1997 Minnesota Statutes

     136F.45 Annuities. 

    Subdivision 1.    Purchase.  At the request of an 
 employee, the board may negotiate and purchase an individual 
 annuity contract 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 
 premium due or to become due under the contract.  The allocation 
 shall be made in a manner that 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 the contract and the employee's rights 
 thereunder shall be nonforfeitable except for failure to pay 
 premiums.  

    Subd. 2.    Deposits; payment.  All amounts so allocated 
 shall be deposited in an annuity account established by the 
 board.  Payment of annuity premiums shall be made when due or in 
 accordance with the salary agreement entered into between the 
 employee and the board.  The money in the annuity account is not 
 subject to the budget, allotment, and incumbrance system 
 provided for in chapter 16A.  

    Subd. 3.    Tax-sheltered annuity administrative expenses. 
  (a) The reasonable and necessary administrative expenses of 
 the tax-sheltered annuity program, to a maximum of $100,000 
 annually, must be paid by the financial institutions authorized 
 by the board of trustees of the Minnesota state colleges and 
 universities system to provide tax-sheltered annuity investment 
 options. 

    (b) Annually, the board of trustees shall establish a 
 budget for the tax-sheltered annuity program administrative 
 expenses.  The total budgeted administrative expense must be 
 allocated among the applicable financial institutions by the 
 board of trustees. 

    Subd. 4.    Periodic review.  If the board so chooses, 
 it may solicit bids or proposals for options under subdivision 1.
 The board may retain consulting services to assist it in 
 soliciting and evaluating bids or proposals and in the periodic 
 review of companies offering options under subdivision 1.  The 
 board may annually establish a budget for its costs in the 
 soliciting, evaluating, and periodic review processes.  The 
 board may charge a proportional share of all costs related to 
 the periodic review to each company currently under contract and 
 may charge a proportional share of all costs related to 
 soliciting and evaluating bids or proposals to each company 
 selected by the board.  Contracts must provide that all options 
 in subdivision 1 must:  (1) be presented in an unbiased manner, 
 (2) be reported on a periodic basis to all employees 
 participating in the tax-sheltered annuity program, and (3) not 
 be the subject of unreasonable solicitation of state employees 
 to participate in the program.  The contract may not permit any 
 person to jeopardize the tax-deferred status of money invested 
 by state employees under this section.  All costs or fees in 
 relation to the bid solicitation and evaluation process for the 
 options provided under subdivision 1 must be paid by the 
 underwriting companies ultimately selected by the board. 

    HIST: 1995 c 212 art 4 s 32; 1997 c 241 art 8 s 1,2