HF 1848

as introduced - 87th Legislature (2011 - 2012) Posted on 01/24/2012 10:36am

A bill for an act
relating to education; allowing school boards to determine the number and
identity of annuity contract vendors; amending Minnesota Statutes 2010, section
123B.02, subdivision 15.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 123B.02, subdivision 15, is amended to
read:

Subd. 15.

Annuity contract; payroll allocation.

(a) At the request of an employee
and as part of the employee's compensation arrangement, the board may purchase an
individual annuity contract for an employee for retirement or other purposes and may
make payroll allocations in accordance with such arrangement for the purpose of paying
the entire premium due and to become due under such contract. The allocation must be
made in a manner which will qualify the annuity premiums, or a portion thereof, for
the benefit afforded under section 403(b) of the current Federal Internal Revenue Code
or any equivalent provision of subsequent federal income tax law. The employee shall
own such contract and the employee's rights under the contract shall be nonforfeitable
except for failure to pay premiums. Section 122A.40 shall not be applicable hereto and the
board shall have no liability thereunder because of its purchase of any individual annuity
contracts. This statute shall be applied in a nondiscriminatory manner to employees of
the school district. The new text begin school board of a school district shall determine the new text end identity and
number of the available vendors under federal Internal Revenue Code new text begin , new text end section 403(b) deleted text begin is a
term and condition of employment under section 179A.03 deleted text end .

(b) When considering vendors under paragraph (a), the school district deleted text begin and the
exclusive representative of the employees deleted text end shall consider all of the following:

(1) the vendor's ability to comply with all employer requirements imposed by
section 403(b) of the Internal Revenue Code of 1986 and its subsequent amendments,
other provisions of the Internal Revenue Code of 1986 that apply to section 403(b) of the
Internal Revenue Code, and any regulation adopted in relation to these laws;

(2) the vendor's experience in providing 403(b) plans;

(3) the vendor's potential effectiveness in providing client services attendant to
its plan and in relation to cost;

(4) the nature and extent of rights and benefits offered under the vendor's plan;

(5) the suitability of the rights and benefits offered under the vendor's plan;

(6) the vendor's ability to provide the rights and benefits offered under its plan; and

(7) the vendor's financial stability.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end