1.1 	A bill for an act
1.2 	relating to retirement; major general employee statewide retirement plans; 
1.3 	revising statutory salary scale actuarial assumptions; revising payroll growth 
1.4 	actuarial assumptions;amending Minnesota Statutes 2010, section 356.215, 
1.5 	subdivision 8.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2010, section 356.215, subdivision 8, is amended to read:
1.8 		Subd. 8.Interest and salary assumptions. (a) The actuarial valuation must use 
1.9 	the applicable following preretirement interest assumption and the applicable following 
1.10 	postretirement interest assumption:

1.11
1.12
1.13	plan
	preretirement
interest rate
assumption
	postretirement 
interest rate
assumption
	
1.14	general state employees retirement plan
		8.5%
	6.0%
	
1.15	correctional state employees retirement plan
		8.5
	6.0
	
1.16	State Patrol retirement plan
		8.5
	6.0
	
1.17	legislators retirement plan
		8.5
	6.0
	
1.18	elective state officers retirement plan
		8.5
	6.0
	
1.19	judges retirement plan
		8.5
	6.0
	
1.20	general public employees retirement plan
		8.5
	6.0
	
1.21	public employees police and fire retirement plan
		8.5
	6.0
	
1.22
1.23	local government correctional service retirement 
plan
		8.5
	6.0
	
1.24	teachers retirement plan
		8.5
	6.0
	
1.25	Duluth teachers retirement plan
		8.5
	8.5
	
1.26	St. Paul teachers retirement plan
		8.5
	8.5
	
1.27	Minneapolis Police Relief Association
		6.0
	6.0
	
1.28	Fairmont Police Relief Association
		5.0
	5.0
	
2.1	Minneapolis Fire Department Relief Association
		6.0
	6.0
	
2.2	Virginia Fire Department Relief Association
		5.0
	5.0
	
2.3	Bloomington Fire Department Relief Association
		6.0
	6.0
	
2.4
2.5	local monthly benefit volunteer firefighters relief 
associations
		5.0
	5.0
	
2.6 	(b) Before July 1, 2010, the actuarial valuation must use the applicable following 
2.7 	single rate future salary increase assumption, the applicable following modified single 
2.8 	rate future salary increase assumption, or the applicable following graded rate future 
2.9 	salary increase assumption:
2.10 	(1) single rate future salary increase assumption

2.11
2.12	plan
	future salary
increase assumption
	
2.13	legislators retirement plan
		5.0%
	
2.14	judges retirement plan
		4.0 
	
2.15	Minneapolis Police Relief Association
		4.0
	
2.16	Fairmont Police Relief Association
		3.5
	
2.17
2.18	Minneapolis Fire Department Relief 
Association
		4.0
	
2.19	Virginia Fire Department Relief Association
		3.5
	
2.20
2.21	Bloomington Fire Department Relief 
Association
		4.0
	
2.22 	(2) age-related select and ultimate future salary increase assumption or graded rate 
2.23 	future salary increase assumption

2.24
2.25	plan
	future salary
increase assumption
	
2.26
2.27	general state employees retirement plan
	select calculation and 
assumption A
	
2.28	correctional state employees retirement plan
	assumption GE
	
2.29	State Patrol retirement plan
	assumption FD
	
2.30	public employees police and fire fund retirement plan
	assumption BA
	
2.31	local government correctional service retirement plan
	assumption FD
	
2.32	teachers retirement plan
	assumption C
	
2.33	Duluth teachers retirement plan
	assumption DB
	
2.34	St. Paul teachers retirement plan
	assumption EC
	
2.35 	The select calculation is: during the 
2.36 	designated select period, a designated 
2.37 	percentage rate is multiplied by the result 
2.38 	of the designated integer minus T, where 
2.39 	T is the number of completed years of 
2.40 	service, and is added to the applicable 
3.1 	future salary increase assumption. The 
3.2 	designated select period is five years and the 
3.3 	designated integer is five for the general state 
3.4 	employees retirement plan. The designated 
3.5 	select period is ten years and the designated 
3.6 	integer is ten for all other retirement plans 
3.7 	covered by this clause. The designated 
3.8 	percentage rate is: (1) 0.2 percent for the 
3.9 	correctional state employees retirement plan, 
3.10 	the State Patrol retirement plan, the public 
3.11 	employees police and fire plan, and the local 
3.12 	government correctional service plan; (2) 
3.13 	0.6 percent for the general state employees 
3.14 	retirement plan; and (3) 0.3 percent for the 
3.15 	teachers retirement plan, the Duluth Teachers 
3.16 	Retirement Fund Association, and the St. 
3.17 	Paul Teachers Retirement Fund Association. 
3.18 	The select calculation for the Duluth Teachers 
3.19 	Retirement Fund Association is 8.00 percent 
3.20 	per year for service years one through seven, 
3.21 	7.25 percent per year for service years seven 
3.22 	and eight, and 6.50 percent per year for 
3.23 	service years eight and nine.
3.24 	The ultimate future salary increase assumption is:

3.25	age
	A
	BA
	C
	DB
	EC
	FD
	GE
	
3.26	16
	5.95%
	11.00%
	7.70%
	8.00%
	6.90%
	7.7500%
	7.2500%
	
3.27	17
	5.90
	11.00
	7.65
	8.00
	6.90
	7.7500
	7.2500
	
3.28	18
	5.85
	11.00
	7.60
	8.00
	6.90
	7.7500
	7.2500
	
3.29	19
	5.80
	11.00
	7.55
	8.00
	6.90
	7.7500
	7.2500
	
3.30	20
	5.75
	11.00
	5.50
	6.90
	6.90
	7.7500
	7.2500
	
3.31	21
	5.75
	11.00
	5.50
	6.90
	6.90
	7.1454
	6.6454
	
3.32	22
	5.75
	10.50
	5.50
	6.90
	6.90
	7.0725
	6.5725
	
3.33	23
	5.75
	10.00
	5.50
	6.85
	6.85
	7.0544
	6.5544
	
3.34	24
	5.75
	9.50
	5.50
	6.80
	6.80
	7.0363
	6.5363
	
3.35	25
	5.75
	9.00
	5.50
	6.75
	6.75
	7.0000
	6.5000
	
3.36	26
	5.75
	8.70
	5.50
	6.70
	6.70
	7.0000
	6.5000
	
3.37	27
	5.75
	8.40
	5.50
	6.65
	6.65
	7.0000
	6.5000
	
3.38	28
	5.75
	8.10
	5.50
	6.60
	6.60
	7.0000
	6.5000
	
4.1	29
	5.75
	7.80
	5.50
	6.55
	6.55
	7.0000
	6.5000
	
4.2	30
	5.75
	7.50
	5.50
	6.50
	6.50
	7.0000
	6.5000
	
4.3	31
	5.75
	7.30
	5.50
	6.45
	6.45
	7.0000
	6.5000
	
4.4	32
	5.75
	7.10
	5.50
	6.40
	6.40
	7.0000
	6.5000
	
4.5	33
	5.75
	6.90
	5.50
	6.35
	6.35
	7.0000
	6.5000
	
4.6	34
	5.75
	6.70
	5.50
	6.30
	6.30
	7.0000
	6.5000
	
4.7	35
	5.75
	6.50
	5.50
	6.25
	6.25
	7.0000
	6.5000
	
4.8	36
	5.75
	6.30
	5.50
	6.20
	6.20
	6.9019
	6.4019
	
4.9	37
	5.75
	6.10
	5.50
	6.15
	6.15
	6.8074
	6.3074
	
4.10	38
	5.75
	5.90
	5.40
	6.10
	6.10
	6.7125
	6.2125
	
4.11	39
	5.75
	5.70
	5.30
	6.05
	6.05
	6.6054
	6.1054
	
4.12	40
	5.75
	5.50
	5.20
	6.00
	6.00
	6.5000
	6.0000
	
4.13	41
	5.75
	5.40
	5.10
	5.90
	5.95
	6.3540
	5.8540
	
4.14	42
	5.75
	5.30
	5.00
	5.80
	5.90
	6.2087
	5.7087
	
4.15	43
	5.65
	5.20
	4.90
	5.70
	5.85
	6.0622
	5.5622
	
4.16	44
	5.55
	5.10
	4.80
	5.60
	5.80
	5.9048
	5.4078
	
4.17	45
	5.45
	5.00
	4.70
	5.50
	5.75
	5.7500
	5.2500
	
4.18	46
	5.35
	4.95
	4.60
	5.40
	5.70
	5.6940
	5.1940
	
4.19	47
	5.25
	4.90
	4.50
	5.30
	5.65
	5.6375
	5.1375
	
4.20	48
	5.15
	4.85
	4.50
	5.20
	5.60
	5.5822
	5.0822
	
4.21	49
	5.05
	4.80
	4.50
	5.10
	5.55
	5.5404
	5.0404
	
4.22	50
	4.95
	4.75
	4.50
	5.00
	5.50
	5.5000
	5.0000
	
4.23	51
	4.85
	4.75
	4.50
	4.90
	5.45
	5.4384
	4.9384
	
4.24	52
	4.75
	4.75
	4.50
	4.80
	5.40
	5.3776
	4.8776
	
4.25	53
	4.65
	4.75
	4.50
	4.70
	5.35
	5.3167
	4.8167
	
4.26	54
	4.55
	4.75
	4.50
	4.60
	5.30
	5.2826
	4.7826
	
4.27	55
	4.45
	4.75
	4.50
	4.50
	5.25
	5.2500
	4.7500
	
4.28	56
	4.35
	4.75
	4.50
	4.40
	5.20
	5.2500
	4.7500
	
4.29	57
	4.25
	4.75
	4.50
	4.30
	5.15
	5.2500
	4.7500
	
4.30	58
	4.25
	4.75
	4.60
	4.20
	5.10
	5.2500
	4.7500
	
4.31	59
	4.25
	4.75
	4.70
	4.10
	5.05
	5.2500
	4.7500
	
4.32	60
	4.25
	4.75
	4.80
	4.00
	5.00
	5.2500
	4.7500
	
4.33	61
	4.25
	4.75
	4.90
	3.90
	5.00
	5.2500
	4.7500
	
4.34	62
	4.25
	4.75
	5.00
	3.80
	5.00
	5.2500
	4.7500
	
4.35	63
	4.25
	4.75
	5.10
	3.70
	5.00
	5.2500
	4.7500
	
4.36	64
	4.25
	4.75
	5.20
	3.60
	5.00
	5.2500
	4.7500
	
4.37	65
	4.25
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
4.38	66
	4.25
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
4.39	67
	4.25
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
4.40	68
	4.25
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
4.41	69
	4.25
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
4.42	70
	4.25
	4.75
	5.20
	3.50
	5.00
	5.2500
	4.7500
	
4.43	71
	4.25
		5.20
					
5.1 	(3) service-related ultimate future salary increase assumption

5.2
5.3	general state employees retirement plan of the 
Minnesota State Retirement System
	assumption A
	
5.4
5.5	general employees retirement plan of the Public 
Employees Retirement Association
	assumption B
	
5.6	Teachers Retirement Association
	assumption C

5.7
5.8
5.9	service length
	general employees retirement 
plan of the Public Employees 
Retirement AssociationA
	B
	C
	
5.10	1
	12.03%10.75%
	12.25%
	12.00%
	
5.11	2
	8.908.35
	9.15
	9.00
	
5.12	3
	7.467.15
	7.75
	8.00
	
5.13	4
	6.586.45
	6.85
	7.50
	
5.14	5
	5.975.95
	6.25
	7.25
	
5.15	6
	5.525.55
	5.75
	7.00
	
5.16	7
	5.165.25
	5.45
	6.85
	
5.17	8
	4.874.95
	5.15
	6.70
	
5.18	9
	4.634.75
	4.85
	6.55
	
5.19	10
	4.424.65
	4.65
	6.40
	
5.20	11
	4.241.45
	4.45
	6.25
	
5.21	12
	4.081.35
	4.35
	6.00
	
5.22	13
	3.944.25
	4.15
	5.75
	
5.23	14
	3.824.05
	4.05
	5.50
	
5.24	15
	3.703.95
	3.95
	5.25
	
5.25	16
	3.603.85
	3.85
	5.00
	
5.26	17
	3.513.75
	3.75
	4.75
	
5.27	18
	3.503.75
	3.75
	4.50
	
5.28	19
	3.503.75
	3.75
	4.25
	
5.29	20
	3.503.75
	3.75
	4.00
	
5.30	21
	3.503.75
	3.75
	3.90
	
5.31	22
	3.503.75
	3.75
	3.80
	
5.32	23
	3.503.75
	3.75
	3.70
	
5.33	24
	3.503.75
	3.75
	3.60
	
5.34	25
	3.503.75
	3.75
	3.50
	
5.35	26
	3.503.75
	3.75
	3.50
	
5.36	27
	3.503.75
	3.75
	3.50
	
5.37	28
	3.503.75
	3.75
	3.50
	
5.38	29
	3.503.75
	3.75
	3.50
	
5.39	30 or more
	3.503.75
	3.75
	3.50
	
5.40 	(c) Before July 2, 2010, the actuarial valuation must use the applicable following 
5.41 	payroll growth assumption for calculating the amortization requirement for the unfunded 
5.42 	actuarial accrued liability where the amortization retirement is calculated as a level 
5.43 	percentage of an increasing payroll:

6.1
6.2	plan
	payroll growth
assumption
	
6.3
6.4	general state employees retirement plan of the 
Minnesota State Retirement System
		4.50%3.75%
	
6.5	correctional state employees retirement plan
		4.50
	
6.6	State Patrol retirement plan
		4.50
	
6.7	legislators retirement plan
		4.50
	
6.8	judges retirement plan
		4.00
	
6.96.10
	general employees retirement plan of the Public 
Employees Retirement Association
		4.003.75
	
6.11	public employees police and fire retirement plan
		4.50
	
6.12
6.13	local government correctional service retirement 
plan
		4.50
	
6.14	teachers retirement plan
		4.503.75
	
6.15	Duluth teachers retirement plan
		4.50
	
6.16	St. Paul teachers retirement plan
		5.00
	
6.17 	(d) After July 1, 2010, the assumptions set forth in paragraphs (b) and (c) continue to 
6.18 	apply, unless a different salary assumption or a different payroll increase assumption:
6.19 	(1) has been proposed by the governing board of the applicable retirement plan;
6.20 	(2) is accompanied by the concurring recommendation of the actuary retained under 
6.21 	section 356.214, subdivision 1, if applicable, or by the approved actuary preparing the 
6.22 	most recent actuarial valuation report if section 356.214 does not apply; and
6.23 	(3) has been approved or deemed approved under subdivision 18.

6.24 	EFFECTIVE DATE. This section is effective retroactively from June 30, 2010.