1.1 	A bill for an act
1.2 	relating to retirement; Hennepin County Supplemental
1.3 	Retirement Program; authorizing the Minnesota State
1.4 	Retirement System to administer the program; amending
1.5 	Minnesota Statutes 2004, sections 383B.46, subdivision
1.6 	2; 383B.47; 383B.48; 383B.49.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 383B.46,
1.9 	subdivision 2, is amended to read:
1.10 		Subd. 2.Establishment of account; contributions.  The
1.11 	county of Hennepin shall deduct from the salary of every person
1.12 	who is eligible for coverage and who elected to retain or obtain
1.13 	coverage by the Hennepin County supplemental retirement program
1.14 	a sum equal to one percent of the total salary of the person.
1.15 	Any classified or unclassified employee who is employed in
1.16 	subsidized on-the-job training, work experience or public
1.17 	service employment as an enrollee under the federal
1.18 	Comprehensive Employment and Training Act shall not be included
1.19 	in the supplemental retirement account from and after March 30,
1.20 	1978 unless the employee has as of the later of March 30, 1978
1.21 	or the date of employment sufficient service credit in the
1.22 	public employees retirement fund or the Minneapolis municipal
1.23 	employees retirement fund, whichever is applicable, to meet the
1.24 	minimum vesting requirements for a deferred retirement annuity,
1.25 	or the county agrees in writing to make the required employer
1.26 	contributions on account of the individual from revenue sources
2.1 	other than funds provided under the federal Comprehensive
2.2 	Employment and Training Act, or the employee agrees in writing
2.3 	to make the required employer contribution in addition to the
2.4 	employee contribution.  The deduction shall be made in the same
2.5 	manner as other retirement deductions are made from the salary
2.6 	of the person.  An amount equal to the amounts deducted during
2.7 	each payroll period shall be contributed by the county of
2.8 	Hennepin.  The total amount deducted and contributed shall be
2.9 	deposited to the credit of the supplemental retirement account
2.10 	in the treasury of the county of Hennepin a separate account
2.11 	administered by the Minnesota State Retirement System on behalf
2.12 	of Hennepin County.  The Hennepin County supplemental retirement
2.13 	account is hereby established as an account separate and
2.14 	distinct from other funds, accounts, or assets of the county of
2.15 	Hennepin.

2.16 	Sec. 2. Minnesota Statutes 2004, section 383B.47, is
2.17 	amended to read:
2.18 	383B.47 PARTICIPATION IN MINNESOTA SUPPLEMENTAL INVESTMENT
2.19 	FUND.
2.20 	With the moneys deposited to the credit of the supplemental
2.21 	retirement account in the treasury of the county of Hennepin,
2.22 	the county of Hennepin , the Minnesota State Retirement System 
2.23 	shall purchase shares on behalf of Hennepin County in the
2.24 	accounts of the Minnesota supplemental investment fund as
2.25 	provided in section 383B.48.

2.26 	Sec. 3. Minnesota Statutes 2004, section 383B.48, is
2.27 	amended to read:
2.28 	383B.48 BUYING STATE SUPPLEMENTAL INVESTMENT FUND SHARES.
2.29 	At the time a person becomes eligible for coverage and
2.30 	elects to obtain coverage by the Hennepin County supplemental
2.31 	retirement program and before November 1 of each subsequent
2.32 	year,A participant in the Hennepin County supplemental
2.33 	retirement program shall indicate in writing on a form provided
2.34 	by the county of Hennepin the account of the Minnesota
2.35 	supplemental investment fund in which the participant wishes
2.36 	salary deductions and county matching contributions attributable
3.1 	to salary deductions to be invested for the subsequent 12-month
3.2 	period such time as allowed by the Minnesota State Retirement
3.3 	System. For that 12-month period,The county of Hennepin 
3.4 	Minnesota State Retirement System shall purchase with the salary
3.5 	deductions and county matching funds attributable to the salary
3.6 	deductions shares in the appropriate account of the Minnesota
3.7 	supplemental investment fund in accordance with the indicated
3.8 	preferences of the participant.  However, the county of Hennepin
3.9 	has the authority to determine which accounts of the Minnesota
3.10 	supplemental investment fund will be available for participant
3.11 	investment.  The shares purchased must stand in the name of the
3.12 	county of Hennepin.  A record must be kept by the county of
3.13 	Hennepin Minnesota State Retirement System indicating the number
3.14 	of shares in each account of the Minnesota supplemental
3.15 	investment fund purchased with the salary deductions and county
3.16 	matching funds attributable to the salary deductions of each
3.17 	participant.  The record must be known as the "participant's
3.18 	share account record."  The participant's share account record
3.19 	must show, in addition to the number of shares in the account,
3.20 	any cash balance of salary deductions or county matching funds
3.21 	attributable to those deductions which stand uninvested in
3.22 	shares.  At the option of the county of Hennepin, and subject to
3.23 	any terms and conditions established and communicated in writing
3.24 	by the county to a participant, the participant may designate no
3.25 	more often than once each calendar quarter month that prior
3.26 	salary deductions and county matching contributions attributable
3.27 	to the salary deductions, together with any interest earned, be
3.28 	reinvested in another account of the Minnesota supplemental
3.29 	investment fund made available by the county of Hennepin.

3.30 	Sec. 4. Minnesota Statutes 2004, section 383B.49, is
3.31 	amended to read:
3.32 	383B.49 SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF
3.33 	SHARES.
3.34 	When requested to do so, in writing, on forms provided by
3.35 	the county Minnesota State Retirement System, by a participant,
3.36 	surviving spouse, a guardian of a surviving child or a personal
4.1 	representative, whichever is applicable, the county of Hennepin 
4.2 	Minnesota State Retirement System shall on behalf of Hennepin
4.3 	County redeem shares in the accounts of the Minnesota
4.4 	supplemental investment fund standing in a participant's share
4.5 	account record under the following circumstances and in
4.6 	accordance with the laws and regulations governing the Minnesota
4.7 	supplemental investment fund:
4.8 	(1) A participant who is no longer employed by the county
4.9 	of Hennepin is entitled to receive the cash realized on the
4.10 	redemption of the shares to the credit of the participant's
4.11 	share account record of the person.  The participant may request
4.12 	the redemption of all or a portion of the shares in the
4.13 	participant's share account record of the person, but may not
4.14 	request more than one redemption in any one calendar year 
4.15 	six-month period.  If only a portion of the shares in the
4.16 	participant's share account record is requested to be redeemed
4.17 	the person may request to redeem not less than 20 percent of the
4.18 	shares in any one calendar year and the redemption must be
4.19 	completed in no more than five years.  An election is
4.20 	irrevocable except that a participant may request an amendment
4.21 	of the election to redeem all of the person's remaining shares.
4.22 	All requests under this paragraph are subject to application to
4.23 	and approval of the Hennepin County administrator, in the sole
4.24 	discretion of the administrator Minnesota State Retirement
4.25 	System upon verification by Hennepin County of the recipient's
4.26 	eligibility to redeem funds.
4.27 	(2) In the event of the death of a participant leaving a
4.28 	surviving spouse, the surviving spouse is entitled to receive
4.29 	the cash realized on the redemption of all or a portion of the
4.30 	shares in the participant's share account record of the deceased
4.31 	spouse, but in no event may the spouse request more than one
4.32 	redemption in each calendar year.  If only a portion of the
4.33 	shares in the participant's share account record is requested to
4.34 	be redeemed, the surviving spouse may request the redemption of
4.35 	not less than 20 percent of the shares in any one calendar year,
4.36 	unless they elect to receive monthly payments for a period not
5.1 	to exceed five years.  Redemption must be completed in no more
5.2 	than five years.  An election is irrevocable except that the
5.3 	surviving spouse may request an amendment of the election to
5.4 	redeem all of the participant's remaining shares.  All requests
5.5 	under this paragraph are subject to application to and approval
5.6 	of the Hennepin County administrator, in the sole discretion of
5.7 	the administrator Minnesota State Retirement System upon
5.8 	verification by Hennepin County of the recipient's eligibility
5.9 	to redeem funds.  Upon the death of the surviving spouse, any
5.10 	shares remaining in the participant's share account record must
5.11 	be redeemed on behalf of Hennepin County by the county of
5.12 	Hennepin Minnesota State Retirement System and the cash realized
5.13 	from the redemption distributed to the estate of the surviving
5.14 	spouse.
5.15 	(3) In the event of the death of a participant leaving no
5.16 	surviving spouse, but leaving a minor surviving child or minor
5.17 	surviving children, the guardianship estate of the minor child
5.18 	is, or the guardianship estates of the minor children are,
5.19 	entitled to receive the cash realized on the redemption of all
5.20 	shares to the credit of the participant's share account record
5.21 	of the deceased participant.  In the event of minor surviving
5.22 	children, the cash realized must be paid in equal shares to the
5.23 	guardianship estates of the minor surviving children.
5.24 	(4) In the event of the death of a participant leaving no
5.25 	surviving spouse and no minor surviving children, the estate of
5.26 	the deceased participant is entitled to receive the cash
5.27 	realized on the redemption of all shares to the credit of the
5.28 	participant's share account record of the deceased participant.

5.29 	Sec. 5. EFFECTIVE DATE.
 5.30 	Sections 1 to 4 are effective December 31, 2005.