California Education Code § 44041.5

(a) For purposes of this section, the following definitions shall apply: (1) “Annuity contract” means an annuity contract described in Section 403(b) of the Internal Revenue Code that is available to employees as described in Section 770.3 of the Insurance Code. (2) “Custodial account” means a custodial account described in Section 403(b)(7) of the Internal Revenue Code. (3) “Deferred compensation plan” means a plan described in Section 457 of the Internal Revenue Code. (4) “Employer” means a school district or county office of education. (5) “Third-party administrator” means a person or entity that provides administrative or compliance services to an employer as described in subdivision (b). (b) An employer may enter into a written contract with a third-party administrator for services regarding an annuity contract and custodial account or a deferred compensation plan provided by the employer. That contract may include any of the following: (1) Services to ensure compliance with either Section 403(b) of the Internal Revenue Code regarding the annuity contract and custodial account or Section 457 of the Internal Revenue Code regarding a deferred compensation plan, including, but not limited to, any of the following: (A) Administer and maintain written plan documents governing the employer’s plan. (B) Review and authorize hardship withdrawal requests under Section 403(b) of the Internal Revenue Code, transfer requests, loan requests, unforeseeable emergency withdrawals under Section 457 of the Internal Revenue Code and other disbursements permitted under either Section 403(b) or 457 of the Internal Revenue Code. (C) Review and determine domestic relations orders as qualified domestic relations orders as described in Section 414(p) of the Internal Revenue Code. (D) Provide notice to eligible employees that is consistent with Title 26 of the Code of Federal Regulations that those employees may participate in an annuity contract and custodial account. (E) Administer and maintain specimen salary reduction agreements for the employer and employees of that employer to initiate payroll deferrals. (F) Monitor, from information provided either directly from the employee, as part of the common remitting services provided pursuant to paragraph (2), through information provided by the employer, or through information provided by vendors authorized by the employer to provide investment products, the maximum contributions allowed by employees participating in either the annuity contract and custodial account as described in Sections 402(g), 414(v), and 415 of the Internal Revenue Code or the deferred compensation plan as described in Section 414(v) or 457 of the Internal Revenue Code. (G) Calculate and maintain vesting information for contributions made by the employer to the annuity contract and custodial account or deferred compensation plan. (H) Identify and notify employees that are required to take a minimum distribution of the funds in that employee’s annuity contract and custodial account or deferred compensation plan as described in Section 401(a)(9) of the Internal Revenue Code. (I) Coordinate responses to the Internal Revenue Service if there is an Internal Revenue Service audit of the annuity contract and custodial account or deferred compensation plan. (2) Services to administer the annuity contract and custodial account or a deferred compensation plan that includes, but is not limited to, all of the following: (A) Common remitting services. (B) General educational information to employees about the annuity contract and custodial account or the deferred compensation plan that includes, but is not limited to, the enrollment process, program eligibility, and investment options. (C) Internal reports for the employer to ensure compliance with either Section 403(b) or 457 of the Internal Revenue Code and compliance with Title 26 of the Code of Federal Regulations. (D) Consulting services related to the design, 

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