This bill amends Minnesota Statutes 2024, specifically section 356.215, to modify the method for amortizing unfunded liabilities in retirement plans and introduces a new definition for "standards for actuarial work." Key changes include the deletion of the definition for "pension benefit obligation" and its replacement with the new definition for "standards for actuarial work." The bill also specifies that actuarial valuations must adhere to the updated standards and outlines the necessary contents and assumptions for these valuations. Additionally, it establishes new amortization periods for various changes affecting pension plans, such as experience gains or losses and changes in assumptions or methods.

The bill further stipulates that actuarial valuations and experience studies must be conducted by approved actuaries and requires these documents to be submitted to the Legislative Commission on Pensions and Retirement within ten days of their completion. The effective dates for the changes vary, with some provisions taking effect immediately upon final enactment and others beginning with the July 1, 2025, actuarial valuations. Overall, the bill aims to enhance the financial stability and transparency of retirement plans in Minnesota by refining the actuarial processes and standards used in their management.

Statutes affected:
Introduction: 356.215