Bill Text: MN SF2280 | 2011-2012 | 87th Legislature | Introduced
Bill Title: School district annuity contract vendors provisions modification
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2012-03-05 - Referred to Education [SF2280 Detail]
Download: Minnesota-2011-SF2280-Introduced.html
1.2relating to education; allowing school boards to determine the number and
1.3identity of annuity contract vendors;amending Minnesota Statutes 2010, section
1.4123B.02, subdivision 15.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 123B.02, subdivision 15, is amended to
1.7read:
1.8 Subd. 15. Annuity contract; payroll allocation. (a) At the request of an employee
1.9and as part of the employee's compensation arrangement, the board may purchase an
1.10individual annuity contract for an employee for retirement or other purposes and may
1.11make payroll allocations in accordance with such arrangement for the purpose of paying
1.12the entire premium due and to become due under such contract. The allocation must be
1.13made in a manner which will qualify the annuity premiums, or a portion thereof, for
1.14the benefit afforded under section 403(b) of the current Federal Internal Revenue Code
1.15or any equivalent provision of subsequent federal income tax law. The employee shall
1.16own such contract and the employee's rights under the contract shall be nonforfeitable
1.17except for failure to pay premiums. Section122A.40 shall not be applicable hereto and the
1.18board shall have no liability thereunder because of its purchase of any individual annuity
1.19contracts. This statute shall be applied in a nondiscriminatory manner to employees of
1.20the school district. The school board of a school district shall determine the identity and
1.21number of the available vendors under federal Internal Revenue Code, section 403(b)is a
1.22term and condition of employment under section
179A.03
1.23 (b) When considering vendors under paragraph (a), the school districtand the
1.24exclusive representative of the employees shall consider all of the following:
2.1 (1) the vendor's ability to comply with all employer requirements imposed by
2.2section 403(b) of the Internal Revenue Code of 1986 and its subsequent amendments,
2.3other provisions of the Internal Revenue Code of 1986 that apply to section 403(b) of the
2.4Internal Revenue Code, and any regulation adopted in relation to these laws;
2.5 (2) the vendor's experience in providing 403(b) plans;
2.6 (3) the vendor's potential effectiveness in providing client services attendant to
2.7its plan and in relation to cost;
2.8 (4) the nature and extent of rights and benefits offered under the vendor's plan;
2.9 (5) the suitability of the rights and benefits offered under the vendor's plan;
2.10 (6) the vendor's ability to provide the rights and benefits offered under its plan; and
2.11 (7) the vendor's financial stability.
2.12EFFECTIVE DATE.This section is effective July 1, 2012.
1.3identity of annuity contract vendors;amending Minnesota Statutes 2010, section
1.4123B.02, subdivision 15.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 123B.02, subdivision 15, is amended to
1.7read:
1.8 Subd. 15. Annuity contract; payroll allocation. (a) At the request of an employee
1.9and as part of the employee's compensation arrangement, the board may purchase an
1.10individual annuity contract for an employee for retirement or other purposes and may
1.11make payroll allocations in accordance with such arrangement for the purpose of paying
1.12the entire premium due and to become due under such contract. The allocation must be
1.13made in a manner which will qualify the annuity premiums, or a portion thereof, for
1.14the benefit afforded under section 403(b) of the current Federal Internal Revenue Code
1.15or any equivalent provision of subsequent federal income tax law. The employee shall
1.16own such contract and the employee's rights under the contract shall be nonforfeitable
1.17except for failure to pay premiums. Section
1.18board shall have no liability thereunder because of its purchase of any individual annuity
1.19contracts. This statute shall be applied in a nondiscriminatory manner to employees of
1.20the school district. The school board of a school district shall determine the identity and
1.21number of the available vendors under federal Internal Revenue Code, section 403(b)
1.22
1.23 (b) When considering vendors under paragraph (a), the school district
1.24
2.1 (1) the vendor's ability to comply with all employer requirements imposed by
2.2section 403(b) of the Internal Revenue Code of 1986 and its subsequent amendments,
2.3other provisions of the Internal Revenue Code of 1986 that apply to section 403(b) of the
2.4Internal Revenue Code, and any regulation adopted in relation to these laws;
2.5 (2) the vendor's experience in providing 403(b) plans;
2.6 (3) the vendor's potential effectiveness in providing client services attendant to
2.7its plan and in relation to cost;
2.8 (4) the nature and extent of rights and benefits offered under the vendor's plan;
2.9 (5) the suitability of the rights and benefits offered under the vendor's plan;
2.10 (6) the vendor's ability to provide the rights and benefits offered under its plan; and
2.11 (7) the vendor's financial stability.
2.12EFFECTIVE DATE.This section is effective July 1, 2012.
