HF 2869

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; modifying administrative 
  1.3             expense provisions for various public pension plans; 
  1.4             amending Minnesota Statutes 1996, sections 352.96, 
  1.5             subdivision 4; 352D.09, subdivision 7; 353D.05, 
  1.6             subdivision 3; and 383B.52; Minnesota Statutes 1997 
  1.7             Supplement, sections 354B.25, subdivision 5; and 
  1.8             354C.12, subdivision 4; repealing Minnesota Statutes 
  1.9             1996, sections 11A.17, subdivisions 10a and 14; and 
  1.10            352D.09, subdivision 8. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 1996, section 352.96, 
  1.13  subdivision 4, is amended to read: 
  1.14     Subd. 4.  [EXECUTIVE DIRECTOR TO ESTABLISH RULES.] The 
  1.15  executive director of the system with the advice and consent of 
  1.16  the board of directors shall establish rules and procedures to 
  1.17  carry out this section including allocation of administrative 
  1.18  costs against the assets accumulated under this section.  Funds 
  1.19  to pay these costs are appropriated from the fund or account in 
  1.20  which the assets accumulated under this section are placed of 
  1.21  the plan to participants.  Fees cannot be charged on 
  1.22  contributions and investment returns attributable to 
  1.23  contributions made before July 1, 1992.  The rules established 
  1.24  by the executive director must conform to federal and state tax 
  1.25  laws, regulations, and rulings, and are not subject to the 
  1.26  administrative procedure act.  Except for the marketing rules, 
  1.27  rules relating to the options provided under subdivision 2, 
  1.28  clauses (2) and (3), must be approved by the state board of 
  2.1   investment.  
  2.2      Sec. 2.  Minnesota Statutes 1996, section 352D.09, 
  2.3   subdivision 7, is amended to read: 
  2.4      Subd. 7.  Up to one-tenth of one percent of salary shall be 
  2.5   deducted from the employee contributions and up to one-tenth of 
  2.6   one percent of salary from the employer contributions authorized 
  2.7   by section 352D.04, subdivision 2, The board of directors shall 
  2.8   establish a budget and charge participants a fee to pay the 
  2.9   administrative expenses of the unclassified program.  Fees 
  2.10  cannot be charged on contributions and investment returns 
  2.11  attributable to contributions made before July 1, 1992. 
  2.12     Sec. 3.  Minnesota Statutes 1996, section 353D.05, 
  2.13  subdivision 3, is amended to read: 
  2.14     Subd. 3.  [ADMINISTRATIVE EXPENSES.] The executive director 
  2.15  of the association with the advice and consent of the board 
  2.16  shall annually set an amount to recover the costs of the 
  2.17  association in administering the public employees defined 
  2.18  contribution plan that are not met by the amount recovered under 
  2.19  section 11A.17. 
  2.20     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
  2.21  354B.25, subdivision 5, is amended to read: 
  2.22     Subd. 5.  [INDIVIDUAL RETIREMENT ACCOUNT PLAN 
  2.23  ADMINISTRATIVE EXPENSES.] (a) The reasonable and necessary 
  2.24  administrative expenses of the individual retirement account 
  2.25  plan must be paid by plan participants in the following manner: 
  2.26     (1) from plan participants with amounts invested in the 
  2.27  Minnesota supplemental investment fund, the plan administrator 
  2.28  may charge an administrative expense assessment as provided in 
  2.29  section 11A.17, subdivisions 10a and 14; and 
  2.30     (2) from plan participants with amounts through annuity 
  2.31  contracts and custodial accounts purchased under subdivision 2, 
  2.32  paragraph (a), the plan administrator may charge an 
  2.33  administrative expense assessment of a designated amount, not to 
  2.34  exceed two percent of member and employer contributions, as 
  2.35  those contributions are made. 
  2.36     (b) Any administrative expense charge that is not actually 
  3.1   needed for the administrative expenses of the individual 
  3.2   retirement account plan must be refunded to member accounts. 
  3.3      (c) The board of trustees shall report annually, before 
  3.4   October 1, to the advisory committee created in subdivision 1a 
  3.5   on administrative expenses of the plan.  The report must include 
  3.6   a detailed accounting of charges for administrative expenses 
  3.7   collected from plan participants and expenditure of the 
  3.8   administrative expense charges.  The administrative expense 
  3.9   charges collected from plan participants must be kept in a 
  3.10  separate account from any other funds under control of the board 
  3.11  of trustees and may be used only for the necessary and 
  3.12  reasonable administrative expenses of the plan. 
  3.13     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
  3.14  354C.12, subdivision 4, is amended to read: 
  3.15     Subd. 4.  [ADMINISTRATIVE EXPENSES.] The board of trustees 
  3.16  of the Minnesota state colleges and universities is authorized 
  3.17  to pay the necessary and reasonable administrative expenses of 
  3.18  the supplemental retirement plan.  The administrative fees or 
  3.19  charges must be paid by participants in the following manner: 
  3.20     (1) from participants whose contributions are invested with 
  3.21  the state board of investment, the plan administrator may 
  3.22  recover administrative expenses in the manner provided by 
  3.23  section 11A.17, subdivisions 10a and 14 authorized by the 
  3.24  Minnesota state colleges and universities; or 
  3.25     (2) from participants where contributions are invested 
  3.26  through contracts purchased from any other authorized source, 
  3.27  the plan administrator may assess an amount of up to two percent 
  3.28  of the employee and employer contributions. 
  3.29     Any recovered or assessed amounts that are not needed for 
  3.30  the necessary and reasonable administrative expenses of the plan 
  3.31  must be refunded to member accounts. 
  3.32     The board of trustees shall report annually, before October 
  3.33  1, to the advisory committee created in section 354B.25, 
  3.34  subdivision 1a, on administrative expenses of the plan.  The 
  3.35  report must include a detailed accounting of charges for 
  3.36  administrative expenses collected from plan participants and 
  4.1   expenditure of the administrative expense charges.  The 
  4.2   administrative expense charges collected from plan participants 
  4.3   must be kept in a separate account from any other funds under 
  4.4   control of the board of trustees and may be used only for the 
  4.5   necessary and reasonable administrative expenses of the plan.  
  4.6      Sec. 6.  Minnesota Statutes 1996, section 383B.52, is 
  4.7   amended to read: 
  4.8      383B.52 [ADMINISTRATION COSTS.] 
  4.9      The board of county commissioners of Hennepin county is 
  4.10  hereby authorized to appropriate money for the administration of 
  4.11  the supplementary benefit program created by sections 383B.46 to 
  4.12  383B.52.  The board of county commissioners of Hennepin county 
  4.13  may charge participants a fee to recover the administrative 
  4.14  expenses of the supplementary benefit program. 
  4.15     Sec. 7.  [REPEALER.] 
  4.16     Minnesota Statutes 1996, sections 11A.17, subdivisions 10a 
  4.17  and 14; and 352D.09, subdivision 8, are repealed. 
  4.18     Sec. 8.  [EFFECTIVE DATE.] 
  4.19     Sections 1 to 7 are effective July 1, 1999.