Purpose

To locate a missing higher education retirement account (IRAP) for a specific former employee and, if the account cannot be located, to provide that person with a one-time payment of $25,000.

Main Provisions

• Definitions:
  • IRAP stands for the higher education individual retirement account plan.
  • Board of Trustees refers to the board as defined in Minnesota law.
  • MN State means Minnesota State Colleges and Universities.
• Eligible person:
  • A person who was employed by Winona State University from July 1, 1991, to June 30, 1996.
  • The person must have pay stubs showing payroll deduction contributions to the IRAP on specific dates between December 1991 and April 1993, with per-pay-period amounts around $18.72 or $19.93.
  • These pay stubs are accepted as adequate proof that payroll deductions were made for IRAP deposits during September 1991 through October 1994.
• Location requirement:
  • Notwithstanding other state laws, MN State must locate the eligible person’s IRAP account to which payroll deductions were deposited, or determine the person should be paid $25,000.
  • The board of trustees must act within 60 days after the section’s effective date to either locate the IRAP account and provide details (who holds the account, how to access it, and a full accounting of contributions and earnings) or pay the eligible person $25,000.
• Information to be provided:
  • If located, provide information about the person or entity holding the IRAP, an accounting of all contributions and investment earnings, and instructions on how the eligible person can access the account.

Notable Changes to Existing Law

• Creates a new requirement for Minnesota State to actively search for and locate missing IRAP accounts for a specific former employee and, if unsuccessful, trigger a lump-sum payment of $25,000.
• Establishes a defined proof standard (certain pay stubs and contribution amounts) to qualify an individual as eligible.
• Sets a concrete 60-day deadline for action after the section’s effective date, detailing what must be done if the account is located or if the payment is made.

Practical Impact

• Individuals who were employees of Winona State University during the 1991–1996 period and who have the specified payroll deduction records may receive either the found IRAP account access or a lump-sum payment of $25,000.
• Minnesota State would bear the responsibility to trace and verify old IRAP contributions and earnings, or compensate the eligible person if the account cannot be located.

Relevant Terms - IRAP (higher education individual retirement account plan) - MN State (Minnesota State Colleges and Universities) - Board of Trustees - Winona State University - payroll deduction contributions - 1991 to 1994/1994 contributions - $25,000 (twenty-five thousand dollars) - location/accounting/earnings - effective date - eligible person