as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to retirement; modifying actuarial cost 1.3 allocation by the legislative commission on pensions 1.4 and retirement; amending Minnesota Statutes 1997 1.5 Supplement, section 3.85, subdivision 12. 1.6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7 Section 1. Minnesota Statutes 1997 Supplement, section 1.8 3.85, subdivision 12, is amended to read: 1.9 Subd. 12. [ALLOCATION OF ACTUARIAL COST.] (a) The 1.10 commission shall assess each retirement plan specified in 1.11 subdivision 11, paragraph (b), the compensation paid to the 1.12 actuary retained by the commission for the actuarial valuation 1.13 calculations, quadrennial projection valuations, and quadrennial 1.14 experience studies. The assessment is 100 percent of the amount 1.15 of contract compensation for the actuarial consulting firm 1.16 retained by the commission for actuarial valuation calculations, 1.17 including the public employees police and fire plan 1.18 consolidation accounts of the public employees retirement 1.19 association, annual experience data collection and processing, 1.20 and quadrennial experience studies. 1.21 The portion of the total assessment payable by each 1.22 retirement system or pension plan must be determinedas follows:1.23(1) Each pension plan specified in subdivision 11,1.24paragraph (b), clauses (1) to (13), must pay the following1.25indexed amount based on its total active, deferred, inactive,2.1and benefit recipient membership:2.2up to 2,000 members, inclusive $2.55 per member2.32,001 through 10,000 members $1.13 per member2.4over 10,000 members $0.11 per member2.5The amount specified is applicable for the assessment of2.6the July 1, 1991, to June 30, 1992, fiscal year actuarial2.7compensation amounts. For the July 1, 1992, to June 30, 1993,2.8fiscal year and subsequent fiscal year actuarial compensation2.9amounts, the amount specified must be increased at the same2.10percentage increase rate as the implicit price deflator for2.11state and local government purchases of goods and services for2.12the 12-month period ending with the first quarter of the2.13calendar year following the completion date for the actuarial2.14valuation calculations, as published by the federal Department2.15of Commerce, and rounded upward to the nearest full cent.2.16(2) The total per-member portion of the allocation must be2.17determined, and that total per-member amount must be subtracted2.18from the total amount for allocation. Of the remainder dollar2.19amount, the following per-retirement system and per-pension plan2.20charges must be determined and the charges must be paid by the2.21system or plan:2.22(i) 37.87 percent is the total additional per-retirement2.23system charge, of which one-seventh must be paid by each2.24retirement system specified in subdivision 11, paragraph (b),2.25clauses (1), (2), (6), (7), (9), (10), and (11).2.26(ii) 62.13 percent is the total additional per-pension plan2.27charge, of which one-thirteenth must be paid by each pension2.28plan specified in subdivision 11, paragraph (b), clauses (1) to2.29(13)based on each plan's proportion of the total time and 2.30 materials and direct expenses of the commission-retained actuary 2.31 to complete the actuarial valuation calculations and the 2.32 quadrennial experience studies for all plans. 2.33 (b) The assessment must be made following the completion of 2.34 the actuarial valuation calculations and the experience 2.35 analysis. The amount of the assessment is appropriated from the 2.36 retirement fund applicable to the retirement plan. Receipts 3.1 from assessments must be deposited in the state treasury and 3.2 credited to the general fund.