2005 Minnesota Statutes

     136G.07 Investment of accounts. 

    Subdivision 1.    State board to invest.  The State 
 Board of Investment shall invest the money deposited in accounts 
 in the plan.  Except as permitted by the Internal Revenue Code, 
 neither persons making contributions to an account nor 
 beneficiaries may direct the investment of contributions to the 
 plan or plan earnings.  

    Subd. 2.    Permitted investments.  The board may invest 
 the accounts in any permitted investment under section 11A.24, 
 except that the accounts may be invested without limit in 
 investment options from open-ended investment companies 
 registered under the federal Investment Company Act of 1940, 
 United States Code, title 15, sections 80a-1 to 80a-64.  

    Subd. 3.    Contracting authority.  The board may 
 contract with one or more third parties for investment 
 management, record keeping, or other services in connection with 
 investing the accounts.  The board and office may jointly 
 contract with third-party providers, if the office and board 
 determine that it is desirable to contract with the same entity 
 or entities for administration and investment management. 

    Subd. 4.    Fees.  The board may impose annual fees, as 
 provided in section 136G.05, subdivision 3, on participants in 
 the plan to recover the cost of investment management and 
 related tasks for the plan.  The board must use its best efforts 
 to keep these fees as low as possible, consistent with high 
 quality investment management, so that the returns on savings 
 invested in the plan will be as high as possible. 

    HIST: 1997 c 183 art 2 s 15; 1999 c 214 art 2 s 9; 1Sp2001 c 1 
 art 3 s 10,11,23; 2002 c 220 art 5 s 9