HF 2945

as introduced - 88th Legislature (2013 - 2014) Posted on 03/27/2014 03:49pm

A bill for an act
relating to state government; modifying investment reporting; amending Minnesota Statutes 2012, section 471.6175, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 471.6175, subdivision 4, is amended to read:

Subd. 4.

Account maintenance.

(a) A political subdivision or other public entity
may establish a trust account to be held under the supervision of the trust administrator for
the purposes of this section. A trust administrator shall establish a separate account for
each participating political subdivision or public entity. The trust administrator may charge
participating political subdivisions and public entities fees for reasonable administrative
costs. The amount of any fees charged by the Public Employees Retirement Association is
appropriated to the association from the account. A trust administrator may establish other
reasonable terms and conditions for creation and maintenance of these accounts.

(b) The trust administrator must report to the political subdivision or other public
entity on the investment returns of invested trust assets and on all investment fees or costs
incurred by the trust. deleted text begin The annual rates of return, along with investment and administrative
fees and costs for the trust, must be disclosed in the political subdivision's or public entity's
annual financial audit in a manner prescribed by the state auditor.
deleted text end

(c) deleted text begin Effective for fiscal years beginning after December 31, 2013, the deleted text end new text begin Annually, no
later than October 25, each new text end trust administrator deleted text begin must deleted text end new text begin shall new text end report electronically to the
state auditor deleted text begin the portfolio and performance information specified in section 356.219,
subdivision 3, deleted text end new text begin based upon a fiscal year end of June 30. The report must contain, new text end in the
manner prescribed by the state auditor deleted text begin . deleted text end new text begin , the:
new text end

new text begin (1) market value;
new text end

new text begin (2) contributions and withdrawals made by the public entity;
new text end

new text begin (3) time-weighted annual rates of return net of all costs and fees; and
new text end

new text begin (4) all investment management and plan administrative fees and costs for the trust
for the year.
new text end

new text begin The trust administrator shall certify that the information provided in the report is
true and correct, and shall certify that the procedures used to compute rates of return are
consistent with the measurement and presentation standards set by the CFA Institute.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2014, with the initial
report due under Minnesota Statutes, section 471.6175, subdivision 4, paragraph (c), made
no later than October 25, 2015.
new text end