HF 1934

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; supplemental pension and
deferred compensation plans; clarifying certain
exceptions; amending Minnesota Statutes 2004, section
356.24, subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 356.24,
subdivision 1, is amended to read:

Subdivision 1.

Restriction; exceptions.

It is unlawful
for a school district or other governmental subdivision or state
agency to levy taxes for, or to contribute public funds to a
supplemental pension or deferred compensation plan that is
established, maintained, and operated in addition to a primary
pension program for the benefit of the governmental subdivision
employees other than:

(1) to a supplemental pension plan that was established,
maintained, and operated before May 6, 1971;

(2) to a plan that provides solely for group health,
hospital, disability, or death benefits;

(3) to the individual retirement account plan established
by chapter 354B;

(4) to a plan that provides solely for severance pay under
section 465.72 to a retiring or terminating employee;

(5) for employees other than personnel employed by the
Board of Trustees of the Minnesota State Colleges and
Universities and covered under the Higher Education Supplemental
Retirement Plan under chapter 354C, if the supplemental plan
coverage is provided for in a personnel policy of the public
employer or in the collective bargaining agreement between the
public employer and the exclusive representative of public
employees in an appropriate unit, in an amount matching employee
contributions on a dollar for dollar basis, but not to exceed an
employer contribution of $2,000 a year per employee;

(i) to the state of Minnesota deferred compensation plan
under section 352.96; or

(ii) in payment of the applicable portion of the
contribution made to any investment eligible under section
403(b) of the Internal Revenue Code, if the employing unit has
complied with any applicable pension plan provisions of the
Internal Revenue Code with respect to the tax-sheltered annuity
program during the preceding calendar year;

(6) for personnel employed by the Board of Trustees of the
Minnesota State Colleges and Universities and not covered by
clause (5), to the supplemental retirement plan under chapter
354C, if the supplemental plan coverage is provided for in a
personnel policy or in the collective bargaining agreement of
the public employer with the exclusive representative of the
covered employees in an appropriate unit, in an amount matching
employee contributions on a dollar for dollar basis, but not to
exceed an employer contribution of $2,700 a year for each
employee;

(7) to a supplemental plan or to a governmental trust to
save for postretirement health care expenses qualified for
tax-preferred treatment under the Internal Revenue Code, if the
supplemental plan coverage is provided for in a personnel policy
or in the collective bargaining agreement of a public employer
with the exclusive representative of the covered employees in an
appropriate unit;

(8) to the laborer's national industrial pension fund for
the employees of a governmental subdivision who are covered by a
collective bargaining agreement that provides for coverage by
that fund and that sets forth a fund contribution rate, but not
to exceed an employer contribution of $2,000 per year per
employee;

(9) to the plumbers' and pipefitters' national pension fund
or to a plumbers' and pipefitters' local pension fund for the
employees of a governmental subdivision who are covered by a
collective bargaining agreement that provides for coverage by
that fund and that sets forth a fund contribution rate, but not
to exceed an employer contribution of $2,000 per year per
employee;

(10) to the international union of operating engineers
pension fund for the employees of a governmental subdivision who
are covered by a collective bargaining agreement that provides
for coverage by that fund and that sets forth a fund
contribution rate, but not to exceed an employer contribution of
$2,000 per year per employee; or

(11) to a supplemental plan organized and operated under
the federal Internal Revenue Code, as amended, that is wholly
and solely funded by the employee's accumulated sick leave,
accumulated vacation leave, and accumulated severance pay new text begin at the
date of retirement or the termination of active employment new text end .

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective the day following final enactment.
new text end