SF 2835

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; modifying actuarial cost 
  1.3             allocation by the legislative commission on pensions 
  1.4             and retirement; amending Minnesota Statutes 1999 
  1.5             Supplement, section 3.85, subdivision 12. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.8   3.85, subdivision 12, is amended to read: 
  1.9      Subd. 12.  [ALLOCATION OF ACTUARIAL COST.] (a) The 
  1.10  commission shall assess each retirement plan specified in 
  1.11  subdivision 11, paragraph (b), its appropriate portion of the 
  1.12  compensation paid to the actuary retained by the commission for 
  1.13  the actuarial valuation calculations, quadrennial projection 
  1.14  valuations, and quadrennial experience studies.  The total 
  1.15  assessment is 100 percent of the amount of contract compensation 
  1.16  for the actuarial consulting firm retained by the commission for 
  1.17  actuarial valuation calculations, including the public employees 
  1.18  police and fire plan consolidation accounts of the public 
  1.19  employees retirement association established before March 2, 
  1.20  1999, for which the municipality declined merger under section 
  1.21  353.665, subdivision 1, or established after March 1, 1999, 
  1.22  annual experience data collection and processing, and 
  1.23  quadrennial experience studies and quadrennial projection 
  1.24  valuations.  
  1.25     The portion of the total assessment payable by each 
  2.1   retirement system or pension plan must be determined as follows: 
  2.2      (1) Each pension plan specified in subdivision 11, 
  2.3   paragraph (b), clauses (1) to (14), must pay the following 
  2.4   indexed amount based on its total active, deferred, inactive, 
  2.5   and benefit recipient membership: 
  2.6          up to 2,000 members, inclusive         $2.55 per member 
  2.7          2,001 through 10,000 members           $1.13 per member 
  2.8          over 10,000 members                    $0.11 per member  
  2.9      The amount specified is applicable for the assessment of 
  2.10  the July 1, 1991, to June 30, 1992, fiscal year actuarial 
  2.11  compensation amounts.  For the July 1, 1992, to June 30, 1993, 
  2.12  fiscal year and subsequent fiscal year actuarial compensation 
  2.13  amounts, the amount specified must be increased at the same 
  2.14  percentage increase rate as the implicit price deflator for 
  2.15  state and local government purchases of goods and services for 
  2.16  the 12-month period ending with the first quarter of the 
  2.17  calendar year following the completion date for the actuarial 
  2.18  valuation calculations, as published by the federal Department 
  2.19  of Commerce, and rounded upward to the nearest full cent. 
  2.20     (2) The total per-member portion of the allocation must be 
  2.21  determined, and that total per-member amount must be subtracted 
  2.22  from the total amount for allocation.  Of the remainder dollar 
  2.23  amount, the following per-retirement system and per-pension plan 
  2.24  charges must be determined and the charges must be paid by the 
  2.25  system or plan: 
  2.26     (i) 37.87 percent is the total additional per-retirement 
  2.27  system charge, of which one-seventh must be paid by each 
  2.28  retirement system specified in subdivision 11, paragraph (b), 
  2.29  clauses (1), (2), (6), (7), (9), (10), and (11). 
  2.30     (ii) 62.13 percent is the total additional per-pension plan 
  2.31  charge, of which one-fourteenth must be paid by each pension 
  2.32  plan specified in subdivision 11, paragraph (b), clauses (1) to 
  2.33  (14) based on each plan's proportion of the total time and 
  2.34  materials and direct expenses of the commission-retained actuary 
  2.35  to complete the actuarial valuation calculations and the 
  2.36  quadrennial experience studies for all plans.  
  3.1      (b) The assessment must be made following the completion of 
  3.2   the actuarial valuation calculations and the experience 
  3.3   analysis.  The amount of the assessment is appropriated from the 
  3.4   retirement fund applicable to the retirement plan.  Receipts 
  3.5   from assessments must be deposited in the state treasury and 
  3.6   credited to the general fund.