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Chapter 352

Section 352.03


Recent History

    Subdivision 1. Membership of board; election; term. The policy-making function of the
system is vested in a board of 11 members known as the board of directors. This board shall
consist of three members appointed by the governor, one of whom must be a constitutional
officer or appointed state official and two of whom must be public members knowledgeable
in pension matters, four state employees elected by state employees covered by the system
excluding employees in categories specifically authorized to designate or elect a member by this
subdivision, one employee of the Metropolitan Council's transit operations or its successor agency
designated by the executive committee of the labor organization that is the exclusive bargaining
agent representing employees of the transit division, one member of the State Patrol retirement
fund elected by members of that fund at a time and in a manner fixed by the board, one employee
covered by the correctional employees plan elected by employees covered by that plan, and one
retired employee elected by disabled and retired employees of all plans administered by the
system at a time and in a manner to be fixed by the board. Two state employee members, whose
terms of office begin on the first Monday in May after their election, must be elected biennially.
Elected members and the appointed member of the Metropolitan Council's transit operations
hold office for a term of four years and until their successors are elected or appointed, and have
qualified. An employee of the system is not eligible for membership on the board of directors. A
state employee on leave of absence is not eligible for election or reelection to membership on
the board of directors. The term of any board member who is on leave for more than six months
automatically ends on expiration of the term of office.
    Subd. 1a. Terms; compensation; removal; vacancies; public members. The membership
terms, compensation, removal of members, and filling of vacancies for the public members on
the board are as provided in section 15.0575.
    Subd. 2. Vacancy. Any vacancy of a state employee or retired employee in the board caused
by death, resignation, or removal of any member so elected must be filled by the board for the
unexpired portion of the term in which the vacancy occurs. Any vacancy of the employee of the
transit operating division member of the board caused by death, resignation, or removal must
be filled by the governing board of the labor organization that is the exclusive bargaining agent
representing employees of the Transit Operating Division.
    Subd. 3.[Repealed, 1976 c 134 s 79]
    Subd. 4. Duties and powers of board of directors. The board shall:
(1) elect a chair;
(2) appoint an executive director;
(3) establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D, and 490
and transact the business of the system, subject to the limitations of law;
(4) consider and dispose of, or take any other action the board of directors deems appropriate
concerning denials of applications for annuities or disability benefits under this chapter, and
complaints of employees and others pertaining to the retirement of employees and the operation
of the system;
(5) advise the director on any matters relating to the system and carrying out functions and
purposes of this chapter. The board's advice shall control; and
(6) oversee the administration of the state deferred compensation plan established in section
The director and assistant director must be in the unclassified service but appointees may
be selected from civil service lists if desired. The salary of the executive director must be as
provided by section 15A.0815. The salary of the assistant director must be set in accordance
with section 43A.18, subdivision 3.
    Subd. 4a. Additional duties of the board. The board may consider, review, and make
recommendations regarding the financial and other needs of retired employees and may
disseminate appropriate retirement information to the retired employee. Notwithstanding laws
to the contrary, the board, at its discretion, may supply the names and addresses of retirees who
were employed by the University of Minnesota at the time of termination to the University of
Minnesota and state agencies for retirees who were employed by the specific state agency at the
time of termination. The board, at its discretion, may supply names and addresses of state and
university retirees to an organization that has been in existence for at least ten years and represents
over 5,000 retired state and university employees. The names and addresses of each retiree can
only be given to this organization once within 60 days of the effective date of the annuity. The
board shall require the retiree organization, University of Minnesota, or applicable state agency
to reimburse the fund for any administrative expense of providing the list. The list remains the
property of the Minnesota State Retirement System and may not be subsequently sold, conveyed,
given, or otherwise transferred by the retiree organization, the University of Minnesota, or the
state agency to a third party. Periodically, retirees must be given an opportunity to specify that
their name and address not be distributed under this section.
    Subd. 5. Executive director. The executive director, in this chapter called the director, of
the system must be appointed by the board on the basis of fitness, experience in the retirement
field, and leadership ability. The director must have had at least five years' experience on the
administrative staff of a major retirement system.
    Subd. 6. Duties and powers of executive director. The management of the system is vested
in the director, who is the executive and administrative head of the system. The director shall be
advisor to the board on matters pertaining to the system and shall also act as the secretary of the
board. The director shall:
(1) attend meetings of the board;
(2) prepare and recommend to the board appropriate rules to carry out this chapter;
(3) establish and maintain an adequate system of records and accounts following recognized
accounting principles and controls;
(4) designate an assistant director with the approval of the board;
(5) appoint any employees, both permanent and temporary, that are necessary to carry out the
provisions of this chapter;
(6) organize the work of the system as the director deems necessary to fulfill the functions
of the system, and define the duties of its employees and delegate to them any powers or
duties, subject to the control of the director and under conditions the director may prescribe.
Appointments to exercise delegated power must be by written order and shall be filed with the
secretary of state;
(7) with the advice and consent of the board, contract for the services of an approved actuary,
professional management services, and any other consulting services as necessary and fix the
compensation for those services. The contracts are not subject to competitive bidding under
chapter 16C. Any approved actuary retained by the executive director shall function as the
actuarial advisor of the board and the executive director, and may perform actuarial valuations and
experience studies to supplement those performed by the actuary retained under section 356.214.
Any supplemental actuarial valuations or experience studies shall be filed with the executive
director of the Legislative Commission on Pensions and Retirement. Professional management
services may not be contracted for more often than once in six years. Copies of professional
management survey reports must be transmitted to the secretary of the senate, the chief clerk of
the house of representatives, and the Legislative Reference Library as provided by section 3.195,
and to the executive director of the commission at the time as reports are furnished to the board.
Only management firms experienced in conducting management surveys of federal, state, or local
public retirement systems are qualified to contract with the director;
(8) with the advice and consent of the board provide in-service training for the employees
of the system;
(9) make refunds of accumulated contributions to former state employees and to the
designated beneficiary, surviving spouse, legal representative, or next of kin of deceased state
employees or deceased former state employees, as provided in this chapter;
(10) determine the amount of the annuities and disability benefits of employees covered by
the system and authorize payment of the annuities and benefits beginning as of the dates on which
the annuities and benefits begin to accrue, in accordance with the provisions of this chapter;
(11) pay annuities, refunds, survivor benefits, salaries, and necessary operating expenses
of the system;
(12) certify funds available for investment to the State Board of Investment;
(13) with the advice and approval of the board request the State Board of Investment to sell
securities when the director determines that funds are needed for the system;
(14) prepare and submit to the board and the legislature an annual financial report covering
the operation of the system, as required by section 356.20;
(15) prepare and submit biennial and annual budgets to the board and with the approval of
the board submit the budgets to the Department of Finance; and
(16) with the approval of the board, perform other duties required to administer the
retirement and other provisions of this chapter and to do its business.
    Subd. 7. Directors' fiduciary obligation. The board and the director shall undertake their
activities consistent with chapter 356A.
    Subd. 8. Medical adviser. The state commissioner of health or other licensed physician on
the staff of the commissioner as the commissioner may designate shall be the medical adviser
of the director.
    Subd. 9. Duties of the medical adviser. The medical adviser shall designate licensed
physicians to examine applicants for disability benefits. The medical adviser shall pass upon
medical reports based upon examinations required to determine whether a state employee is totally
and permanently disabled as defined in section 352.01, subdivision 17, shall investigate health
and medical statements and certificates by or on behalf of a state employee in connection with a
disability benefit, and shall report in writing to the director conclusions and recommendations on
matters referred for advice.
    Subd. 10. Power to determine employee's status. Except as otherwise specifically provided
in this chapter, the final power to determine the status of any individual in the employ of the state
for the purposes of this chapter is vested in the board and its decision is final.
    Subd. 11. Legal adviser, attorney general. The attorney general shall be the legal adviser of
the board and of the director. The board may sue or be sued or petitioned under this section in the
name of the board of directors of the system. In actions brought by it or against it, the board shall
be represented by the attorney general and, except as provided in section 352.031, subdivision 9,
venue of actions shall be in the Ramsey County District Court.
    Subd. 12. Department of Employee Relations, duties. Upon request of the director, the
Department of Employee Relations shall furnish information about the status of state employees
as required by the director or the board in the performance of their duties.
    Subd. 13.[Repealed, 1989 c 319 art 1 s 17]
    Subd. 14. Departmental information. Under the direction of the director the head of each
department shall give information and keep records the director or the board needs for their duties.
    Subd. 15. Calendar year basis optional. For all purposes except quarterly and biennial
budgets the system may operate on a calendar rather than a fiscal year basis.
    Subd. 16. Data processing services. Notwithstanding chapter 16B or 16C or any law to
the contrary, the executive director of the system may use the services of the Department of
Administration, Information Services Division, for electronic data processing and related services
or may contract for all or a part of the services.
History: (254-3) 1929 c 191 s 3; 1931 c 351 s 3; 1935 c 238 s 3; 1941 c 391 s 3; 1947 c 631
s 9; 1949 c 644 s 8; Ex1959 c 6 s 4; 1963 c 383 s 11; 1965 c 691 s 1; Ex1967 c 1 s 6; Ex1967 c 57
s 10; 1973 c 35 s 52; 1973 c 492 s 14; 1973 c 507 s 45; 1973 c 653 s 24,25; 1975 c 368 s 15-17;
1976 c 134 s 66,67; 1977 c 305 s 45; 1977 c 429 s 10-12; 1978 c 538 s 3,4; 1980 c 617 s 47; 1981
c 224 s 46; 1983 c 63 s 1; 1983 c 299 s 28; 1985 c 248 s 70; 1986 c 444; 1987 c 229 art 6 s 1; art
1 s 1; 1987 c 259 s 13; 1989 c 319 art 1 s 4; art 8 s 10; 1990 c 570 art 10 s 4; 1993 c 13 art 1 s
38; 1993 c 307 art 1 s 5; art 2 s 2; art 3 s 2; 1994 c 628 art 3 s 28; 2Sp1997 c 3 s 18; 1998 c 386
art 2 s 85,86; 1999 c 99 s 15; 1999 c 222 art 9 s 3; 2004 c 223 s 1

Official Publication of the State of Minnesota
Revisor of Statutes