With the stroke of his pen, Iowa Gov. Terry Brandstadt (R) has opened the state teachers’ 403(b) plan to greater competition. Brandstadt signed HF 569 into law on May 9.
The Iowa legislature wasted no time — the bill was introduced in the state House of Representatives on March 8, and the chamber passed it in a 65-31 vote 20 days later. On the day the House passed it, the bill was sent to the Senate; that chamber passed it 41-8 just 15 days later.
HF 569 requires the Iowa Department of Administrative Services to include up to 30 insurance and investment companies in the 403(b) plan. The Iowa Insurance Division must first approve those companies before they can be included, and the Department of Administrative Services director shall require them to utilize the third party administrator selected by the department and a common remitter.
The new law becomes effective on July 1, 2017.
Ray Harmon is the American Retirement Association Government Affairs Counsel.
The Iowa legislature wasted no time — the bill was introduced in the state House of Representatives on March 8, and the chamber passed it in a 65-31 vote 20 days later. On the day the House passed it, the bill was sent to the Senate; that chamber passed it 41-8 just 15 days later.
HF 569 requires the Iowa Department of Administrative Services to include up to 30 insurance and investment companies in the 403(b) plan. The Iowa Insurance Division must first approve those companies before they can be included, and the Department of Administrative Services director shall require them to utilize the third party administrator selected by the department and a common remitter.
The new law becomes effective on July 1, 2017.
Ray Harmon is the American Retirement Association Government Affairs Counsel.
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