1.1    .................... moves to amend H.F. No. 3082; S.F. No. 2720, the delete everything
1.2amendment (H3082-5A), as follows:
1.3Page 28, after line 11, insert:

1.4    "Sec. 2. Minnesota Statutes 2006, section 352.03, subdivision 4, is amended to read:
1.5    Subd. 4. Duties and powers of board of directors. (a) The board shall:
1.6    (1) elect a chair;
1.7    (2) appoint an executive director;
1.8    (3) establish rules to administer this chapter and chapters 3A, 352B, 352C, 352D,
1.9and 490 and transact the business of the system, subject to the limitations of law;
1.10    (4) consider and dispose of, or take any other action the board of directors deems
1.11appropriate concerning denials of applications for annuities or disability benefits under
1.12this chapter, and complaints of employees and others pertaining to the retirement of
1.13employees and the operation of the system;
1.14    (5) advise the director on any matters relating to the system and carrying out
1.15functions and purposes of this chapter. The board's advice shall control; and
1.16    (6) (5) oversee the administration of the state deferred compensation plan established
1.17in section 352.96; and
1.18    (6) oversee the administration of the health care savings plan established in section
1.19352.98.
1.20    The director and assistant director must be in the unclassified service but appointees
1.21may be selected from civil service lists if desired. The salary of the executive director
1.22must be as provided by section 15A.0815. The salary of the assistant director must be set
1.23in accordance with section 43A.18, subdivision 3.
1.24    (b) The board shall advise the director on any matters relating to the system and
1.25carrying out functions and purposes of this chapter. The board's advice shall control.
1.26EFFECTIVE DATE.This section is effective the day after final enactment.

2.1    Sec. 3. Minnesota Statutes 2006, section 352.03, subdivision 5, is amended to read:
2.2    Subd. 5. Executive director; assistant director. (a) The executive director, in this
2.3chapter called the director, of the system must be appointed by the board on the basis of
2.4fitness, experience in the retirement field, and leadership ability. The director must have
2.5had at least five years' experience on the administrative staff of a major retirement system.
2.6    (b) The executive director and assistant director must be in the unclassified service
2.7but appointees may be selected from civil service lists if desired. The salary of the
2.8executive director must be as provided by section 15A.0815. The salary of the assistant
2.9director must be set in accordance with section 43A.18, subdivision 3.
2.10EFFECTIVE DATE.This section is effective the day after final enactment."
2.11Page 30, after line 31, insert:

2.12    "Sec. 7. Minnesota Statutes 2006, section 352.98, subdivision 1, is amended to read:
2.13    Subdivision 1. Plan created. This section must be administered by the executive
2.14director of the system with the advice and consent of the board of directors. The Minnesota
2.15State Retirement System executive director shall establish a plan or plans, known as health
2.16care savings plans, through which public employers and employees may an officer or
2.17employee of the state or of a political subdivision, including officers or employees covered
2.18by a plan or fund specified in chapter 353D, 354B, 354D, 424A, or section 356.20,
2.19subdivision 2, save to cover health care costs. For purposes of this section, a volunteer
2.20firefighter is an employee. The Minnesota State Retirement System executive director shall
2.21make available one or more trusts, including a governmental trust or governmental trusts,
2.22authorized under the Internal Revenue Code to be eligible for tax-preferred or tax-free
2.23treatment through which employers and employees can save to cover health care costs.
2.24EFFECTIVE DATE.This section is effective the day following final enactment.

2.25    Sec. 8. Minnesota Statutes 2006, section 352.98, subdivision 2, is amended to read:
2.26    Subd. 2. Contracting authorized. The Minnesota State Retirement System is
2.27authorized to executive director shall administer the plan and to contract with public and
2.28private entities to provide investment services, record keeping, benefit payments, and other
2.29functions necessary for the administration of the plan. If allowed by the Minnesota State
2.30Board of Investment, the Minnesota State Board of Investment supplemental investment
2.31funds may be offered as investment options under the health care savings plan or plans.
2.32EFFECTIVE DATE.This section is effective the day following final enactment.

2.33    Sec. 9. Minnesota Statutes 2006, section 352.98, subdivision 3, is amended to read:
3.1    Subd. 3. Contributions. (a) Contributions to the plan must be determined through
3.2defined in a personnel policy or in a collective bargaining agreement of a public employer
3.3with the exclusive representative of the covered employees in an appropriate unit or
3.4political subdivision. The Minnesota State Retirement System executive director may
3.5offer different types of trusts permitted under the Internal Revenue Code to best meet the
3.6needs of different employee employer units.
3.7    (b) Contributions to the plan by or on behalf of the employee participant must
3.8be held in trust for reimbursement of employee and dependent eligible health-related
3.9expenses for participants and their dependents following retirement termination from
3.10public employment or during active employment. The Minnesota State Retirement
3.11System executive director shall maintain a separate account of the contributions made by
3.12or on behalf of each participant and the earnings thereon. The Minnesota State Retirement
3.13System executive director shall make available a limited range of investment options,
3.14and each employee participant may direct the investment of the accumulations in the
3.15employee's participant's account among the investment options made available by the
3.16Minnesota State Retirement System executive director. At the request of a participating
3.17employer and employee group, the Minnesota State Retirement System may determine
3.18how the assets of the affected employer and employee group should be invested.
3.19    (c) This section does not obligate a public employer to meet and negotiate in good
3.20faith with the exclusive bargaining representative of any public employee group regarding
3.21an employer contribution to a postretirement or active employee health care savings plan
3.22authorized by this section and section 356.24, subdivision 1, clause (7). It is not the intent
3.23of the legislature to authorize the state to incur new funding obligations for the costs of
3.24retiree health care or the costs of administering retiree health care plans or accounts.
3.25EFFECTIVE DATE.This section is effective the day following final enactment.

3.26    Sec. 10. Minnesota Statutes 2006, section 352.98, subdivision 4, is amended to read:
3.27    Subd. 4. Reimbursement for health-related expenses. The Minnesota State
3.28Retirement System executive director shall reimburse employees participants at least
3.29quarterly for submitted eligible health-related expenses, as required allowable by federal
3.30and state law, until the employee participant exhausts the accumulation in the employee's
3.31participant's account. If an employee a participant dies prior to exhausting the employee's
3.32participant's account balance, the employee's participant's spouse or dependents are
3.33eligible to be reimbursed for health care expenses from the account until the account
3.34balance is exhausted. If an account balance remains after the death of a participant and
4.1all of the participant's legal dependents, the remainder of the account must be paid to the
4.2employee's participant's beneficiaries or, if none, to the employee's participant's estate.
4.3EFFECTIVE DATE.This section is effective the day following final enactment.

4.4    Sec. 11. Minnesota Statutes 2006, section 352.98, subdivision 5, is amended to read:
4.5    Subd. 5. Fees. The Minnesota state retirement plan executive director is authorized
4.6to charge uniform fees to participants to cover the ongoing cost of operating the plan.
4.7Any fees not needed must revert to participant accounts or be used to reduce plan fees
4.8the following year.
4.9EFFECTIVE DATE.This section is effective the day following final enactment."
4.10Renumber the sections in sequence and correct the internal references
4.11Amend the title accordingly