SF 1124

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; major statewide pension plans; 
  1.3             specifying graded rate salary increase assumptions; 
  1.4             amending Minnesota Statutes 1994, section 356.215, 
  1.5             subdivision 4d. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 356.215, 
  1.8   subdivision 4d, is amended to read: 
  1.9      Subd. 4d.  [INTEREST AND SALARY ASSUMPTIONS.] (a) For funds 
  1.10  governed by chapters 352, 352B, 353, and 353C, and 354 by 
  1.11  sections 352.90 to 352.951, and 353.63 to 353.68, the actuarial 
  1.12  valuation must use a preretirement interest assumption of 8.5 
  1.13  percent, a postretirement interest assumption of five percent, 
  1.14  and a future salary increase assumption of 6.5 percent. 
  1.15     (b) For funds governed by chapter 354A, the actuarial 
  1.16  valuation must use preretirement and postretirement assumptions 
  1.17  of 8.5 percent and a future salary increase assumption of 6.5 
  1.18  percent, but the actuarial valuation must reflect the payment of 
  1.19  postretirement adjustments to retirees, based on the methods 
  1.20  specified in the bylaws of the fund as approved by the 
  1.21  legislature.  For a fund governed by chapter 422A, the actuarial 
  1.22  valuation shall use a preretirement interest assumption of six 
  1.23  percent, a postretirement interest assumption of five percent, 
  1.24  and an assumption that in each future year the salary on which a 
  1.25  retirement or other benefit is based is 1.04 multiplied by the 
  2.1   salary for the preceding year.  
  2.2      (c) For all other funds not specified in paragraph (a), 
  2.3   (b), or (d), or (e), the actuarial valuation must use a 
  2.4   preretirement interest assumption of five percent, a 
  2.5   postretirement interest assumption of five percent, and a future 
  2.6   salary increase assumption of 3.5 percent. 
  2.7      (d) For funds governed by chapters 3A, 352C, and 490, the 
  2.8   actuarial valuation must use a preretirement interest assumption 
  2.9   of 8.5 percent, a postretirement interest assumption of five 
  2.10  percent, and a future salary increase assumption of 6.5 percent 
  2.11  in each future year in which the salary amount payable is not 
  2.12  determinable from section 3.099, 15A.081, subdivision 6, or 
  2.13  15A.083, subdivision 1, whichever applies, or from applicable 
  2.14  compensation council recommendations under section 15A.082. 
  2.15     (e) For funds governed by sections 352.01 to 352.86, 353.01 
  2.16  to 353.46, and chapter 354, the actuarial valuation must use a 
  2.17  preretirement interest assumption of 8.5, a postretirement 
  2.18  interest assumption of five percent, and a graded rate future 
  2.19  salary increase assumption as follows: 
  2.20          general state   general public   
  2.21            employees       employees         teachers  
  2.22           retirement      retirement        retirement 
  2.23   age        plan            plan              plan 
  2.24   16        7.2500%         9.71%              7.25%
  2.25   17        7.2500          9.71               7.25 
  2.26   18        7.2500          9.70               7.25 
  2.27   19        7.2500          9.70               7.25 
  2.28   20        7.2500          8.70               7.25 
  2.29   21        7.1454          8.70               7.25 
  2.30   22        7.1094          8.70               7.25 
  2.31   23        7.0725          8.70               7.20 
  2.32   24        7.0363          8.70               7.15 
  2.33   25        7.0000          8.60               7.10 
  2.34   26        7.0000          8.51               7.05 
  2.35   27        7.0000          8.39               7.00 
  2.36   28        7.0000          8.30               7.00 
  3.1    29        7.0000          8.20               7.00 
  3.2    30        7.0000          8.20               7.00 
  3.3    31        7.0000          8.10               7.00 
  3.4    32        7.0000          8.10               7.00 
  3.5    33        7.0000          8.00               7.00 
  3.6    34        7.0000          8.00               7.00 
  3.7    35        7.0000          7.90               7.00 
  3.8    36        6.9019          7.80               7.00 
  3.9    37        6.8074          7.70               7.00 
  3.10   38        6.7125          7.60               6.90 
  3.11   39        6.6054          7.50               6.80 
  3.12   40        6.5000          7.40               6.70 
  3.13   41        6.3540          7.30               6.60 
  3.14   42        6.2087          7.30               6.50 
  3.15   43        6.0622          7.30               6.35 
  3.16   44        5.9048          7.20               6.20 
  3.17   45        5.7500          7.20               6.05 
  3.18   46        5.6940          7.09               5.90 
  3.19   47        5.6375          7.00               5.75 
  3.20   48        5.5822          6.90               5.70 
  3.21   49        5.5405          6.80               5.65 
  3.22   50        5.5000          6.70               5.60 
  3.23   51        5.4384          6.70               5.55 
  3.24   52        5.3776          6.70               5.50 
  3.25   53        5.3167          6.70               5.45 
  3.26   54        5.2826          6.70               5.40 
  3.27   55        5.2500          6.70               5.35 
  3.28   56        5.2500          6.70               5.30 
  3.29   57        5.2500          6.70               5.25 
  3.30   58        5.2500          6.70               5.25 
  3.31   59        5.2500          6.70               5.25 
  3.32   60        5.2500          6.00               5.25 
  3.33   61        5.2500          6.00               5.25 
  3.34   62        5.2500          6.00               5.25 
  3.35   63        5.2500          6.00               5.25 
  3.36   64        5.2500          6.00               5.25 
  4.1    65        5.2500          6.00               5.25 
  4.2    66        5.2500          6.00               5.25 
  4.3    67        5.2500          6.00               5.25 
  4.4    68        5.2500          6.00               5.25 
  4.5    69        5.2500          6.00               5.25 
  4.6    70        5.2500          6.00               5.25 
  4.7      Sec. 2.  [EFFECTIVE DATE.] 
  4.8      Section 1 is effective June 30, 1995, for actuarial 
  4.9   valuations as of or after that date.