Current through Register Vol. 35, No. 11, June 11, 2024
Section 12.17.5.8 - TRUSTEES AND CUSTODIANS OF PENSION PLANSA credit union may act as trustee or custodian of individual retirement plans of its members established pursuant to the Employee Retirement Income Security Act of 1974 or self-employed retirement plans established pursuant to the Self-employed Individuals Retirement Act of 1962, provided that the following conditions are met:
A. all contributions of the funds are initially made to a share, share certificate or deposit account in the credit union;B. any subsequent transfer of funds to other assets is solely at the direction of the member, and the credit union exercises no investment discretion and provides no investment advice with respect to the plan assets (i.e., the credit union performs only custodial duties);C. the member is clearly notified of the fact that share and deposit insurance coverage by the national credit union administration is limited to funds held in share, share certificate or deposit accounts of the credit union; andD. the credit union complies with all applicable provisions of the Federal Credit Union Act, the national credit union administration rules and regulations as applied by the director of the financial institutions division, and applicable laws and regulations as may be promulgated by the secretary of labor, the secretary of the treasury or any other authority exercising jurisdiction over such trust or custodial accounts.10/19/90; 9/30/97; Recompiled 10/15/01