The 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 existing standards adopted under section 3.85. Additionally, the bill specifies new amortization periods for various changes affecting pension plans, such as experience gains or losses, assumption changes, and benefit changes for active and inactive members.

The bill also mandates that actuarial valuations must be conducted by approved actuaries and includes provisions for the submission of these valuations to the Legislative Commission on Pensions and Retirement. The effective date for most sections is the day following final enactment, while specific provisions regarding amortization contributions will take effect 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 actuarial practices and ensuring compliance with updated standards.

Statutes affected:
Introduction: 356.215