HF 1127

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; various individual retirement 
  1.3             account plans; making various administrative changes; 
  1.4             amending Minnesota Statutes 1996, sections 354D.02, 
  1.5             subdivision 2; 354D.06; and 354D.08, subdivisions 1, 
  1.6             2, 3, and 5. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 354D.02, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [ELIGIBILITY.] Eligible employees are: 
  1.11     (1) any supervisory or professional employee of the state 
  1.12  arts board; 
  1.13     (2) any supervisory or professional employee of the 
  1.14  Minnesota humanities commission; or 
  1.15     (3) any employee of the Minnesota historical society.; 
  1.16     (4) any employee of the Minnesota state academy for the 
  1.17  deaf; 
  1.18     (5) any employee of the Minnesota state academy for the 
  1.19  blind; 
  1.20     (6) any employee of the Minnesota zoological garden; or 
  1.21     (7) any employee of the Lola and Rudy Perpich Minnesota 
  1.22  center for arts education. 
  1.23     Sec. 2.  Minnesota Statutes 1996, section 354D.06, is 
  1.24  amended to read: 
  1.25     354D.06 [ADMINISTRATION.] 
  1.26     (a) The Minnesota state university system or its successor 
  2.1   shall administer the individual retirement account plan for 
  2.2   eligible employees listed in section 354D.02, subdivision 2, 
  2.3   clauses (1) and (2), in accordance with sections 354B.20 to 
  2.4   354B.30. 
  2.5      (b) The Minnesota historical society or its successor shall 
  2.6   administer the individual retirement account plan for eligible 
  2.7   employees listed in section 354D.02, subdivision 2, clause (3), 
  2.8   in accordance with section 354D.08. 
  2.9      (c) The Minnesota state academy for the deaf or its 
  2.10  successor shall administer the individual retirement account 
  2.11  plan for eligible employees listed in section 354D.02, 
  2.12  subdivision 2, clause (4), in accordance with section 354D.08. 
  2.13     (d) The Minnesota state academy for the blind or its 
  2.14  successor shall administer the individual retirement account 
  2.15  plan for eligible employees listed in section 354D.02, 
  2.16  subdivision 2, clause (5), in accordance with section 354D.08. 
  2.17     (e) The Minnesota zoological board or its successor shall 
  2.18  administer the individual retirement account plan for eligible 
  2.19  employees listed in section 354D.02, subdivision 2, clause (6), 
  2.20  in accordance with section 354D.08. 
  2.21     (f) The Lola and Rudy Perpich Minnesota center for arts 
  2.22  education or its successor shall administer the individual 
  2.23  retirement account plan for eligible employees listed in section 
  2.24  354D.02, subdivision 2, clause (7), in accordance with section 
  2.25  354D.08. 
  2.26     Sec. 3.  Minnesota Statutes 1996, section 354D.08, 
  2.27  subdivision 1, is amended to read: 
  2.28     Subdivision 1.  [GENERAL GOVERNANCE.] (a) The Minnesota 
  2.29  historical society is the plan administrator and has the 
  2.30  administrative responsibility for the individual retirement 
  2.31  account plan for those eligible employees listed in section 
  2.32  354D.02, subdivision 2, clause (3). 
  2.33     (b) The Minnesota state academy for the deaf is the plan 
  2.34  administrator and has the administrative responsibility for the 
  2.35  individual retirement account plan for those eligible employees 
  2.36  listed in section 354D.02, subdivision 2, clause (4). 
  3.1      (c) The Minnesota state academy for the blind is the plan 
  3.2   administrator and has the administrative responsibility for the 
  3.3   individual retirement account plan for those eligible employees 
  3.4   listed in section 354D.02, subdivision 2, clause (5). 
  3.5      (d) The Minnesota zoological board is the plan 
  3.6   administrator and has the administrative responsibility for the 
  3.7   individual retirement account plan for those eligible employees 
  3.8   listed in section 354D.02, subdivision 2, clause (6). 
  3.9      (e) The Lola and Rudy Perpich Minnesota center for arts 
  3.10  education is the plan administrator and has the administrative 
  3.11  responsibility for the individual retirement account plan for 
  3.12  those eligible employees listed in section 354D.02, subdivision 
  3.13  2, clause (7). 
  3.14     Sec. 4.  Minnesota Statutes 1996, section 354D.08, 
  3.15  subdivision 2, is amended to read: 
  3.16     Subd. 2.  [ANNUITY CONTRACTS AND CUSTODIAL ACCOUNTS.] (a) 
  3.17  The plan administrator shall arrange for the purchase of fixed 
  3.18  annuity contracts, variable annuity contracts, a combination of 
  3.19  fixed and variable annuity contracts, or custodial accounts from 
  3.20  financial institutions which have been selected by the state 
  3.21  board of investment and approved by the plan administrator under 
  3.22  subdivision 3, as the investment vehicle for the retirement 
  3.23  coverage of plan participants and to provide retirement benefits 
  3.24  to plan participants.  Custodial accounts from financial 
  3.25  institutions shall include open-end investment companies 
  3.26  registered under the federal Investment Company Act of 1940, as 
  3.27  amended. 
  3.28     (b) The annuity contracts or accounts must be purchased 
  3.29  with contributions under section 354D.05, or with money or 
  3.30  assets otherwise provided by law by authority of the Minnesota 
  3.31  historical society, the Minnesota state academy for the deaf, 
  3.32  the Minnesota state academy for the blind, the Minnesota 
  3.33  zoological board, or the Lola and Rudy Perpich Minnesota center 
  3.34  for arts education, and deemed acceptable by the applicable 
  3.35  financial institution. 
  3.36     Sec. 5.  Minnesota Statutes 1996, section 354D.08, 
  4.1   subdivision 3, is amended to read: 
  4.2      Subd. 3.  [SELECTION OF FINANCIAL INSTITUTIONS.] The 
  4.3   applicable plan administrator may approve up to two financial 
  4.4   institutions selected by the state board of investment under 
  4.5   section 354B.25, subdivision 3, to provide annuity products and 
  4.6   custodial accounts for those employees listed in section 
  4.7   354D.02, subdivision 2, clause clauses (3), (4), (5), (6), and 
  4.8   (7).  Only those financial institutions selected by the state 
  4.9   board of investment and approved by the applicable plan 
  4.10  administrator may provide annuity products and custodial 
  4.11  accounts for those employees listed in section 354D.02, 
  4.12  subdivision 2, clause clauses (3), (4), (5), (6), and (7). 
  4.13     The state board of investment must periodically review at 
  4.14  least every three years each financial institution selected.  
  4.15  The state board of investment may retain consulting services to 
  4.16  assist in the periodic review, may establish a budget for its 
  4.17  costs in the periodic review process, and may charge a 
  4.18  proportional share of those costs to each financial institution 
  4.19  selected.  All contracts must be approved by the state board of 
  4.20  investment before execution by the Minnesota historical society, 
  4.21  the Minnesota state academy for the deaf, the Minnesota state 
  4.22  academy for the blind, the Minnesota zoological board, or the 
  4.23  Lola and Rudy Perpich Minnesota center for arts education, as 
  4.24  applicable.  The state board of investment shall also establish 
  4.25  policies and procedures under section 11A.04, clause (2), to 
  4.26  carry out this subdivision. 
  4.27     Sec. 6.  Minnesota Statutes 1996, section 354D.08, 
  4.28  subdivision 5, is amended to read: 
  4.29     Subd. 5.  [INDIVIDUAL RETIREMENT ACCOUNT PLAN 
  4.30  ADMINISTRATIVE EXPENSES; MINNESOTA HISTORICAL SOCIETY.] (a) The 
  4.31  reasonable and necessary administrative expenses of 
  4.32  the applicable individual retirement account plan for those 
  4.33  employees enumerated in section 354D.02, subdivision 2, clause 
  4.34  clauses (3), (4), (5), (6), and (7), must be paid by plan 
  4.35  participants.  The plan administrator may charge to plan 
  4.36  participants purchasing annuity contracts and custodial accounts 
  5.1   pursuant to subdivision 2, paragraph (a), an administrative 
  5.2   expenses assessment of a designated amount, not to exceed two 
  5.3   percent of member and employer contributions, as those 
  5.4   contributions are made.  
  5.5      (b) Any administrative expense charge that is not actually 
  5.6   needed for the administrative expenses of the applicable 
  5.7   individual retirement account plan must be refunded to member 
  5.8   accounts. 
  5.9      Sec. 7.  [EFFECTIVE DATE.] 
  5.10     Sections 1 to 6 are effective the day following final 
  5.11  enactment.