1999 Minnesota Statutes

     356.24 Supplemental pension or deferred compensation 
  plans, restrictions upon government units. 

    Subdivision 1.    Restriction; exceptions.  It is 
 unlawful for a school district or other governmental subdivision 
 or state agency to levy taxes for, or contribute public funds to 
 a supplemental pension or deferred compensation plan that is 
 established, maintained, and operated in addition to a primary 
 pension program for the benefit of the governmental subdivision 
 employees other than: 

    (1) to a supplemental pension plan that was established, 
 maintained, and operated before May 6, 1971; 

    (2) to a plan that provides solely for group health, 
 hospital, disability, or death benefits; 

    (3) to the individual retirement account plan established 
 by chapter 354B; 

    (4) to a plan that provides solely for severance pay under 
 section 465.72 to a retiring or terminating employee; 

    (5) for employees other than personnel employed by the 
 state university board or the community college board and 
 covered by the board of trustees of the Minnesota state colleges 
 and universities supplemental retirement plan under chapter 
 354C, if provided for in a personnel policy of the public 
 employer or in the collective bargaining agreement between the 
 public employer and the exclusive representative of public 
 employees in an appropriate unit, in an amount matching employee 
 contributions on a dollar for dollar basis, but not to exceed an 
 employer contribution of $2,000 a year per employee; 

    (i) to the state of Minnesota deferred compensation plan 
 under section 352.96; or 

    (ii) in payment of the applicable portion of the premium on 
 a tax-sheltered annuity contract qualified under section 403(b) 
 of the Internal Revenue Code, if purchased from a qualified 
 insurance company, or to a qualified investment entity, as 
 defined in subdivision 1a, and, in either case, if the employing 
 unit has complied with any applicable pension plan provisions of 
 the Internal Revenue Code with respect to the tax-sheltered 
 annuity program during the preceding calendar year; or 

    (6) for personnel employed by the state university board or 
 the community college board and not covered by clause (5), to 
 the supplemental retirement plan under chapter 354C, if provided 
 for in a personnel policy or in the collective bargaining 
 agreement of the public employer with the exclusive 
 representative of the covered employees in an appropriate unit, 
 in an amount matching employee contributions on a dollar for 
 dollar basis, but not to exceed an employer contribution of 
 $2,000 a year for each employee.  

    Subd. 1a.    Qualified insurance company; qualified 
 investment entities; definitions.  (a) A qualified insurance 
 company is a company that: 

    (1) meets the definition in section 60A.02, subdivision 4; 

    (2) is licensed to engage in life insurance or annuity 
 business in the state; 

    (3) is determined by the commissioner of commerce to have a 
 rating within the top two rating categories by a recognized 
 national rating agency or organization that regularly rates 
 insurance companies; and 

    (4) is determined by the state board of investment to be 
 among up to 20 applicant insurance companies with competitive 
 investment options and investment returns. 

    (b) A qualified investment entity is an open-end investment 
 company that: 

    (1) is registered under the federal Investment Company Act 
 of 1940; 

    (2) is licensed to do business in the state; 

    (3) is determined by the commissioner of commerce to be in 
 sound financial standing; and 

    (4) is determined by the state board of investment to be 
 among up to five applicant investment entities with competitive 
 investment options and investment returns. 

    (c) The state board of investment determination must be 
 made on or before July 1, 2000, and must be reviewed 
 periodically.  The state board of investment may retain 
 actuarial services to assist it in this determination and in its 
 periodic review.  The state board of investment may annually 
 establish a budget for its costs in any determination and 
 periodic review processes.  The state board of investment may 
 charge a proportional share of all costs related to the periodic 
 review to those qualified insurance companies and qualified 
 investment entities currently under contract and may charge a 
 proportional share of all costs related to soliciting and 
 evaluating bids in a determination process to each company and 
 investment entity selected by the state board of investment.  
 All contracts must be approved before execution by the state 
 board of investment.  The state board of investment shall 
 establish policies and procedures under section 11A.04, clause 
 (2), to carry out this paragraph. 

    Subd. 1b.    Vendor restrictions.  A personnel policy 
 for unrepresented employees or a collective bargaining agreement 
 may establish limits on the number of vendors under subdivision 
 1 that it will utilize and conditions under which the vendors 
 may contact employees both during working hours and after 
 working hours. 

    Subd. 2.    Limit on certain contributions or benefit 
 changes.  No change in benefits or employer contributions in a 
 supplemental pension plan to which this section applies after 
 May 6, 1971, is effective without prior legislative 
 authorization. 

    HIST: 1971 c 222 s 1; 1980 c 600 s 7; 1981 c 224 s 172; 1988 c 
 605 s 9; 1988 c 709 art 11 s 6; 1989 c 319 art 12 s 3; 1992 c 
 464 art 1 s 42; 1992 c 487 s 4; 1993 c 192 s 90; 1993 c 239 art 
 3 s 1; 1993 c 300 s 12; 1995 c 141 art 3 s 16; art 4 s 7; 1995 c 
 212 art 4 s 64; 1999 c 222 art 18 s 1 

*   NOTE:  The amendment to subdivision 1 by Laws 1999, chapter 
*222, article 18, section 1, is effective May 15, 2000.  Laws 
*1999, chapter 222, article 18, section 3.