SF 4588

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/19/2026 09:26 a.m.

A bill for an act
relating to retirement; establishing a process to change the investment return
assumption for computing joint and survivor annuities; requiring an investment
return assumption for computing joint and survivor annuities that has been approved
or deemed approved to be included in the appendix to the standards for actuarial
work; amending Minnesota Statutes 2024, section 356.461, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 356.461, subdivision 1, is amended to read:

Subdivision 1.

Joint and survivor annuity computation.

new text begin (a) new text end Notwithstanding any
provision of section 356.215, subdivision 8, or 356.415 to the contrary, for purposes of
computing joint and survivor annuities new text begin under each covered retirement plan in subdivision
2 new text end , the applicable investment return assumption is 6.5 percent new text begin unless a different percentage
has been approved or deemed approved under paragraph (b) for the covered retirement plan new text end .

new text begin (b) A change in the investment return assumption for computing joint and survivor
annuities may be proposed by the governing board of a covered retirement plan. The
assumption may be changed only with the approval of the Legislative Commission on
Pensions and Retirement or after a period of one year has elapsed since the date on which
the proposed assumption change was received by the Legislative Commission on Pensions
and Retirement without commission action.
new text end

new text begin (c) The executive director of the Legislative Commission on Pensions and Retirement
must update the appendix to the standards for actuarial work whenever a change in the
assumption is approved or deemed approved.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end