(a) Each deferred compensation plan established pursuant to this article shall conform with the requirements promulgated under the federal Small Business Job Protection Act of 1996 (Public Law 103-188). Those requirements include, but are not limited to, the holding of assets in a plan that complies with Sections 401(a), 401(k), and 457 of the federal Internal Revenue Code in trust for the exclusive benefit of employees.

(b) Notwithstanding any other provision of law, participants choosing individually directed investments shall relieve the trustee and local agency of responsibility under the terms of the plan and trust. That relief shall be conditioned upon the local agency compliance with communication and education requirements similar to those prescribed in subdivision (c) of Section 1104 of Title 29 of the United States Code for private sector employers.

Terms Used In California Government Code 53213.5

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • local agency: means a county, city, public district, joint powers agency, or any public or municipal corporation. See California Government Code 53212
  • Subdivision: means a subdivision of the section in which the term occurs unless some other section is expressly mentioned. See California Government Code 10
  • Trustee: A person or institution holding and administering property in trust.

(Added by Stats. 1998, Ch. 996, Sec. 6. Effective January 1, 1999.)

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