MN SF2280

School boards gain authority to independently determine the number and identity of annuity contract vendors available under section 403(b) of the federal Internal Revenue Code, removing this as a mandatory term of employment negotiation.

Removes the requirement that school districts and exclusive employee representatives jointly make vendor decisions; vendor selection becomes a unilateral school board function.

School districts must still consider seven specific criteria when evaluating vendors: compliance with federal requirements, 403(b) plan experience, client service effectiveness and cost, nature and extent of rights and benefits offered, suitability of benefits, ability to provide benefits, and financial stability.

Employees maintain ownership of individual annuity contracts with nonforfeitable rights (except for non-payment), and the statute continues to apply in a nondiscriminatory manner across school district employees.

Effective date is July 1, 2012.