Bill > HF3249

This bill modifies the method for amortizing unfunded pension liabilities and adds definitions for actuarial work standards in Minnesota's retirement systems. Specifically, the bill updates how pension plans calculate and address unfunded actuarial accrued liabilities by establishing new standardized amortization periods for different types of changes, such as experience gains or losses (15 years), assumption changes (20 years), and benefit changes (15 years for active members). The bill sets a specific deadline of June 30, 2048, for full funding of most pension plans and requires that unfunded liabilities be calculated on a level percentage of payroll basis. It also adds a new definition for "standards for actuarial work" and modifies requirements for actuarial valuations, ensuring they are prepared by approved actuaries who are fellows in the Society of Actuaries. The changes aim to provide more consistency and transparency in how pension plans assess and address their long-term financial obligations, with different provisions taking effect at different times, primarily beginning with the July 1, 2025 actuarial valuations.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF3249&ssn=0&y=2025