262.21 - ANNUITY CONTRACTS.
262.21 ANNUITY CONTRACTS.
At the request of an employee through contractual agreement the
board may arrange for the purchase of group or individual annuity
contracts for any of its employees, which annuity contracts are
issued by a nonprofit corporation issuing retirement annuities
exclusively for educational institutions and their employees or are
purchased from any company the employee chooses that is authorized to
do business in this state or through an Iowa-licensed salesperson
that the employee selects, on a group or individual basis, for
retirement or other purposes, and may make payroll deductions in
accordance with the arrangements for the purpose of paying the entire
premium due and to become due under the contract. The deductions
shall be made in the manner which will qualify the annuity premiums
for the benefits under section 403(b) of the Internal Revenue Code,
as defined in section 422.3. The employee's rights under the annuity
contract are nonforfeitable except for the failure to pay premiums.
As used in this section, unless the context otherwise requires,
"annuity contract" includes any custodial account which meets the
requirements of section 403(b)(7) of the Internal Revenue Code, as
defined in section 422.3.
Whenever an existing tax-sheltered annuity contract is to be
replaced by a new contract the agent or representative of the company
shall submit a letter of intent to the company being replaced, to the
commissioner of insurance, and to the agent's or representative's own
company at least thirty days prior to any action. Each required
letter of intent shall be sent by registered mail. This letter of
intent shall contain the policy number and description of the
contract being replaced and a description of the replacement
contract. Section History: Early Form
[C75, 77, 79, 81, § 262.21] Section History: Recent Form
86 Acts, ch 1213, § 4; 91 Acts, ch 40, §2; 94 Acts, ch 1183, §62