2004 Minnesota Statutes

CHAPTER 354C. Higher education supplemental retirement plan

  354C.01 Renumbered 354D.01 

  354C.02 Renumbered 354D.02 

  354C.03 Renumbered 354D.03 

  354C.04 Renumbered 354D.04 

  354C.05 Renumbered 354D.05 

  354C.06 Renumbered 354D.06 

  354C.07 Renumbered 354D.07 

     354C.10 Establishment. 

    A supplemental retirement plan is established for certain 
 employees of the Board of Trustees of the Minnesota State 
 Colleges and Universities.  The supplemental retirement plan is 
 the continuation of the plan established by Laws 1967, chapter 
 808, sections 1 to 6, as amended. 

    HIST: 1995 c 141 art 4 s 16; 1995 c 212 art 4 s 64 

     354C.11 Coverage. 

    Subdivision 1.    Authorization.  Individuals employed 
 by the Board of Trustees of the Minnesota State Colleges and 
 Universities are authorized to participate in the supplemental 
 retirement plan, effective on the next following July 1, after 
 meeting eligibility requirements specified in subdivision 2. 

    Subd. 2.    Eligibility.  (a) An individual must 
 participate in the supplemental retirement plan if the 
 individual is employed by the Board of Trustees in the 
 unclassified service of the state and has completed at least two 
 years with a full-time contract of applicable unclassified 
 employment with the board or an applicable predecessor board in 
 any of the positions specified in paragraph (b). 

    (b) Eligible positions or employment classifications are: 

    (1) an unclassified administrative position as defined in 
 section 354B.20, subdivision 6; 

    (2) an employment classification included in one of the 
 following collective bargaining units under section 179A.10, 
 subdivision 2: 

    (i) the state university instructional unit; 

    (ii) the state college instructional unit; and 

    (iii) the state university administrative unit; or 

    (3) an unclassified employee of the board: 

    (i) included in the general professional unit or the 
 supervisory employees unit under section 179A.10, subdivision 2; 
 or 

    (ii) an employee who is excluded from one of those units 
 due to the employee's confidential status under section 179A.10, 
 subdivision 1, clause (8).  

    Subd. 3.    Continuing eligibility authorization.  Once 
 a person qualifies for participation in the supplemental 
 retirement plan, all subsequent service by the person as an 
 unclassified employee of the Board of Trustees in a position or 
 employment classification listed in subdivision 2, paragraph 
 (b), is covered by the supplemental retirement plan. 

    HIST: 1995 c 141 art 4 s 17; 1995 c 212 art 4 s 64; 1997 c 241 
 art 8 s 6; 1999 c 222 art 9 s 7; 2001 c 133 s 5; 2004 c 267 art 
 1 s 8 

     354C.12 Salary deductions and matching employer 
  contributions. 

    Subdivision 1.    Basic contributions and deductions.  
 (a) The employer of personnel covered by the supplemental 
 retirement plan as provided in section 354C.11 shall deduct a 
 sum equal to five percent of the annual salary of the person 
 between $6,000 and $15,000.  The employer may accomplish this 
 deduction by making equal deductions each payroll period, based 
 on anticipated annual salary.  The employer may adjust these 
 deductions as necessary to deduct the correct amount annually.  
 Deductions cease upon termination of employment covered by the 
 supplemental retirement plan.  

    (b) The basic contribution deduction must be made in the 
 same manner as other retirement deductions are made from the 
 salary of the person under section 352.04, subdivision 4; 
 352D.04, subdivision 2; 354.42, subdivision 2; or 354A.12, 
 whichever applies. 

    (c) The employer shall also make a contribution to the 
 supplemental retirement plan on behalf of covered personnel 
 equal to the salary deduction made under paragraph (a). 

    Subd. 1a.    Excess contributions.  When contributions 
 to the plan exceed limits imposed by federal law or regulation, 
 the excess employee contributions must be returned to the 
 employee and the excess employer contributions must be 
 reallocated in accordance with section 415 of the federal 
 Internal Revenue Code, as amended, and the applicable federal 
 regulations and revenue rulings. 

    Subd. 2.    Omitted deductions.  If the employer of 
 personnel covered by the supplemental retirement plan as 
 provided in section 354C.11 fails to deduct the member basic 
 contribution from the covered employee's salary and a period of 
 less than 60 days from the date on which the deduction should 
 have been made has elapsed, the employer must obtain the omitted 
 member deduction by an additional payroll deduction during the 
 pay period next following the discovery of the omission.  If the 
 employer fails to deduct the member basic contribution from the 
 covered employee's salary and that omission continues for at 
 least 60 days from the date on which the member basic 
 contribution deduction should have been made, the employer must 
 pay the amount representing the omitted member basic 
 contribution, and the full required omitted employer basic 
 contribution, plus compound interest at an annual rate of 8.5 
 percent.  The contributions must be made within one year of the 
 date on which the omission was discovered. 

    Subd. 3.    Additional deductions and contributions.  If 
 an agreement is made under section 356.24 for an additional 
 employee deduction and an additional matching employer 
 contribution, an amount equal to the additional employee 
 contribution must be deducted from the employee's salary above 
 $15,000.  The employer must match the additional employee 
 contribution deduction. 

    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 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. 

    (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. 

    HIST: 1995 c 141 art 4 s 18; 1995 c 212 art 4 s 64; 1997 c 241 
 art 3 s 9,10; 1998 c 390 art 2 s 13,14; 1999 c 222 art 19 s 13; 
 2000 c 461 art 12 s 13 

     354C.13 Administration. 

    The Board of Trustees of the Minnesota State Colleges and 
 Universities shall administer the supplemental retirement plan. 

    HIST: 1995 c 141 art 4 s 19; 1995 c 212 art 4 s 64 

     354C.14 Investment of deductions and contributions. 

    (a) The Board of Trustees of the Minnesota State Colleges 
 and Universities shall invest the deductions and contributions 
 under section 354C.12, after deduction of administrative 
 expenses under section 354C.12, subdivision 4, in annuity 
 contracts or custodial accounts from financial institutions 
 selected by the State Board of Investment under section 354B.25, 
 subdivision 3. 

    (b) The retirement contributions and death benefits 
 provided by annuity contracts or custodial accounts purchased by 
 the Board of Trustees of the Minnesota State Colleges and 
 Universities are owned by the supplemental retirement plan and 
 must be paid in accordance with those annuity contracts or 
 custodial account agreements. 

    HIST: 1995 c 141 art 4 s 20; 1995 c 212 art 4 s 64 

     354C.15 Redemption of supplemental investment fund 
  shares. 

    (a) The Board of Trustees of the Minnesota State Colleges 
 and Universities shall redeem all shares in the accounts of the 
 Minnesota supplemental investment fund held on behalf of 
 personnel covered by the supplemental retirement plan upon the 
 election by the person of an investment option other than the 
 supplemental investment fund, except as provided in paragraph 
 (b). 

    (b) The redemption of shares in the fixed interest account 
 attributable to a guaranteed investment contract as of July 1, 
 1994, may not occur until the expiration date of the applicable 
 guaranteed investment contract. 

    (c) The Board of Trustees of the Minnesota State Colleges 
 and Universities shall transfer the cash realized from a 
 redemption of Minnesota supplemental investment fund shares to 
 the financial institution or institutions selected by the State 
 Board of Investment under section 354B.25, subdivision 3. 

    HIST: 1995 c 141 art 4 s 21; 1995 c 212 art 4 s 64 

     354C.16 Payment of benefits. 

    (a) The withdrawal of member contributions, employer 
 contributions, and accrued investment income, or a retirement 
 benefit based on those amounts is payable immediately upon the 
 death or termination of employment of the employee. 

    (b) An application by the employee or made on behalf of the 
 employee by an appropriate third party must be filed before any 
 payment of benefits may occur. 

    HIST: 1995 c 141 art 4 s 22 

     354C.165 Prohibition on loans or pretermination 
  distributions. 

    (a) Except as provided in paragraph (c), no participant may 
 obtain a loan or any distribution from the plan before the 
 participant terminates the employment that gave rise to plan 
 coverage. 

    (b) No amounts to the credit of the plan are assignable 
 either in law or in equity, or are subject to execution, levy, 
 attachment, garnishment, or other legal process, except as 
 provided in section 518.58, 518.581, or 518.6111.  

    (c) MS 2002 (Expired) 

    HIST: 1995 c 141 art 4 s 23; 1997 c 203 art 6 s 92; 2000 c 461 
 art 12 s 14,20; 2002 c 392 art 7 s 2; 2003 c 127 art 3 s 22; 1Sp2003 c 
 12 art 6 s 4 

     354C.17 Tax shelter provisions. 

    Subdivision 1.    Agreements; salary adjustments.  For 
 the purpose of permitting participation in a tax shelter for 
 employment income under the applicable pension provisions of the 
 Internal Revenue Code, the Board of Trustees of the Minnesota 
 State Colleges and Universities may enter into agreements with 
 its employees to reduce or to adjust downward the salaries for 
 persons covered by the supplemental retirement plan under 
 section 354C.11, and to pay as the employer an amount equivalent 
 to the salary reduction or the salary downward adjustment in the 
 same manner as deductions would have been paid by the employee 
 under section 354C.12, subdivision 1. 

    Subd. 2.    Rules.  The Board of Trustees of the 
 Minnesota State Colleges and Universities may adopt rules and 
 procedures consistent with this chapter to permit, if possible, 
 participation in a tax shelter under the applicable provisions 
 of the Internal Revenue Code. 

    HIST: 1995 c 141 art 4 s 24; 1995 c 212 art 4 s 64 

     354C.18 Rules. 

    (a) The Board of Trustees of the Minnesota State Colleges 
 and Universities may adopt rules to administer this chapter. 

    (b) The Board of Trustees of the Minnesota State Colleges 
 and Universities may deposit member contributions in a 
 nontreasury account established under chapter 136, an account or 
 accounts established under section 11A.17, or other appropriate 
 accounts operated by the State Board of Investment for 
 investment under procedures established by the State Board of 
 Investment. 

    HIST: 1995 c 141 art 4 s 25; 1995 c 212 art 4 s 64