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SF 2152

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

KEY: stricken = removed, old language.
underscored = added, new language.
Version List Authors and Status
Rtf

Current Version - as introduced

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A bill for an act
 relating to retirement; amending Minnesota State Colleges and Universities
annuity provisions; allowing participation in a Roth account option; amending
Minnesota Statutes 2006, section 136F.45, subdivision 1.

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

Section 1.

Minnesota Statutes 2006, section 136F.45, subdivision 1, is amended to read:


Subdivision 1.

Purchase.

(a) At the request of an employee, the board may negotiate
and purchase an individual custodial account under section 403(b)(7) of the Internal
Revenue Code, for an employee for retirement or other purposes from a company licensed
to do business in Minnesota, and may allocate a portion of the compensation otherwise
payable to the employee as salary for the purpose of paying the entire contribution due
or to become due under the account. The allocation shall be made in a manner that will
qualify the custodial account contributions, or portions thereof, for the benefit afforded
under section 403(b)(7) of the current federal Internal Revenue Code or any equivalent
provision of subsequent federal income tax law. The employee shall own the account
and the employee's rights thereunder shall be nonforfeitable except for failure to pay
contributions.

(b) At its discretion, and in the same manner provided in paragraph (a), the board
may negotiate and purchase individual custodial accounts under section 403(b)(7) of the
Internal Revenue Code, for employees of the Minnesota Office of Higher Education as
defined in section 136A.03. Participation under this paragraph must be in accordance
with any applicable federal law.

new text begin (c) Beginning January 1, 2008, the board shall make available to employees eligible
to participate in the plan authorized by 403(b)(7) a designated Roth 403(b) account option,
as authorized by the Economic Growth and Tax Relief Reconciliation Act of 2001.
To the extent that offering a designated Roth 403(b) account option increases the total
necessary and reasonable expenses of the program and if the board is unable to negotiate
a rebate of fees from the mutual fund or equivalent investment product providers, the
board may charge the participants utilizing designated Roth 403(b) account option a fee
to cover those expenses.
 new text end