2007 Minnesota Statutes

352.045 PROCEDURE FOR REVISING EMPLOYEE AND EMPLOYER
CONTRIBUTIONS IN CERTAIN INSTANCES.
    Subdivision 1. Application. This section applies to the general state employees retirement
plan and to the correctional state employees retirement plan under this chapter, and to the state
patrol retirement plan under chapter 352B.
    Subd. 2. Determination. For purposes of this section, a contribution sufficiency exists
if, for purposes of the applicable plan, the total of the employee contributions, the employer
contributions, and any additional employer contributions, if applicable, exceeds the total of the
normal cost, the administrative expenses, and the amortization contribution of the retirement plan
as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary
retained under section 356.214 and prepared under section 356.215 and the standards for actuarial
work of the Legislative Commission on Pensions and Retirement. For purposes of this section,
a contribution deficiency exists if, for the applicable plan, the total employee contributions,
employer contributions, and any additional employer contributions are less than the total of the
normal cost, the administrative expenses, and the amortization contribution of the retirement plan
as reported in the most recent actuarial valuation of the retirement plan prepared by the actuary
retained under section 356.214 and prepared under section 356.215 and the standards for actuarial
work of the Legislative Commission on Pensions and Retirement.
    Subd. 3. Contribution rate revision. Notwithstanding the contribution rate provisions stated
in plan law, the employee and employer contribution rates must be adjusted:
(1) if, after July 1, 2011, the regular actuarial valuations of the applicable plan under section
356.215 indicate that there is a contribution sufficiency under subdivision 2 equal to or greater
than 0.5 percent of covered payroll for two consecutive years, the employee and employer
contribution rates for the applicable plan must be decreased as determined under subdivision 4 to
a level such that the sufficiency equals no more than 0.25 percent of covered payroll based on the
most recent actuarial valuation; or
(2) if, after July 1, 2011, the regular actuarial valuations of the applicable plan under section
356.215 indicate that there is a deficiency equal to or greater than 0.5 percent of covered payroll
for two consecutive years, the employee and employer contribution rates for the applicable plan
must be increased as determined under subdivision 4 to a level such that no deficiency exists
based on the most recent actuarial valuation.
    Subd. 4. Reporting, commission review. (a) The contribution rate increase or decrease must
be determined by the executive director of the Minnesota State Retirement System, must be
reported to the chair and the executive director of the Legislative Commission on Pensions and
Retirement on or before the next February 1, and, if the Legislative Commission on Pensions and
Retirement does not recommend against the rate change or does not recommend a modification
in the rate change, is effective on the next July 1 following the determination by the executive
director that a contribution deficiency or sufficiency has existed for two consecutive fiscal years
based on the most recent actuarial valuations under section 356.215. If the actuarially required
contribution exceeds or is less than the total support provided by the combined employee and
employer contribution rates for the applicable plan by more than 0.5 percent of covered payroll,
the applicable plan employee and employer contribution rates must be adjusted incrementally
over one or more years to a level such that there remains a contribution sufficiency of no more
than 0.25 percent of covered payroll.
(b) No incremental adjustment may exceed 0.25 percent of payroll for either the employee or
employer contribution rates per year in which any adjustment is implemented. For an applicable
plan, a contribution rate adjustment under this section must not be made until at least two years
have passed since fully implementing a previous adjustment under this section.
History: 2006 c 271 art 1 s 3
NOTE: This section, as added by Laws 2006, chapter 271, article 1, section 3, is effective
July 1, 2007. Laws 2006, chapter 271, article 1, section 9.