Bill > SF3453

This bill modifies the method for amortizing unfunded liabilities in Minnesota's public pension systems and establishes standards for actuarial work. Specifically, the bill introduces a new approach to calculating and addressing unfunded actuarial accrued liabilities by establishing specific 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 also sets a consistent end date of June 30, 2048, for fully funding most pension plans and specifies that the unfunded actuarial accrued liability will be calculated on a level percentage of payroll basis. Additionally, the bill adds a definition for "standards for actuarial work" and updates requirements for actuarial valuations, including how they should be prepared, submitted, and declared. These changes aim to provide more clarity and consistency in how pension plans assess and address their financial obligations, with the modifications becoming effective either immediately or beginning with the July 1, 2025 actuarial valuations, depending on the specific provision.

Government Affairs

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3453&ssn=0&y=2025