Purpose of the Bill

This bill aims to modify the method used for managing unfunded liabilities within Minnesota's retirement plans. It also introduces a definition for the standards of actuarial work, which are professional guidelines for conducting actuarial tasks.

Main Provisions and Accomplishments

• Amortization Changes: The bill changes how unfunded actuarial liabilities are amortized, which is essentially how debts and obligations that are not currently funded are paid off over time. This adjustment will likely impact how public pension plans in Minnesota handle their financial responsibilities.

• Actuarial Definitions: The bill updates and clarifies definitions related to actuarial work within Minnesota statutes. This includes specifying what constitutes an actuarial valuation, an approved actuary, the entry age actuarial cost method, and others.

• Introduction of Standards: It introduces a formal definition for "standards for actuarial work," which refers to the professional guidelines that actuaries must follow. This could enhance the consistency and reliability of actuarial services provided for the state's retirement plans.

Significant Changes to Existing Law

• The bill revises sections of Minnesota Statutes, specifically section 356.215, to incorporate these new definitions and methodological changes.

• There is a focus on aligning the definitions and practices of actuaries with standardized guidelines, offering a cohesive framework for managing retirement plan calculations and benefits.

Relevant Terms

• Actuarial Valuation
• Amortization
• Unfunded Liability
• Entry Age Actuarial Cost Method
• Standards for Actuarial Work
• Pension Benefit Obligation