1.2relating to retirement; Hennepin County supplemental retirement plan; expanding
1.3investment authority;amending Minnesota Statutes 2016, sections 356.645;
1.4383B.47; 383B.48; 383B.49; 383B.50.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6    Section 1. Minnesota Statutes 2016, section 356.645, is amended to read:
1.7356.645 INVESTMENT OF VARIOUS DEFINED CONTRIBUTION PLAN
1.8ASSETS.
1.9The State Board of Investment shall determine the investments to be made available to
1.10plan participants in plans defined in sections 352.965 and, 352.98, and 383B.46 and chapters
1.11352D and 353D. Investments made available to plan participants must include at least one
1.12or more of the following:
1.13(1) shares in the Minnesota supplemental investment fund established in section 11A.17;
1.14(2) savings accounts in federally insured financial institutions;
1.15(3) life insurance contracts, fixed annuity contracts, and variable annuity contracts from
1.16companies that are subject to regulation by the commissioner of commerce;
1.17(4) investment options from open-end investment companies registered under the federal
1.18Investment Company Act of 1940, United States Code, title 15, sections 80a-1 to 80a-64;
1.19(5) investment options from a firm that is a registered investment adviser under the
1.20Investment Advisers Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21;
1.21and
2.1(6) investment options of a bank as defined in United States Code, title 15, section 80b-2,
2.2subsection (a), paragraph (2), or a bank holding company as defined in the Bank Holding
2.3Company Act of 1956, United States Code, title 12, section 1841, subsection (a), paragraph
2.4(1).

2.5    Sec. 2. Minnesota Statutes 2016, section 383B.47, is amended to read:
2.6383B.47 INVESTMENT OF RETIREMENT MONEY FOR STATE
2.7SUPPLEMENTAL FUND SHARES.
2.8With the When moneys are deposited to the credit of the supplemental retirement account,
2.9the Minnesota State Retirement System shall purchase shares on behalf of Hennepin County
2.10in the accounts of the Minnesota supplemental investment fund make available those
2.11investments chosen by the State Board of Investment under section 356.645 in the manner
2.12as provided in section 383B.48.

2.13    Sec. 3. Minnesota Statutes 2016, section 383B.48, is amended to read:
2.14383B.48 BUYING STATE SUPPLEMENTAL INVESTMENT FUND SHARES.
2.15(a) A participant in the Hennepin County supplemental retirement program shall indicate
2.16the account of the Minnesota supplemental investment fund investments, from those made
2.17available pursuant to section 383B.47, in which the participant wishes participant's salary
2.18deductions and county matching contributions attributable to salary deductions are to be
2.19invested for such time as allowed by the Minnesota State Retirement System. The Minnesota
2.20State Retirement System shall purchase with the salary deductions and county matching
2.21funds attributable to the salary deductions shares in the appropriate account of the Minnesota
2.22supplemental investment fund in accordance with the indicated preferences of the participant.
2.23However,
2.24(b) The county of Hennepin has the authority to determine which accounts of the
2.25Minnesota supplemental investment fund investments made available pursuant to section
2.26383B.47 will be available for participant investment. The shares purchased must stand in
2.27the name of the county of Hennepin.
2.28(c) A record must be kept by the Minnesota State Retirement System indicating the
2.29number of shares in each account of the Minnesota supplemental investment fund purchased
2.30with the salary deductions and county matching funds attributable to the salary deductions
2.31of each participant. The record must be known as the "participant's share account record."
2.32The participant's share account record must show, in addition to the number of shares in
3.1the account, any cash balance of salary deductions or county matching funds attributable
3.2to those deductions which stand uninvested in shares.
3.3(d) At the option of the county of Hennepin, and subject to any terms and conditions
3.4established and communicated in writing by the county to a participant, the participant may
3.5designate no more often than once each month that prior salary deductions and county
3.6matching contributions attributable to the salary deductions, together with any interest
3.7earned, be reinvested in another account of the Minnesota supplemental investment fund
3.8made available by the county of Hennepin under this section.

3.9    Sec. 4. Minnesota Statutes 2016, section 383B.49, is amended to read:
3.10383B.49 SUPPLEMENTAL RETIREMENT BENEFITS; REDEMPTION OF
3.11SHARES.
3.12When requested to do so, in writing, on forms provided by the Minnesota State Retirement
3.13System, by a participant, surviving spouse, a guardian of a surviving child or a personal
3.14representative, whichever is applicable, the Minnesota State Retirement System shall on
3.15behalf of Hennepin County redeem shares in the accounts of the Minnesota supplemental
3.16investment fund investments standing in a participant's share account record under the
3.17following circumstances and in accordance with the laws and regulations governing the
3.18Minnesota supplemental applicable investment fund:
3.19(1) A participant who is no longer employed by the county of Hennepin is entitled to
3.20receive the cash realized on the redemption of the shares to the credit of the participant's
3.21share account record of the person. The participant may request the redemption of all or a
3.22portion of the shares in the participant's share account record of the person, but may not
3.23request more than one redemption in any one calendar year. If only a portion of the shares
3.24in the participant's share account record is requested to be redeemed the person may request
3.25to redeem not less than 20 percent of the shares in any one calendar year and the redemption
3.26must be completed in no more than five years. The person may select annual redemption
3.27in a single lump sum or in monthly payments. An election is irrevocable except that a
3.28participant may request an amendment of the election to redeem all of the person's remaining
3.29shares. All requests under this paragraph are subject to application to and approval of the
3.30Minnesota State Retirement System upon verification by Hennepin County through the
3.31county administrator of the recipient's eligibility to redeem funds.
3.32(2) In the event of the death of a participant leaving a surviving spouse, the surviving
3.33spouse is entitled to receive the cash realized on the redemption of all or a portion of the
3.34shares in the participant's share account record of the deceased spouse, but in no event may
4.1the spouse request more than one redemption in each calendar year. If only a portion of the
4.2shares in the participant's share account record is requested to be redeemed, the surviving
4.3spouse may request the redemption of not less than 20 percent of the shares in any one
4.4calendar year. The surviving spouse may elect annual redemption in a single lump-sum
4.5payment or in monthly payments. Redemption must be completed in no more than five
4.6years. An election is irrevocable except that the surviving spouse may request an amendment
4.7of the election to redeem all of the participant's remaining shares. All requests under this
4.8paragraph are subject to application to and approval of the Minnesota State Retirement
4.9System upon verification by Hennepin County through the county administrator of the
4.10recipient's eligibility to redeem funds. Upon the death of the surviving spouse, any shares
4.11remaining in the participant's share account record must be redeemed on behalf of Hennepin
4.12County by the Minnesota State Retirement System and the cash realized from the redemption
4.13distributed to the estate of the surviving spouse.
4.14(3) In the event of the death of a participant leaving no surviving spouse, but leaving a
4.15minor surviving child or minor surviving children, the guardianship estate of the minor
4.16child is, or the guardianship estates of the minor children are, entitled to receive the cash
4.17realized on the redemption of all shares to the credit of the participant's share account record
4.18of the deceased participant. In the event of minor surviving children, the cash realized must
4.19be paid in equal shares to the guardianship estates of the minor surviving children.
4.20(4) In the event of the death of a participant leaving no surviving spouse and no minor
4.21surviving children, the estate of the deceased participant is entitled to receive the cash
4.22realized on the redemption of all shares to the credit of the participant's share account record
4.23of the deceased participant.

4.24    Sec. 5. Minnesota Statutes 2016, section 383B.50, is amended to read:
4.25383B.50 PROSPECTUS.
4.26The county of Hennepin shall distribute or otherwise make available to each participant
4.27a prospectus of the Minnesota supplemental investment fund when received from the fund
4.28or other applicable information with respect to the investments authorized pursuant to
4.29sections 383B.47 and 383B.48.

4.30    Sec. 6. EFFECTIVE DATE.
4.31Sections 1 to 6 are effective the day following final enactment.