1.1 	A bill for an act
1.2 	relating to retirement; postretirement earnings offsets to pensions for teacher 
1.3 	retirement fund associations in cities of the first class; modifying provisions 
1.4 	on the procurement of actuarial services for state and local public retirement 
1.5 	programs; appropriating money;amending Minnesota Statutes 2006, sections 
1.6 	16A.055, subdivision 5; 356.214, subdivisions 1, 3, by adding a subdivision; 
1.7 	356.215, subdivisions 1, 2, 3, 11, 18; repealing Minnesota Statutes 2006, sections 
1.8 	354A.31, subdivisions 3, 3a; 356.214, subdivision 2; 356.215, subdivision 2a.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2006, section 16A.055, subdivision 5, is amended to 
1.11 	read:
1.12 		Subd. 5.Retirement fund reporting. (a) The commissioner may not require a 
1.13 	public retirement fund to use financial or actuarial reporting practices or procedures 
1.14 	different from those required by section 356.20 or 356.215. 
1.15 	(b) The commissioner may contract with the consulting actuary retained under 
1.16 	section 356.214  for the preparation of quadrennial projection valuations as required under 
1.17 	section 356.215, subdivisions subdivision 2 and 2a. The initial projection valuation under 
1.18 	this paragraph, if any, is due on May 1, 2003, and subsequent projection valuations are 
1.19 	due on May 1 each fourth year thereafter. The commissioner of finance shall assess the 
1.20 	applicable statewide and major local retirement plan or plans the cost of the quadrennial 
1.21 	projection valuation. 

1.22 	Sec. 2. Minnesota Statutes 2006, section 356.214, subdivision 1, is amended to read:
1.23 		Subdivision 1.Joint retention. (a) The chief administrative officers of the 
1.24 	Minnesota State Retirement System, the Public Employees Retirement Association, the 
1.25 	Teachers Retirement Association, the Duluth Teachers Retirement Fund Association, the 
2.1 	Minneapolis Employees Retirement Fund, and the St. Paul Teachers Retirement Fund 
2.2 	Association, jointly, on behalf of the state, its employees, its taxpayers, and its various 
2.3 	public pension plans,governing board or managing or administrative official of each 
2.4 	public pension plan and retirement fund or plan enumerated in paragraph (b) shall contract 
2.5 	with an established actuarial consulting firm to conduct annual actuarial valuations and 
2.6 	related services for the retirement plans named in paragraph (b). The principal from 
2.7 	the actuarial consulting firm on the contract must be an approved actuary under section 
2.8 	356.215, subdivision 1, paragraph (c). Prior to becoming effective, the contract under this 
2.9 	section is subject to a review and approval by the Legislative Commission on Pensions 
2.10 	and Retirement.
2.11 	(b) The contract for actuarial services must include the preparation of actuarial 
2.12 	valuations and related actuarial work for the following retirement plans:
2.13 	(1) the teachers retirement plan, Teachers Retirement Association;
2.14 	(2) the general state employees retirement plan, Minnesota State Retirement System;
2.15 	(3) the correctional employees retirement plan, Minnesota State Retirement System;
2.16 	(4) the State Patrol retirement plan, Minnesota State Retirement System;
2.17 	(5) the judges retirement plan, Minnesota State Retirement System;
2.18 	(6) the Minneapolis employees retirement plan, Minneapolis Employees Retirement 
2.19 	Fund;
2.20 	(7) the public employees retirement plan, Public Employees Retirement Association;
2.21 	(8) the public employees police and fire plan, Public Employees Retirement 
2.22 	Association;
2.23 	(9) the Duluth teachers retirement plan, Duluth Teachers Retirement Fund 
2.24 	Association;
2.25 	(10) the St. Paul teachers retirement plan, St. Paul Teachers Retirement Fund 
2.26 	Association;
2.27 	(11) the legislators retirement plan, Minnesota State Retirement System;
2.28 	(12) the elective state officers retirement plan, Minnesota State Retirement System; 
2.29 	and
2.30 	(13) local government correctional service retirement plan, Public Employees 
2.31 	Retirement Association.
2.32 	(c) The contract must require completion of the annual actuarial valuation 
2.33 	calculations on a fiscal year basis, with the contents of the actuarial valuation calculations 
2.34 	as specified in section 356.215, and in conformity with the standards for actuarial work 
2.35 	adopted by the Legislative Commission on Pensions and Retirement. 
3.1 	The contract must require completion of annual experience data collection and 
3.2 	processing and a quadrennial published experience study for the plans listed in paragraph 
3.3 	(b), clauses (1), (2), and (7), as provided for in the standards for actuarial work adopted by 
3.4 	the commission. The experience data collection, processing, and analysis must evaluate 
3.5 	the following:
3.6 	(1) individual salary progression;
3.7 	(2) the rate of return on investments based on the current asset value;
3.8 	(3) payroll growth;
3.9 	(4) mortality;
3.10 	(5) retirement age;
3.11 	(6) withdrawal; and
3.12 	(7) disablement.
3.13 	The contract must include provisions for the preparation of cost analyses by the 
3.14 	jointly retained actuary for proposed legislation that include changes in benefit provisions 
3.15 	or funding policies prior to their consideration by the Legislative Commission on Pensions 
3.16 	and Retirement.
3.17 	(d) The actuary retained by the joint retirement systems shall annually prepare a 
3.18 	report to the governing or managing board or administrative official and the legislature, 
3.19 	including a commentary on the actuarial valuation calculations for the plans named in 
3.20 	paragraph (b) and summarizing the results of the actuarial valuation calculations. The 
3.21 	actuary shall include with the report the actuary's recommendations to the governing 
3.22 	or managing board or administrative official and the legislature concerning the 
3.23 	appropriateness of the support rates to achieve proper funding of the retirement plans 
3.24 	by the required funding dates. The actuary shall, as part of the quadrennial experience 
3.25 	study, include recommendations to the governing or managing board or administrative 
3.26 	official and the legislature on the appropriateness of the actuarial valuation assumptions 
3.27 	required for evaluation in the study.
3.28 	(e) If the actuarial gain and loss analysis in the actuarial valuation calculations 
3.29 	indicates a persistent pattern of sizable gains or losses, as directed by the joint retirement 
3.30 	systems or as requested by the chair of the Legislative Commission on Pensions and 
3.31 	Retirement, the governing or managing board or administrative official shall direct the 
3.32 	actuary shall to prepare a special experience study for a plan listed in paragraph (b), 
3.33 	clause (3), (4), (5), (6), (8), (9), (10), (11), (12), or (13), in the manner provided for in the 
3.34 	standards for actuarial work adopted by the commission.
3.35 	(f) The term of the contract between the joint retirement systems and the actuary 
3.36 	retained may not exceed five years. The joint retirement system administrative officers 
4.1 	shall establish procedures for the consideration and selection of contract bidders and 
4.2 	the requirements for the contents of an actuarial services contract under this section. 
4.3 	The procedures and requirements must be submitted to the Legislative Commission on 
4.4 	Pensions and Retirement for review and comment prior to final approval by the joint 
4.5 	administrators. The contract is subject to the procurement procedures under chapter 16C. 
4.6 	The consideration of bids and the selection of a consulting actuarial firm by the chief 
4.7 	administrative officers must occur at a meeting that is open to the public and reasonable 
4.8 	timely public notice of the date and the time of the meeting and its subject matter must 
4.9 	be given.
4.10 	(g) The actuarial services contract may not limit the ability of the Minnesota 
4.11 	legislature and its standing committees and commissions to rely on the actuarial results 
4.12 	of the work prepared under the contract.
4.13 	(h) The joint retirement systems shall designate one of the retirement system 
4.14 	executive directors as the actuarial services contract manager.

4.15 	Sec. 3. Minnesota Statutes 2006, section 356.214, subdivision 3, is amended to read:
4.16 		Subd. 3.Reporting to commission. A copy of the actuarial valuations,and 
4.17 	experience studies, and actuarial cost analyses prepared by the actuary retained by the 
4.18 	joint retirement systems under the contract provided for in this section must be filed with 
4.19 	the executive director of the Legislative Commission on Pensions and Retirement at the 
4.20 	same time that the document is transmitted to the actuarial services contract manager or 
4.21 	to any other document recipient.

4.22 	Sec. 4. Minnesota Statutes 2006, section 356.214, is amended by adding a subdivision 
4.23 	to read:
4.24 		Subd. 4.Commission to contract with auditing actuary. (a) The Legislative 
4.25 	Commission on Pensions and Retirement may contract with an established actuarial 
4.26 	consulting firm to audit or review the actuarial valuations, experience studies, and actuarial 
4.27 	cost analyses prepared by the actuary retained by the governing or managing boards, or 
4.28 	administrative officials of each of the plans or funds listed in paragraph (b). The principal 
4.29 	representative from the actuarial consulting firm so engaged must be an approved actuary 
4.30 	under section 356.215, subdivision 1, paragraph (c).
4.31 	(b) Any actuarial consulting firm retained under paragraph (a) will, according to a 
4.32 	schedule determined under the agreement with the Legislative Commission on Pensions 
4.33 	and Retirement, audit the valuation reports submitted by the actuary retained by each 
4.34 	governing or managing board or administrative official, and provide an assessment of the 
5.1 	reasonableness, reliability, and areas of concern or potential improvement in the specific 
5.2 	reports reviewed, the procedures utilized by any particular reporting actuary, or general 
5.3 	modifications to standards, procedures, or assumptions that the commission may wish to 
5.4 	consider. Actuarial firms retained by the retirement funds must cooperate fully and make 
5.5 	available any data or other materials necessary for the commission-retained actuary to 
5.6 	conduct an adequate review and to render advice to the commission.

5.7 	Sec. 5. Minnesota Statutes 2006, section 356.215, subdivision 1, is amended to read:
5.8 		Subdivision 1.Definitions. (a) For the purposes of sections 3.85 and 356.20 to 
5.9 	356.23, each of the terms in the following paragraphs has the meaning given. 
5.10 	(b) "Actuarial valuation" means a set of calculations prepared by the an actuary 
5.11 	retained under section 356.214 if so required under section 3.85, or otherwise, by an 
5.12 	approved actuary, to determine the normal cost and the accrued actuarial liabilities of 
5.13 	a benefit plan, according to the entry age actuarial cost method and based upon stated 
5.14 	assumptions including, but not limited to rates of interest, mortality, salary increase, 
5.15 	disability, withdrawal, and retirement and to determine the payment necessary to amortize 
5.16 	over a stated period any unfunded accrued actuarial liability disclosed as a result of the 
5.17 	actuarial valuation of the benefit plan. 
5.18 	(c) "Approved actuary" means a person who is regularly engaged in the business 
5.19 	of providing actuarial services and who has at least 15 years of service to major public 
5.20 	employee pension or retirement funds or who is a fellow in the Society of Actuaries.
5.21 	(d) "Entry age actuarial cost method" means an actuarial cost method under which 
5.22 	the actuarial present value of the projected benefits of each individual currently covered 
5.23 	by the benefit plan and included in the actuarial valuation is allocated on a level basis over 
5.24 	the service of the individual, if the benefit plan is governed by section 69.773, or over the 
5.25 	earnings of the individual, if the benefit plan is governed by any other law, between the 
5.26 	entry age and the assumed exit age, with the portion of the actuarial present value which is 
5.27 	allocated to the valuation year to be the normal cost and the portion of the actuarial present 
5.28 	value not provided for at the valuation date by the actuarial present value of future normal 
5.29 	costs to be the actuarial accrued liability, with aggregation in the calculation process to be 
5.30 	the sum of the calculated result for each covered individual and with recognition given to 
5.31 	any different benefit formulas which may apply to various periods of service.
5.32 	(e) "Experience study" means a report providing experience data and an actuarial 
5.33 	analysis of the adequacy of the actuarial assumptions on which actuarial valuations are 
5.34 	based.
5.35 	(f) "Current assets" means:
6.1 	(1) for the July 1, 2001, actuarial valuation, the market value of all assets as of 
6.2 	June 30, 2001, reduced by:
6.3 	(i) 30 percent of the difference between the market value of all assets as of June 30, 
6.4 	1999, and the actuarial value of assets used in the July 1, 1999, actuarial valuation;
6.5 	(ii) 60 percent of the difference between the actual net change in the market value of 
6.6 	assets between June 30, 1999, and June 30, 2000, and the computed increase in the market 
6.7 	value of assets between June 30, 1999, and June 30, 2000, if the assets had increased at 
6.8 	the percentage preretirement interest rate assumption used in the July 1, 1999, actuarial 
6.9 	valuation; and
6.10 	(iii) 80 percent of the difference between the actual net change in the market value 
6.11 	of assets between June 30, 2000, and June 30, 2001, and the computed increase in 
6.12 	the market value of assets between June 30, 2000, and June 30, 2001, if the assets had 
6.13 	increased at the percentage preretirement interest rate assumption used in the July 1, 
6.14 	2000, actuarial valuation;
6.15 	(2) for the July 1, 2002, actuarial valuation, the market value of all assets as of 
6.16 	June 30, 2002, reduced by:
6.17 	(i) ten percent of the difference between the market value of all assets as of June 30, 
6.18 	1999, and the actuarial value of assets used in the July 1, 1999, actuarial valuation;
6.19 	(ii) 40 percent of the difference between the actual net change in the market value of 
6.20 	assets between June 30, 1999, and June 30, 2000, and the computed increase in the market 
6.21 	value of assets between June 30, 1999, and June 30, 2000, if the assets had increased at 
6.22 	the percentage preretirement interest rate assumption used in the July 1, 1999, actuarial 
6.23 	valuation;
6.24 	(iii) 60 percent of the difference between the actual net change in the market value 
6.25 	of assets between June 30, 2000, and June 30, 2001, and the computed increase in 
6.26 	the market value of assets between June 30, 2000, and June 30, 2001, if the assets had 
6.27 	increased at the percentage preretirement interest rate assumption used in the July 1, 2000, 
6.28 	actuarial valuation; and
6.29 	(iv) 80 percent of the difference between the actual net change in the market value of 
6.30 	assets between June 30, 2001, and June 30, 2002, and the computed increase in the market 
6.31 	value of assets between June 30, 2001, and June 30, 2002, if the assets had increased at 
6.32 	the percentage preretirement interest rate assumption used in the July 1, 2001, actuarial 
6.33 	valuation; or
6.34 	(3) for any actuarial valuation after July 1, 2002, the market value of all assets 
6.35 	as of the preceding June 30, reduced by:
7.1 	(i)(1) 20 percent of the difference between the actual net change in the market value 
7.2 	of assets between the June 30 that occurred three years earlier and the June 30 that occurred 
7.3 	four years earlier and the computed increase in the market value of assets over that 
7.4 	fiscal year period if the assets had increased at the percentage preretirement interest rate 
7.5 	assumption used in the actuarial valuation for the July 1 that occurred four years earlier;
7.6 	(ii)(2) 40 percent of the difference between the actual net change in the market value 
7.7 	of assets between the June 30 that occurred two years earlier and the June 30 that occurred 
7.8 	three years earlier and the computed increase in the market value of assets over that 
7.9 	fiscal year period if the assets had increased at the percentage preretirement interest rate 
7.10 	assumption used in the actuarial valuation for the July 1 that occurred three years earlier;
7.11 	(iii)(3) 60 percent of the difference between the actual net change in the market 
7.12 	value of assets between the June 30 that occurred one year earlier and the June 30 that 
7.13 	occurred two years earlier and the computed increase in the market value of assets over 
7.14 	that fiscal year period if the assets had increased at the percentage preretirement interest 
7.15 	rate assumption used in the actuarial valuation for the July 1 that occurred two years 
7.16 	earlier; and
7.17 	(iv)(4) 80 percent of the difference between the actual net change in the market 
7.18 	value of assets between the immediately prior June 30 and the June 30 that occurred one 
7.19 	year earlier and the computed increase in the market value of assets over that fiscal year 
7.20 	period if the assets had increased at the percentage preretirement interest rate assumption 
7.21 	used in the actuarial valuation for the July 1 that occurred one year earlier.
7.22 	(g) "Unfunded actuarial accrued liability" means the total current and expected 
7.23 	future benefit obligations, reduced by the sum of current assets and the present value of 
7.24 	future normal costs.
7.25 	(h) "Pension benefit obligation" means the actuarial present value of credited 
7.26 	projected benefits, determined as the actuarial present value of benefits estimated to be 
7.27 	payable in the future as a result of employee service attributing an equal benefit amount, 
7.28 	including the effect of projected salary increases and any step rate benefit accrual rate 
7.29 	differences, to each year of credited and expected future employee service.

7.30 	Sec. 6. Minnesota Statutes 2006, section 356.215, subdivision 2, is amended to read:
7.31 		Subd. 2.Requirements. (a) It is the policy of the legislature that it is necessary 
7.32 	and appropriate to determine annually the financial status of tax supported retirement and 
7.33 	pension plans for public employees. To achieve this goal:,
7.34 	(1) the actuary retained under section 356.214 shall prepare annual actuarial 
7.35 	valuations of the retirement plans enumerated in section 356.214, subdivision 1, paragraph 
8.1 	(b), and quadrennial experience studies of the retirement plans enumerated in section 
8.2 	356.214, subdivision 1, paragraph (b), clauses (1), (2), and (7); and.
8.3 	(2) the commissioner of finance may have prepared by the actuary retained by the 
8.4 	commission, two years after each set of quadrennial experience studies, quadrennial 
8.5 	projection valuations of at least one of the retirement plans enumerated in section 6, 
8.6 	subdivision 1, paragraph (b), for which the commissioner determines that the analysis 
8.7 	may be beneficial.
8.8 	(b) The governing or managing board or administrative officials of each public 
8.9 	pension and retirement fund or plan enumerated in section   356.20, subdivision 2, clauses 
8.10 	(9), (10), and (12), shall have prepared by an approved actuary annual actuarial valuations 
8.11 	of their respective funds as provided in this section. This requirement also applies to 
8.12 	any fund or plan that is the successor to any organization enumerated in section 356.20, 
8.13 	subdivision 2, or to the governing or managing board or administrative officials of 
8.14 	any newly formed retirement fund, plan, or association operating under the control or 
8.15 	supervision of any public employee group, governmental unit, or institution receiving a 
8.16 	portion of its support through legislative appropriations, and any local police or fire fund 
8.17 	to which section 356.216 applies.

8.18 	Sec. 7. Minnesota Statutes 2006, section 356.215, subdivision 3, is amended to read:
8.19 		Subd. 3.Reports. (a) The actuarial valuations required annually must be made as of 
8.20 	the beginning of each fiscal year.
8.21 	(b) Two copies of the completed valuation must be delivered to the executive 
8.22 	director of the Legislative Commission on Pensions and Retirement, to the commissioner 
8.23 	of finance, and to the Legislative Reference Library, not later than the first day of the sixth 
8.24 	month occurring after the end of the previous fiscal year.
8.25 	(c) Two copies of a quadrennial experience study must be filed with the 
8.26 	executive director of the Legislative Commission on Pensions and Retirement, with the 
8.27 	commissioner of finance, and with the Legislative Reference Library, not later than the 
8.28 	first day of the 11th month occurring after the end of the last fiscal year of the four-year 
8.29 	period which the experience study covers.
8.30 	(d) For actuarial valuations and experience studies prepared at the direction of the 
8.31 	Legislative Commission on Pensions and Retirement, two copies of the document must be 
8.32 	delivered to the governing or managing board or administrative officials of the applicable 
8.33 	public pension and retirement fund or plan.

8.34 	Sec. 8. Minnesota Statutes 2006, section 356.215, subdivision 11, is amended to read:
9.1 		Subd. 11.Amortization contributions. (a) In addition to the exhibit indicating the 
9.2 	level normal cost, the actuarial valuation must contain an exhibit indicating the additional 
9.3 	annual contribution sufficient to amortize the unfunded actuarial accrued liability. For 
9.4 	funds governed by chapters 3A, 352, 352B, 352C, 353, 354, 354A, and 490, the additional 
9.5 	contribution must be calculated on a level percentage of covered payroll basis by the 
9.6 	established date for full funding in effect when the valuation is prepared. For funds 
9.7 	governed by chapter 3A, sections 352.90 through 352.951, chapters 352B, 352C, sections 
9.8 	353.63 through 353.68, and chapters 353C, 354A, and 490, the level percent additional 
9.9 	contribution must be calculated assuming annual payroll growth of 6.5 percent. For funds 
9.10 	governed by sections 352.01 through 352.86 and chapter 354, the level percent additional 
9.11 	contribution must be calculated assuming an annual payroll growth of five percent. For the 
9.12 	fund governed by sections 353.01 through 353.46, the level percent additional contribution 
9.13 	must be calculated assuming an annual payroll growth of six percent. For all other funds, 
9.14 	the additional annual contribution must be calculated on a level annual dollar amount basis. 
9.15 	(b) For any fund other than the Minneapolis Employees Retirement Fund and,
9.16 	the Public Employees Retirement Association general plan, and the St. Paul Teachers 
9.17 	Retirement Fund Association, if there has not been a change in the actuarial assumptions 
9.18 	used for calculating the actuarial accrued liability of the fund, a change in the benefit 
9.19 	plan governing annuities and benefits payable from the fund, a change in the actuarial 
9.20 	cost method used in calculating the actuarial accrued liability of all or a portion of the 
9.21 	fund, or a combination of the three, which change or changes by itself or by themselves 
9.22 	without inclusion of any other items of increase or decrease produce a net increase in the 
9.23 	unfunded actuarial accrued liability of the fund, the established date for full funding is the 
9.24 	first actuarial valuation date occurring after June 1, 2020.
9.25 	(c) For any fund or plan other than the Minneapolis Employees Retirement Fund and 
9.26 	the Public Employees Retirement Association general plan, if there has been a change in 
9.27 	any or all of the actuarial assumptions used for calculating the actuarial accrued liability 
9.28 	of the fund, a change in the benefit plan governing annuities and benefits payable from 
9.29 	the fund, a change in the actuarial cost method used in calculating the actuarial accrued 
9.30 	liability of all or a portion of the fund, or a combination of the three, and the change or 
9.31 	changes, by itself or by themselves and without inclusion of any other items of increase or 
9.32 	decrease, produce a net increase in the unfunded actuarial accrued liability in the fund, the 
9.33 	established date for full funding must be determined using the following procedure:
9.34 	(i) the unfunded actuarial accrued liability of the fund must be determined in 
9.35 	accordance with the plan provisions governing annuities and retirement benefits and the 
9.36 	actuarial assumptions in effect before an applicable change;
10.1 	(ii) the level annual dollar contribution or level percentage, whichever is applicable, 
10.2 	needed to amortize the unfunded actuarial accrued liability amount determined under item 
10.3 	(i) by the established date for full funding in effect before the change must be calculated 
10.4 	using the interest assumption specified in subdivision 8 in effect before the change;
10.5 	(iii) the unfunded actuarial accrued liability of the fund must be determined in 
10.6 	accordance with any new plan provisions governing annuities and benefits payable from 
10.7 	the fund and any new actuarial assumptions and the remaining plan provisions governing 
10.8 	annuities and benefits payable from the fund and actuarial assumptions in effect before 
10.9 	the change;
10.10 	(iv) the level annual dollar contribution or level percentage, whichever is applicable, 
10.11 	needed to amortize the difference between the unfunded actuarial accrued liability amount 
10.12 	calculated under item (i) and the unfunded actuarial accrued liability amount calculated 
10.13 	under item (iii) over a period of 30 years from the end of the plan year in which the 
10.14 	applicable change is effective must be calculated using the applicable interest assumption 
10.15 	specified in subdivision 8 in effect after any applicable change;
10.16 	(v) the level annual dollar or level percentage amortization contribution under item 
10.17 	(iv) must be added to the level annual dollar amortization contribution or level percentage 
10.18 	calculated under item (ii);
10.19 	(vi) the period in which the unfunded actuarial accrued liability amount determined 
10.20 	in item (iii) is amortized by the total level annual dollar or level percentage amortization 
10.21 	contribution computed under item (v) must be calculated using the interest assumption 
10.22 	specified in subdivision 8 in effect after any applicable change, rounded to the nearest 
10.23 	integral number of years, but not to exceed 30 years from the end of the plan year in 
10.24 	which the determination of the established date for full funding using the procedure set 
10.25 	forth in this clause is made and not to be less than the period of years beginning in the 
10.26 	plan year in which the determination of the established date for full funding using the 
10.27 	procedure set forth in this clause is made and ending by the date for full funding in effect 
10.28 	before the change; and
10.29 	(vii) the period determined under item (vi) must be added to the date as of which 
10.30 	the actuarial valuation was prepared and the date obtained is the new established date 
10.31 	for full funding.
10.32 	(d) For the Minneapolis Employees Retirement Fund, the established date for full 
10.33 	funding is June 30, 2020.
10.34 	(e) For the general employees retirement plan of the Public Employees Retirement 
10.35 	Association, the established date for full funding is June 30, 2031.
11.1 	(f) For the Teachers Retirement Association, the established date for full funding is 
11.2 	June 30, 2037.
11.3 	(g) For the St. Paul Teachers Retirement Fund Association, the established date for 
11.4 	full funding is June 30, 2038. In addition to other requirements of this chapter, the annual 
11.5 	actuarial valuation shall contain an exhibit indicating the funded ratio and the deficiency 
11.6 	or sufficiency in annual contributions when comparing liabilities to the market value of 
11.7 	the assets of the fund as of the close of the most recent fiscal year.
11.8 	(g) (h) For the retirement plans for which the annual actuarial valuation indicates 
11.9 	an excess of valuation assets over the actuarial accrued liability, the valuation assets in 
11.10 	excess of the actuarial accrued liability must be recognized as a reduction in the current 
11.11 	contribution requirements by an amount equal to the amortization of the excess expressed 
11.12 	as a level percentage of pay over a 30-year period beginning anew with each annual 
11.13 	actuarial valuation of the plan.

11.14 	Sec. 9. Minnesota Statutes 2006, section 356.215, subdivision 18, is amended to read:
11.15 		Subd. 18.Establishment of actuarial assumptions. (a) The actuarial assumptions 
11.16 	used for the preparation of actuarial valuations under this section that are other than 
11.17 	those set forth in this section may be changed only with the approval of the Legislative 
11.18 	Commission on Pensions and Retirement.
11.19 	(b) A change in the applicable actuarial assumptions may be proposed by the 
11.20 	governing board of the applicable pension fund or relief association, by the actuary 
11.21 	retained by the joint retirement systems under section   356.214, by the actuarial advisor to 
11.22 	a pension fund governed by chapter 352, 353, 354, or 354A, or by the actuary retained by 
11.23 	a local police or firefighters relief association governed by sections   69.77 or   69.771 to   
11.24 	69.776, if one is retained. 

11.25 	Sec. 10. APPROPRIATION; LEGISLATIVE COMMISSION ON PENSIONS 
11.26 	AND RETIREMENT.
 11.27 	$....... is appropriated from the general fund to the Legislative Commission on 
11.28 	Pensions and Retirement in fiscal year 2009 in order to cover the costs of any contract 
11.29 	authorized under Minnesota Statutes, section 356.214, subdivision 4. The commissioner 
11.30 	of finance must include these funds in the base level funding for the commission when 
11.31 	preparing forecasts of general fund spending and revenue and initial budget estimates 
11.32 	each biennium, as long as an actuary remains under contract to the commission under 
11.33 	Minnesota Statutes, section 356.214, subdivision 4.

12.1 	Sec. 11.  REPEALER.
 12.2 	Minnesota Statutes 2006, sections 354A.31, subdivisions 3 and 3a; 356.214, 
12.3 	subdivision 2; and 356.215, subdivision 2a, are repealed.