1999 Minnesota Statutes

     356.20 Public pension fund financial reporting 
  requirement. 

    Subdivision 1.    Report required.  The governing or 
 managing board or administrative officials of the public pension 
 and retirement funds enumerated in subdivision 2 shall annually 
 prepare and file a financial report following the close of each 
 fiscal year.  This requirement shall also apply to any fund 
 which may be a successor to any organization so enumerated or to 
 any newly formed retirement fund or association operating under 
 the control or supervision of any public employee group, 
 governmental unit, or institution receiving a portion of its 
 support through legislative appropriations.  The report shall be 
 prepared under the supervision and at the direction of the 
 management of each fund and shall be signed by the presiding 
 officer of the managing board of the fund and the chief 
 administrative official of the fund.  

    Subd. 2.    Covered public pension funds.  This section 
 applies to the following public pension plans: 

    (1) State employees retirement fund. 

    (2) Public employees retirement fund. 

    (3) Teachers retirement association. 

    (4) State patrol retirement fund. 

    (5) Minneapolis teachers retirement fund association. 

    (6) St. Paul teachers retirement fund association. 

    (7) Duluth teachers retirement fund association. 

    (8) Minneapolis employees retirement fund. 

    (9) University of Minnesota faculty retirement plan. 

    (10) University of Minnesota faculty supplemental 
 retirement plan. 

    (11) Judges retirement fund. 

    (12) Any police or firefighter's relief association 
 enumerated in section 69.77, subdivision 1a, or 69.771, 
 subdivision 1. 

    (13) Public employees police and fire fund.  

    (14) Minnesota state retirement system correctional 
 officers retirement fund.  

    (15) Public employees local government correctional service 
 retirement plan. 

    Subd. 3.    Filing requirement.  The financial report is 
 a public record.  A copy of the report or a synopsis of the 
 report containing the information required by this section shall 
 be distributed annually to each member of the fund and to the 
 governing body of each governmental subdivision of the state 
 which makes employers contributions thereto or in whose behalf 
 taxes are levied for the employers' contribution.  A signed copy 
 of the report shall be delivered to the executive director of 
 the legislative commission on pensions and retirement and to the 
 legislative reference library not later than six months after 
 the close of each fiscal year or one month following the 
 completion and delivery to the retirement fund of the actuarial 
 valuation report of the fund by the actuary retained by the 
 legislative commission on pensions and retirement, if 
 applicable, whichever is later.  

    Subd. 4.    Contents of financial report.  The financial 
 report required by this section must contain financial 
 statements and disclosures that indicate the financial 
 operations and position of the retirement plan and fund.  The 
 report must conform with generally accepted governmental 
 accounting principles, applied on a consistent basis.  The 
 report must be audited.  The report must include, as part of its 
 exhibits or footnotes, an actuarial disclosure item based on the 
 actuarial valuation calculations prepared by the 
 commission-retained actuary or by the actuary retained by the 
 retirement fund or plan, if applicable, according to applicable 
 actuarial requirements enumerated in section 356.215, and 
 specified in the most recent standards for actuarial work 
 adopted by the legislative commission on pensions and 
 retirement.  The accrued assets, the accrued liabilities, 
 including accrued reserves, and the unfunded actuarial accrued 
 liability of the fund or plan must be disclosed.  The disclosure 
 item must contain a declaration by the actuary retained by the 
 legislative commission on pensions and retirement or the actuary 
 retained by the fund or plan, whichever applies, specifying that 
 the required reserves for any retirement, disability, or 
 survivor benefits provided under a benefit formula are computed 
 in accordance with the entry age actuarial cost method and with 
 the most recent applicable standards for actuarial work adopted 
 by the legislative commission on pensions and retirement. 

    (a) Assets of the fund or plan contained in the disclosure 
 item must include the following statement of the actuarial value 
 of current assets as defined in section 356.215, subdivision 1: 

                                     Value         Value 

                                    at cost       at market

  Cash, cash equivalents, and  

    short-term securities           .........     ......... 

  Accounts receivable               .........     .........

  Accrued investment income         .........     .........  

  Fixed income investments          .........     ......... 

  Equity investments other 

    than real estate                .........     ......... 

  Real estate investments           .........     ......... 

  Equipment                         .........     ......... 

  Equity in the Minnesota 

    postretirement investment

    fund                            .........     ......... 

  Other                             .........     .........  

   

  Total assets 

    Value at cost                                 .........

    Value at market                               ......... 

    Value of current assets                       ......... 

    (b) The unfunded actuarial accrued liability of the fund or 
 plan contained in the disclosure item must include the following 
 measures of unfunded actuarial accrued liability, using the 
 value of current assets:  

    (1) unfunded actuarial accrued liability, determined by 
 subtracting the current assets and the present value of future 
 normal costs from the total current and expected future benefit 
 obligations; and 

    (2) unfunded pension benefit obligation, determined by 
 subtracting the current assets from the actuarial present value 
 of credited projected benefits. 

    If the current assets of the fund or plan exceed the 
 actuarial accrued liabilities, the excess must be disclosed and 
 indicated as a surplus. 

    (c) The pension benefit obligations schedule included in 
 the disclosure must contain the following information on the 
 benefit obligations: 

    (1) The pension benefit obligation, determined as the 
 actuarial present value of credited projected benefits on 
 account of service rendered to date, separately identified as 
 follows: 

          (i)   For annuitants 
                Retirement annuities 
                Disability benefits
                Surviving spouse and child benefits
          (ii)  For former members without vested rights 
          (iii) For deferred annuitants' benefits, including 
                any augmentation 
          (iv)  For active employees 
                Accumulated employee contributions,
                including allocated investment income
                Employer-financed benefits vested
                Employer-financed benefits nonvested
                Total pension benefit obligation;

    (2) If there are additional benefits not appropriately 
 covered by the foregoing items of benefit obligations, a 
 separate identification of the obligation. 

    (d) Any additional statements or exhibits or more detailed 
 or subdivided itemization of a disclosure item that will enable 
 the management of the fund to portray a true interpretation of 
 the fund's financial condition must be included in the 
 additional statements or exhibits. 

    Subd. 4a.  For any police or firefighter's relief 
 association referred to in subdivision 2, clause (12), a 
 financial report duly filed pursuant to and meeting the 
 requirements of section 69.051 shall be deemed to have met the 
 requirements of subdivision 4. 

    Subd. 5. Repealed, 1984 c 383 s 5 

    HIST: 1965 c 359 s 1; 1969 c 249 s 1; 1971 c 7 s 1-3; 1971 c 
 197 s 4; 1971 c 281 s 1,2; 1975 c 192 s 1,2; 1978 c 563 s 6-8; 
 1979 c 50 s 49; 1981 c 37 s 2; 1981 c 224 s 168; 1981 c 298 s 
 11; 1984 c 564 s 42; 1Sp1985 c 7 s 26; 1986 c 359 s 26; 1987 c 
 259 s 52-54; 1987 c 372 art 1 s 19; 1991 c 269 art 3 s 2; 1995 c 
 141 art 3 s 20; 1997 c 233 art 1 s 56; 1999 c 222 art 2 s 16