38-871. Deferred compensation governing committee; members; powers and duties

(L18, Ch. 90, sec. 3. Eff. until 7/1/20)

A. The governing committee for deferred compensation plans is established that consists of the following seven members:

1. Three members who are appointed by the governor and who are either of the following:

(a) Individuals who have an account balance in a deferred compensation plan that is overseen by the governing committee. These individuals may be contributing or noncontributing participants in a deferred compensation plan and may be retired or nonretired.

(b) Members of the public who are not deferred compensation plan participants and who have at least ten years of relevant experience in either finance, investment management, pension plans or retirement plans.

2. The director of the department of administration or the director's designee.

3. The superintendent of financial institutions or the superintendent's designee.

4. The director of insurance or the director's designee.

5. The director of the Arizona state retirement system or the director's designee.

B. Governing committee members are subject to the conflict of interest provisions of title 38, chapter 3, article 8.

C. The governing committee may:

1. Investigate and approve deferred compensation plans that give state employees income tax benefits authorized by title 26, United States Code Annotated.

2. In carrying out the purposes of this article, enter into agreements with companies with demonstrable expertise in the areas encompassed by this article.

3. Adopt rules.

D. The governing committee shall:

1. Arrange for consolidated billing and efficient administrative services so that any plans approved operate without cost or contribution from this state except for the incidental expenses of statutorily required administrative duties and the administration of payroll salary deduction or reduction and remittance of the monies to the administrator, trustee or custodian of the plan or plans.

2. Meet quarterly or more frequently as the committee deems necessary.

3. Arrange for an annual financial audit of the plans.

4. Arrange for a performance review of the plans or participation in benchmarking surveys or studies at least every five years.