California Government Code

§ 19993.05

GOV § 19993.05 Effective Jan 1, 2019Div. 5 · Title 2 · Part 2.6 · Ch. 4

Statute text

(a)This section shall be known and may be cited as the Freedom of Financial Choice Act.

(b)The department shall provide officers and employees participating in a tax-advantaged retirement savings plan established by the department under this chapter or Chapter 9 (commencing with Section 19999.5) with a broad range of investment options. The department shall have the exclusive authority to determine the investment products provided in the core portfolio under tax-advantaged retirement savings plans and shall make these selections in a prudent manner for the exclusive benefit of plan participants, retirees, and their beneficiaries. The department shall ensure that the cost of these investment options are reasonable under the prevailing facts and circumstances and that any investment alternatives determined appropriate for the core portfolio. The investment options available under the tax-advantaged retirement savings plans shall also be limited to the extent necessary to ensure the continued qualification of the plans under the Internal Revenue Code, applicable to state law, and the cost-efficient and timely administration of the plans. In addition to the core options, the department shall offer a brokerage option.

(c)No fiduciary of a plan established by the department under this chapter or Chapter 9 (commencing with Section 19999.5) shall be liable for any loss that results from any individual investment choice made by a participant of a plan, except that this subdivision shall not extend to any malfeasance or misfeasance by any fiduciary of a plan established by the department under this chapter or Chapter 9 (commencing with Section 19999.5).

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Legislative history

Amended by Stats. 2018, Ch. 903, Sec. 5. (SB 1504) Effective January 1, 2019.