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; expanding the number of 1.3 investments available for certain public supplemental 1.4 pension or deferred compensation plans; amending 1.5 Minnesota Statutes 1996, section 356.24, subdivision 1. 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. Minnesota Statutes 1996, section 356.24, 1.8 subdivision 1, is amended to read: 1.9 Subdivision 1. [RESTRICTION; EXCEPTIONS.] (a) It is 1.10 unlawful for a school district or other governmental subdivision 1.11 or state agency to levy taxes for, or contribute public funds to 1.12 a supplemental pension or deferred compensation plan that is 1.13 established, maintained, and operated in addition to a primary 1.14 pension program for the benefit of the governmental subdivision 1.15 employees other than: 1.16 (1) to a supplemental pension plan that was established, 1.17 maintained, and operated before May 6, 1971; 1.18 (2) to a plan that provides solely for group health, 1.19 hospital, disability, or death benefits; 1.20 (3) to the individual retirement account plan established 1.21 by chapter 354B; 1.22 (4) to a plan that provides solely for severance pay under 1.23 section 465.72 to a retiring or terminating employee; 1.24 (5) for employees other than personnel employed by the 1.25 state university board or the community college board and 2.1 covered by the board of trustees of the Minnesota state colleges 2.2 and universities supplemental retirement plan under chapter 2.3 354C, if provided for in a personnel policy of the public 2.4 employer or in the collective bargaining agreement between the 2.5 public employer and the exclusive representative of public 2.6 employees in an appropriate unit, in an amount matching employee 2.7 contributions on a dollar for dollar basis, but not to exceed an 2.8 employer contribution of $2,000 a year per employee; 2.9 (i) to the state of Minnesota deferred compensation plan 2.10 under section 352.96; or 2.11 (ii) in payment of the applicable portion of the premiumon2.12a tax-sheltered annuity contract qualifiedpaid to any 2.13 investment eligible under section 403(b) of the Internal Revenue 2.14 Code,if purchased from a qualified insurance company,and if 2.15 the employing unit has complied with any applicable pension plan 2.16 provisions of the Internal Revenue Code with respect to the 2.17 tax-sheltered annuity program during the preceding calendar 2.18 year; or 2.19 (6) for personnel employed by the state university board or 2.20 the community college board and not covered by clause (5), to 2.21 the supplemental retirement plan under chapter 354C, if provided 2.22 for in a personnel policy or in the collective bargaining 2.23 agreement of the public employer with the exclusive 2.24 representative of the covered employees in an appropriate unit, 2.25 in an amount matching employee contributions on a dollar for 2.26 dollar basis, but not to exceed an employer contribution of 2.27 $2,000 a year for each employee. 2.28 (b)A qualified insurance company is a company that:2.29(1) meets the definition in section 60A.02, subdivision 4;2.30(2) is licensed to engage in life insurance or annuity2.31business in the state;2.32(3) is determined by the commissioner of commerce to have a2.33rating within the top two rating categories by a recognized2.34national rating agency or organization that regularly rates2.35insurance companies; and2.36(4) is determined by the state board of investment to be3.1among the ten applicant insurance companies with competitive3.2options and investment returns on annuity products. The state3.3board of investment determination must be made on or before3.4January 1, 1993, and must be reviewed periodically. The state3.5board of investment may retain actuarial services to assist it3.6in this determination and in its periodic review. The state3.7board of investment may annually establish a budget for its3.8costs in any determination and periodic review processes. The3.9state board of investment may charge a proportional share of all3.10costs related to the periodic review to those companies3.11currently under contract and may charge a proportional share of3.12all costs related to soliciting and evaluating bids in a3.13determination process to each company selected by the state3.14board of investment. All contracts must be approved before3.15execution by the state board of investment. The state board of3.16investment shall establish policies and procedures under section3.1711A.04, clause (2), to carry out this paragraph.3.18(c) A personnel policy for unrepresented employees or a3.19collective bargaining agreementA school board may establish 3.20 limits on the number of vendorsunder paragraph (b), clause (5),3.21 that it will utilize and conditions under which the vendors may 3.22 contact employees both during working hours and after working 3.23 hours.