All contracts must be approved before execution by the State Board of Investment. Contracts must provide that all options in subdivision 2 must be presented in an unbiased manner and in a manner that conforms to rules adopted by the executive director, be reported on a periodic basis to all employees participating in the deferred compensation program, and not be subject to unreasonable solicitation of state employees to participate in the program. Subdivision 4 of Section 352.96 allows the executive director of the Minnesota state retirement system with the advice and consent of the board of directors to establish rules and procedures to carry out Section 352.96 including allocation of administrative costs of the plan to participants. Fees cannot be charged on contributions and investment returns attributable to contributions made to the Minnesota supplemental investment funds before July 1, 1992. Annual total fees charged for plan administration for the Minnesota supplemental investment funds cannot exceed forty hundredths of one percent of the contributions and investment returns attributable to contributions made on or after July 1, 1992.
Typical plans have three tiers.
One offers seven to 11 core funds. A second tier, for less savvy workers, has three to five premixed portfolios, organized by risk tolerance. And, for the truly adventurous, there is a top tier with a wide range of riskier or more sophisticated options. In carrying out its study of defined contribution retirement plan and deferred compensation program vendors, interested entities would include current and potential defined contribution plan and deferred compensation program vendors, the Public Employees Retirement System Board, state employee representatives, and retired state employees.