Minnesota Session Laws - 1994, Regular Session

                            CHAPTER 565-S.F.No. 2500 
                  An act relating to retirement; St. Paul teachers 
                  retirement fund association; requiring proportional 
                  representation for various membership groups on the 
                  association board of trustees; requiring disclosure of 
                  certain investment information; proposing coding for 
                  new law in Minnesota Statutes, chapters 354A; and 356. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
           Section 1.  [354A.023] [ST. PAUL TEACHERS RETIREMENT FUND 
        ASSOCIATION GOVERNANCE.] 
           Subdivision 1.  [APPLICATION.] Notwithstanding any 
        provision of chapter 317A, section 354A.021, article V, of the 
        restated articles of incorporation of the teachers retirement 
        fund association of St. Paul, Minnesota, effective July 1, 1978, 
        as amended, or articles II, sections 4 and 5; III, section 1; 
        and V, section 1, of the restated bylaws of the teachers 
        retirement fund association of St. Paul, Minnesota, effective 
        July 1, 1978, as amended, to the contrary, relative to the St. 
        Paul teachers retirement fund association, this section governs 
        the membership composition of its board of trustees, the terms 
        in office of board members, board member eligibility, electorate 
        composition and eligibility, and election procedures. 
           Subd. 2.  [BOARD OF TRUSTEES COMPOSITION.] The management 
        of the St. Paul teachers retirement fund association is vested 
        in a board of ten trustees.  The board membership is composed of 
        one ex officio board member, who is the then current chair of 
        the board of independent school district No. 625, St. Paul, and 
        nine trustees elected by and from the members of the St. Paul 
        teachers retirement fund association as provided in subdivision 
        4. 
           Subd. 3.  [BOARD OF TRUSTEES TERMS.] (a) The term of the ex 
        officio board member is coincidental with that person's term of 
        office as the chair of the board of independent school district 
        No. 625, St. Paul. 
           (b) The term of elected members of the board is three years 
        and until the successor has been elected and qualified.  The 
        term begins and ends on the third Thursday in the month of 
        January of the applicable year.  The terms of elected members of 
        the board must be staggered. 
           Subd. 4.  [BOARD MEMBER REPRESENTATION.] (a) Of the nine 
        trustees elected by and from the members of the St. Paul 
        teachers retirement fund association, six board members must be 
        active members of the fund and three board members must be fund 
        retirement annuitants, disabilitants, or surviving spouse 
        benefit recipients. 
           (b) Two active member board positions and one annuity or 
        benefit recipient board position must be filled at each board of 
        trustee election. 
           (c) Only active members may vote for the elected board 
        member positions representing active members and only retirement 
        annuitants, disabilitants, and surviving spouse benefit 
        recipients may vote for the elected board member positions 
        representing annuity or benefit recipients. 
           (d) If an elected board member changes membership group 
        status before the end of the person's term, the person must 
        resign from the board of trustees.  However, the person may be a 
        candidate for the appropriate membership group board position in 
        a subsequent election. 
           (e) If there is a vacancy in an elected board member 
        position, the vacancy must be filled by a special election held 
        for that purpose.  The special election must be conducted in a 
        manner consistent with this section, and, if not inconsistent 
        with this section, article IV of the bylaws of the St. Paul 
        teachers retirement fund association in effect on the date of 
        enactment of this section. 
           Subd. 5.  [ELECTIONS BY MAIL BALLOT.] (a) Voting for 
        elected board members must be conducted using paper ballots, 
        which must be mailed by the chief administrative officer of the 
        fund to eligible members and must be returned by mail. 
           (b) Return envelopes for ballots may not have the postage 
        paid by the fund unless all return envelopes for ballots are so 
        treated.  Return envelopes for ballots may not have the postage 
        paid by any candidate for a board member position or on behalf 
        of any candidate for a board member position. 
           (c) The ballot for a regular election must be provided to 
        eligible members by November 1 and must be returned with a 
        postmark no later than midnight of the Friday of the third week 
        of November.  In the event of a vacancy in an elected board 
        member position, the ballot for a special election must be 
        provided to eligible members within three weeks of the vacancy 
        and must be returned by eligible voting members with a postmark 
        no later than midnight of the Friday of the fourth full week 
        following the vacancy. 
           Subd. 6.  [SECRETARY-TREASURER NOT TO BE BOARD MEMBER.] (a) 
        Effective on the January 19 next following the effective date of 
        this section, the person who holds the position of secretary of 
        the St. Paul teachers retirement fund association and the person 
        who holds the position of treasurer of the St. Paul teachers 
        retirement fund association or the person who holds the combined 
        position of secretary-treasurer of the St. Paul teachers 
        retirement fund association may not also be an elected board 
        member of the fund association. 
           (b) The chief administrative officer of the St. Paul 
        teachers retirement fund association must be known as the 
        executive director of the fund. 
           Subd. 7.  [ARTICLE AND BYLAW AMENDMENTS AUTHORIZED.] At the 
        next annual meeting of the St. Paul teachers retirement fund 
        association or at a special meeting of the association called by 
        the board of trustees for that purpose, the association may 
        consider and adopt any amendments to its articles of 
        incorporation or bylaws needed to conform or implement this 
        section. 
           Sec. 2.  [EFFECTIVE DATE.] 
           (a) Section 1 is effective on the day following approval of 
        all provisions by majority vote at the first annual or special 
        membership meeting of the St. Paul teachers retirement fund 
        association occurring after the date of enactment. 
           (b) The board of trustees of the St. Paul teachers 
        retirement fund association shall propose the question on the 
        approval of these provisions to the fund membership at the 
        applicable membership meeting.  The provisions of section 1 are 
        a single question and may not be divided or voted upon as 
        separate items. 
           (c) Nothing in section 1 may be construed to reduce the 
        term of any elected member of the board of trustees of the St. 
        Paul teachers retirement fund association serving as such on the 
        effective date of section 1. 
                                   ARTICLE 2
           Section 1.  [356.219] [DISCLOSURE OF ADDITIONAL PUBLIC 
        PENSION PLAN INVESTMENT INFORMATION.] 
           Subdivision 1.  [REPORT REQUIRED.] The state board of 
        investment on behalf of the public pension funds and programs 
        for which it is the investment authority and any Minnesota 
        public pension plan not wholly invested through the state board 
        of investments, including a local police or firefighters' relief 
        association governed by sections 69.77 or 69.771 to 69.775, 
        shall report the information specified in subdivision 2 to the 
        state auditor.  The state auditor may prescribe a form or forms 
        for the purposes of the reporting requirements contained in this 
        section. 
           Subd. 2.  [CONTENT AND TIMING OF REPORTS.] (a) The 
        following information shall be included in the report required 
        by subdivision 1: 
           (1) the market value of all investments at the close of the 
        reporting period; 
           (2) regular payroll-based contributions to the fund; 
           (3) other contributions and revenue paid into the fund, 
        including, but not limited to, state or local nonpayroll based 
        contributions, repaid refunds, and buybacks; 
           (4) total benefits paid to members; 
           (5) fees paid for investment management services; 
           (6) salaries and other administrative expenses paid; and 
           (7) total return on investment. 
           The report must also include a written statement of the 
        investment policy in effect on June 30, 1988, and any investment 
        policy changes made subsequently and shall include the effective 
        date of each policy change.  The information required under this 
        subdivision must be reported separately for each investment 
        account or investment portfolio included in the pension fund. 
           (b) For public pension plans other than volunteer 
        firefighters' relief associations governed by sections 69.77 or 
        69.771 to 69.775, the information specified in paragraph (a) 
        must be provided separately for each quarter for the fiscal 
        years of the pension fund ending during calendar years 1989 
        through 1991 and on a monthly basis thereafter.  For volunteer 
        firefighters' relief associations governed by sections 69.77 or 
        69.771 to 69.775, the information specified in paragraph (a) 
        must be provided separately each quarter. 
           (c) Firefighters' relief associations that have assets with 
        a market value of less than $300,000 must submit the required 
        information to the state auditor on or before October 1, 1995, 
        and subsequently within six months of the end of each fiscal 
        year.  Other associations must submit the required information 
        through fiscal year 1993 to the state auditor on or before 
        October 1, 1994, and subsequently within six months of the end 
        of each fiscal year. 
           Subd. 3.  [PENALTY FOR NONCOMPLIANCE.] Failure to comply 
        with the reporting requirements of this section shall result in 
        a withholding of all state aid to which the pension plan may 
        otherwise be entitled until the pension plan has complied with 
        the reporting requirements.  The state auditor shall instruct 
        the commissioners of revenue and finance to withhold state aid 
        from any pension plan that fails to comply with the reporting 
        requirements contained in this section, until the pension plan 
        has complied with the reporting requirements.  
           The state auditor shall agree to waive the withholding of 
        all state aid required by this subdivision for a volunteer 
        firefighters' relief association governed by sections 69.77 or 
        69.771 to 69.775 if: 
           (1) the relief association certifies to the state auditor 
        that the financial records necessary to comply with this 
        reporting requirement for the fiscal years of the pension fund 
        ending during calendar years 1991 to 1993 no longer exist; or 
           (2) the state auditor determines that reconstructing 
        historical financial data for the fiscal years of the pension 
        fund ending during calendar years 1991 to 1993 would create an 
        excessive hardship for the relief association. 
           Subd. 4.  [INVESTMENT DISCLOSURE REPORT.] Using the 
        information provided under subdivision 2, the state auditor 
        shall prepare an annual report to the legislature on the 
        components of investment performance resulting from stages in 
        the investment decision making process of various public pension 
        plans subject to this section.  The state auditor may contract 
        with a qualified consultant or consulting firm to perform the 
        analysis and prepare the report required under this subdivision. 
           Subd. 5.  [EXPENSE OF REPORT.] All expenses incurred 
        relating to the investment disclosure report described in 
        subdivision 4 must be borne by the office of the state auditor 
        and may not be charged back to the entities described in 
        subdivision 1. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective the day following final enactment. 
           Presented to the governor May 2, 1994 
           Signed by the governor May 4, 1994, 3:40 p.m.