deferred Compensation Plans Amendments – BOLD and Stricken (Committee)

Abstract

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRelating to Governing Committee for Deferred Compensation Plans.

Provisions

Deferred Compensation Plans Committee (Sec. 3)

1.       Renames the Governing Committee for Tax Deferred Annuity and Deferred Compensation Plans to the Committee.

2.       Modifies the Committee membership by replacing three state employees with three members who are either:

a.       A person who has an account balance in a deferred compensation plan overseen by the Committee; or

b.       A person who has at least 10 years of relevant experience in either finance, investment management, pension plans, or retirement plans.

3.       Subjects Committee members to statute relating to conflict of interest.

4.       Clarifies the Committee may enter into agreements with companies with demonstrable expertise in the areas relating to deferred compensation plans.

5.       Allows the Committee to adopt rules.

6.       Modifies the duties of the Committee as follows:

a.       Arrange for consolidated billing so that plans operate without cost to the state except for expenses of statutorily required administrative duties and administering payroll.

b.       Meet quarterly.

c.        Arrange for a performance review of the plans at least every five years.

Miscellaneous

7.       Removes the option for state employees to participate in tax deferred annuities. (Sec. 4)

8.       Makes technical and conforming changes. (Sec. 1, 2)

Current Law

Established by Laws 1972, Chapter 133, the 7-member Governing Committee for Tax Deferred Annuity and Deferred Compensation Plans is authorized to investigate and approve tax deferred compensation and annuity programs which give state employees income tax benefits (A.R.S. § 38-871).

Currently the Committee oversees three different plans: 457 plans, Supplemental 401(a) plans, and 403(b) plans.

 

 

 

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Fifty-third Legislature                  HB 2035

Second Regular Session                               Version 4: Chaptered

 

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