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97b-49
97B.49 DORMANT ACCOUNTS.
1. In the event that all, or any portion, of a retirement
allowance, death benefit, or other distribution payable to a member
or a member's designated beneficiary, heirs at law, or estate,
remains unpaid solely by reason of the inability of the system to
locate the appropriate payee, the amount payable shall not be
forfeited but shall be treated as a dormant account after the time
for making a claim has run.
2. A dormant account shall revert to the retirement fund created
in section 97B.7. A dormant account shall be non-interest-bearing,
and except for keeping a record of such account, the system shall not
maintain the account. A member who has a dormant account and returns
to covered employment shall have their dormant account reactivated as
of the quarter they return to covered employment. If the appropriate
payee contacts the system after the amount payable is treated as a
dormant account, the appropriate payee may claim such amounts by
filing a withdrawal application provided by the system. The system
shall have rulemaking authority to adopt rules necessary to implement
this section in a just and equitable manner.
3. The system shall ensure that the payment of a dormant account
as provided in this section meets the requirements of section
401(a)(9) of the federal Internal Revenue Code. Section History: Recent Form
2004 Acts, ch 1103, §30
