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 the insertion of the definition for "standards for actuarial work," which aligns with the standards adopted under section 3.85, subdivision 10. The bill also specifies that actuarial valuations must be conducted in accordance with these new standards and outlines the necessary contents and assumptions for such valuations.

Additionally, the bill revises the amortization contributions required for pension plans, establishing specific periods for amortizing various changes, such as experience gains or losses and changes in assumptions or benefits. It mandates that the unfunded actuarial accrued liability as of July 1, 2024, must be amortized over a period ending June 30, 2048, with specific provisions for the legislators' retirement plan. The bill emphasizes the importance of actuarial services being provided by approved actuaries and requires that all actuarial valuations and experience studies be submitted to the Legislative Commission on Pensions and Retirement within a specified timeframe. The effective dates for these changes are set for the day following final enactment or beginning with the July 1, 2025, actuarial valuations, as applicable.

Statutes affected:
Introduction: 356.215