HF 3743

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to teacher retirement savings; requiring collective bargaining over the
number of tax-sheltered annuity vendors a school district permits for payroll
deduction; amending Minnesota Statutes 2006, section 123B.02, subdivision 15.

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

Section 1.

Minnesota Statutes 2006, section 123B.02, subdivision 15, is amended to
read:

Subd. 15.

Annuity contract; payroll allocation.

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. new text begin The identity and number of the available vendors under federal Internal Revenue
Code section 403(b) is a term and condition of employment under section 179A.03.
new text end