1.1                          A bill for an act 
  1.2             relating to retirement; state deferred compensation 
  1.3             plan; authorizing the designation of certain trusts as 
  1.4             beneficiary; proposing coding for new law in Minnesota 
  1.5             Statutes, chapter 352. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [352.961] [DESIGNATION OF TRUST AS 
  1.8   BENEFICIARY.] 
  1.9      (a) Notwithstanding any provision of section 352.96 to the 
  1.10  contrary, unless an applicable federal Internal Revenue Code 
  1.11  provision or regulation specifically prohibits, a participant in 
  1.12  the state deferred compensation plan may designate a qualified 
  1.13  trust as a beneficiary for the proceeds of a deceased 
  1.14  participant's deferred compensation account. 
  1.15     (b) A qualified trust is a trust that: 
  1.16     (1) is established under chapter 501B; 
  1.17     (2) is irrevocable; 
  1.18     (3) is established solely for the benefit of the 
  1.19  participant's spouse or of one or more of the participant's 
  1.20  lineal descendants; and 
  1.21     (4) is filed with the executive director of the Minnesota 
  1.22  state retirement system before or after the death of the 
  1.23  participant or before or after the participant's termination of 
  1.24  active service that qualifies for eligibility to participate in 
  1.25  the plan, whichever is earlier. 
  2.1      Sec. 2.  [EFFECTIVE DATE.] 
  2.2      Section 1 is effective on the day following final enactment.