Current through Register Vol. 46, No. 12, March 20, 2024
(a) Unless
otherwise defined, the terms used herein shall have the same meaning as that
used in the Internal Revenue Code of 1986 (the "Internal Revenue Code"), as now
in effect or hereinafter amended, the State Finance Law and the State plan or
the model plan.
(b) Wherever used
herein, the following terms shall be construed as follows:
(1) Administrative service agency means a
person duly authorized to do business in the State of New York and qualified to
administer and maintain records and accounts of defined contribution plans
which meet the requirements for qualification under the Internal Revenue Code,
governmental plans and eligible deferred compensation plans. The functions of
an administrative service agency under this Subtitle may be carried out by a
trustee, provided that the person serving as a trustee otherwise satisfies all
of the requirements under this Subtitle applicable to an administrative service
agency.
(2) Board means the
Deferred Compensation Board of the State of New York established by section
5 of the State Finance Law.
(3) Deferred compensation committee means the
committee or board, or other entity, office or officer appointed in accordance
with applicable law by a local employer to act in respect of a plan in
accordance with section
9001.2(b)
of this Subtitle.
(4) Financial
organization means a person duly authorized to do business in the State of New
York and who:
(i) is registered as an
investment adviser under the Investment Advisors Act of 1940, as such
provisions may be amended from time to time;
(ii) is a bank, as defined in such act;
or
(iii) is an insurance company
qualified under the laws of more than one state to manage, acquire or dispose
of any assets of plans which meet the requirements for qualification under the
Internal Revenue Code, governmental plans and eligible deferred compensation
plans.
The functions of a financial organization under this Subtitle
may be carried out by a trustee, provided that the person serving as a trustee
otherwise satisfies all of the requirements under this Subtitle applicable to a
financial organization. For the purposes of this Subtitle, a financial
organization that provides self-directed investment services to a plan through
a mutual fund or brokerage window arrangement sponsored by such financial
organization shall be recognized as the sole financial organization in relation
to such self-directed investment services and the term financial organization
shall not be deemed to include any entity sponsoring mutual funds provided
through such window.
(5) Guaranteed investment contract means a
contract with an insurance company or a bank that guarantees a specific rate of
return on the invested capital over the life of the contract and for the return
of such invested capital and interest to the plan on one or more dates
specified in the contract.
(6)
Independent consultant means a person duly authorized to do business in the
State of New York and who may be or is retained by the board or a deferred
compensation committee in accordance with the provisions of this Subtitle to
provide advice to the board or deferred compensation committee on investment
matters and who is registered as an investment adviser under the Investment
Advisors Act of 1940, as such provisions may be amended from time to
time.
(7) Local employer means a
public employer as defined in section
5 of the State Finance Law but excluding the
State of New York.
(8) Model plan
means the form of plan authorized by the board for adoption in accordance with
the provisions of this Subtitle by any local employer not participating in the
State plan and not sponsoring a plan described in section
9001.2(a)(3)
of this Subtitle, as such may be amended by the board from time to time. A copy
of the model plan may be obtained from the board.
(9) Participation agreement means an
agreement executed by an employee and the employer as described in the State
plan and the model plan or such other similar agreement executed in connection
with another plan.
(10) Person
means any individual, corporation, partnership, association, trust, joint stock
company, unincorporated organization or other similar entity.
(11) President means the president of the New
York State Civil Service Commission.
(12) Plan means any of the State plan, the
model plan and any other deferred compensation plan described in section
9001.2(a)(3)
of this Subtitle.
(13) Stable
income fund means, with respect to a plan, an investment option available to
participants in the plan that seeks to provide book-value accounting, stability
of principal and a low volatility total return.
(14) State plan means the Deferred
Compensation Plan for Employees of the State of New York and other
participating public jurisdictions established by the board, as such may be
amended by the board from time to time. A copy of the State plan may be
obtained from the board.
(15) Trust
means a trust to hold the assets of a plan for the exclusive benefit of
participants and their beneficiaries that meets the requirements of this
Subtitle, including without limitation the requirements of section
9002.1(b)
of this Subtitle, and section 457(g) of the Internal Revenue Code.
(16) Trust agreement means an agreement
evidencing a trust meeting the requirements of this Subtitle.
(17) Trustee means each person designated by
the board or deferred compensation committee, as applicable, in accordance with
the provisions of this Subtitle to hold in a trust any amounts under a
plan.
(18) Wrap contract means a
contract with a financial organization that provides for book-value accounting
with respect to a designated portion of the assets of a stable income fund but
that does not give the financial organization issuing the contract day-to-day
investment authority with respect to such assets. Such term includes
participating, non-participating and hybrid wrap contracts.