HF 3538

as introduced - 91st Legislature (2019 - 2020) Posted on 02/19/2020 12:55pm

A bill for an act
relating to retirement; Minnesota deferred compensation plan; permitting certain
in-service withdrawals; amending Minnesota Statutes 2018, section 352.965, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2018, section 352.965, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin In-service withdrawals. new text end

new text begin In addition to the distribution and withdrawal rights
provided under the terms of the plan document referred to in subdivision 1, paragraph (d),
the plan document shall provide that a participant who is an active employee may request
a withdrawal in the form of a lump-sum payment of all or a portion of the participant's
account under the plan if the participant has attained at least age 59 and one-half. The plan
document shall provide for the frequency with which a participant may take an in-service
withdrawal under this subdivision, but must permit withdrawals at least as frequently as
once each plan year. Under the provisions in the plan document authorizing eligible rollover
distributions, the plan administrator shall permit a participant to elect a direct rollover of
an in-service withdrawal to an eligible retirement plan.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020.
new text end