HF 1580

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to investments; selection of qualified 
  1.3             insurance companies for purchase of tax-sheltered 
  1.4             annuities; amending Minnesota Statutes 1994, section 
  1.5             356.24, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 356.24, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [RESTRICTION; EXCEPTIONS.] (a) It is 
  1.10  unlawful for a school district or other governmental subdivision 
  1.11  or state agency to levy taxes for, or contribute public funds to 
  1.12  a supplemental pension or deferred compensation plan that is 
  1.13  established, maintained, and operated in addition to a primary 
  1.14  pension program for the benefit of the governmental subdivision 
  1.15  employees other than: 
  1.16     (1) to a supplemental pension plan that was established, 
  1.17  maintained, and operated before May 6, 1971; 
  1.18     (2) to a plan that provides solely for group health, 
  1.19  hospital, disability, or death benefits, to the individual 
  1.20  retirement account plan established by sections 354B.01 to 
  1.21  354B.05; 
  1.22     (3) to a plan that provides solely for severance pay under 
  1.23  section 465.72 to a retiring or terminating employee; 
  1.24     (4) for employees other than personnel employed by the 
  1.25  state university board or the community college board and 
  2.1   covered by section 354B.07, subdivision 1, to: 
  2.2      (i) the state of Minnesota deferred compensation plan under 
  2.3   section 352.96; or 
  2.4      (ii) payment of the applicable portion of the premium on a 
  2.5   tax sheltered annuity contract qualified under section 403(b) of 
  2.6   the federal Internal Revenue Code, purchased from a qualified 
  2.7   insurance company; if provided for in a personnel policy or in 
  2.8   the collective bargaining agreement of the public employer with 
  2.9   the exclusive representative of public employees in an 
  2.10  appropriate unit, in an amount matching employee contributions 
  2.11  on a dollar for dollar basis, but not to exceed an employer 
  2.12  contribution of $2,000 a year per employee; or 
  2.13     (5) for personnel employed by the state university board or 
  2.14  the community college board and covered by sections 352D.02, 
  2.15  subdivision 1a, and 354B.07, subdivision 1, to the supplemental 
  2.16  retirement plan under sections 354B.07 to 354B.09, if provided 
  2.17  for in a personnel policy or in the collective bargaining 
  2.18  agreement of the public employer with the exclusive 
  2.19  representative of the covered employees in an appropriate unit, 
  2.20  in an amount matching employee contributions on a dollar for 
  2.21  dollar basis, but not to exceed an employer contribution of 
  2.22  $2,000 a year for each employee.  
  2.23     (b) A qualified insurance company is a company that: 
  2.24     (1) meets the definition in section 60A.02, subdivision 4; 
  2.25     (2) is licensed to engage in life insurance or annuity 
  2.26  business in the state; 
  2.27     (3) is determined by the commissioner of commerce to have a 
  2.28  rating within the top two rating categories by a recognized 
  2.29  national rating agency or organization that regularly rates 
  2.30  insurance companies; and 
  2.31     (4) is determined by the state board of investment to be 
  2.32  among the ten applicant insurance companies, four of which are 
  2.33  Minnesota based, with competitive options and investment returns 
  2.34  on annuity products.  The state board of investment 
  2.35  determination must be made on or before January 1, 1993, and 
  2.36  must be reviewed periodically.  The state board of investment 
  3.1   may retain actuarial services to assist it in this determination 
  3.2   and in its periodic review.  The state board of investment may 
  3.3   annually establish a budget for its costs in any determination 
  3.4   and periodic review processes.  The state board of investment 
  3.5   may charge a proportional share of all costs related to the 
  3.6   periodic review to those companies currently under contract and 
  3.7   may charge a proportional share of all costs related to 
  3.8   soliciting and evaluating bids in a determination process to 
  3.9   each company selected by the state board of investment.  All 
  3.10  contracts must be approved before execution by the state board 
  3.11  of investment.  The state board of investment shall establish 
  3.12  policies and procedures under section 11A.04, clause (2), to 
  3.13  carry out this paragraph. 
  3.14     (c) A personnel policy for unrepresented employees or a 
  3.15  collective bargaining agreement may establish limits on the 
  3.16  number of vendors under paragraph (b), clause (4), that it will 
  3.17  utilize and conditions under which the vendors may contact 
  3.18  employees both during working hours and after working hours.