1.1 	A bill for an act
1.2 	relating to retirement; supplemental pension and
1.3 	deferred compensation plans; clarifying certain
1.4 	exceptions; amending Minnesota Statutes 2004, 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 2004, section 356.24,
1.8 	subdivision 1, is amended to read:
1.9 		Subdivision 1.Restriction; exceptions.  It is unlawful
1.10 	for a school district or other governmental subdivision or state
1.11 	agency to levy taxes for, or to contribute public funds to a
1.12 	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;
1.20 	(3) to the individual retirement account plan established
1.21 	by chapter 354B;
1.22 	(4) to a plan that provides solely for severance pay under
1.23 	section 465.72 to a retiring or terminating employee;
1.24 	(5) for employees other than personnel employed by the
1.25 	Board of Trustees of the Minnesota State Colleges and
2.1 	Universities and covered under the Higher Education Supplemental
2.2 	Retirement Plan under chapter 354C, if the supplemental plan
2.3 	coverage is provided for in a personnel policy of the public
2.4 	employer or in the collective bargaining agreement between the
2.5 	public employer and the exclusive representative of public
2.6 	employees in an appropriate unit, in an amount matching employee
2.7 	contributions on a dollar for dollar basis, but not to exceed an
2.8 	employer contribution of $2,000 a year per employee;
2.9 	(i) to the state of Minnesota deferred compensation plan
2.10 	under section 352.96; or
2.11 	(ii) in payment of the applicable portion of the
2.12 	contribution made to any investment eligible under section
2.13 	403(b) of the Internal Revenue Code, if the employing unit has
2.14 	complied with any applicable pension plan provisions of the
2.15 	Internal Revenue Code with respect to the tax-sheltered annuity
2.16 	program during the preceding calendar year;
2.17 	(6) for personnel employed by the Board of Trustees of the
2.18 	Minnesota State Colleges and Universities and not covered by
2.19 	clause (5), to the supplemental retirement plan under chapter
2.20 	354C, if the supplemental plan coverage is provided for in a
2.21 	personnel policy or in the collective bargaining agreement of
2.22 	the public employer with the exclusive representative of the
2.23 	covered employees in an appropriate unit, in an amount matching
2.24 	employee contributions on a dollar for dollar basis, but not to
2.25 	exceed an employer contribution of $2,700 a year for each
2.26 	employee;
2.27 	(7) to a supplemental plan or to a governmental trust to
2.28 	save for postretirement health care expenses qualified for
2.29 	tax-preferred treatment under the Internal Revenue Code, if the
2.30 	supplemental plan coverage is provided for in a personnel policy
2.31 	or in the collective bargaining agreement of a public employer
2.32 	with the exclusive representative of the covered employees in an
2.33 	appropriate unit;
2.34 	(8) to the laborer's national industrial pension fund for
2.35 	the employees of a governmental subdivision who are covered by a
2.36 	collective bargaining agreement that provides for coverage by
3.1 	that fund and that sets forth a fund contribution rate, but not
3.2 	to exceed an employer contribution of $2,000 per year per
3.3 	employee;
3.4 	(9) to the plumbers' and pipefitters' national pension fund
3.5 	or to a plumbers' and pipefitters' local pension fund for the
3.6 	employees of a governmental subdivision who are covered by a
3.7 	collective bargaining agreement that provides for coverage by
3.8 	that fund and that sets forth a fund contribution rate, but not
3.9 	to exceed an employer contribution of $2,000 per year per
3.10 	employee;
3.11 	(10) to the international union of operating engineers
3.12 	pension fund for the employees of a governmental subdivision who
3.13 	are covered by a collective bargaining agreement that provides
3.14 	for coverage by that fund and that sets forth a fund
3.15 	contribution rate, but not to exceed an employer contribution of
3.16 	$2,000 per year per employee; or
3.17 	(11) to a supplemental plan organized and operated under
3.18 	the federal Internal Revenue Code, as amended, that is wholly
3.19 	and solely funded by the employee's accumulated sick leave,
3.20 	accumulated vacation leave, and accumulated severance pay at the
3.21 	date of retirement or the termination of active employment.

3.22 	Sec. 2. EFFECTIVE DATE.
 3.23 	Section 1 is effective the day following final enactment.