1.1 	A bill for an act
1.2 	relating to retirement; annual public pension plan
1.3 	administrative expense reporting; specifying itemized
1.4 	detail in annual reporting; amending Minnesota
1.5 	Statutes 2004, section 356.20, subdivision 4.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 356.20,
1.8 	subdivision 4, is amended to read:
1.9 		Subd. 4.Contents of financial report.  (a) The financial
1.10 	report required by this section must contain financial
1.11 	statements and disclosures that indicate the financial
1.12 	operations and position of the retirement plan and fund.  The
1.13 	report must conform with generally accepted governmental
1.14 	accounting principles, applied on a consistent basis.  The
1.15 	report must be audited.  The report must include, as part of its
1.16 	exhibits or its footnotes, an actuarial disclosure item based on
1.17 	the actuarial valuation calculations prepared by the
1.18 	commission-retained actuary retained under section 356.214or by
1.19 	the actuary retained by the retirement fund or plan, if
1.20 	applicable whichever applies, according to applicable actuarial
1.21 	requirements enumerated in section 356.215, and specified in the
1.22 	most recent standards for actuarial work adopted by the
1.23 	Legislative Commission on Pensions and Retirement.  The accrued
1.24 	assets, the accrued liabilities, including accrued reserves, and
1.25 	the unfunded actuarial accrued liability of the fund or plan
2.1 	must be disclosed.  The disclosure item must contain a
2.2 	declaration by the actuary retained by the Legislative
2.3 	Commission on Pensions and Retirement under section 356.214or
2.4 	the actuary retained by the fund or plan, whichever applies,
2.5 	specifying that the required reserves for any retirement,
2.6 	disability, or survivor benefits provided under a benefit
2.7 	formula are computed in accordance with the entry age actuarial
2.8 	cost method and in accordance with the most recent applicable
2.9 	standards for actuarial work adopted by the Legislative
2.10 	Commission on Pensions and Retirement.
2.11 	(b) Assets of the fund or plan contained in the disclosure
2.12 	item must include the following statement of the actuarial value
2.13 	of current assets as defined in section 356.215, subdivision 1:
2.14 	Value         Value
2.15 	at cost       at market
2.16 	Cash, cash equivalents, and
2.17 	short-term securities           .........     .........
2.18 	Accounts receivable               .........     .........
2.19 	Accrued investment income         .........     .........
2.20 	Fixed income investments          .........     .........
2.21 	Equity investments other
2.22 	than real estate                .........     .........
2.23 	Real estate investments           .........     .........
2.24 	Equipment                         .........     .........
2.25 	Equity Participation in the Minnesota
2.26 	postretirement investment
2.27 	fund or the retirement 
2.28 	benefit fund.........     .........
2.29 	Other                             .........     .........
2.30 	
2.31 	Total assets
2.32 	Value at cost                                 .........
2.33 	Value at market                               .........
2.34 	Actuarial value of current assets             .........
2.35 	(c) The unfunded actuarial accrued liability of the fund or
2.36 	plan contained in the disclosure item must include the following
3.1 	measures of unfunded actuarial accrued liability, using
3.2 	the actuarial value of current assets:
3.3 	(1) the unfunded actuarial accrued liability, determined by
3.4 	subtracting the current assets and the present value of future
3.5 	normal costs from the total current and expected future benefit
3.6 	obligations; and
3.7 	(2) the unfunded pension benefit obligation, determined by
3.8 	subtracting the current assets from the actuarial present value
3.9 	of credited projected benefits.
3.10 	If the current assets of the fund or plan exceed the
3.11 	actuarial accrued liabilities, the excess must be disclosed and
3.12 	indicated as a surplus.
3.13 	(d) The pension benefit obligations schedule included in
3.14 	the disclosure must contain the following information on the
3.15 	benefit obligations:
3.16 	(1) the pension benefit obligation, determined as the
3.17 	actuarial present value of credited projected benefits on
3.18 	account of service rendered to date, separately identified as
3.19 	follows:
3.20 	(i) for annuitants;
3.21 	               retirement annuities;
3.22 	               disability benefits;
3.23 	               surviving spouse and child benefits;
3.24 	         (ii)  for former members without vested rights;
3.25 	         (iii) for deferred annuitants' benefits, including
3.26 	               any augmentation;
3.27 	         (iv)  for active employees;
3.28 	               accumulated employee contributions,
3.29 	               including allocated investment income;
3.30 	               employer-financed benefits vested;
3.31 	               employer-financed benefits nonvested;
3.32 	               total pension benefit obligation; and
3.33 	(2) if there are additional benefits not appropriately
3.34 	covered by the foregoing items of benefit obligations, a
3.35 	separate identification of the obligation.
3.36 	(e) The report must contain an itemized exhibit describing
4.1 	the administrative expenses of the plan, including, but not
4.2 	limited to the following items, classified on a consistent basis
4.3 	from year to year:
4.4 	(1) administrative salaries and fringe benefits;
4.5 	       (2) training expenses;
4.6 	       (3) actuarial consultant expenses;
4.7 	       (4) audit expenses;
4.8 	       (5) legal expenses;
4.9 	       (6) medical expenses;
4.10 	       (7) computer and data processing expenses;
4.11 	       (8) management services;
4.12 	       (9) printing;
4.13 	       (10) depreciation;
4.14 	       (11) subscriptions and dues;
4.15 	       (12) insurance;
4.16 	       (13) office rent and facility expenses;
4.17 	       (14) office supplies;
4.18 	       (15) postage;
4.19 	       (16) repairs;
4.20 	       (17) telephone;
4.21 	       (18) employee travel;
4.22 	       (19) board travel;
4.23 	       (20) investment management expenses; and
4.24 	       (21) other expenses.
4.25 	(f) Any additional statements or exhibits or more detailed
4.26 	or subdivided itemization of a disclosure item that will enable
4.27 	the management of the fund to portray a true interpretation of
4.28 	the fund's financial condition must be included in the
4.29 	additional statements or exhibits.

4.30 	Sec. 2. EFFECTIVE DATE.
 4.31 	Section 1 is effective the day following final enactment
4.32 	and applies to annual financial reporting occurring on or after
4.33 	June 30, 2005.