SF 2153

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

A bill for an act
relating to retirement; creating unclaimed account procedures for the Minnesota
State Colleges and Universities system individual retirement account plan and
supplemental plan; amending Minnesota Statutes 2006, sections 354B.20, by
adding a subdivision; 354B.25, subdivision 5, by adding a subdivision; 354C.12,
subdivision 4; proposing coding for new law in Minnesota Statutes, chapter
354C.

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

Section 1.

Minnesota Statutes 2006, section 354B.20, is amended by adding a
subdivision to read:

new text begin Subd. 19. new text end

new text begin Unclaimed plan account amounts. new text end

new text begin "Unclaimed plan account amounts"
means the distributable accounts of any plan participant, surviving spouse, beneficiary, or
estate that the plan administrator is unable to locate in accordance with Internal Revenue
Service due diligence requirements.
new text end

Sec. 2.

Minnesota Statutes 2006, section 354B.25, subdivision 5, is amended to read:

Subd. 5.

Individual retirement account plan administrative expenses.

(a) The
reasonable and necessary administrative expenses of the individual retirement account
plan new text begin , not to exceed an amount equal to $20 times the number of participants per year, new text end
may be charged to plan participants by the plan sponsor in the form of an annual fee, an
asset-based fee, a percentage of the contributions to the plan, or a combination thereof. new text begin
This amount shall be offset by interest earned on both the plan reserves and unclaimed
funds account.
new text end

(b) Any administrative expense charge that is not actually needed for the
administrative expenses of the individual retirement account plan must be refunded to
member accounts.

(c) The Board of Trustees shall report annually, before October 1, to the advisory
committee created in subdivision 1a on administrative expenses of the plan. The report
must include a detailed accounting of charges for administrative expenses collected
from plan participants and expenditure of the administrative expense charges. The
administrative expense charges collected from plan participants must be kept in a separate
account from any other funds under control of the Board of Trustees and may be used only
for the necessary and reasonable administrative expenses of the plan.

Sec. 3.

Minnesota Statutes 2006, section 354B.25, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Disposition of abandoned public pension amounts. new text end

new text begin (a) Any unclaimed
plan account amounts are presumed to be abandoned, but are not subject to the provisions
of sections 345.31 to 345.60. If the account remains unclaimed after six months following
the date that the plan administrator first attempts to locate the former member, surviving
spouse, or other beneficiary, the unclaimed plan account amount cancels and must be
credited to the reserve account specified in paragraph (b).
new text end

new text begin (b) The board must establish a separate account to receive unclaimed plan account
amounts. A portion of this reserve account and any investment earnings attributable to
this reserve account are to be used to offset the reasonable and necessary expenses of
the individual retirement account plan, including costs incurred in efforts to locate lost
participants, surviving spouses, or other beneficiaries.
new text end

new text begin (c) If the unclaimed plan account amount exceeded $25 and the inactive member,
surviving spouse, or beneficiary, whichever is applicable, establishes a valid claim to the
forfeited account, the forfeited account is to be reestablished in an amount equal to the
amount originally forfeited. The board must ensure that the reserve account has sufficient
assets to cover any transfers needed to reestablish accounts. If reserve account assets are
insufficient to make a transfer, the board must cover any shortfall from other revenues.
new text end

Sec. 4.

Minnesota Statutes 2006, section 354C.12, subdivision 4, is amended to read:

Subd. 4.

Administrative expenses.

(a) The Board of Trustees of the Minnesota
State Colleges and Universities is authorized to pay the necessary and reasonable
administrative expenses of the supplemental retirement plan and may bill participants new text begin , not
to exceed an amount equal to $20 times the number of participants in the plan, new text end to recover
these expenses. The administrative fees or charges may be charged to participants as an
annual fee, an asset-based fee, a percentage of contributions to the plan, or a contribution
thereof. new text begin This amount shall be offset by interest earned on both the plan reserves and
unclaimed funds account.
new text end

(b) Any recovered or assessed amounts that are not needed for the necessary and
reasonable administrative expenses of the plan must be refunded to member accounts.

(c) The Board of Trustees shall report annually, before October 1, to the advisory
committee created in section 354B.25, subdivision 1a, on administrative expenses of the
plan. The report must include a detailed accounting of charges for administrative expenses
collected from plan participants and expenditure of the administrative expense charges.
The administrative expense charges collected from plan participants must be kept in a
separate account from any other funds under control of the Board of Trustees and may be
used only for the necessary and reasonable administrative expenses of the plan.

Sec. 5.

new text begin [354C.155] UNCLAIMED PLAN ACCOUNT AMOUNTS.
new text end

new text begin Section 354B.25, subdivision 6, applies to the supplemental retirement plan.
new text end