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11A.04 DUTIES AND POWERS.
The state board shall:
(1) Act as trustees for each fund for which it invests or manages money in accordance with
the standard of care set forth in section 11A.09 if state assets are involved and in accordance with
chapter 356A if pension assets are involved.
(2) Formulate policies and procedures deemed necessary and appropriate to carry out its
functions. Procedures adopted by the board must allow fund beneficiaries and members of the
public to become informed of proposed board actions. Procedures and policies of the board are
not subject to the Administrative Procedure Act.
(3) Employ an executive director as provided in section 11A.07.
(4) Employ investment advisors and consultants as it deems necessary.
(5) Prescribe policies concerning personal investments of all employees of the board to
prevent conflicts of interest.
(6) Maintain a record of its proceedings.
(7) As it deems necessary, establish advisory committees subject to section 15.059 to assist
the board in carrying out its duties.
(8) Not permit state funds to be used for the underwriting or direct purchase of municipal
securities from the issuer or the issuer's agent.
(9) Direct the commissioner of finance to sell property other than money that has escheated
to the state when the board determines that sale of the property is in the best interest of the
state. Escheated property must be sold to the highest bidder in the manner and upon terms and
conditions prescribed by the board.
(10) Undertake any other activities necessary to implement the duties and powers set forth
in this section.
(11) Establish a formula or formulas to measure management performance and return on
investment. Public pension funds in the state shall utilize the formula or formulas developed by
the state board.
(12) Except as otherwise provided in article XI, section 8, of the Constitution of the state of
Minnesota, employ, at its discretion, qualified private firms to invest and manage the assets of
funds over which the state board has investment management responsibility. There is annually
appropriated to the state board, from the assets of the funds for which the state board utilizes a
private investment manager, sums sufficient to pay the costs of employing private firms. Each
year, by January 15, the board shall report to the governor and legislature on the cost and the
investment performance of each investment manager employed by the board.
(13) Adopt an investment policy statement that includes investment objectives, asset
allocation, and the investment management structure for the retirement fund assets under its
control. The statement may be revised at the discretion of the state board. The state board
shall seek the advice of the council regarding its investment policy statement. Adoption of the
statement is not subject to chapter 14.
(14) Adopt a compensation plan setting the terms and conditions of employment for
unclassified board employees who are not covered by a collective bargaining agreement.
There is annually appropriated to the state board, from the assets of the funds for which
the state board provides investment services, sums sufficient to pay the costs of all necessary
expenses for the administration of the board. These sums will be deposited in the State Board of
Investment operating account, which must be established by the commissioner of finance.
History: 1980 c 607 art 14 s 4; 1982 c 587 s 1; 1986 c 444; 1987 c 372 art 8 s 1; 1989 c
319 art 8 s 3; 1993 c 244 art 2 s 1; 1998 c 254 art 1 s 2; 2003 c 112 art 2 s 50; 2005 c 55 s 1;
2006 c 277 art 4 s 2

Official Publication of the State of Minnesota
Revisor of Statutes