MN SF2193

Establishes limitations on contribution rate reductions and benefit improvements for Minnesota statewide and major local defined benefit retirement plans when plan assets are below 120% of actuarial accrued liability.

Prohibits contribution rate reductions unless two consecutive actuarial valuations show both actuarial and market value assets exceed actuarial accrued liability by more than 20%, and post-reduction rates equal or exceed normal cost.

Prohibits benefit increases unless two consecutive valuations show assets exceed actuarial accrued liability by more than 20% and post-increase rates exceed normal cost adjusted for estimated actuarial impact.

Requires plan administrators to file funding deficiency recommendations with the Legislative Commission on Pensions and Retirement when plan assets fall below 70% of actuarial accrued liability for two consecutive years, including options to modify benefits.

Makes all contribution rate changes in affected plans subject to the new limitations, effective July 1, 2012; applies to multiple state and local retirement plans including PERA, Teachers Retirement Funds, judges' retirement, and correctional service plans.