3877438-774. Excess benefit arrangement
A. A separate unfunded governmental excess benefit arrangement is established outside of and apart from the trust fund established by section 38 712 to pay members benefits that are otherwise payable by ASRS and that exceed the limitations on benefits imposed by section 415 of the internal revenue code. The board shall administer this excess benefit arrangement as a qualified governmental excess benefit arrangement pursuant to section 415(m) of the internal revenue code.
B. The board may adopt rules to implement this section subject to the following:
1. Benefits under this section are subject to section 38 773 and section 38 791, subsections D and F and are exempt from execution to the same extent as provided in section 38 792.
2. Contributions to this arrangement are not held in trust and shall not be commingled with other monies of ASRS.
C. A member is entitled to a monthly benefit under this section in an amount equal to the amount that the member's benefit that is payable by ASRS has been reduced by the limitation on benefits imposed by section 38 769 and section 415 of the internal revenue code. The benefit that is payable by this arrangement shall be paid at such time or times and in such form as the benefit under ASRS would be paid.
D. The benefit that is payable under this section shall be paid with employer contributions that would otherwise be made to ASRS under section 38 737. In lieu of the employer contributions being paid to the trust fund established by section 38 712, an amount determined by ASRS as necessary to pay benefits under this section shall be paid on a monthly basis to a separate account established by the board for this arrangement and may include amounts needed to pay reasonable and necessary expenses of this arrangement. The director may invest the monies in this account in suitable short term investments between receipt of the monies and disbursement of the monies. The amount shall be paid to the account at least fifteen days before a disbursement is to be made under this section.
E. A member shall not directly or indirectly elect to defer compensation to purchase benefits provided under this section.
F. This section shall not be construed as requiring an employer or ASRS to purchase any investment or any contract to secure any obligations under this section. If an employer or ASRS purchases an investment or contract that the employer or ASRS earmarks to pay benefits under this section, title to and beneficial ownership of the investment or contract remain at all times in the employer or ASRS, and the member and the member's beneficiaries, if any, do not have any proprietary interest in any specific assets of the employer or ASRS. Any rights of the member and the member's beneficiaries, if any, to payment of any amounts under this section shall be those of general unsecured creditors of the employer or ASRS. This section and any action taken pursuant to this section by the employer or ASRS do not create and shall not be construed to create an irrevocable trust of any kind.38774