HF 1415

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; Minnesota state colleges and 
  1.3             universities; modifying annuity program provisions; 
  1.4             amending Minnesota Statutes 2000, section 136F.45, 
  1.5             subdivision 1a. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 136F.45, 
  1.8   subdivision 1a, is amended to read: 
  1.9      Subd. 1a.  [SUBSEQUENT VENDOR CONTRACTS.] (a) The board may 
  1.10  limit the number of vendors under subdivision 1. 
  1.11     (b) In addition to any other tax-sheltered annuity program 
  1.12  investment options, the board may offer as an investment option 
  1.13  the Minnesota supplemental investment fund administered by the 
  1.14  state board of investment under section 11A.17. 
  1.15     (c) For the tax-sheltered annuity program vendor contracts 
  1.16  executed after July 1, 2000, the board shall actively solicit 
  1.17  participation of and shall include as vendors lower expense and 
  1.18  "no-load" mutual funds or equivalent investment products as 
  1.19  those terms are defined by the federal securities and exchange 
  1.20  commission.  To the extent possible, in addition to a range of 
  1.21  insurance annuity contract providers and other mutual fund 
  1.22  provider arrangements, the board must assure that no less than 
  1.23  five insurance annuity providers and no less than one nor more 
  1.24  than three lower expense and "no-load" mutual funds or 
  1.25  equivalent investment products will be made available for 
  2.1   direct-access by employee participants.  To the extent that 
  2.2   offering a lower expense "no-load" product increases the total 
  2.3   necessary and reasonable expenses of the program and if the 
  2.4   board is unable to negotiate a rebate of fees from the mutual 
  2.5   fund or equivalent investment product providers, the board may 
  2.6   charge the participants utilizing the lower expense "no-load" 
  2.7   mutual fund products a fee to cover those expenses.  The 
  2.8   participant fee may not exceed one percent of the participant's 
  2.9   annual contributions or $20 per participant per year, whichever 
  2.10  is greater.  Any excess fee revenue generated under this 
  2.11  subdivision must be reimbursed to participant accounts in the 
  2.12  manner provided in subdivision 3a. 
  2.13     Sec. 2.  [EFFECTIVE DATE.] 
  2.14     Section 1 is effective the day following final enactment.