Agenda - Council - 11/10/1980 - Laserfiche WebLink

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ALBERT H. QUIE ST~kTE OF iNI]INNESOTA ST. PAUL ~.318.3 To Public Employers: The State Deferred Compensation Plan which is available to Minnesota Public Employees has been substantially modified and improved. I am pleased to announce that the options available have also been expanded, making the program a more flexible and attractive benefit opportunity for ~hose employees. A deferred compensation plan provides a voluntary means for wage earners at every level to supplement their regular retirement and savings programs. A portion of the employee's income is diverted, before taxes, into a savings or investment program. Earnings or interest on these invested funds are also tax-deferred. With deferred compensation it is possible for a wage earner to set aside more money for future use than otherwise would be possible. The State of Minnesota established its deferred compensation plan for State employees in 1971. In 1975, the plan was made available to all employees of political subdi- visions and school districts within the State. In 1977, the State Legislature authorized the State Board of Investment to select, through open bidding procedures, fixed and variable annuity products of insurance companies as additional investment options. Under the Tax Revenue Act of 1978, deferred compensation plans were allowed to be more flexible and were made an integral part of employee benefit programs. Earlier this year, the State Board of Investment formally requested annuity option proposals. These proposals were analyzed by the State Board of Investment staff and a national actuarial consulting firm. The proposal submitted by the Great-West Life Assurance Company, to be marketed by National Benefits, Inc., and the proposal submitted by the Minnesota Mutual Life Insurance Company and Northwestern National Life Insurance Company, to be marketed by the Ochs Agency, were the two finally selected by the State Board of Investment as offering the best products available. The plan is administered under the control and direction of the Minnesota State Retirement System. You will soon be contacted by representatives of the State Retirement System, the Ochs Agency, or National Benefits, Inc. They will explain what this program can do for your employees. I urge you to give this program your serious consideration as a valuable fringe benefit for your employees. SineWy yours, A~H~Y M~. QUIE GOVERNOR AN EQUAL OPPORTUNITY EMPLOYER