1.1 	A bill for an act
1.2 	relating to retirement; various statewide and major
1.3 	local retirement plans; clarifying references to
1.4 	actuarial services in determining actuarial
1.5 	equivalence; amending Minnesota Statutes 2004,
1.6 	sections 352.01, subdivision 12; 353.01, subdivision
1.7 	14; 354.05, subdivision 7; 354A.011, subdivision 3a;
1.8 	422A.01, subdivision 6; 490.121, subdivision 20.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2004, section 352.01,
1.11 	subdivision 12, is amended to read:
1.12 		Subd. 12.Actuarial equivalent.  "Actuarial equivalent"
1.13 	means the condition of one annuity or benefit having an equal
1.14 	actuarial present value as another annuity or benefit,
1.15 	determined as of a given date at a specified age with each
1.16 	actuarial present value based on the appropriate mortality table
1.17 	adopted by the board of directors based on the experience of the
1.18 	fund as recommended by the actuary retained ~~by the Legislative~~
1.19 	~~Commission on Pensions and Retirement~~ under section 356.214, and
1.20 	approved under section 356.215, subdivision 18,and using the
1.21 	applicable preretirement or postretirement interest rate
1.22 	assumption specified in section 356.215, subdivision 8.

1.23 	Sec. 2. Minnesota Statutes 2004, section 353.01,
1.24 	subdivision 14, is amended to read:
1.25 		Subd. 14.Actuarial equivalent.  "Actuarial equivalent"
1.26 	means the condition of one annuity or benefit having an equal
1.27 	actuarial present value as another annuity or benefit,
2.1 	determined as of a given date with each actuarial present value
2.2 	based on the appropriate mortality table adopted by the board of
2.3 	trustees based on the experience of the fund as recommended by
2.4 	the actuary retained ~~by the Legislative Commission on Pensions~~
2.5 	~~and Retirement~~ under section 356.214, and approved under section
2.6 	356.215, subdivision 18,and using the applicable preretirement
2.7 	or postretirement interest rate assumption specified in section
2.8 	356.215, subdivision 8.

2.9 	Sec. 3. Minnesota Statutes 2004, section 354.05,
2.10 	subdivision 7, is amended to read:
2.11 		Subd. 7.Actuarial equivalent.  "Actuarial equivalent"
2.12 	means the condition of one annuity or benefit having an equal
2.13 	actuarial present value as another annuity or benefit,
2.14 	determined as of a given date with each actuarial present value
2.15 	based on the appropriate mortality table adopted by the board of
2.16 	trustees based on the experience of the association as
2.17 	recommended by the actuary retained ~~by the Legislative~~
2.18 	~~Commission on Pensions and Retirement~~ under section 356.214, and
2.19 	approved under section 356.215, subdivision 18,and using the
2.20 	applicable preretirement or postretirement interest rate
2.21 	assumption specified in section 356.215, subdivision 8.

2.22 	Sec. 4. Minnesota Statutes 2004, section 354A.011,
2.23 	subdivision 3a, is amended to read:
2.24 		Subd. 3a.Actuarial equivalent.  "Actuarial equivalent"
2.25 	means the condition of one annuity or benefit having an equal
2.26 	actuarial present value as another annuity or benefit,
2.27 	determined as of a given date with each actuarial present value
2.28 	based on the appropriate mortality table adopted by the
2.29 	appropriate board of trustees based on the experience of that
2.30 	retirement fund association as recommended by the actuary
2.31 	retained ~~by the Legislative Commission on Pensions and~~
2.32 	~~Retirement~~ under section 356.214, and approved under section
2.33 	356.215, subdivision 18,and using the applicable preretirement
2.34 	or postretirement interest rate assumption specified in section
2.35 	356.215, subdivision 8.

2.36 	Sec. 5. Minnesota Statutes 2004, section 422A.01,
3.1 	subdivision 6, is amended to read:
3.2 		Subd. 6.Present worth or present value.  "Present worth"
3.3 	or "present value" means that the present amount of money if
3.4 	increased at the applicable postretirement or preretirement
3.5 	interest rate assumption specified in section 356.215,
3.6 	subdivision 8, and based on the mortality table adopted by the
3.7 	board of trustees based on the experience of the fund as
3.8 	recommended by the actuary retained ~~by the Legislative~~
3.9 	~~Commission on Pensions and Retirement~~ under section 356.214, and
3.10 	approved under section 356.215, subdivision 18,will at
3.11 	retirement equal the actuarial accrued liability of the annuity
3.12 	already earned.

3.13 	Sec. 6. Minnesota Statutes 2004, section 490.121,
3.14 	subdivision 20, is amended to read:
3.15 		Subd. 20.Actuarial equivalent.  "Actuarial equivalent"
3.16 	means the condition of one annuity or benefit having an equal
3.17 	actuarial present value as another annuity or benefit,
3.18 	determined as of a given date with each actuarial present value
3.19 	based on the appropriate mortality table adopted by the board of
3.20 	~~trustees~~ directors of the Minnesota State Retirement System 
3.21 	based on the experience of the fund as recommended by
3.22 	the ~~commission-retained~~ actuary retained under section 356.214,
3.23 	and approved under section 356.215, subdivision 18,and using
3.24 	the applicable preretirement or postretirement interest rate
3.25 	assumption specified in section 356.215, subdivision 8.

3.26 	Sec. 7. EFFECTIVE DATE.
 3.27 	Sections 1 to 6 are effective July 1, 2005.