HF 2951

as introduced - 86th Legislature (2009 - 2010) Posted on 02/15/2010 09:40am

A bill for an act
relating to retirement; regulating certain teachers retirement funds; adjusting
contribution rates; adjusting state aid amounts; adjusting annuity formulas;
amending fiduciary responsibilities; regulating investments; appropriating
money; amending Minnesota Statutes 2008, sections 354A.12, subdivisions 1,
3a, 3c; 354A.31, subdivision 4; 356A.02, subdivision 1; 356A.06, subdivisions
1, 2, 3, 7, 7a, 8b; Minnesota Statutes 2009 Supplement, section 354A.12,
subdivision 2a; repealing Minnesota Statutes 2008, sections 354A.08; 356A.06,
subdivisions 4, 5.

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

Section 1.

Minnesota Statutes 2008, section 354A.12, subdivision 1, is amended to
read:

Subdivision 1.

Employee contributions.

The contribution required to be paid by
each member of a teachers retirement fund association shall not be less than the percentage
of total salary specified below for the applicable association and program:

	Association and Program	Percentage of Total Salary
Duluth Teachers Retirement Fund Association
	old law and new law
	coordinated programs	5.5 percent
St. Paul Teachers Retirement Fund Association
	basic program	8 percent
	coordinated program new text begin before July 1, 2011 new text end	5.5 percent
	new text begin coordinated program after June 30, 2011 new text end	new text begin ... percent new text end

Contributions shall be made by deduction from salary and must be remitted directly
to the respective teachers retirement fund association at least once each month.

Sec. 2.

Minnesota Statutes 2009 Supplement, section 354A.12, subdivision 2a, is
amended to read:

Subd. 2a.

Employer regular and additional contributions.

(a) The employing
units shall make the following employer contributions to teachers retirement fund
associations:

(1) for any coordinated member of one of the following teachers retirement fund
associations in a city of the first class, the employing unit shall make a regular employer
contribution to the respective retirement fund association in an amount equal to the
designated percentage of the salary of the coordinated member as provided below:

	Duluth Teachers Retirement Fund Association		4.50 percent
	St. Paul Teachers Retirement Fund Association new text begin before July 1, 2011 new text end		4.50 percent
	new text begin St. Paul Teachers Retirement Fund Association after June 30, 2011 new text end		new text begin ... percent new text end

(2) for any basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make a regular employer contribution to the respective retirement
fund in an amount equal to 8.00 percent of the salary of the basic member;

(3) for a basic member of the St. Paul Teachers Retirement Fund Association, the
employing unit shall make an additional employer contribution to the respective fund in
an amount equal to 3.64 percent of the salary of the basic member;

(4) for a coordinated member of a teachers retirement fund association in a city
of the first class, the employing unit shall make an additional employer contribution to
the respective fund in an amount equal to the applicable percentage of the coordinated
member's salary, as provided below:

	Duluth Teachers Retirement Fund Association		1.29 percent
	St. Paul Teachers Retirement Fund Association		3.84 percent

(b) The regular and additional employer contributions must be remitted directly to
the respective teachers retirement fund association at least once each month. Delinquent
amounts are payable with interest under the procedure in subdivision 1a.

(c) Payments of regular and additional employer contributions for school district
or technical college employees who are paid from normal operating funds must be made
from the appropriate fund of the district or technical college.

Sec. 3.

Minnesota Statutes 2008, section 354A.12, subdivision 3a, is amended to read:

Subd. 3a.

Special direct state aid to first class city teachers retirement fund
associations.

(a) The state shall pay $346,000 to the Duluth Teachers Retirement Fund
Association, deleted text begin $2,827,000 deleted text end new text begin $8,000,000 new text end to the St. Paul Teachers Retirement Fund Association
and, for the former Minneapolis Teachers Retirement Fund Association, $12,954,000
to the Teachers Retirement Association.

(b) The direct state aids under this subdivision are payable October 1 annually. The
commissioner of management and budget shall pay the direct state aid. The amount
required under this subdivision is appropriated annually from the general fund to the
commissioner of management and budget.

Sec. 4.

Minnesota Statutes 2008, section 354A.12, subdivision 3c, is amended to read:

Subd. 3c.

Termination of supplemental contributions and direct matching
and state aid.

(a) The supplemental contributions payable to the Minneapolis Teachers
Retirement Fund Association by Special School District No. 1 and the city of Minneapolis
under section 423A.02, subdivision 3, must be paid to the Teachers Retirement
Association and must continue until the current assets of the fund equal or exceed the
actuarial accrued liability of the fund as determined in the most recent actuarial report
for the fund by the actuary retained under section 356.214, or 2037, whichever occurs
earlier. The supplemental contributions payable to the St. Paul Teachers Retirement Fund
Association by Independent School District No. 625 under section 423A.02, subdivision
3, or the direct state aid under subdivision 3a to the St. Paul Teachers Retirement Fund
Association deleted text begin terminate at the end of the fiscal year in which the accrued liability funding
ratio for that fund, as determined in the most recent actuarial report for that fund by the
actuary retained under section 356.214, equals or exceeds the accrued liability funding
ratio for the Teachers Retirement Association, as determined in the most recent actuarial
report for the Teachers Retirement Association by the actuary retained under section
356.214. deleted text end new text begin must continue until the current assets of the fund equal or exceed the actuarial
accrued liability of the fund as determined in the most recent actuarial report for the fund
by the actuary retained under section 356.214 or until 2037, whichever occurs earlier. new text end

deleted text begin (b) If the St. Paul Teachers Retirement Fund Association is funded at an amount
equal to or greater than the funding ratio applicable to the Teachers Retirement
Association, then any future state aid under subdivision 3a is payable to the Teachers
Retirement Association.
deleted text end

Sec. 5.

Minnesota Statutes 2008, section 354A.31, subdivision 4, is amended to read:

Subd. 4.

Computation of normal coordinated retirement annuity; St. Paul
fund.

(a) This subdivision applies to the coordinated program of the St. Paul Teachers
Retirement Fund Association.

(b) The normal coordinated retirement annuity is an amount equal to a retiring
coordinated member's average salary under section 354A.011, subdivision 7a, multiplied
by the retirement annuity formula percentage.

(c) This paragraph, in conjunction with subdivision 6, applies to a person who first
became a member or a member in a pension fund listed in section 356.30, subdivision 3,
before July 1, 1989, unless paragraph (d), in conjunction with subdivision 7, produces a
higher annuity amount, in which case paragraph (d) will apply. deleted text begin The retirement annuity
formula percentage for purposes of this paragraph is the percent specified in section
356.315, subdivision 1, per year for each year of coordinated service for the first ten years
and the percent specified in section 356.315, subdivision 2, for each year of coordinated
service thereafter. deleted text end new text begin The average salary multiplied by the following retirement annuity
formula percentage per year of allowable service determines the amount of the annuity to
which the member is entitled for service rendered before July 1, 2011:
new text end

	new text begin Each year of service during first ten years new text end	new text begin the percentage specified in section 356.315, subdivision 1, per year new text end
	new text begin Each year of service after ten years new text end	new text begin the percentage specified in section 356.315, subdivision 2, per year new text end

new text begin For service rendered on or after July 1, 2011, the average salary multiplied by the
following retirement annuity formula percentage per year of allowable service determines
the amount of the annuity to which the member is entitled:
new text end

	new text begin Each year of service during first ten years new text end	new text begin the percentage specified in section 356.315, subdivision 1a, per year new text end
	new text begin Each year of service after ten years new text end	new text begin the percentage specified in section 356.315, subdivision 2b, per year new text end

(d) This paragraph applies to a person who has become at least 55 years old and who
first becomes a member after June 30, 1989, and to any other member who has become
at least 55 years old and whose annuity amount, when calculated under this paragraph
and in conjunction with subdivision 7 is higher than it is when calculated under paragraph
(c), in conjunction with the provisions of subdivision 6. The retirement annuity formula
percentage for purposes of this paragraph is the percent specified in section 356.315,
subdivision 2, for each year of coordinated service new text begin before July 1, 2011, and the percentage
specified in section 356.315, subdivision 2b, for each year of service rendered after
June 30, 2011. If the member has 30 or more years of service credit, the minimum age
requirement of this paragraph does not apply new text end .

Sec. 6.

Minnesota Statutes 2008, section 356A.02, subdivision 1, is amended to read:

Subdivision 1.

Fiduciary status.

For purposes of this chapter, the following persons
are fiduciaries:

(1) any member of the governing board of a covered pension plan;

(2) the chief administrative officer of a covered pension plan or of the State Board
of Investment;

(3) any member of the State Board of Investment; deleted text begin and
deleted text end

(4) any member of the Investment Advisory Council deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) any person or entity under contract with the pension plan that exercises control
over the safekeeping or the investment of pension plan assets.
new text end

Sec. 7.

Minnesota Statutes 2008, section 356A.06, subdivision 1, is amended to read:

Subdivision 1.

Authorized holder of assets; title to assets.

(a) Assets of a covered
pension plan may be held only by:

(1) the plan treasurer;

(2) the State Board of Investment;

(3) deleted text begin the deleted text end new text begin a new text end depository new text begin or custodial new text end agent of the plan new text begin or an investment manager under
contract with the pension plan new text end ;

(4) a security broker or the broker's agent with, in either case, insurance equal to or
greater than the plan assets held from the Securities Investor Protection Corporation or
from excess insurance coverage; or

(5) the depository agent of the State Board of Investment.

(b) Legal title to plan assets must be vested in the plan, the State Board of
Investment, the governmental entity that sponsors the plan, the nominee of the plan, or
the depository agent. The holder of legal title shall function as a trustee for a person or
entity with a beneficial interest in the assets of the plan.

Sec. 8.

Minnesota Statutes 2008, section 356A.06, subdivision 2, is amended to read:

Subd. 2.

Diversification.

The investment of plan assets must be diversified to
minimize the risk of substantial investment losses new text begin and to reduce the volatility of overall
fund asset values, new text end unless the circumstances at the time an investment is made clearly
indicate that diversification would not be prudent.

Sec. 9.

Minnesota Statutes 2008, section 356A.06, subdivision 3, is amended to read:

Subd. 3.

Absence of personal profit new text begin or unrelated purpose new text end .

No fiduciary may
personally profit, directly or indirectly, as a result of the investment or management of
plan assets. new text begin The assets must not be deployed, allocated, or expended with the intent to
support any social, political, partisan, economic development, or other objective unrelated
to the primary purposes for which the fund was created. new text end This subdivision, however, does
not preclude the receipt by a fiduciary of reasonable compensation, including membership
in or the receipt of benefits from a pension plan, for the fiduciary's position with respect to
the plan.

Sec. 10.

Minnesota Statutes 2008, section 356A.06, subdivision 7, is amended to read:

Subd. 7.

deleted text begin Expanded list of authorized deleted text end new text begin Large plan new text end investment deleted text begin securities deleted text end new text begin authority new text end .

(a) Authority. Except to the extent otherwise authorized by law, a covered pension plan
not described by subdivision 6, paragraph (a), deleted text begin shall deleted text end new text begin must formulate investment policies
and new text end invest its assets deleted text begin only deleted text end in accordance with this subdivision.

deleted text begin (b) Securities generally. The covered pension plan has the authority to purchase,
sell, lend, or exchange the securities specified in paragraphs (c) to (i), including puts and
call options and future contracts traded on a contract market regulated by a governmental
agency or by a financial institution regulated by a governmental agency. These securities
may be owned as units in commingled trusts that own the securities described in
paragraphs (c) to (i), including real estate investment trusts and insurance company
commingled accounts, including separate accounts.
deleted text end

deleted text begin (c) Government obligations. The covered pension plan may invest funds in
governmental bonds, notes, bills, mortgages, and other evidences of indebtedness if the
issue is backed by the full faith and credit of the issuer or the issue is rated among the top
four quality rating categories by a nationally recognized rating agency. The obligations in
which funds may be invested under this paragraph include guaranteed or insured issues
of (1) the United States, its agencies, its instrumentalities, or organizations created and
regulated by an act of Congress; (2) Canada and its provinces, provided the principal and
interest is payable in United States dollars; (3) the states and their municipalities, political
subdivisions, agencies, or instrumentalities; (4) the International Bank for Reconstruction
and Development, the Inter-American Development Bank, the Asian Development Bank,
the African Development Bank, or any other United States government sponsored
organization of which the United States is a member, provided the principal and interest is
payable in United States dollars.
deleted text end

deleted text begin (d) Corporate obligations. The covered pension plan may invest funds in bonds,
notes, debentures, transportation equipment obligations, or any other longer term
evidences of indebtedness issued or guaranteed by a corporation organized under the laws
of the United States or any state thereof, or the Dominion of Canada or any province
thereof if they conform to the following provisions:
deleted text end

deleted text begin (1) the principal and interest of obligations of corporations incorporated or organized
under the laws of the Dominion of Canada or any province thereof must be payable in
United States dollars; and
deleted text end

deleted text begin (2) obligations must be rated among the top four quality categories by a nationally
recognized rating agency.
deleted text end

deleted text begin (e) Other obligations. (1) The covered pension plan may invest funds in
bankers acceptances, certificates of deposit, deposit notes, commercial paper, mortgage
participation certificates and pools, asset backed securities, repurchase agreements and
reverse repurchase agreements, guaranteed investment contracts, savings accounts, and
guaranty fund certificates, surplus notes, or debentures of domestic mutual insurance
companies if they conform to the following provisions:
deleted text end

deleted text begin (i) bankers acceptances and deposit notes of United States banks are limited to those
issued by banks rated in the highest four quality categories by a nationally recognized
rating agency;
deleted text end

deleted text begin (ii) certificates of deposit are limited to those issued by (A) United States banks and
savings institutions that are rated in the highest four quality categories by a nationally
recognized rating agency or whose certificates of deposit are fully insured by federal
agencies; or (B) credit unions in amounts up to the limit of insurance coverage provided
by the National Credit Union Administration;
deleted text end

deleted text begin (iii) commercial paper is limited to those issued by United States corporations or
their Canadian subsidiaries and rated in the highest two quality categories by a nationally
recognized rating agency;
deleted text end

deleted text begin (iv) mortgage participation or pass through certificates evidencing interests in pools
of first mortgages or trust deeds on improved real estate located in the United States where
the loan to value ratio for each loan as calculated in accordance with section 61A.28,
subdivision 3, does not exceed 80 percent for fully amortizable residential properties and
in all other respects meets the requirements of section 61A.28, subdivision 3;
deleted text end

deleted text begin (v) collateral for repurchase agreements and reverse repurchase agreements is
limited to letters of credit and securities authorized in this section;
deleted text end

deleted text begin (vi) guaranteed investment contracts are limited to those issued by insurance
companies or banks rated in the top four quality categories by a nationally recognized
rating agency or to alternative guaranteed investment contracts where the underlying
assets comply with the requirements of this subdivision;
deleted text end

deleted text begin (vii) savings accounts are limited to those fully insured by federal agencies; and
deleted text end

deleted text begin (viii) asset backed securities must be rated in the top four quality categories by a
nationally recognized rating agency.
deleted text end

deleted text begin (2) Sections 16A.58, 16C.03, subdivision 4, and 16C.05 do not apply to certificates
of deposit and collateralization agreements executed by the covered pension plan under
clause (1), item (ii).
deleted text end

deleted text begin (3) In addition to investments authorized by clause (1), item (iv), the covered
pension plan may purchase from the Minnesota Housing Finance Agency all or any part of
a pool of residential mortgages, not in default, that has previously been financed by the
issuance of bonds or notes of the agency. The covered pension plan may also enter into
a commitment with the agency, at the time of any issue of bonds or notes, to purchase
at a specified future date, not exceeding 12 years from the date of the issue, the amount
of mortgage loans then outstanding and not in default that have been made or purchased
from the proceeds of the bonds or notes. The covered pension plan may charge reasonable
fees for any such commitment and may agree to purchase the mortgage loans at a price
sufficient to produce a yield to the covered pension plan comparable, in its judgment,
to the yield available on similar mortgage loans at the date of the bonds or notes. The
covered pension plan may also enter into agreements with the agency for the investment
of any portion of the funds of the agency. The agreement must cover the period of the
investment, withdrawal privileges, and any guaranteed rate of return.
deleted text end

deleted text begin (f) Corporate stocks. The covered pension plan may invest funds in stocks or
convertible issues of any corporation organized under the laws of the United States or the
states thereof, any corporation organized under the laws of the Dominion of Canada or its
provinces, or any corporation listed on an exchange regulated by an agency of the United
States or of the Canadian national government, if they conform to the following provisions:
deleted text end

deleted text begin (1) the aggregate value of investments under this paragraph, plus paragraphs (g) and
(k), plus equity investments under paragraphs (h), (i), and (j), as adjusted for realized
gains and losses, must not exceed 85 percent of the market or book value, whichever is
less, of a fund; and
deleted text end

deleted text begin (2) investments must not exceed five percent of the total outstanding shares of
any one corporation.
deleted text end

deleted text begin (g) Developed market foreign stocks investments. In addition to investments
authorized under paragraph (f), the covered pension fund may invest in foreign stock sold
on an exchange in any developed market country that is included in the Europe, Australia,
and Far East Index.
deleted text end

deleted text begin (h) Commingled or mutual investments. The covered pension plan may invest
in index funds or mutual funds, including index mutual funds, through bank-sponsored
collective funds and shares of open-end investment companies registered under the
Federal Investment Company Act of 1940, to the extent that these funds comply with
paragraphs (c) to (j).
deleted text end

deleted text begin (i) Real estate investment trust; related investments. The covered pension plan
may invest in real estate investment trusts secured by mortgages or deeds of trust and
sold on an exchange, and insurance company commingled accounts, including separate
accounts, of a debt or equity nature.
deleted text end

deleted text begin (j) Exchange traded funds. The covered pension plan may invest funds in exchange
traded funds, subject to the maximums, the requirements, and the limitations set forth in
paragraphs (c) to (i), as applicable.
deleted text end

deleted text begin (k) Other investments. (1) In addition to the investments authorized in paragraphs
(b) to (j), and subject to the provisions in clause (2), the covered pension plan may invest
funds in:
deleted text end

deleted text begin (i) venture capital investment businesses through participation in limited partnerships
and corporations;
deleted text end

deleted text begin (ii) real estate ownership interests or loans secured by mortgages or deeds of trust
through investment in limited partnerships or bank sponsored collective funds;
deleted text end

deleted text begin (iii) regional and mutual funds through bank sponsored collective funds and
open-end investment companies registered under the Federal Investment Company Act of
1940 to the extent that a fund or a portion of a fund does not qualify under paragraph (h);
deleted text end

deleted text begin (iv) resource investments through limited partnerships, private placements, and
corporations; and
deleted text end

deleted text begin (v) international debt securities and emerging market equity securities.
deleted text end

deleted text begin (2) The investments authorized in clause (1) must conform to the following
provisions:
deleted text end

deleted text begin (i) the aggregate value of all investments made according to clause (1), including
allocated amounts of index and mutual funds, may not exceed 20 percent of the market
value of the fund for which the covered pension plan is investing;
deleted text end

deleted text begin (ii) there must be at least four unrelated owners of the investment other than the
covered pension plan for investments made under clause (1), item (i), (ii), (iii), or (iv);
deleted text end

deleted text begin (iii) covered pension plan participation in an investment vehicle is limited to 20
percent thereof for investments made under clause (1), item (i), (ii), (iii), or (iv); and
deleted text end

deleted text begin (iv) covered pension plan participation in a limited partnership does not include a
general partnership interest or other interest involving general liability. The covered
pension plan may not engage in any activity as a limited partner which creates general
liability.
deleted text end

new text begin (b) Standard of diligence and investment policy. Plan assets must be invested and
managed in a manner at all times consistent with the prudent person standard, defined
under section 356A.04, subdivision 2. The trustees for the plan must adopt and maintain
an investment policy, a copy of which must be provided annually to the Legislative
Commission on Pensions and Retirement and the state auditor. The policy must, at a
minimum, satisfy the objectives enumerated under paragraph (c).
new text end

new text begin (c) Investment policy components. The investment policy must include
information listed under clauses (1) to (12):
new text end

new text begin (1) the purposes and goals for investing assets and how those goals are to be reflected
in the criteria and strategies chosen to govern the allocation of assets, the investment
management process, how the overall portfolio, specific strategies, custodial, consulting,
and investment management relationships will be researched, evaluated, and administered;
new text end

new text begin (2) the roles of all parties with significant policy, discretionary, or ministerial
responsibility with respect to the investment-related activities of the fund including,
but not limited to, the board of trustees, the board's officers and committees; the chief
administrative officer of the fund; other fund administrative staff; investment consultants;
investment management firms under contract to the pension plan; custodial or depository
agents; brokers; and any other parties with policy, advisory, or administrative roles in the
investment of plan assets;
new text end

new text begin (3) the types of assets and investment management strategies that may and may not
be used in the implementation of the investment program and how diversification will be
applied to protect principle and reduce portfolio volatility;
new text end

new text begin (4) actuarial, absolute, and relative return targets at the total fund, asset class, and
investment account level against which performance will be measured on a time-weighted
rate of return basis and the periods over which performance will be monitored on an
ongoing basis;
new text end

new text begin (5) investment allocation targets or limits by active and index-matching portfolio
strategies, asset class, subasset class, capitalization ranges and style specialties, sector or
industry limits or ranges, individual issuer or investment vehicle participation limits,
country or regional allocations, and criteria for decisions regarding use of commingled,
separate accounts, or partnerships as participation vehicles;
new text end

new text begin (6) liquidity needs of the pension plan and how those needs will be met through the
management of cash and other readily liquidated assets of the plan;
new text end

new text begin (7) the process and criteria that will apply in the identification, selection, ongoing
assessment, retention, or termination of investment management firms;
new text end

new text begin (8) the extent and any general limitations that normally will apply, subject to specific
mandate and contract terms, on the control, discretion, and judgment delegated to any
external investment advisor, management firm, consultant, broker, or dealer;
new text end

new text begin (9) benchmarks for investment performance at the total fund and asset class or
account level;
new text end

new text begin (10) the criteria, process, frequency, and level of operations at which actions to
rebalance the allocation of assets to ensure that policy targets are adhered to within
reasonable ranges of precision, to avoid tactical allocation or market timing activity that
risk undermining the benefits intended by the asset allocation targets and diversification
strategy of the policy;
new text end

new text begin (11) whether and how securities lending will be employed, subject to collateralization
requirements under subdivision 7a; and
new text end

new text begin (12) a description of how any proxy voting of security interests will be administered
or delegated.
new text end

Sec. 11.

Minnesota Statutes 2008, section 356A.06, subdivision 7a, is amended to read:

Subd. 7a.

Restrictions.

Any agreement to lend securities must be concurrently
collateralized with cash or securities with a market value of not less than 100 percent of the
market value of the loaned securities at the time of the agreement. For a covered pension
authorized to purchase put and call options and futures contracts under subdivision 7, any
agreement for put and call options and futures contracts may only be entered into with a
fully offsetting amount of cash or securities. Only securities authorized by this section,
excluding those under subdivision 7, paragraph (g), clause (1), items (i) to (iv), may
be accepted as collateral or offsetting securities. new text begin Covered pension plan participation
in a limited partnership does not include a general partnership interest or other interest
involving general liability. The covered pension plan must not engage in any activity as
a limited partner which creates general liability. Sections 16A.58, 16C.03, subdivision
4, and 16C.05 do not apply to certificates of deposit and collateralization agreements
executed by the covered pension plan.
new text end

Sec. 12.

Minnesota Statutes 2008, section 356A.06, subdivision 8b, is amended to read:

Subd. 8b.

deleted text begin Disclosure of investment authority; receipt of statement deleted text end new text begin Broker new text end .

(a)
For this subdivision, the term "broker" means a broker, broker-dealer, investment advisor,
investment manager, or third party agent who transfers, purchases, sells, or obtains
investment securities for, or on behalf of, a covered pension plan.

deleted text begin (b) Before a covered pension plan may complete an investment transaction with or
in accord with the advice of a broker, the covered pension plan shall provide annually to
the broker a written statement of investment restrictions applicable under state law to the
covered pension plan or applicable under the pension plan governing board investment
policy.
deleted text end

deleted text begin (c) A broker must acknowledge in writing annually the receipt of the statement of
investment restrictions and must agree to handle the covered pension plan's investments
and assets in accord with the provided investment restrictions. A covered pension plan
may not enter into or continue a business arrangement with a broker until the broker has
provided this written acknowledgment to the chief administrative officer of the covered
pension plan.
deleted text end

deleted text begin (d) deleted text end new text begin (b) new text end If any portion of the plan's assets are held by a security broker or its agent, the
security broker or its agent must acknowledge in writing annually that sufficient insurance
has been obtained from the Securities Investor Protection Corporation, supplemented by
additional insurance, if necessary, to cover the full amount of covered pension plan assets
held by the security broker or its agent. Uniform acknowledgment forms prepared by the
state auditor shall be used by covered pension plans and brokers to meet the requirements
of this subdivision.

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 354A.08; and 356A.06, subdivisions 4 and 5, new text end new text begin are
repealed.
new text end

Sec. 14. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 13 are effective July 1, 2010.
new text end