Bill Summary

• Modifies actuarial assumptions for Minnesota public retirement plans by replacing separate preretirement and postretirement interest rate assumptions with a single interest rate assumption effective June 30, 2014.

• Establishes ultimate interest rates of 8.5% for most state and local retirement plans, with exceptions including 0.0% for legislators retirement plan and 8.5% for Duluth and St. Paul teachers plans.

• Replaces implicit postretirement adjustment rate assumptions with explicit rates that vary by plan, ranging from 1.0% to 2.0% until specified dates (2015-2040), then transitioning to 2.5% thereafter.

• Maintains existing salary increase assumptions and payroll growth assumptions for calculating amortization requirements, with continued application unless approved by plan governing boards and concurring actuaries.

• Repeals Minnesota Statutes 2012, section 356.415, subdivision 3, with all changes effective June 30, 2014, for actuarial valuation reports prepared on or after that date.