HF 3572

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/17/2022 02:19pm

A bill for an act
relating to retirement; Minnesota State Retirement System; reducing the investment
rate of return assumption; amending Minnesota Statutes 2020, section 356.215,
subdivision 8.

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

Section 1.

Minnesota Statutes 2020, 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	deleted text begin 7.5% deleted text end new text begin 7% new text end
correctional state employees retirement plan	deleted text begin 7.5 deleted text end new text begin 7 new text end
State Patrol retirement plan	deleted text begin 7.5 deleted text end new text begin 7 new text end
legislators retirement plan, and for the constitutional officers calculation of total plan liabilities	0
judges retirement plan	deleted text begin 7.5 deleted text end new text begin 7 new text end
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	7.5
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 June 30, 2022.
new text end