SF 2192

as introduced - 87th Legislature (2011 - 2012) Posted on 06/21/2012 09:54am

A bill for an act
relating to governmental financial reporting; requiring the Minnesota
Management and Budget Department to report on the adequacy of budgeted and
forecasted defined benefit retirement plan contributions; proposing coding for
new law in Minnesota Statutes, chapter 16A.

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

Section 1.

new text begin [16A.106] ADEQUACY OF BUDGETED AND FORECASTED
DEFINED BENEFIT PLAN RETIREMENT CONTRIBUTIONS.
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new text begin (a) On or before May 30 or the date occurring 30 days after the conclusion of
the regular legislative session, whichever is later, in each odd-numbered year, the
commissioner shall prepare a report to the legislature on the adequacy of the budgeted
appropriations, including retirement-related state aids, and forecasted member and
employer retirement contributions to meet the total calculated actuarial funding
requirements of the statewide and major local defined benefit retirement plans.
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new text begin (b) The total calculated actuarial funding requirements are the sum of:
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new text begin (1) the normal cost;
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new text begin (2) the administrative expenses as defined in section 356.20, subdivision 4,
paragraph (c); and
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new text begin (3) the supplemental amortization contribution requirement using the amortization
target date specified in section 356.215, subdivision 11.
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new text begin The total calculated actuarial funding requirements must be as determined in the
most recent actuarial valuation of the retirement plan prepared by an approved actuary
under section 356.215 and the most recent standards for actuarial work adopted by the
Legislative Commission on Pensions and Retirement.
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new text begin (c) The statewide and major local retirement plans are the defined benefit retirement
plans listed in section 356.20, subdivision 2, clauses (1) to (6), (9), (12), (13), and (14).
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new text begin (d) The report must also include as an exhibit as of the start of the most recent fiscal
year, the following information for each statewide and major local retirement plan in a
single comparative table:
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new text begin (1) the year the retirement plan was enacted or established;
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new text begin (2) the number of active members of the retirement plan;
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new text begin (3) the number of retirement annuitants and retirement benefit recipients;
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new text begin (4) whether or not the retirement plan supplements the federal Old Age, Survivors
and Disability Insurance program;
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new text begin (5) whether or not the retirement plan permits the purchase of service credit for
out-of-state service or time;
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new text begin (6) the percentage of covered salary employer contributions;
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new text begin (7) the percentage of covered salary member contributions;
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new text begin (8) the amount of unfunded actuarial accrued liability calculated using the actuarial
value of assets and the market value of assets;
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new text begin (9) the percentage that assets, at actuarial value and at market value, represent of the
actuarial accrued liability;
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new text begin (10) the normal retirement age or ages;
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new text begin (11) the salary base definition and the percentage of salary base benefit accrual rate
per year of service credit formula for a normal retirement annuity;
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new text begin (12) the amount of automatic postretirement adjustment;
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new text begin (13) whether or not service credit is available for military service and any limitation
on its acquisition;
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new text begin (14) the vesting period for a disability benefit and the definition of a disability
qualifying for a disability benefit;
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new text begin (15) investment performance and interest rate actuarial assumptions;
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new text begin (16) the amortization target date;
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new text begin (17) four fiscal years running statistics of active retirement plan members;
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new text begin (18) four fiscal years running statistics of retirement annuitants and retirement
benefit recipients;
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new text begin (19) four fiscal years running statistics of deferred annuitants;
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new text begin (20) four fiscal years running statistics of unfunded actuarial accrued liability
determined on an actuarial value of assets basis and on a market value of assets basis;
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new text begin (21) four fiscal years running statistics of the percentage that assets, at actuarial
value and at market value, represent of the actuarial accrued liability;
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new text begin (22) four fiscal years running statistics of actuarial value of assets; and
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new text begin (23) four fiscal years running statistics of market value of assets.
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new text begin (e) The report under this section also must be included on the Web site of the
department.
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new text begin EFFECTIVE DATE. new text end

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