Bill Summary: SF2010 - Public Retirement Systems Revisions

• Revises actuarial assumptions for Minnesota statewide and major local defined benefit retirement plans, reducing preretirement interest rates from 8.5% to 8.0% and postretirement rates from 6.0% to 5.5% for the period July 1, 2012 through June 30, 2021

• Adjusts salary scale and payroll growth assumptions across multiple retirement plans, including the Minnesota State Retirement System, Public Employees Retirement Association, Teachers Retirement Association, and other plans, with reduced salary increase and payroll growth assumptions effective July 1, 2012

• Updates interest rates for refund repayments and service credit purchases to match the new actuarial assumptions, establishing different applicable rates for periods before July 1, 2012 and after June 30, 2021 versus the interim 2012-2021 period

• Makes conforming changes throughout Minnesota Statutes to implement the new interest and salary assumptions across numerous provisions governing refunds, military service credit, leave of absence purchases, and other retirement plan administration matters

• Requires retirement systems to revise annuity reserve factors, optional annuity form factors, and early retirement factors on or before January 1, 2013 to reflect the updated actuarial assumptions