HF 2089

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to retirement; annual public pension plan
administrative expense reporting; specifying itemized
detail in annual reporting; amending Minnesota
Statutes 2004, section 356.20, subdivision 4.

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

Section 1.

Minnesota Statutes 2004, section 356.20,
subdivision 4, is amended to read:

Subd. 4.

Contents of financial report.

(a) The financial
report required by this section must contain financial
statements and disclosures that indicate the financial
operations and position of the retirement plan and fund. The
report must conform with generally accepted governmental
accounting principles, applied on a consistent basis. The
report must be audited. The report must include, as part of its
exhibits or new text begin its new text end footnotes, an actuarial disclosure item based on
the actuarial valuation calculations prepared by the
deleted text begin commission-retained deleted text end actuary new text begin retained under section 356.214 new text end or by
the actuary retained by the retirement fund or plan, deleted text begin if
applicable deleted text end new text begin whichever applies new text end , according to applicable actuarial
requirements enumerated in section 356.215, and specified in the
most recent standards for actuarial work adopted by the
Legislative Commission on Pensions and Retirement. The accrued
assets, the accrued liabilities, including accrued reserves, and
the unfunded actuarial accrued liability of the fund or plan
must be disclosed. The disclosure item must contain a
declaration by the actuary retained deleted text begin by the Legislative
Commission on Pensions and Retirement deleted text end new text begin under section 356.214 new text end or
the actuary retained by the fund or plan, whichever applies,
specifying that the required reserves for any retirement,
disability, or survivor benefits provided under a benefit
formula are computed in accordance with the entry age actuarial
cost method and new text begin in accordance new text end with the most recent applicable
standards for actuarial work adopted by the Legislative
Commission on Pensions and Retirement.

(b) Assets of the fund or plan contained in the disclosure
item must include the following statement of the actuarial value
of current assets as defined in section 356.215, subdivision 1:

Value Value

at cost at market

Cash, cash equivalents, and

short-term securities ......... .........

Accounts receivable ......... .........

Accrued investment income ......... .........

Fixed income investments ......... .........

Equity investments other

than real estate ......... .........

Real estate investments ......... .........

Equipment ......... .........

deleted text begin Equity deleted text end new text begin Participation new text end in the Minnesota

postretirement investment

fund new text begin or the retirement
new text end

new text begin benefit fund new text end ......... .........

Other ......... .........

Total assets

Value at cost .........

Value at market .........

new text begin Actuarial new text end value of current assets .........

(c) The unfunded actuarial accrued liability of the fund or
plan contained in the disclosure item must include the following
measures of unfunded actuarial accrued liability, using
the new text begin actuarial new text end value of current assets:

(1) new text begin the new text end unfunded actuarial accrued liability, determined by
subtracting the current assets and the present value of future
normal costs from the total current and expected future benefit
obligations; and

(2) new text begin the new text end unfunded pension benefit obligation, determined by
subtracting the current assets from the actuarial present value
of credited projected benefits.

If the current assets of the fund or plan exceed the
actuarial accrued liabilities, the excess must be disclosed and
indicated as a surplus.

(d) The pension benefit obligations schedule included in
the disclosure must contain the following information on the
benefit obligations:

(1) the pension benefit obligation, determined as the
actuarial present value of credited projected benefits on
account of service rendered to date, separately identified as
follows:

(i) for annuitants;
retirement annuities;
disability benefits;
surviving spouse and child benefits;
(ii) for former members without vested rights;
(iii) for deferred annuitants' benefits, including
any augmentation;
(iv) for active employees;
accumulated employee contributions,
including allocated investment income;
employer-financed benefits vested;
employer-financed benefits nonvested;
total pension benefit obligation; and

(2) if there are additional benefits not appropriately
covered by the foregoing items of benefit obligations, a
separate identification of the obligation.

(e) new text begin The report must contain an itemized exhibit describing
the administrative expenses of the plan, including, but not
limited to the following items, classified on a consistent basis
from year to year:
new text end

new text begin (1) administrative salaries and fringe benefits;
(2) training expenses;
(3) actuarial consultant expenses;
(4) audit expenses;
(5) legal expenses;
(6) medical expenses;
(7) computer and data processing expenses;
(8) management services;
(9) printing;
(10) depreciation;
(11) subscriptions and dues;
(12) insurance;
(13) office rent and facility expenses;
(14) office supplies;
(15) postage;
(16) new text end new text begin new text end new text begin repairs;
(17) new text end new text begin new text end new text begin telephone;
(18) new text end new text begin new text end new text begin employee travel;
(19) board travel;
(20) investment management expenses; and
(21) new text end new text begin other new text end new text begin expenses.
new text end

new text begin (f) new text end Any additional statements or exhibits or more detailed
or subdivided itemization of a disclosure item that will enable
the management of the fund to portray a true interpretation of
the fund's financial condition must be included in the
additional statements or exhibits.

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective the day following final enactment
and applies to annual financial reporting occurring on or after
June 30, 2005.
new text end