Establishing a retirement savings plan trust, making appropriations, and including implementation provisions

This bill creates the Iowa retirement savings plan trust under the office of treasurer of state for the purpose of helping Iowans save for retirement. The bill provides that the trust be operated so that, for federal tax purposes, the trust meets the requirements of a retirement plan as provided by the Internal Revenue Code and functions according to other federal law. The state treasurer is the trustee of the trust and has numerous powers, as specified in the bill, for the purpose of carrying out the purpose of the trust. Powers granted the treasurer of state to effectuate the purpose of the trust include entering into agreements with trust participants and employers, investing moneys in the trust, and entering into any agreements or contracts necessary to carry out the purposes of the trust. A participant may cancel participation in the trust at any time. The bill provides that the state, the treasurer of state, and the trust shall not guarantee any rate of return on any contributions to the trust and are not liable for any loss incurred by any person as a result of participating in the trust. An employer is also not liable for a participant’s investment decisions, the administration of the plan, or the consequences of participation in the plan. The bill requires the treasurer to submit an annual audited financial report on the operations of the trust. For FY 2025-2026, the bill appropriates from the unclaimed property trust fund to the treasurer of state for deposit in the trust’s administrative fund an amount not to exceed $200,000 and requires the treasurer of state to reimburse the unclaimed property trust fund from the administrative fund by June 30, 2032. _____ are enacted, the treasurer shall not allow individuals to make contributions to the trust earlier than January 1, 2026.