2005 Minnesota Statutes

     352.03 Board of directors; executive director. 

    Subdivision 1.    Membership of board; election; term.  
 The policy-making function of the system is vested in a board of 
 11 members known as the board of directors.  This board shall 
 consist of three members appointed by the governor, one of whom 
 must be a constitutional officer or appointed state official and 
 two of whom must be public members knowledgeable in pension 
 matters, four state employees elected by state employees covered 
 by the system excluding employees in categories specifically 
 authorized to designate or elect a member by this subdivision, 
 one employee of the Metropolitan Council's transit operations or 
 its successor agency designated by the executive committee of 
 the labor organization that is the exclusive bargaining agent 
 representing employees of the transit division, one member of 
 the State Patrol retirement fund elected by members of that fund 
 at a time and in a manner fixed by the board, one employee 
 covered by the correctional employees plan elected by employees 
 covered by that plan, and one retired employee elected by 
 disabled and retired employees of all plans administered by the 
 system at a time and in a manner to be fixed by the board.  Two 
 state employee members, whose terms of office begin on the first 
 Monday in May after their election, must be elected biennially.  
 Elected members and the appointed member of the Metropolitan 
 Council's transit operations hold office for a term of four 
 years and until their successors are elected or appointed, and 
 have qualified.  An employee of the system is not eligible for 
 membership on the board of directors.  A state employee on leave 
 of absence is not eligible for election or reelection to 
 membership on the board of directors.  The term of any board 
 member who is on leave for more than six months automatically 
 ends on expiration of the term of office. 

    Subd. 1a.    Terms; compensation; removal; vacancies; 
 public members.  The membership terms, compensation, removal 
 of members, and filling of vacancies for the public members on 
 the board are as provided in section 15.0575. 

    Subd. 2.    Vacancy.  Any vacancy of a state employee or 
 retired employee in the board caused by death, resignation, or 
 removal of any member so elected must be filled by the board for 
 the unexpired portion of the term in which the vacancy occurs.  
 Any vacancy of the employee of the transit operating division 
 member of the board caused by death, resignation, or removal 
 must be filled by the governing board of the labor organization 
 that is the exclusive bargaining agent representing employees of 
 the Transit Operating Division. 

    Subd. 3.  Repealed, 1976 c 134 s 79 

    Subd. 4.    Duties and powers of board of directors.  
 The board shall: 

    (1) elect a chair; 

    (2) appoint an executive director; 

    (3) establish rules to administer this chapter and chapters 
 3A, 352B, 352C, 352D, and 490 and transact the business of the 
 system, subject to the limitations of law; 

    (4) consider and dispose of, or take any other action the 
 board of directors deems appropriate concerning denials of 
 applications for annuities or disability benefits under this 
 chapter, and complaints of employees and others pertaining to 
 the retirement of employees and the operation of the system; 

    (5) advise the director on any matters relating to the 
 system and carrying out functions and purposes of this chapter.  
 The board's advice shall control; and 

    (6) oversee the administration of the state deferred 
 compensation plan established in section 352.96. 

    The director and assistant director must be in the 
 unclassified service but appointees may be selected from civil 
 service lists if desired.  The salary of the executive director 
 must be as provided by section 15A.0815.  The salary of the 
 assistant director must be set in accordance with section 
 43A.18, subdivision 3.  

    Subd. 4a.    Additional duties of the board.  The board 
 may consider, review, and make recommendations regarding the 
 financial and other needs of retired employees and may 
 disseminate appropriate retirement information to the retired 
 employee.  Notwithstanding laws to the contrary, the board, at 
 its discretion, may supply the names and addresses of retirees 
 who were employed by the University of Minnesota at the time of 
 termination to the University of Minnesota and state agencies 
 for retirees who were employed by the specific state agency at 
 the time of termination.  The board, at its discretion, may 
 supply names and addresses of state and university retirees to 
 an organization that has been in existence for at least ten 
 years and represents over 5,000 retired state and university 
 employees.  The names and addresses of each retiree can only be 
 given to this organization once within 60 days of the effective 
 date of the annuity.  The board shall require the retiree 
 organization, University of Minnesota, or applicable state 
 agency to reimburse the fund for any administrative expense of 
 providing the list.  The list remains the property of the 
 Minnesota State Retirement System and may not be subsequently 
 sold, conveyed, given, or otherwise transferred by the retiree 
 organization, the University of Minnesota, or the state agency 
 to a third party.  Periodically, retirees must be given an 
 opportunity to specify that their name and address not be 
 distributed under this section.  

    Subd. 5.    Executive director.  The executive director, 
 in this chapter called the director, of the system must be 
 appointed by the board on the basis of fitness, experience in 
 the retirement field, and leadership ability.  The director must 
 have had at least five years' experience on the administrative 
 staff of a major retirement system. 

    Subd. 6.    Duties and powers of executive director.  
 The management of the system is vested in the director, who is 
 the executive and administrative head of the system.  The 
 director shall be advisor to the board on matters pertaining to 
 the system and shall also act as the secretary of the board.  
 The director shall: 

    (1) attend meetings of the board; 

    (2) prepare and recommend to the board appropriate rules to 
 carry out this chapter; 

    (3) establish and maintain an adequate system of records 
 and accounts following recognized accounting principles and 
 controls; 

    (4) designate an assistant director with the approval of 
 the board; 

    (5) appoint any employees, both permanent and temporary, 
 that are necessary to carry out the provisions of this chapter; 

    (6) organize the work of the system as the director deems 
 necessary to fulfill the functions of the system, and define the 
 duties of its employees and delegate to them any powers or 
 duties, subject to the control of the director and under 
 conditions the director may prescribe.  Appointments to exercise 
 delegated power must be by written order and shall be filed with 
 the secretary of state; 

    (7) with the advice and consent of the board, contract for 
 the services of an approved actuary, professional management 
 services, and any other consulting services as necessary and fix 
 the compensation for those services.  The contracts are not 
 subject to competitive bidding under chapter 16C.  Any approved 
 actuary retained by the executive director shall function as the 
 actuarial advisor of the board and the executive director, and 
 may perform actuarial valuations and experience studies to 
 supplement those performed by the actuary retained under section 
 356.214.  Any supplemental actuarial valuations or experience 
 studies shall be filed with the executive director of the 
 Legislative Commission on Pensions and Retirement.  Professional 
 management services may not be contracted for more often than 
 once in six years.  Copies of professional management survey 
 reports must be transmitted to the secretary of the senate, the 
 chief clerk of the house of representatives, and the Legislative 
 Reference Library as provided by section 3.195, and to the 
 executive director of the commission at the time as reports are 
 furnished to the board.  Only management firms experienced in 
 conducting management surveys of federal, state, or local public 
 retirement systems are qualified to contract with the director; 

    (8) with the advice and consent of the board provide 
 in-service training for the employees of the system; 

    (9) make refunds of accumulated contributions to former 
 state employees and to the designated beneficiary, surviving 
 spouse, legal representative, or next of kin of deceased state 
 employees or deceased former state employees, as provided in 
 this chapter; 

    (10) determine the amount of the annuities and disability 
 benefits of employees covered by the system and authorize 
 payment of the annuities and benefits beginning as of the dates 
 on which the annuities and benefits begin to accrue, in 
 accordance with the provisions of this chapter; 

    (11) pay annuities, refunds, survivor benefits, salaries, 
 and necessary operating expenses of the system; 

    (12) certify funds available for investment to the State 
 Board of Investment; 

    (13) with the advice and approval of the board request the 
 State Board of Investment to sell securities when the director 
 determines that funds are needed for the system; 

    (14) prepare and submit to the board and the legislature an 
 annual financial report covering the operation of the system, as 
 required by section 356.20; 

    (15) prepare and submit biennial and annual budgets to the 
 board and with the approval of the board submit the budgets to 
 the Department of Finance; and 

    (16) with the approval of the board, perform other duties 
 required to administer the retirement and other provisions of 
 this chapter and to do its business. 

    Subd. 7.    Directors' fiduciary obligation.  The board 
 and the director shall undertake their activities consistent 
 with chapter 356A. 

    Subd. 8.    Medical adviser.  The state commissioner of 
 health or other licensed physician on the staff of the 
 commissioner as the commissioner may designate shall be the 
 medical adviser of the director. 

    Subd. 9.    Duties of the medical adviser.  The medical 
 adviser shall designate licensed physicians to examine 
 applicants for disability benefits.  The medical adviser shall 
 pass upon medical reports based upon examinations required to 
 determine whether a state employee is totally and permanently 
 disabled as defined in section 352.01, subdivision 17, shall 
 investigate health and medical statements and certificates by or 
 on behalf of a state employee in connection with a disability 
 benefit, and shall report in writing to the director conclusions 
 and recommendations on matters referred for advice. 

    Subd. 10.    Power to determine employee's status.  
 Except as otherwise specifically provided in this chapter, the 
 final power to determine the status of any individual in the 
 employ of the state for the purposes of this chapter is vested 
 in the board and its decision is final. 

    Subd. 11.    Legal adviser, attorney general.  The 
 attorney general shall be the legal adviser of the board and of 
 the director.  The board may sue or be sued or petitioned under 
 this section in the name of the board of directors of the 
 system.  In actions brought by it or against it, the board shall 
 be represented by the attorney general and, except as provided 
 in section 352.031, subdivision 9, venue of actions shall be in 
 the Ramsey County District Court. 

    Subd. 12.    Department of Employee Relations, duties.  
 Upon request of the director, the Department of Employee 
 Relations shall furnish information about the status of state 
 employees as required by the director or the board in the 
 performance of their duties. 

    Subd. 13. Repealed, 1989 c 319 art 1 s 17 

    Subd. 14.    Departmental information.  Under the 
 direction of the director the head of each department shall give 
 information and keep records the director or the board needs for 
 their duties.  

    Subd. 15.    Calendar year basis optional.  For all 
 purposes except quarterly and biennial budgets the system may 
 operate on a calendar rather than a fiscal year basis. 

    Subd. 16.    Data processing services.  Notwithstanding 
 chapter 16B or 16C or any law to the contrary, the executive 
 director of the system may use the services of the Department of 
 Administration, Information Services Division, for electronic 
 data processing and related services or may contract for all or 
 a part of the services. 

    HIST: (254-3) 1929 c 191 s 3; 1931 c 351 s 3; 1935 c 238 s 3; 
 1941 c 391 s 3; 1947 c 631 s 9; 1949 c 644 s 8; Ex1959 c 6 s 4; 
 1963 c 383 s 11; 1965 c 691 s 1; Ex1967 c 1 s 6; Ex1967 c 57 s 
 10; 1973 c 35 s 52; 1973 c 492 s 14; 1973 c 507 s 45; 1973 c 653 
 s 24,25; 1975 c 368 s 15-17; 1976 c 134 s 66,67; 1977 c 305 s 
 45; 1977 c 429 s 10-12; 1978 c 538 s 3,4; 1980 c 617 s 47; 1981 
 c 224 s 46; 1983 c 63 s 1; 1983 c 299 s 28; 1985 c 248 s 70; 
 1986 c 444; 1987 c 229 art 6 s 1; art 1 s 1; 1987 c 259 s 13; 
 1989 c 319 art 1 s 4; art 8 s 10; 1990 c 570 art 10 s 4; 1993 c 
 13 art 1 s 38; 1993 c 307 art 1 s 5; art 2 s 2; art 3 s 2; 1994 
 c 628 art 3 s 28; 2Sp1997 c 3 s 18; 1998 c 386 art 2 s 85,86; 
 1999 c 99 s 15; 1999 c 222 art 9 s 3; 2004 c 223 s 1