§ 32.027 PLAN ADMINISTRATOR NOT RESPONSIBLE.

   (A)   Except as provided by § 32.028, the Plan Administrator must accept every proper investment direction and the Plan Administrator is obligated to comply with such proper investment direction. Without limiting the comprehensive effect of the above, the Plan Administrator is not under any duty to question any investment direction of a participant or beneficiary (or his, her or its agent), or to make any investment recommendations, or to provide to any person any investment advice or investment education, or to provide any investment information.

   (B)   If the employer or the Plan Administrator or the plan-trustee provides any investment education or investment information or investment advice of any kind, the employer and the Plan Administrator and the plan-trustee shall not be liable for any loss or liability arising out of such investment education or investment information or investment advice.

(Ord. NIRC 97-1, passed 1-15-1997)

§ 32.028 INVESTMENT DIRECTION REFUSED.

   The Plan Administrator or any person may decline to implement any investment direction if:

   (A)   The person receiving the investment direction knows (or a court order has determined) that the investor is legally incompetent;

   (B)   The Plan Administrator determines (under a reasonable written procedure uniformly applied to all investors) that the investment direction could result in a loss in excess of the applicable account (or sub-account) balance;

   (C)   The investment direction would be contrary to this plan;

   (D)   The investment direction would be contrary to a court order, even if the court order is not a plan-approved domestic relations order;

   (E)   The investment direction would jeopardize the plan’s (or the plan-trust’s) tax qualified status;

   (F)   The investment direction would generate income that would be taxable to the plan-trust;

   (G)   The investment direction would result in a prohibited transaction within the meaning of I.R.C. § 503; or

   (H)   The investment direction would cause the plan-trustee or any person to maintain the indicia of ownership of an investment or any assets of the plan outside the jurisdiction of the district courts of the United States or outside the jurisdiction specified by the plan-trust agreement.

(Ord. NIRC 97-1, passed 1-15-1997)

§ 32.029 FAILURE TO GIVE INVESTMENT DIRECTION.

   If, at any time, a participant or beneficiary fails to exercise his, her or its duty of investment direction (or an investment direction is refused), the Plan Administrator shall, to the extent of the failure of proper investment direction, cause the account or applicable sub-account(s) or segregated account to be invested as specified under a written procedure adopted by the Plan Administrator.

(Ord. NIRC 97-1, passed 1-15-1997)

§ 32.030 INVESTMENT DIRECTION DURING DOMESTIC RELATIONS OR BANKRUPTCY MATTER.

   (A)   Notwithstanding any notice to the Plan Administrator (or to any other person dealing with or performing services regarding the plan) that a domestic relations order or bankruptcy demand or court order or similar court order relating to the plan is or may be presented, the participant shall continue to exercise his or her duty of investment direction as required by the plan unless a final court order expressly provides otherwise and the Plan Administrator does not challenge, contest or appeal the court order.

   (B)   If such a court order provides for an alternate payee (or any person other than the participant) to have a right of investment direction under the plan, the Plan Administrator shall give effect to that court order to the extent permitted by the plan, and the Plan Administrator may give effect to that court order even contrary to the plan if the Plan Administrator does not challenge, contest or appeal the court order.

(Ord. NIRC 97-1, passed 1-15-1997)

§ 32.031 EXPENSES OF INVESTMENT DIRECTION.

   (A)   The Plan Administrator may charge the participant’s or beneficiary’s account for the expenses of executing his, her or its investment direction. If such expenses are so charged, the Plan Administrator shall maintain reasonable procedures to inform investors that such charges are made and to inform each investor as to the actual expenses charged to the participant’s or beneficiary’s individual account.

   (B)   If the execution of an investment direction would incur an unusual charge or any tax under the investment or otherwise under applicable law, any person receiving the investment direction may (but is not required to) require the investor to acknowledge in writing that he, she or it understands each charge or tax and how the charge or tax is calculated or determined.

(Ord. NIRC 97-1, passed 1-15-1997)

§ 32.032 EMPLOYER RELIEVE FROM FIDUCIARY RESPONSIBILITY.

   To the extent of the participant’s or beneficiary’s investment direction, the employer and the Plan Administrator and the plan-trustee and the agent and each issuer and each person performing services regarding the plan is relieved of any fiduciary responsibility and every kind of liability, and is not responsible for or liable for any damage or loss or expense or other claim which may arise from that participant’s or beneficiary’s investment direction or exercise of control (or from that participant’s or beneficiary’s failure to exercise his, her or its duty of investment direction and control).

(Ord. NIRC 97-1, passed 1-15-1997)

§ 32.033 EMPLOYER NOT RESPONSIBLE FOR PLAN INVESTMENT SELECTION.

   Except as otherwise required by the enabling statute, none of the employer and each employer and the Plan Administrator has or had any responsibility and shall not have any liability relating to the selection of plan investments. Without limiting the comprehensive effect of the above, the employer is not liable for losses or damages arising out of: any action in approving or purchasing any plan investment(s), any bankruptcy or insolvency or impairment or liquidation or rehabilitation or supervision of any issuer(s) and any other impairment of any issuer’s ability to meet its obligations or the performance of any plan investments.

(Ord. NIRC 97-1, passed 1-15-1997)