SF 1286

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/07/2023 09:07am

A bill for an act
relating to retirement; St. Paul Teachers Retirement Fund Association; reducing
the investment rate of return assumption and providing funding; amending
Minnesota Statutes 2022, sections 354A.12, subdivision 3a; 356.215, subdivision
8.

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

Section 1.

Minnesota Statutes 2022, section 354A.12, subdivision 3a, is amended to read:

Subd. 3a.

Direct state aid to first class city teachers retirement fund associations.

(a)
The state shall pay $2,827,000 to the St. Paul Teachers Retirement Fund Association.

(b) In addition to other amounts specified in this subdivision, the state shall pay
$7,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.

(c) In addition to the amounts specified in paragraphs (a) and (b), the state shall pay
$5,000,000 as state aid to the St. Paul Teachers Retirement Fund Association.

new text begin (d) In addition to the amounts specified in paragraphs (a) to (c), the state shall pay
$6,651,000 as state aid to the St. Paul Teachers Retirement Fund Association beginning in
2023.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end The aid under this subdivision is payable October 1 annually. The commissioner
of management and budget shall pay the aid specified in this subdivision. The amount
required is appropriated annually from the general fund to the commissioner of management
and budget.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2022, section 356.215, subdivision 8, is amended to read:

Subd. 8.

Actuarial assumptions.

(a) The actuarial valuation must use the applicable
following investment return assumption:

plan	investment return assumption
general state employees retirement plan	7.5%
correctional state employees retirement plan	7.5
State Patrol retirement plan	7.5
legislators retirement plan, and for the constitutional officers calculation of total plan liabilities	0
judges retirement plan	7.5
general public employees retirement plan	7.5
public employees police and fire retirement plan	7.5
local government correctional service retirement plan	7.5
teachers retirement plan	7.5
St. Paul teachers retirement plan	deleted text begin 7.5 deleted text end new text begin 7 new text end
Bloomington Fire Department Relief Association	6
local monthly benefit volunteer firefighter relief associations	5
monthly benefit retirement plans in the statewide volunteer firefighter retirement plan	6

(b) The actuarial valuation for each of the covered retirement plans listed in section
356.415, subdivision 2, and the St. Paul Teachers Retirement Fund Association must take
into account the postretirement adjustment rate or rates applicable to the plan as specified
in section 354A.29, subdivision 7, or 356.415, whichever applies.

(c) The actuarial valuation must use the applicable salary increase and payroll growth
assumptions found in the appendix to the standards for actuarial work adopted by the
Legislative Commission on Pensions and Retirement pursuant to section 3.85, subdivision
10. The appendix must be updated whenever new assumptions have been approved or
deemed approved under subdivision 18.

(d) The assumptions set forth in the appendix to the standards for actuarial work continue
to apply, unless a different salary assumption or a different payroll increase assumption:

(1) has been proposed by the governing board of the applicable retirement plan;

(2) is accompanied by the concurring recommendation of the actuary retained under
section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the most
recent actuarial valuation report if section 356.214 does not apply; and

(3) has been approved or deemed approved under subdivision 18.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end