§ 20-1407 Elements of the retirement savings program.
AC § 20-1407
Subject to applicable federal and state law and except as otherwise provided in this chapter, the retirement savings program shall include the following elements: a. Allow covered employees and other eligible individuals to contribute to an IRA established under the retirement savings program through payroll deduction or any other method of contribution established by the retirement savings board. b. Apply to all participating employers. c. Require all participating employers to offer covered employees the opportunity to contribute to accounts established by the program through payroll deduction or any other method of contribution established by the retirement savings board. d. Provide for the automatic enrollment of covered employees and allow such employees to opt out of the program. e. Establish a default contribution rate of five percent of a covered employee's wages, subject to any increase or decrease of such rate authorized by the board pursuant to subdivision k of section 20-1405. f. Permit a covered employee to change his or her contribution rate and permit any other eligible individual who enrolls in the program to establish a contribution rate as a percent of his or her wages, which rate such individual may later change, or make lump-sum contributions to the program. g. Include a process for withdrawals by, and disbursements to, participants and provide participants options for such withdrawals and disbursements, including lump-sum or periodic payments. h. Take measures to protect the confidentiality of account and participant information. i. Provide that employers shall not contribute to accounts of participants or endorse or otherwise promote the program in a manner that would cause the program to become an employee benefit plan under the employee retirement income security act of 1974. j. Maintain, or require the maintenance of, separate records and accounting for each account established pursuant to this chapter. k. Provide for reports on the status of accounts to be provided to participants no less than once per year and upon request of any participant. l. Allow participants who have become ineligible to participate in the program to maintain or withdraw account balances or roll over such balances into other retirement accounts, subject to any applicable penalties and limitations established by federal law. m. Allow participants to terminate participation in the program and maintain or withdraw account balances or roll over such balances into other retirement accounts, subject to any applicable penalties and limitations established by federal law. n. Refrain from requiring any participating employer to perform any duty or offer any guarantee not otherwise authorized by this chapter. In addition, the board shall not establish any guarantee by, or duty on behalf of, the city except as otherwise required by law or authorized by this chapter. o. Allocate administrative fees to IRAs in the program. To the extent consistent with the purpose of this chapter and practicable, all fees required for the administration of the retirement savings program shall be borne by participants or paid through funds received pursuant to subdivision j of section 20-1405. (L.L. 2021/051, 5/11/2021, eff. 8/9/2021)
