(1)(a) The board shall create and maintain adequate records to disclose the interest
of each member and beneficiary with assets in the money purchase component of
the plan. The records must be in the form of individual accounts, and credits and
charges must be made to such accounts in the manner prescribed by the board
through rulemaking.
(b)The board shall designate a record keeper responsible for the
administration of the individual accounts. The maintenance of individual accounts is
only for accounting purposes, and a segregation of the assets of the trust fund to
each account is not required.
(c)Distribution and withdrawals made from an account must be charged to
the accounts as of the date payment is made. Earnings or losses on the amount
allocated to the member's indivi
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(1) (a) The board shall create and maintain adequate records to disclose the interest
of each member and beneficiary with assets in the money purchase component of
the plan. The records must be in the form of individual accounts, and credits and
charges must be made to such accounts in the manner prescribed by the board
through rulemaking.
(b) The board shall designate a record keeper responsible for the
administration of the individual accounts. The maintenance of individual accounts is
only for accounting purposes, and a segregation of the assets of the trust fund to
each account is not required.
(c) Distribution and withdrawals made from an account must be charged to
the accounts as of the date payment is made. Earnings or losses on the amount
allocated to the member's individual account while invested as part of the members
self-directed investment fund must be allocated as determined by the record
keeper.
(2) (a) The board may create and offer to each member with an individual
account in the money purchase component various investment options, including at
least three alternatives that allow a member a broad range of investments,
diversification, and a meaningful choice between risk and return in the investment
of the member's account.
(b) (I) One hundred percent of each individual account may be invested as
directed by the member in any one or a combination of the investment options. If a
member or designated beneficiary does not have a valid investment election on file
for any portion of the amount in that member's accounts, that portion of the
member's accounts shall be invested in the investment option selected by the
board as the default option. In such event, the member or designated beneficiary is
deemed to have directed that investment option for investment of that portion of
the member's accounts.
(II) Upon the death of the member, the designated beneficiary may elect to
allocate the investment of the member's individual account as provided for in this
section. If no notice of reallocation is received from the designated beneficiary, the
member's individual account remains invested as previously allocated during the
member's lifetime.
(III) The board may establish one or more default options based upon various
factors, including but not limited to market risk, stability, and rate of return. If the
board has properly exercised its fiduciary duty in selecting a default option, it has
no liability for any loss sustained by a member or designated beneficiary whose
accounts in whole or in part are invested in the default option.
(c) Members may redirect the investment of their account at any time and
may reallocate money in existing funds as allowed by the association. The board
may also bring a suit or take such other action as it deems appropriate if questions
involving investment directions arise.
(3) The accounts of members, designated beneficiaries, and alternate
payees shall be adjusted in accordance with the following:
(a) The balance of each account must be adjusted daily to reflect any
distribution and all interest, dividends, account charges, and changes of market
value resulting from the investment of the member's individual account.
(b) Contributions must be allocated to the individual account of each eligible
member not less frequently than monthly, according to the amount that is actually
contributed on behalf of each member. In all cases, deposits of contributions shall
be treated as actually made only as of the date the contributions are accepted as in
good order by the record keeper.
(c) The expenses of the money purchase component of the plan must first be
paid from forfeitures, penalties received, settlement proceeds, and other sources of
revenue received, and then must be allocated to and deducted from the members'
accounts. Notwithstanding the foregoing, any revenue credits derived from the
investments offered by the money purchase component may instead be distributed
to participants. Expenses that are incurred as a direct result of the investments
held in the money purchase component account must be deducted from the
interest, dividends, and net income of the appropriate investment. General
expenses must be deducted from the accounts of each member according to the
member's time-weighted pro-rata share of the money purchase component
account. The board may also assess a record keeping fee and an administrative fee
for costs associated with the administration of the money purchase component.