HF2117

Purpose of the Bill

The bill aims to address issues with missing retirement accounts related to the Higher Education Individual Retirement Account Plan (IRAP) for certain eligible individuals. It specifically targets employees of Minnesota State Colleges and Universities who cannot locate their retirement accounts from past employment at Winona State University.

Main Provisions

• Account Location Requirement: Minnesota State Colleges and Universities ("MN State") are required to locate missing IRAP accounts for eligible persons or provide financial compensation.
• Eligibility Criteria for Compensation: A person is eligible if they were employed at Winona State University between July 1991 and June 1996 and have documented proof of payroll deductions for IRAP contributions during that time.
• Actions Required by Trustees: Within 60 days of the bill's enactment, the board of trustees must:
  • Locate the missing IRAP accounts and provide the account holder with information and instructions for accessing their funds.
  • If the account cannot be located, pay the eligible person $25,000.

Significant Changes to Existing Law

This bill introduces a requirement for MN State to either locate a missing retirement account or provide monetary compensation if the account cannot be found. This is an additional accountability measure compared to existing laws.

Relevant Terms

• Minnesota State Colleges and Universities
• IRAP (Individual Retirement Account Plan)
• Winona State University
• Board of trustees
• Payroll deduction contributions