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Minnesota Legislature

Office of the Revisor of Statutes

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 legislature 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.
History: 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; 2007 c 133 art 3 s 2