2004 Minnesota Statutes

     356.216 Contents of actuarial valuations for local 
  police and fire funds. 

    (a) The provisions of section 356.215 that govern the 
 contents of actuarial valuations must apply to any local police 
 or fire pension fund or relief association required to make an 
 actuarial report under this section, except as follows: 

    (1) in calculating normal cost and other requirements, if 
 required to be expressed as a level percentage of covered 
 payroll, the salaries used in computing covered payroll must be 
 the maximum rate of salary on which retirement and survivorship 
 credits and amounts of benefits are determined and from which 
 any member contributions are calculated and deducted; 

    (2) in lieu of the amortization date specified in section 
 356.215, subdivision 11, the appropriate amortization target 
 date specified in section 69.77, subdivision 4, or 69.773, 
 subdivision 4, clause (c), must be used in calculating any 
 required amortization contribution; 

    (3) in addition to the tabulation of active members and 
 annuitants provided for in section 356.215, subdivision 13, the 
 member contributions for active members for the calendar year 
 and the prospective annual retirement annuities under the 
 benefit plan for active members must be reported; 

    (4) actuarial valuations required under section 69.773, 
 subdivision 2, must be made at least every four years and 
 actuarial valuations required under section 69.77 shall be made 
 annually; 

    (5) the actuarial balance sheet showing accrued assets 
 valued at market value if the actuarial valuation is required to 
 be prepared at least every four years or valued as current 
 assets under section 356.215, subdivision 1, clause (6), or 
 paragraph (b), whichever applies, if the actuarial valuation is 
 required to be prepared annually, actuarial accrued liabilities, 
 and the unfunded actuarial accrued liability must include the 
 following required reserves: 

          (i) For active members 
       1.  Retirement benefits 
       2.  Disability benefits 
       3.  Refund liability due to death or withdrawal 
       4.  Survivors' benefits 
          (ii) For deferred annuitants' benefits 
          (iii) For former members without vested rights 
          (iv) For annuitants 
       1.  Retirement annuities 
       2.  Disability annuities 
       3.  Surviving spouses' annuities 
       4.  Surviving children's annuities 

    In addition to those required reserves, separate items must 
 be shown for additional benefits, if any, which may not be 
 appropriately included in the reserves listed above; and 

    (6) actuarial valuations are due by the first day of the 
 seventh month after the end of the fiscal year which the 
 actuarial valuation covers. 

    (b) For the Minneapolis Firefighters Relief Association or 
 the Minneapolis Police Relief Association, the following 
 provisions additionally apply: 

    (1) in calculating the actuarial balance sheet, unfunded 
 actuarial accrued liability, and amortization contribution of 
 the relief association, "current assets" means the value of all 
 assets at cost, including realized capital gains and losses, 
 plus or minus, whichever applies, the average value of total 
 unrealized capital gains or losses for the most recent 
 three-year period ending with the end of the plan year 
 immediately preceding the actuarial valuation report 
 transmission date; and 

    (2) in calculating the applicable portions of the actuarial 
 valuation, an annual preretirement interest assumption of six 
 percent, an annual postretirement interest assumption of six 
 percent, and an annual salary increase assumption of four 
 percent must be used. 

    HIST: 1978 c 563 s 11; 1981 c 224 s 170; 1983 c 71 s 2; 
 1Sp1985 c 7 s 28; 1986 c 359 s 14; 1Sp1986 c 3 art 1 s 46; 1987 
 c 259 s 56; 1989 c 319 art 19 s 4; 1991 c 199 art 1 s 91; 2002 c 
 392 art 1 s 8; art 11 s 8 

*   NOTE:  As of September 3, 2004, the Minneapolis City 
*Council had not filed with the secretary of state a certificate 
*of approval of an amendment to this section made by Laws 2004, 
*chapter 267, article 18, section 2.  Accordingly, the amendment 
*is not included in the text here.  If a certificate is filed 
*before January 4, 2005, the amendment is effective the day after 
*its filing.  If the filing with the secretary of state does not 
*occur before January 4, 2005, the amendment is disapproved.  
*Minnesota Statutes, section 645.021, subdivision 3.  The current 
*filing status may be confirmed by the secretary of state's 
*office.