N.Y. Comp. Codes R. & Regs. tit. 9 § 9000.2

Current through Register Vol. 46, No. 50, December 11, 2024

Section 9000.2 - Definitions

(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.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 9000.2