Minnesota Legislature
HF 3803
as introduced - 90th Legislature (2017 - 2018) Posted on 03/14/2018 11:51am
Current Version - as introduced
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A bill for an act
relating to retirement; Hennepin County supplemental retirement plan; expanding
investment authority; amending Minnesota Statutes 2016, sections 356.645;
383B.47; 383B.48; 383B.49; 383B.50.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, section 356.645, is amended to read:
356.645 INVESTMENT OF VARIOUS DEFINED CONTRIBUTION PLAN
ASSETS.
The State Board of Investment shall determine the investments to be made available to
plan participants in plans defined in sections 352.965 deleted text begin anddeleted text end new text begin ,new text end 352.98new text begin , and 383B.46new text end and chapters
352D and 353D. Investments made available to plan participants must include at least one
or more of the following:
(1) shares in the Minnesota supplemental investment fund established in section 11A.17;
(2) savings accounts in federally insured financial institutions;
(3) life insurance contracts, fixed annuity contracts, and variable annuity contracts from
companies that are subject to regulation by the commissioner of commerce;
(4) investment options from open-end investment companies registered under the federal
Investment Company Act of 1940, United States Code, title 15, sections 80a-1 to 80a-64;
(5) investment options from a firm that is a registered investment adviser under the
Investment Advisers Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21;
and
(6) investment options of a bank as defined in United States Code, title 15, section 80b-2,
subsection (a), paragraph (2), or a bank holding company as defined in the Bank Holding
Company Act of 1956, United States Code, title 12, section 1841, subsection (a), paragraph
(1).
Sec. 2.
Minnesota Statutes 2016, section 383B.47, is amended to read:
383B.47 new text begin INVESTMENT OF new text end RETIREMENT MONEY deleted text begin FOR STATE
SUPPLEMENTAL FUND SHARESdeleted text end .
deleted text begin With thedeleted text end new text begin When new text end moneys new text begin are new text end deposited to the credit of the supplemental retirement account,
the Minnesota State Retirement System shall deleted text begin purchase shares on behalf of Hennepin County
in the accounts of the Minnesota supplemental investment funddeleted text end new text begin make available those
investments chosen by the State Board of Investment under section 356.645 in the manner
new text end as provided in section 383B.48.
Sec. 3.
Minnesota Statutes 2016, section 383B.48, is amended to read:
383B.48 BUYING STATE SUPPLEMENTAL INVESTMENT FUND SHARES.
new text begin (a) new text end A participant in the Hennepin County supplemental retirement program shall indicate
the deleted text begin account of the Minnesota supplemental investment funddeleted text end new text begin investments, from those made
available pursuant to section 383B.47, new text end in which the deleted text begin participant wishesdeleted text end new text begin participant's new text end salary
deductions and county matching contributions attributable to salary deductions new text begin are new text end to be
invested for such time as allowed by the Minnesota State Retirement System. The Minnesota
State Retirement System shall purchase with the salary deductions and county matching
funds attributable to the salary deductions shares in the appropriate deleted text begin account of the Minnesota
supplementaldeleted text end investment deleted text begin funddeleted text end in accordance with the indicated preferences of the participant.
deleted text begin However,
deleted text end
new text begin (b)new text end The county of Hennepin has the authority to determine which deleted text begin accounts of the
Minnesota supplemental investment funddeleted text end new text begin investments made available pursuant to section
383B.47 new text end will be available for participant investment. The shares purchased must stand in
the name of the county of Hennepin.
new text begin (c)new text end A record must be kept by the Minnesota State Retirement System indicating the
number of shares in each deleted text begin account of the Minnesota supplementaldeleted text end investment deleted text begin funddeleted text end purchased
with the salary deductions and county matching funds attributable to the salary deductions
of each participant. The record must be known as the "participant's share account record."
The participant's share account record must show, in addition to the number of shares in
the account, any cash balance of salary deductions or county matching funds attributable
to those deductions which stand uninvested in shares.
new text begin (d)new text end At the option of the county of Hennepin, and subject to any terms and conditions
established and communicated in writing by the county to a participant, the participant may
designate no more often than once each month that prior salary deductions and county
matching contributions attributable to the salary deductions, together with any interest
earned, be reinvested in another deleted text begin account of the Minnesota supplementaldeleted text end investment deleted text begin funddeleted text end
made available deleted text begin by the county of Hennepindeleted text end new text begin under this sectionnew text end .
Sec. 4.
Minnesota Statutes 2016, section 383B.49, is amended to read:
383B.49 SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF
SHARES.
When requested to do so, in writing, on forms provided by the Minnesota State Retirement
System, by a participant, surviving spouse, a guardian of a surviving child or a personal
representative, whichever is applicable, the Minnesota State Retirement System shall on
behalf of Hennepin County redeem shares in the deleted text begin accounts of the Minnesota supplemental
investment funddeleted text end new text begin investments new text end standing in a participant's share account record under the
following circumstances and in accordance with the laws and regulations governing the
deleted text begin Minnesota supplementaldeleted text end new text begin applicable new text end investment deleted text begin funddeleted text end :
(1) A participant who is no longer employed by the county of Hennepin is entitled to
receive the cash realized on the redemption of the shares to the credit of the participant's
share account record of the person. The participant may request the redemption of all or a
portion of the shares in the participant's share account record of the person, but may not
request more than one redemption in any one calendar year. If only a portion of the shares
in the participant's share account record is requested to be redeemed the person may request
to redeem not less than 20 percent of the shares in any one calendar year and the redemption
must be completed in no more than five years. The person may select annual redemption
in a single lump sum or in monthly payments. An election is irrevocable except that a
participant may request an amendment of the election to redeem all of the person's remaining
shares. All requests under this paragraph are subject to application to and approval of the
Minnesota State Retirement System upon verification by Hennepin County through the
county administrator of the recipient's eligibility to redeem funds.
(2) In the event of the death of a participant leaving a surviving spouse, the surviving
spouse is entitled to receive the cash realized on the redemption of all or a portion of the
shares in the participant's share account record of the deceased spouse, but in no event may
the spouse request more than one redemption in each calendar year. If only a portion of the
shares in the participant's share account record is requested to be redeemed, the surviving
spouse may request the redemption of not less than 20 percent of the shares in any one
calendar year. The surviving spouse may elect annual redemption in a single lump-sum
payment or in monthly payments. Redemption must be completed in no more than five
years. An election is irrevocable except that the surviving spouse may request an amendment
of the election to redeem all of the participant's remaining shares. All requests under this
paragraph are subject to application to and approval of the Minnesota State Retirement
System upon verification by Hennepin County through the county administrator of the
recipient's eligibility to redeem funds. Upon the death of the surviving spouse, any shares
remaining in the participant's share account record must be redeemed on behalf of Hennepin
County by the Minnesota State Retirement System and the cash realized from the redemption
distributed to the estate of the surviving spouse.
(3) In the event of the death of a participant leaving no surviving spouse, but leaving a
minor surviving child or minor surviving children, the guardianship estate of the minor
child is, or the guardianship estates of the minor children are, entitled to receive the cash
realized on the redemption of all shares to the credit of the participant's share account record
of the deceased participant. In the event of minor surviving children, the cash realized must
be paid in equal shares to the guardianship estates of the minor surviving children.
(4) In the event of the death of a participant leaving no surviving spouse and no minor
surviving children, the estate of the deceased participant is entitled to receive the cash
realized on the redemption of all shares to the credit of the participant's share account record
of the deceased participant.
Sec. 5.
Minnesota Statutes 2016, section 383B.50, is amended to read:
383B.50 PROSPECTUS.
The county of Hennepin shall distribute new text begin or otherwise make available new text end to each participant
a prospectus deleted text begin of the Minnesota supplemental investment fund when received from the funddeleted text end new text begin
or other applicable information with respect to the investments authorized pursuant to
sections 383B.47 and 383B.48new text end .
Sec. 6. new text begin EFFECTIVE DATE.
new text end
new text begin
Sections 1 to 5 are effective the day following final enactment.
new text end