new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The State Board of Investment, when requested by
the city of Duluth, may invest the funds or assets of the city's community investment
trust fund in the combined investment funds established in section 11A.14, subject to
the policies and procedures established by the State Board of Investment. Use of such
funds is restricted to debt service payments for the city's street improvement program,
or any other use approved in accordance with Section 54(E) of the home rule charter of
the city of Duluth.
new text end

new text begin Subd. 2. new text end

new text begin Account maintenance and investment. new text end

new text begin The city may deposit and
withdraw money for purposes approved by the Duluth City Council in accordance with
Section 54(E) of the home rule charter of the city of Duluth. Such transactions must be in
a time and manner required by the executive director of the State Board of Investments.
Investments earnings must be credited to the account of the city. The account may be
terminated by the city at any time.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Public Employees Retirement Association must
administer an irrevocable trust fund established by the city of Duluth to be used only to
fund and pay for the postemployment benefits owed to retired employees in accordance
with language contained in labor agreements between the city and its employee bargaining
units, or between participating subgroups in the city's health plan and their retirees. The
city of Duluth investment committee shall serve as trustee of the irrevocable trust.
new text end

new text begin Subd. 2. new text end

new text begin Definition. new text end

new text begin For purposes of this section, "postemployment benefit" means
a benefit giving rise to a liability under Statement 45 of the Governmental Accounting
Standards Board, and therefore does not include benefits to be paid by a Minnesota public
pension plan listed in section 356.20, subdivision 2, or section 356.30, subdivision 3, and
benefits provided on a defined contribution individual account basis.
new text end

new text begin Subd. 3. new text end

new text begin Account maintenance and investment. new text end

new text begin (a) The Public Employees
Retirement Association may charge the city fees for reasonable administrative costs,
and the amount of those fees is appropriated to the association from the account. The
Public Employees Retirement Association may establish other terms and conditions for
participation in the fund.
new text end

new text begin (b) The Public Employees Retirement Association must certify all money in the
fund to the State Board of Investment for investment in the combined investment funds
established in section 11A.14, subject to the policies and procedures established by the
State Board of Investment. Investment earnings must be credited to the account of the city.
new text end

new text begin Subd. 4. new text end

new text begin Management and termination of account. new text end

new text begin The city may deposit and
withdraw money as needed for postemployment benefits owed on behalf of retired
employees of the city or its subgroups. Such transactions must be at a time and in a manner
required by the executive director of the Public Employees Retirement Association.
The city must ensure that the investment and management of the assets complies with
the prudent investor rule in section 501B.151 and that withdrawals comply with the
requirements of this section. The account may be terminated only to the extent the city's
postemployment benefit actuarial liability is satisfied or otherwise defeased.
new text end

new text begin Subd. 5. new text end

new text begin Status of irrevocable fund. new text end

new text begin (a) All monies in the irrevocable fund created
in this section are held in trust for the exclusive benefit of retired employees of the city
or subgroups participating in the city's health plan, and are not subject to claims by
creditors of the state, the city, the city's subgroups, or the current and former employees of
the city or its subgroups.
new text end

new text begin (b) The irrevocable fund created in this section shall be deemed an arrangement
equivalent to a trust for all legal purposes.
new text end