|
TO: |
Members of the Legislative Commission on Pensions and Retirement |
|
FROM: |
Lawrence A. Martin, Executive Director |
|
RE: |
Commission Interim Topic: Review of Recent Actuarial Experience Studies and Potential Actuarial Assumption Changes (Second Consideration) |
|
DATE: |
January 15, 2002 |
Introduction
A periodic topic for consideration by the Legislative Commission on Pensions and Retirement is the review of the quadrennial experience studies prepared by the consulting actuary it retains and the review of the actuarial assumption changes proposed by the consulting actuary.
The Commission began consideration of this topic in August 2001, when it reviewed with Thomas Custis, FSA, of Milliman USA, the consulting actuarial firm retained by the Commission, summary reports of the quadrennial experience studies of the General State Employees Retirement Plan of the Minnesota State Retirement System (MSRS-General), the General Employee Retirement Plan of the Public Employees Retirement Association (PERA-General), and the Teachers Retirement Association (TRA), a liability impact report on the Combined Service Annuity provision, and six-year experience studies of the Duluth Teachers Retirement Fund Association (DTRFA), the Minneapolis Teachers Retirement Fund Association (MTRFA), and the St. Paul Teachers Retirement Fund Association (StPTRFA).
The consulting actuary retained by the Commission has further developed his recommendations on actuarial assumption changes for the affected retirement plans. This Commission staff issue memorandum summarizes and discusses those actuarial assumption change recommendations. It also includes the draft proposed legislation needed to implement the recommended changes in statutory actuarial assumptions and a draft motion approving the recommended changes in non-statutory actuarial assumptions.
Quadrennial Experience Study Requirement
The Legislative Commission on Pensions and Retirement is required under Minnesota Statutes, Section 3.85, to contract with an established actuarial consulting firm to prepare annual actuarial valuations of fourteen statewide or major local Minnesota public employee pension plans and to prepare experience studies for the General State Employees Retirement Plan of the Minnesota State Retirement System (MSRS-General), the General Employee Retirement Plan of the Public Employees Retirement Association (PERA-General), and the Teachers Retirement Association (TRA) on a quadrennial basis. Minnesota Statutes, Section 356.215, specifies the content requirements of both the annual actuarial valuation reports and quadrennial experience studies. The quadrennial experience study is required to contain an actuarial analysis of the experience of the plan and a comparison of that plan experience with the actuarial assumptions in force for the most recent annual actuarial experience. The standards for actuarial work, issued by the Commission, specify the detailed contents and format requirements for both the actuarial valuation reports and the experience studies.
The purpose of the quadrennial experience studies is to provide the Commission with a periodic opportunity to review the accuracy of the current actuarial assumptions, compared to the experience for the most recent period and to revise those actuarial assumptions based on the recommendation for the Commission’s consulting actuary and on input from plan administrators, their actuarial consultants, and others.
Minnesota public pension plan actuarial assumptions are specified in part in statute (interest/investment return, individual salary increase, and payroll growth) and specified in part with Commission approval (the balance of all actuarial assumptions).
The experience study for each of the three largest Minnesota public employee pension plans, namely the General State Employees Retirement Plan of the Minnesota State Retirement System (MSRS-General), the General Employee Retirement Plan of the Public Employees Retirement Association (PERA-General), and the Teachers Retirement Association (TRA) were completed by the Commission’s consulting actuary, Milliman USA (formerly Milliman & Robertson, Inc.) on May 29, 2001. Under a separate agreement with the various Minnesota retirement plans, Milliman USA also completed a study on February 23, 2001, on the liability impact of the Combined Service Annuity portability provisions on most affected Minnesota public pension plans. Additionally, the three first class city teacher retirement fund associations (the Duluth Teachers Retirement Fund Association (DTRFA), the Minneapolis Teachers Retirement Fund Association (MTRFA), and the St. Paul Teachers Retirement Fund Association (StPTRFA)) independently contracted with Milliman USA to prepare special experience studies for each plan for the period 1994-2000.
Summary of The Recent Experience Studies
Table 1 summarizes the recent experience studies prepared by Milliman USA for the General State Employees Retirement Plan of the Minnesota State Retirement System (MSRS-General), the General Employee Retirement Plan of the Public Employees Retirement Association (PERA-General), the Teachers Retirement Association (TRA), the Duluth Teachers Retirement Fund Association (DTRFA), the Minneapolis Teachers Retirement Fund Association (MTRFA), and the St. Paul Teachers Retirement Fund Association (StPTRFA). The table summarizes the experience of each plan in comparison to seven actuarial assumptions:
Based on the percentage comparison of the actual occurrences with the expected occurrences under the actuarial assumptions, the experience is either favorable from the plan’s perspective (reduces liabilities) or unfavorable from the plan’s perspective (increases liabilities), as follows:
Interest/Investment Return: Investment earnings in excess of the actuarial assumption are an actuarial gain and reduce accrued liabilities, offsetting the need for contributions.
Salary Increase: Individual salary increases in excess of the actuarial assumption are an actuarial loss and increase accrued liabilities, because a larger salary produces a larger future projected retirement annuity, creating a need for contributions.
Payroll Growth: Total payroll growth in excess of the actuarial assumption relates to the amortization of the unfunded actuarial accrued liability of the plan, with a greater total payroll providing greater base over which to spread the associated amortization contribution.
Retirement: Retirement before age 65, the general normal retirement age, generally produce actuarial losses. Retirement after age 65, the general normal retirement age, produces actuarial gains for the pension plan.
Disability: Because disability benefits are a full accrued retirement benefit paid at an early age, disabilities in excess of the disability assumption produce an actuarial loss.
Terminations: Because a terminating employee releases more liability than the person takes in a refund, terminations in excess of the actuarial assumption will produce an actuarial gain unless the terminating member ultimately qualifies for a combined service annuity.
Mortality: Mortality (the number of deaths) greater than assumed produces an actuarial gain with respect to annuitants, with respect to disabilitants, and, unless a substantial survivorship benefit is involved, with respect to active members.
Table 1 – Experience Study Results
(F = Favorable, U = Unfavorable)
|
Assumption |
MSRS-General |
PERA-General |
TRA |
DTRFA |
MTRFA |
StPTRFA |
||||||
|
(Basic/Coord.) |
(Basic/Coord.) |
(Old/New) |
(Basic/Coord.) |
(Basic/Coord.) |
||||||||
|
Interest |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
223% |
F |
206% |
F |
215% |
F |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
164% |
F |
215% |
F |
184% |
F |
|
1996-1997 |
256% |
F |
257% |
F |
261% |
F |
197% |
F |
209% |
F |
217% |
F |
|
1997-1998 |
262% |
F |
261% |
F |
267% |
F |
183% |
F |
181% |
F |
189% |
F |
|
1998-1999 |
134% |
F |
135% |
F |
138% |
F |
117% |
F |
150% |
F |
107% |
F |
|
1999-2000 |
124% |
F |
122% |
F |
124% |
F |
303% |
F |
153% |
F |
124% |
F |
|
Period |
192% |
F |
192% |
F |
196% |
F |
197% |
F |
185% |
F |
172% |
F |
|
Salary Increase |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
95% |
F |
19% |
F |
141% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
58% |
F |
113% |
U |
98% |
F |
|
1996-1997 |
117% |
U |
90% |
F |
84% |
F |
104% |
U |
126% |
U |
3% |
F |
|
1997-1998 |
86% |
F |
63% |
F |
98% |
F |
16% |
F |
122% |
U |
111% |
U |
|
1998-1999 |
97% |
F |
94% |
F |
125% |
U |
193% |
U |
122% |
U |
103% |
U |
|
1999-2000 |
151% |
U |
101% |
U |
83% |
F |
42% |
F |
131% |
U |
116% |
U |
|
Period |
114% |
U |
87% |
F |
97% |
F |
85% |
F |
123% |
U |
96% |
F |
|
Payroll Growth |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
134% |
F |
105% |
F |
153% |
F |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
-70% |
U |
88% |
U |
93% |
U |
|
1996-1997 |
-37% |
U |
77% |
U |
70% |
U |
49% |
U |
132% |
F |
65% |
U |
|
1997-1998 |
64% |
U |
89% |
U |
76% |
U |
10% |
U |
166% |
F |
227% |
F |
|
1998-1999 |
112% |
F |
78% |
U |
96% |
U |
211% |
F |
304% |
F |
116% |
F |
|
1999-2000 |
162% |
F |
27% |
U |
90% |
U |
-5% |
U |
109% |
F |
109% |
F |
|
Period |
74% |
U |
68% |
U |
83% |
U |
53% |
U |
149% |
F |
127% |
F |
|
Retirements Under 65 |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
76/33% |
F |
70/40% |
F |
81/58% |
F |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
89/33% |
F |
210/117% |
U |
70/120% |
F/U |
|
1996-1997 |
158% |
U |
127/126% |
U |
81/134% |
F/U |
147/40% |
U/F |
151/175% |
U |
154/181% |
U |
|
1997-1998 |
147% |
U |
169/149% |
U |
100/149% |
F/U |
111/100% |
U/F |
210/200% |
U |
75/88% |
F |
|
1998-1999 |
135% |
U |
160/151% |
U |
67/226% |
F/U |
153/60% |
U/F |
198/223% |
U |
98/80% |
F |
|
1999-2000 |
140% |
U |
288/184% |
U |
117/210% |
U |
184/129% |
U |
189/140% |
U |
116/104% |
U |
|
Period |
145% |
U |
175/153% |
U |
88/179% |
F/U |
128/76% |
U/F |
181/164% |
U |
100/106% |
U |
|
Retirements Over 65 |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
89%/NA |
U |
22/150% |
U/F |
78/75% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
67/500% |
U/F |
58/157% |
U/F |
71/78% |
U |
|
1996-1997 |
98% |
U |
96/93% |
U |
100/96% |
F/U |
109/300% |
F |
29/54% |
U |
117/50% |
F/U |
|
1997-1998 |
101% |
F |
145/106% |
F |
60/93% |
U |
111/100% |
F |
50/71% |
U |
100/64% |
F/U |
|
1998-1999 |
112% |
F |
105/95% |
F/U |
67/92% |
U |
73/0% |
U |
57/77% |
U |
100/100% |
F |
|
1999-2000 |
100% |
F |
194/97% |
F/U |
133/113% |
F |
145/400% |
F |
63/50% |
U |
50/64% |
U |
|
Period |
103% |
F |
131/98% |
U/F |
93/98% |
U |
102/280% |
F |
47/81% |
U |
89/70% |
U |
|
Disabilities - Males |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
0% |
F |
50% |
F |
0% |
F |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
0% |
F |
50% |
F |
0% |
F |
|
1996-1997 |
135% |
U |
107% |
U |
192% |
U |
0% |
F |
0% |
F |
100% |
F |
|
1997-1998 |
132% |
U |
112% |
U |
208% |
U |
0% |
F |
100% |
F |
150% |
U |
|
1998-1999 |
114% |
U |
101% |
U |
167% |
U |
0% |
F |
0% |
F |
50% |
F |
|
1999-2000 |
108% |
U |
97% |
F |
218% |
U |
0% |
F |
0% |
F |
0% |
F |
|
Period |
122% |
U |
104% |
U |
196% |
U |
0% |
F |
33% |
F |
46% |
F |
|
Disabilities - Females |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
0% |
F |
43% |
F |
25% |
F |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
100% |
F |
57% |
F |
125% |
U |
|
1996-1997 |
76% |
F |
100% |
F |
311% |
U |
0% |
F |
43% |
F |
40% |
F |
|
1997-1998 |
65% |
F |
130% |
U |
330% |
U |
0% |
F |
0% |
F |
60% |
F |
|
1998-1999 |
71% |
F |
107% |
U |
290% |
U |
0% |
F |
11% |
F |
20% |
F |
|
1999-2000 |
100% |
F |
84% |
F |
370% |
U |
0% |
F |
0% |
F |
0% |
F |
|
Period |
78% |
F |
105% |
U |
326% |
U |
11% |
F |
23% |
F |
43% |
F |
|
All Terminations - Males |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
308% |
F |
384% |
F |
219% |
F |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
513% |
F |
600% |
F |
318% |
F |
|
1996-1997 |
262% |
F |
291% |
F |
130% |
F |
362% |
F |
371% |
F |
214% |
F |
|
1997-1998 |
183% |
F |
224% |
F |
129% |
F |
277% |
F |
272% |
F |
182% |
F |
|
1998-1999 |
158% |
F |
230% |
F |
123% |
F |
277% |
F |
350% |
F |
351% |
F |
|
1999-2000 |
161% |
F |
389% |
F |
129% |
F |
285% |
F |
373% |
F |
317% |
F |
|
Period |
190% |
F |
284% |
F |
128% |
F |
341% |
F |
399% |
F |
275% |
F |
|
All Terminations - Females |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
392% |
F |
259% |
F |
200% |
F |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
524% |
F |
166% |
F |
189% |
F |
|
1996-1997 |
306% |
F |
271% |
F |
132% |
F |
374% |
F |
294% |
F |
183% |
F |
|
1997-1998 |
179% |
F |
233% |
F |
138% |
F |
356% |
F |
246% |
F |
193% |
F |
|
1998-1999 |
154% |
F |
239% |
F |
136% |
F |
271% |
F |
251% |
F |
288% |
F |
|
1999-2000 |
146% |
F |
372% |
F |
132% |
F |
542% |
F |
222% |
F |
217% |
F |
|
Period |
195% |
F |
280% |
F |
134% |
F |
415% |
F |
241% |
F |
226% |
F |
|
Over 3 Yr. Terminations - Males |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
43% |
U |
109% |
F |
38% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
257% |
F |
215% |
F |
107% |
F |
|
1996-1997 |
335% |
F |
352% |
F |
105% |
F |
86% |
U |
167% |
F |
43% |
U |
|
1997-1998 |
209% |
F |
248% |
F |
118% |
F |
50% |
U |
150% |
F |
60% |
U |
|
1998-1999 |
189% |
F |
265% |
F |
121% |
F |
83% |
U |
224% |
F |
50% |
U |
|
1999-2000 |
170% |
F |
498% |
F |
130% |
F |
17% |
U |
205% |
F |
72% |
U |
|
Period |
230% |
F |
339% |
F |
118% |
F |
92% |
U |
181% |
F |
62% |
U |
|
Over 3 Yr. Terminations - Females |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
38% |
U |
85% |
U |
17% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
125% |
F |
130% |
F |
58% |
U |
|
1996-1997 |
435% |
F |
310% |
F |
112% |
F |
83% |
U |
143% |
F |
25% |
U |
|
1997-1998 |
182% |
F |
224% |
F |
134% |
F |
92% |
U |
137% |
F |
44% |
U |
|
1998-1999 |
178% |
F |
240% |
F |
142% |
F |
92% |
U |
186% |
F |
58% |
U |
|
1999-2000 |
163% |
F |
443% |
F |
141% |
F |
92% |
U |
146% |
F |
53% |
U |
|
Period |
248% |
F |
305% |
F |
132% |
F |
86% |
U |
142% |
F |
44% |
U |
|
Retiree Deaths - Males |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
NA |
-- |
120% |
F |
139% |
F |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
75% |
U |
176% |
F |
63% |
U |
|
1996-1997 |
92% |
U |
102% |
F |
87% |
U |
125% |
F |
91% |
U |
105% |
F |
|
1997-1998 |
99% |
U |
94% |
U |
99% |
U |
89% |
U |
104% |
F |
126% |
F |
|
1998-1999 |
106% |
F |
91% |
U |
98% |
U |
100% |
F |
111% |
F |
95% |
U |
|
1999-2000 |
93% |
U |
102% |
F |
97% |
U |
140% |
F |
96% |
U |
119% |
F |
|
Period |
99% |
U |
97% |
U |
95% |
U |
107% |
F |
115% |
F |
109% |
F |
|
Retiree Deaths - Females |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
NA |
-- |
114% |
F |
61% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
125% |
F |
158% |
F |
155% |
F |
|
1996-1997 |
122% |
F |
118% |
F |
114% |
F |
167% |
F |
173% |
F |
104% |
F |
|
1997-1998 |
120% |
F |
111% |
F |
115% |
F |
147% |
F |
123% |
F |
120% |
F |
|
1998-1999 |
111% |
F |
118% |
F |
129% |
F |
127% |
F |
168% |
F |
100% |
F |
|
1999-2000 |
108% |
F |
111% |
F |
132% |
F |
113% |
F |
96% |
U |
129% |
F |
|
Period |
115% |
F |
114% |
F |
122% |
F |
137% |
F |
139% |
F |
111% |
F |
|
Disabilitant Deaths - Males |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
NA |
-- |
0% |
U |
0% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
NA |
-- |
200% |
F |
200% |
F |
|
1996-1997 |
156% |
F |
140% |
F |
150% |
F |
NA |
-- |
NA |
-- |
NA |
-- |
|
1997-1998 |
175% |
F |
81% |
U |
86% |
U |
NA |
-- |
NA |
-- |
NA |
-- |
|
1998-1999 |
145% |
F |
86% |
U |
63% |
U |
NA |
-- |
NA |
-- |
NA |
-- |
|
1999-2000 |
105% |
F |
100% |
F |
63% |
U |
NA |
-- |
NA |
-- |
NA |
-- |
|
Period |
144% |
F |
102% |
F |
89% |
U |
-- |
-- |
100% |
F |
67% |
U |
|
Disabilitant Deaths - Females |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
NA |
-- |
50% |
U |
0% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
NA |
-- |
20% |
U |
0% |
U |
|
1996-1997 |
157% |
F |
100% |
F |
71% |
U |
NA |
-- |
20% |
U |
100% |
F |
|
1997-1998 |
127% |
F |
73% |
U |
113% |
F |
NA |
-- |
0% |
U |
0% |
U |
|
1998-1999 |
100% |
F |
100% |
F |
70% |
U |
NA |
-- |
0% |
U |
0% |
U |
|
1999-2000 |
111% |
F |
81% |
U |
36% |
U |
NA |
-- |
0% |
U |
0% |
U |
|
Period |
122% |
F |
88% |
U |
69% |
U |
0% |
U |
18% |
U |
20% |
U |
|
Actives Death - Males |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
0% |
U |
0% |
U |
50% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
100% |
F |
0% |
U |
200% |
F |
|
1996-1997 |
143% |
F |
111% |
F |
82% |
U |
0% |
U |
0% |
U |
150% |
F |
|
1997-1998 |
82% |
U |
134% |
F |
79% |
U |
0% |
U |
0% |
U |
0% |
U |
|
1998-1999 |
96% |
U |
121% |
F |
93% |
U |
0% |
U |
50% |
U |
100% |
F |
|
1999-2000 |
98% |
U |
75% |
U |
77% |
U |
0% |
U |
100% |
F |
50% |
U |
|
Period |
105% |
F |
110% |
F |
83% |
U |
17% |
U |
23% |
U |
86% |
U |
|
Actives Death - Females |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
0% |
U |
38% |
U |
0% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
0% |
U |
0% |
U |
33% |
U |
|
1996-1997 |
119% |
F |
112% |
F |
100% |
F |
0% |
U |
0% |
U |
0% |
U |
|
1997-1998 |
88% |
U |
104% |
F |
37% |
U |
100% |
F |
33% |
U |
67% |
U |
|
1998-1999 |
119% |
F |
126% |
F |
79% |
U |
0% |
U |
33% |
U |
100% |
F |
|
1999-2000 |
107% |
F |
99% |
U |
90% |
U |
0% |
U |
25% |
U |
167% |
F |
|
Period |
107% |
F |
111% |
F |
77% |
U |
17% |
U |
21% |
U |
65% |
U |
Summary Of The Combined Service Annuity Study
Upon the request of the executive directors of the Minnesota State Retirement System (MSRS), the Public Employees Retirement Association (PERA), and the Teachers Retirement Association (TRA), and at their expense, Milliman USA competed a study of the actuarial liability shifts under the Combined Service Annuity provision, Minnesota Statutes, Section 356.30.
The Combined Service Annuity provision was enacted in 1975 and permits most Minnesota public pension plan members with service credit in more than one plan to vest with their multiple service and to receive retirement annuities in total that would essentially match the benefit payable by any one of the plans for the total service. For the pension plan or plans covering early periods of service credit, the Combined Service Annuity provision results in incurring greater actuarial accrued liabilities in fact because of the new salary figure that the plan or plans anticipated without knowledge of the subsequent service credit and average salary.
In preparing the Combined Service Annuity study, Milliman USA combined the active and inactive member databases of the Minnesota public pension plans covered by the Combined Service Annuity provision, determined the additional actuarial liability for all members potentially able to benefit from the portability provision, and allocated the additional actuarial liability back to the various plans based on the proportion of total service credit in each plan. The analysis indicated a likely additional actuarial accrued liability as a result of the Combined Service Annuity portability provision, as follows:
Present Value of Future Benefits
(dollars in thousands)
|
Valuation Methodology |
CSA Study Methodology |
||||||
|
Fund |
Current |
Members |
Former Members |
Subtotal |
Members |
Former Members |
Subtotal |
|
PERA General |
2.5% |
8,856,550 |
406,633 |
9,263,183 |
8,722,572 |
683,448 |
9,406,020 |
|
PERA P&F |
- |
2,560,513 |
45,793 |
2,606,306 |
2,558,037 |
63,453 |
2,621,490 |
|
PERA Local Correctional |
- |
106,084 |
0 |
106,084 |
88,523 |
0 |
88,523 |
|
MSRS State Employees |
- |
4,776,013 |
419,457 |
5,195,470 |
4,792,783 |
584,194 |
5,376,977 |
|
MSRS State Patrol |
- |
311,750 |
3,345 |
315,095 |
311,388 |
4,383 |
315,771 |
|
MSRS Correctional |
- |
353,929 |
15,104 |
369,033 |
346,900 |
24,028 |
370,928 |
|
MSRS Legislators |
- |
24,935 |
8,884 |
33,819 |
25,773 |
13,865 |
39,638 |
|
MSRS Elected |
- |
0 |
572 |
572 |
0 |
769 |
769 |
|
MSRS Judges |
- |
99,664 |
697 |
100,361 |
99,299 |
708 |
100,007 |
|
TRA |
1.0% |
8,547,643 |
488,816 |
9,036,459 |
8,584,640 |
503,015 |
9,087,655 |
|
Duluth Teachers |
- |
133,868 |
6,463 |
140,331 |
149,187 |
6,463 |
155,650 |
|
St. Paul Teachers |
- |
591,534 |
6,990 |
598,524 |
634,187 |
29,261 |
663,448 |
|
Minneapolis Teachers |
- |
764,076 |
19,212 |
783,288 |
796,225 |
77,839 |
874,064 |
|
MERF |
- |
431,393 |
9,342 |
440,735 |
432,018 |
20,464 |
452,482 |
|
|
27,557,952 |
1,431,308 |
28,989,260 |
27,541,532 |
2,011,890 |
29,533,423 |
Summary of Recommended Actuarial Assumption Changes
The consulting actuarial firm retained by the Legislative Commission on Pensions and Retirement, Milliman USA, has made a number of specific actuarial assumption change recommendations. The recommendations have been previously circulated among the administrators of the affected retirement plans and among the consulting actuaries retained by those plans, if any.
The following compares the Milliman USA actuarial assumption change recommendations for the General State Employees Retirement Plan of the Minnesota State Retirement System (MSRS-General), the General Employee Retirement Plan of the Public Employees Retirement Association (PERA-General), the Teachers Retirement Association (TRA), the Duluth Teachers Retirement Fund Association (DTRFA), the Minneapolis Teachers Retirement Fund Association (MTRFA), and the St. Paul Teachers Retirement Fund Association (StPTRFA):
|
Assumption |
MSRS-General |
PERA-General |
TRA |
DTRFA |
MTRFA |
StPTRFA |
|
1. Interest |
No change |
No change |
No change |
No change |
No change |
No change |
|
2. Individual Salary Increase |
Change in both select and ultimate components |
Change in both select and ultimate components |
Increase in the select component |
Change to select and ultimate assumption |
Change to select and ultimate assumption |
Change to select and ultimate assumption |
|
3. Total Payroll Growth |
No change |
No change |
No change |
No change |
No change |
No change |
|
4. Retirement Rates |
Change to reflect greater early retirement experience |
Change to reflect greater "Rule of 90" utilization |
Change to reflect greater "Rule of 90" utilization |
No change |
Change to reflect greater early retirement utilization |
Change to reflect greater early retirement utilization |
|
5. Optional Annuity Form Election |
Reduction in percentage of males electing 50% joint and survivor option, increase in percentage of males electing 100% joint and survivor option, and increase in percentage of females electing 100% joint and survivor option |
Minor modifications |
Increase in percentage of males electing 75% and 100% joint and survivor annuity option |
Increase in number of males selecting 50% joint and survivor option and increase in number of females selecting 100% joint and survivor annuity option |
Reduction in percentage of females electing single life annuity and increase in 100% joint and survivor annuity option |
For males, greater percentage assumed to elect life annuity and smaller percentage assumed to elect joint and survivor options; no change for females |
|
6. Disability Rates |
Increase in rates |
No change |
Significant increase in male and female rates |
Significant reduction in rates |
Reduction in rates |
Reduction in rates |
|
7. Separation Rates |
Significant increases in both select and ultimate rates |
Significant softening in assumption |
Increase in select rates for both males and females for first year and reduction in second and third year |
Change to select and ultimate rate assumption |
Change to select and ultimate assumption reflecting a higher turnover problem |
Change to select and ultimate assumption reflecting a higher turnover problem |
|
8. Annuitant Mortality |
Setback for males increased from one year to two years |
Addition of one year setback for males |
Setback increased from five years to six years for males and decreased from 4 years to 3 years for females |
Reduction in setback for females from one year to no setback |
Setback for females reduced from two years to one year |
No change |
|
9. Disabilitant Mortality |
No change |
No change |
No change |
No change |
No change |
Change from 1987 Railroad Retirement Board table to 1977 Railroad Retirement Board table |
|
10. Active Mortality |
No change |
No change |
Setback increased from 10 years to 12 years for males and from eight years to 10 years for females |
Setback increased from four years to 10 years for males and from three years to seven years for females |
Setback increased from six years to 12 years for males and from four years to 10 years for females |
Setback for males increased from five years to seven years and setback for females increased from three years to five years |
|
11. Combined Service Annuity Loading |
Increase from 1.0% to 1.2% load on active member liabilities, and the addition of 40% load on former member liabilities |
Decrease from 2.5% to 0.8% load on active member liabilities, and the addition of 60% load on former member liabilities |
Addition of initial 1.4% load on active member liabilities, 4.0% load on former member liabilities, with modification for retirement rate change |
Addition of 10% load on active and former member liabilities |
Addition of 4.0% load on active member liabilities and 30% load on former member liabilities |
Addition of 7.0% load on active member liabilities and 30% load on former member liabilities |
Additionally, for the statewide and major local retirement plans which were not covered by the experience studies, Milliman USA has formulated load factor recommendations arising out of the Combined Service Annuity Provisions study, as follows:
|
Plan |
Active Member Liability Load |
Former Member Liability Load |
|
Legislators |
-- |
30% |
|
MSRS-Correctional |
-- |
30% |
|
State Patrol |
-- |
30% |
|
Elected State Officers |
-- |
30% |
|
PERA-P&F |
-- |
30% |
|
Local Correctional |
-- |
30% |
|
MERF |
0.2% |
30% |
|
Judges |
-- |
30% |
Attached are more specific comparisons between the current actuarial assumptions and the actuarial assumption changes recommended by the consulting actuary retained by the Commission.
Draft Proposed Legislation LCPR02-003
Draft proposed legislation LCPR02-003 implements the changes in the statutory actuarial assumptions (salary assumptions) recommended by the consulting actuary retained by the Legislative Commission on Pensions and Retirement. The retirement plans involved are the General State Employees Retirement Plan of the Minnesota State Retirement System (MSRS-General), the General Employee Retirement Plan of the Public Employees Retirement Association (PERA-General), the Teachers Retirement Association (TRA), the Duluth Teachers Retirement Fund Association (DTRFA), the Minneapolis Teachers Retirement Fund Association (MTRFA), the St. Paul Teachers Retirement Fund Association (StPTRFA), the Correctional Employees Retirement Plan of the Minnesota State Retirement System (MSRS-Correctional), the State Patrol Retirement Plan, the Legislators Retirement Plan, the Elected State Officers Retirement Plan, the Judges Retirement Plan, the Public Employees Police and Fire Retirement Plan (PERA-P&F), the Local Government Correctional Service Retirement Plan of the Public Employees Retirement Association (PERA-Correctional), and the Minneapolis Employees Retirement Fund (MERF). The select portion of the select and ultimate salary increase assumption in increased from 0.2 percent multiplied by the value of 10 minus the number of completed years of service to 0.3 percent for MSRS-General, PERA-General, TRA, DTRFA, and StPTRFA and to 0.4 percent for MTRFA. The ultimate portion of the select and ultimate salary increase assumption is modified for each plan, generally reducing the annual factor except for MSRS-General, where the annual factor is increased.
Draft Resolution Approving Other Actuarial Assumption Changes
Draft Resolution 02-1 implements changes in the actuarial assumptions regarding pre-retirement mortality, post-retirement mortality, post-disability mortality, retirement age, separation or withdrawal, disability, allowance for Combined Service Annuity, and optional annuity form election that were recommended by the consulting actuary retained by the Legislative Commission on Pensions and Retirement. The retirement plans involved are the General State Employees Retirement Plan of the Minnesota State Retirement System (MSRS-General), the General Employee Retirement Plan of the Public Employees Retirement Association (PERA-General), the Teachers Retirement Association (TRA), the Duluth Teachers Retirement Fund Association (DTRFA), the Minneapolis Teachers Retirement Fund Association (MTRFA), the St. Paul Teachers Retirement Fund Association (StPTRFA), the Correctional Employees Retirement Plan of the Minnesota State Retirement System (MSRS-Correctional), the State Patrol Retirement Plan, the Legislators Retirement Plan, the Elected State Officers Retirement Plan, the Judges Retirement Plan, the Public Employees Police and Fire Retirement Plan (PERA-P&F), the Local Government Correctional Service Retirement Plan of the Public Employees Retirement Association (PERA-Correctional), and the Minneapolis Employees Retirement Fund (MERF). The nature and magnitude of the various recommended assumption changes are summarized above in the section Summary of Recommended Actuarial Assumption Changes.
Actuarial Impact Of The Recommended Actuarial Assumption Changes
The consulting actuary retained by the Legislative Commission on Pensions and Retirement, Milliman USA, as part of its work on preparing actuarial assumption change proposals, has calculated the impact of the actuarial assumption changes on many of the affected retirement plans. The following compares the results of the July 1, 2000, and July 1, 2001, actuarial valuations with the likely July 1, 2001, valuation results under the revised assumptions for the various affected retirement plans:
General State Employees Retirement Plan of the Minnesota State Retirement System (MSRS-General)
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
47,920 |
49,229 |
49,229 |
|||
|
Service Retirees |
16,276 |
16,766 |
16,766 |
|||
|
Disabilitants |
1,070 |
1,127 |
1,127 |
|||
|
Survivors |
1,955 |
2,085 |
2,085 |
|||
|
Deferred Retirees |
11,125 |
11,452 |
11,452 |
|||
|
Nonvested Former Members |
7,772 |
8,111 |
8,111 |
|||
|
Total Membership |
86,118 |
88,770 |
88,770 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$6,105,703,000 |
$6,573,193,000 |
$6,881,919,000 |
|||
|
Current Assets |
$6,744,165,000 |
$7,366,673,000 |
$7,366,673,000 |
|||
|
Unfunded Accrued Liability |
($638,462,000) |
($793,480,000) |
($484,754,000) |
|||
|
Funding Ratio |
110.46% |
112.07% |
107.04% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$1,900,124,000 |
$1,967,814,000 |
$1,967,814,000 |
|||
|
Benefits Payable |
$237,825,000 |
$270,558,000 |
$270,558,000 |
|||
|
Normal Cost |
8.72% |
$165,591,000 |
8.76% |
$172,402,000 |
9.01% |
$177,300,000 |
|
Administrative Expenses |
0.21% |
$3,990,000 |
0.20% |
$3,936,000 |
0.20% |
$3,936,000 |
|
Normal Cost & Expense |
8.93% |
$169,581,000 |
8.96% |
$176,338,000 |
9.21% |
$181,236,000 |
|
Normal Cost & Expense |
8.93% |
$169,581,000 |
8.96% |
$176,338,000 |
9.21% |
$181,236,000 |
|
Amortization |
(1.81%) |
($34,392,000) |
(2.17%) |
($42,702,000) |
(1.31%) |
($25,778,000) |
|
Total Requirements |
7.12% |
$135,189,000 |
6.79% |
$133,636,000 |
7.90% |
$155,458,000 |
|
Employee Contributions |
4.00% |
$76,005,000 |
4.00% |
$78,712,000 |
4.00% |
$78,712,000 |
|
Employer Contributions |
4.00% |
$76,005,000 |
4.00% |
$78,712,000 |
4.00% |
$78,712,000 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Other Govt. Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
8.00% |
$152,010,000 |
8.00% |
$157,424,000 |
8.00% |
$157,424,000 |
|
Total Requirements |
7.12% |
$135,189,000 |
6.79% |
$133,636,000 |
7.90% |
$155,458,000 |
|
Total Contributions |
8.00% |
$152,010,000 |
8.00% |
$157,424,000 |
8.00% |
$157,424,000 |
|
Deficiency (Surplus) |
(0.88%) |
($16,821,000) |
(1.21%) |
($23,788,000) |
(0.10%) |
($1,966,000) |
General Employee Retirement Plan of the Public Employees Retirement Association (PERA-General)
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
135,560 |
138,759 |
138,759 |
|||
|
Service Retirees |
39,940 |
41,797 |
41,797 |
|||
|
Disabilitants |
1,397 |
1,468 |
1,468 |
|||
|
Survivors |
6,010 |
6,149 |
6,149 |
|||
|
Deferred Retirees |
21,495 |
25,917 |
25,917 |
|||
|
Nonvested Former Members |
79,362 |
83,027 |
83,027 |
|||
|
Total Membership |
283,764 |
297,117 |
297,117 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$11,133,682,000 |
$12,105,337,000 |
$12,388,877,000 |
|||
|
Current Assets |
$9,609,367,000 |
$10,527,270,000 |
$10,527,270,000 |
|||
|
Unfunded Accrued Liability |
$1,524,315,000 |
$1,578,067,000 |
$1,861,607,000 |
|||
|
Funding Ratio |
86.31% |
86.96% |
84.97% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$3,602,750,000 |
$3,835,448,000 |
$3,835,448,000 |
|||
|
Benefits Payable |
$527,119,000 |
$592,209,000 |
$592,209,000 |
|||
|
Normal Cost |
9.33% |
$336,088,000 |
9.40% |
$360,850,000 |
8.62% |
$330,616,000 |
|
Administrative Expenses |
0.23% |
$8,286,000 |
0.23% |
$8,822,000 |
0.23% |
$8,822,000 |
|
Normal Cost & Expense |
9.56% |
$344,374,000 |
9.63% |
$369,672,000 |
8.85% |
$339,438,000 |
|
Normal Cost & Expense |
9.56% |
$344,374,000 |
9.63% |
$369,672,000 |
8.85% |
$339,438,000 |
|
Amortization |
2.38% |
$85,745,000 |
1.97% |
$75,558,000 |
2.32% |
$88,982,000 |
|
Total Requirements |
11.94% |
$430,119,000 |
11.60% |
$445,230,000 |
11.17% |
$428,420,000 |
|
Employee Contributions |
4.77% |
$171,898,000 |
4.94% |
$189,604,000 |
4.94% |
$189,604,000 |
|
Employer Contributions |
5.21% |
$187,823,000 |
5.38% |
$206,389,000 |
5.38% |
$206,389,000 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Other Govt. Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
9.98% |
$359,721,000 |
10.32% |
$395,993,000 |
10.32% |
$395,993,000 |
|
Total Requirements |
11.94% |
$430,119,000 |
11.60% |
$445,230,000 |
11.17% |
$428,420,000 |
|
Total Contributions |
9.98% |
$359,721,000 |
10.32% |
$395,993,000 |
10.32% |
$395,993,000 |
|
Deficiency (Surplus) |
1.96% |
$70,398,000 |
1.28% |
$49,237,000 |
0.85% |
$32,427,000 |
Teachers Retirement Association (TRA)
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
70,508 |
71,097 |
71,097 |
|||
|
Service Retirees |
29,525 |
31,169 |
31,169 |
|||
|
Disabilitants |
509 |
518 |
518 |
|||
|
Survivors |
1,912 |
2,070 |
2,070 |
|||
|
Deferred Retirees |
7,375 |
7,959 |
7,959 |
|||
|
Nonvested Former Members |
17,833 |
19,344 |
19,344 |
|||
|
Total Membership |
127,662 |
132,157 |
132,157 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$14,802,441,000 |
$15,903,984,000 |
$15,824,520,000 |
|||
|
Current Assets |
$15,573,151,000 |
$16,834,024,000 |
$16,834,024,000 |
|||
|
Unfunded Accrued Liability |
($770,710,000) |
($930,040,000) |
($1,009,504,000) |
|||
|
Funding Ratio |
105.21% |
105.85% |
106.38% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$2,813,696,000 |
$2,937,962,000 |
$2,937,962,000 |
|||
|
Benefits Payable |
$755,036,000 |
$861,788,000 |
$861,788,000 |
|||
|
Normal Cost |
9.09% |
$255,746,000 |
9.09% |
$267,166,000 |
8.68% |
$255,015,000 |
|
Administrative Expenses |
0.30% |
$8,441,000 |
0.46% |
$13,515,000 |
0.46% |
$13,515,000 |
|
Normal Cost & Expense |
9.39% |
$264,187,000 |
9.55% |
$280,681,000 |
9.14% |
$268,530,000 |
|
Normal Cost & Expense |
9.39% |
$264,187,000 |
9.55% |
$280,681,000 |
9.14% |
$268,530,000 |
|
Amortization |
(1.47%) |
($41,361,000) |
(1.70%) |
($49,945,000) |
(1.85%) |
($54,352,000) |
|
Total Requirements |
7.92% |
$222,826,000 |
7.85% |
$230,736,000 |
7.29% |
$214,178,000 |
|
Employee Contributions |
5.00% |
$140,710,000 |
5.00% |
$146,914,000 |
5.00% |
$146,914,000 |
|
Employer Contributions |
5.00% |
$140,710,000 |
5.00% |
$146,914,000 |
5.00% |
$146,914,000 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Other Govt. Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
10.00% |
$281,420,000 |
10.00% |
$293,828,000 |
10.00% |
$293,828,000 |
|
Total Requirements |
7.92% |
$222,826,000 |
7.85% |
$230,736,000 |
7.29% |
$214,178,000 |
|
Total Contributions |
10.00% |
$281,420,000 |
10.00% |
$293,828,000 |
10.00% |
$293,828,000 |
|
Deficiency (Surplus) |
(2.08%) |
($58,594,000) |
(2.15%) |
($63,092,000) |
(2.71%) |
($79,650,000) |
Duluth Teachers Retirement Fund Association (DTRFA)
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
1,441 |
1,420 |
1,420 |
|||
|
Service Retirees |
937 |
992 |
992 |
|||
|
Disabilitants |
6 |
6 |
6 |
|||
|
Survivors |
53 |
60 |
60 |
|||
|
Deferred Retirees |
172 |
179 |
179 |
|||
|
Nonvested Former Members |
575 |
649 |
649 |
|||
|
Total Membership |
3,184 |
3,306 |
3,306 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$241,899,000 |
$254,255,000 |
$272,538,000 |
|||
|
Current Assets |
$251,007,000 |
$273,618,000 |
$273,618,000 |
|||
|
Unfunded Accrued Liability |
($9,108,000) |
($19,363,000) |
($1,080,000) |
|||
|
Funding Ratio |
103.77% |
107.62% |
100.40% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$53,102,000 |
$53,307,000 |
$53,307,000 |
|||
|
Benefits Payable |
$12,360,000 |
$14,341,000 |
$14,341,000 |
|||
|
Normal Cost |
8.68% |
$4,609,000 |
8.66% |
$4,609,000 |
9.06% |
$4,830,000 |
|
Administrative Expenses |
0.75% |
$398,000 |
0.79% |
$421,000 |
0.79% |
$421,000 |
|
Normal Cost & Expense |
9.43% |
$5,007,000 |
9.45% |
$5,030,000 |
9.85% |
$5,251,000 |
|
Normal Cost & Expense |
9.43% |
$5,007,000 |
9.45% |
$5,030,000 |
9.85% |
$5,251,000 |
|
Amortization |
(0.92%) |
($489,000) |
(1.96%) |
($1,045,000) |
(0.11%) |
($59,000) |
|
Total Requirements |
8.51% |
$4,518,000 |
7.49% |
$3,985,000 |
9.74% |
$5,192,000 |
|
Employee Contributions |
5.50% |
$2,921,000 |
5.50% |
$2,932,000 |
5.50% |
$2,932,000 |
|
Employer Contributions |
5.79% |
$3,075,000 |
5.79% |
$3,086,000 |
5.79% |
$3,086,000 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
0.92% |
$486,000 |
0.91% |
$486,000 |
0.00% |
$0 |
|
Other Govt. Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
12.21% |
$6,482,000 |
12.20% |
$6,504,000 |
11.29% |
$6,018,000 |
|
Total Requirements |
8.51% |
$4,518,000 |
7.49% |
$3,985,000 |
9.74% |
$5,192,000 |
|
Total Contributions |
12.21% |
$6,482,000 |
12.20% |
$6,504,000 |
11.29% |
$6,018,000 |
|
Deficiency (Surplus) |
(3.70%) |
($1,964,000) |
(4.71%) |
($2,519,000) |
(1.55%) |
($826,000) |
Minneapolis Teachers Retirement Fund Association (MTRFA)
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
5,777 |
5,813 |
5,813 |
|||
|
Service Retirees |
3,033 |
3,161 |
3,161 |
|||
|
Disabilitants |
20 |
20 |
20 |
|||
|
Survivors |
254 |
263 |
263 |
|||
|
Deferred Retirees |
756 |
802 |
802 |
|||
|
Nonvested Former Members |
1,815 |
2,250 |
2,250 |
|||
|
Total Membership |
11,655 |
12,309 |
12,309 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$1,554,358,000 |
$1,610,364,000 |
$1,623,493,000 |
|||
|
Current Assets |
$1,027,633,000 |
$1,061,983,000 |
$1,061,983,000 |
|||
|
Unfunded Accrued Liability |
$526,725,000 |
$548,381,000 |
$561,510,000 |
|||
|
Funding Ratio |
66.54% |
65.95% |
65.41% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$255,488,000 |
$267,977,000 |
$267,977,000 |
|||
|
Benefits Payable |
$86,440,000 |
$98,903,000 |
$98,903,000 |
|||
|
Normal Cost |
10.76% |
$27,485,000 |
10.25% |
$27,493,000 |
11.06% |
$29,638,000 |
|
Administrative Expenses |
0.24% |
$616,000 |
0.26% |
$706,000 |
0.26% |
$706,000 |
|
Normal Cost & Expense |
11.00% |
$28,101,000 |
10.51% |
$28,199,000 |
11.32% |
$30,344,000 |
|
Normal Cost & Expense |
11.00% |
$28,101,000 |
10.51% |
$28,199,000 |
11.32% |
$30,344,000 |
|
Amortization |
14.25% |
$36,400,000 |
14.94% |
$40,036,000 |
14.97% |
$40,116,000 |
|
Total Requirements |
25.25% |
$64,501,000 |
25.45% |
$68,235,000 |
26.29% |
$70,460,000 |
|
Employee Contributions |
6.10% |
$15,595,000 |
5.99% |
$16,058,000 |
5.99% |
$16,058,000 |
|
Employer Contributions |
8.95% |
$22,854,000 |
8.80% |
$23,573,000 |
8.80% |
$23,573,000 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
7.22% |
$18,444,000 |
6.99% |
$18,744,000 |
6.99% |
$18,744,000 |
|
Other Govt. Funding |
0.98% |
$2,500,000 |
0.93% |
$2,500,000 |
0.93% |
$2,500,000 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
23.25% |
$59,393,000 |
22.72% |
$60,875,000 |
22.72% |
$60,875,000 |
|
Total Requirements |
25.25% |
$64,501,000 |
25.45% |
$68,235,000 |
26.29% |
$70,460,000 |
|
Total Contributions |
23.25% |
$59,393,000 |
22.72% |
$60,875,000 |
22.72% |
$60,875,000 |
|
Deficiency (Surplus) |
2.00% |
$5,108,000 |
2.73% |
$7,360,000 |
3.57% |
$9,585,000 |
St. Paul Teachers Retirement Fund Association (StPTRFA)
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
4,445 |
4,671 |
4,671 |
|||
|
Service Retirees |
1,728 |
1,807 |
1,807 |
|||
|
Disabilitants |
23 |
23 |
23 |
|||
|
Survivors |
213 |
220 |
220 |
|||
|
Deferred Retirees |
243 |
324 |
324 |
|||
|
Nonvested Former Members |
1,697 |
1,671 |
1,671 |
|||
|
Total Membership |
8,349 |
8,716 |
8,716 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$998,253,000 |
$1,060,931,000 |
$1,093,681,000 |
|||
|
Current Assets |
$801,823,000 |
$869,045,000 |
$869,045,000 |
|||
|
Unfunded Accrued Liability |
$196,430,000 |
$191,886,000 |
$224,636,000 |
|||
|
Funding Ratio |
80.32% |
81.91% |
79.46% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$198,974,000 |
$214,775,000 |
$214,775,000 |
|||
|
Benefits Payable |
$47,168,000 |
$53,295,000 |
$53,295,000 |
|||
|
Normal Cost |
9.36% |
$18,628,000 |
9.05% |
$19,447,000 |
10.22% |
$21,950,000 |
|
Administrative Expenses |
0.24% |
$469,000 |
0.22% |
$466,000 |
0.22% |
$466,000 |
|
Normal Cost & Expense |
9.60% |
$19,097,000 |
9.27% |
$19,913,000 |
10.44% |
$22,416,000 |
|
Normal Cost & Expense |
9.60% |
$19,097,000 |
9.27% |
$19,913,000 |
10.44% |
$22,416,000 |
|
Amortization |
6.98% |
$13,880,000 |
6.54% |
$14,056,000 |
7.33% |
$15,743,000 |
|
Total Requirements |
16.57% |
$32,977,000 |
15.81% |
$33,969,000 |
17.77% |
$38,159,000 |
|
Employee Contributions |
6.05% |
$12,036,000 |
5.97% |
$12,831,000 |
5.97% |
$12,831,000 |
|
Employer Contributions |
9.07% |
$18,037,000 |
8.97% |
$19,256,000 |
8.97% |
$19,256,000 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
2.17% |
$4,317,000 |
2.13% |
$4,577,000 |
2.13% |
$4,577,000 |
|
Other Govt. Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
17.29% |
$34,390,000 |
17.07% |
$36,664,000 |
17.07% |
$36,664,000 |
|
Total Requirements |
16.57% |
$32,977,000 |
15.81% |
$33,969,000 |
17.77% |
$38,159,000 |
|
Total Contributions |
17.29% |
$34,390,000 |
17.07% |
$36,664,000 |
17.07% |
$36,664,000 |
|
Deficiency (Surplus) |
(0.72%) |
($1,413,000) |
(1.26%) |
($2,695,000) |
0.70% |
$1,495,000 |
State Correctional Employees Retirement Plan of the Minnesota State Retirement System (MSRS-Correctional)
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
3,098 |
3,182 |
3,182 |
|||
|
Service Retirees |
616 |
655 |
655 |
|||
|
Disabilitants |
75 |
92 |
92 |
|||
|
Survivors |
56 |
61 |
61 |
|||
|
Deferred Retirees |
419 |
483 |
483 |
|||
|
Nonvested Former Members |
163 |
220 |
220 |
|||
|
Total Membership |
4,427 |
4,693 |
4,693 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$359,885,000 |
$398,633,000 |
$404,146,000 |
|||
|
Current Assets |
$386,964,000 |
$431,134,000 |
$431,134,000 |
|||
|
Unfunded Accrued Liability |
($27,079,000) |
($32,501,000) |
($26,988,000) |
|||
|
Funding Ratio |
107.52% |
108.15% |
106.68% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$127,557,000 |
$127,835,000 |
$127,835,000 |
|||
|
Benefits Payable |
$12,414,000 |
$14,911,000 |
$14,911,000 |
|||
|
Normal Cost |
14.64% |
$18,670,000 |
14.99% |
$19,161,000 |
14.99% |
$19,161,000 |
|
Administrative Expenses |
0.22% |
$281,000 |
0.19% |
$243,000 |
0.19% |
$243,000 |
|
Normal Cost & Expense |
14.86% |
$18,951,000 |
15.18% |
$19,404,000 |
15.18% |
$19,404,000 |
|
Normal Cost & Expense |
14.86% |
$18,951,000 |
15.18% |
$19,404,000 |
15.18% |
$19,404,000 |
|
Amortization |
(1.14%) |
($1,454,000) |
(1.37%) |
($1,751,000) |
(1.14%) |
($1,457,000) |
|
Total Requirements |
13.72% |
$17,497,000 |
13.81% |
$17,653,000 |
14.04% |
$17,947,000 |
|
Employee Contributions |
5.69% |
$7,258,000 |
5.69% |
$7,274,000 |
5.69% |
$7,274,000 |
|
Employer Contributions |
7.98% |
$10,179,000 |
7.98% |
$10,201,000 |
7.98% |
$10,201,000 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Other Govt. Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
13.67% |
$17,437,000 |
13.67% |
$17,475,000 |
13.67% |
$17,475,000 |
|
Total Requirements |
13.72% |
$17,497,000 |
13.81% |
$17,653,000 |
14.04% |
$17,947,000 |
|
Total Contributions |
13.67% |
$17,437,000 |
13.67% |
$17,475,000 |
13.67% |
$17,475,000 |
|
Deficiency (Surplus) |
0.05% |
$60,000 |
0.14% |
$178,000 |
0.37% |
$472,000 |
State Patrol Retirement Plan
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
830 |
823 |
823 |
|||
|
Service Retirees |
531 |
556 |
556 |
|||
|
Disabilitants |
22 |
25 |
25 |
|||
|
Survivors |
457 |
164 |
164 |
|||
|
Deferred Retirees |
24 |
25 |
25 |
|||
|
Nonvested Former Members |
10 |
10 |
10 |
|||
|
Total Membership |
1,874 |
1,603 |
1,603 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$458,384,000 |
$489,483,000 |
$490,637,000 |
|||
|
Current Assets |
$528,573,000 |
$572,815,000 |
$572,815,000 |
|||
|
Unfunded Accrued Liability |
($70,189,000) |
($83,332,000) |
($82,178,000) |
|||
|
Funding Ratio |
115.31% |
117.02% |
116.74% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$51,980,000 |
$51,574,000 |
$51,574,000 |
|||
|
Benefits Payable |
$25,789,000 |
$29,935,000 |
$29,935,000 |
|||
|
Normal Cost |
22.55% |
$11,725,000 |
22.53% |
$11,620,000 |
22.53% |
$11,620,000 |
|
Administrative Expenses |
0.20% |
$104,000 |
0.17% |
$88,000 |
0.17% |
$88,000 |
|
Normal Cost & Expense |
22.75% |
$11,829,000 |
22.70% |
$11,708,000 |
22.70% |
$11,708,000 |
|
Normal Cost & Expense |
22.75% |
$11,829,000 |
22.70% |
$11,708,000 |
22.70% |
$11,708,000 |
|
Amortization |
(7.27%) |
($3,779,000) |
(8.70%) |
($4,487,000) |
(8.58%) |
($4,425,000) |
|
Total Requirements |
15.48% |
$8,050,000 |
14.00% |
$7,221,000 |
14.12% |
$7,283,000 |
|
Employee Contributions |
8.40% |
$4,366,000 |
8.40% |
$4,332,000 |
8.40% |
$4,332,000 |
|
Employer Contributions |
12.60% |
$6,550,000 |
12.60% |
$6,498,000 |
12.60% |
$6,498,000 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Other Govt. Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
21.00% |
$10,916,000 |
21.00% |
$10,830,000 |
21.00% |
$10,830,000 |
|
Total Requirements |
15.48% |
$8,050,000 |
14.00% |
$7,221,000 |
14.12% |
$7,283,000 |
|
Total Contributions |
21.00% |
$10,916,000 |
21.00% |
$10,830,000 |
21.00% |
$10,830,000 |
|
Deficiency (Surplus) |
(5.52%) |
($2,866,000) |
(7.00%) |
($3,609,000) |
(6.88%) |
($3,547,000) |
Legislators Retirement Plan
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
173 |
139 |
139 |
|||
|
Service Retirees |
210 |
226 |
226 |
|||
|
Disabilitants |
0 |
0 |
0 |
|||
|
Survivors |
70 |
67 |
67 |
|||
|
Deferred Retirees |
90 |
102 |
102 |
|||
|
Nonvested Former Members |
3 |
6 |
6 |
|||
|
Total Membership |
546 |
540 |
540 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$69,364,000 |
$75,072,000 |
$77,584,000 |
|||
|
Current Assets |
$37,265,000 |
$42,608,000 |
$42,608,000 |
|||
|
Unfunded Accrued Liability |
$32,099,000 |
$32,464,000 |
$34,976,000 |
|||
|
Funding Ratio |
53.72% |
56.76% |
54.92% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$6,043,000 |
$5,646,000 |
$5,646,000 |
|||
|
Benefits Payable |
$4,213,000 |
$4,856,000 |
$4,856,000 |
|||
|
Normal Cost |
18.15% |
$1,097,000 |
17.86% |
$1,008,000 |
17.86% |
$1,008,000 |
|
Administrative Expenses |
0.51% |
$31,000 |
0.48% |
$27,000 |
0.48% |
$27,000 |
|
Normal Cost & Expense |
18.67% |
$1,128,000 |
18.34% |
$1,035,000 |
18.34% |
$1,035,000 |
|
Normal Cost & Expense |
18.67% |
$1,128,000 |
18.34% |
$1,035,000 |
18.34% |
$1,035,000 |
|
Amortization |
37.22% |
$2,249,000 |
41.80% |
$2,360,000 |
43.41% |
$2,451,000 |
|
Total Requirements |
55.88% |
$3,377,000 |
60.14% |
$3,395,000 |
61.75% |
$3,486,000 |
|
Employee Contributions |
9.00% |
$544,000 |
9.00% |
$508,000 |
9.00% |
$508,000 |
|
Employer Contributions |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Other Govt. Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
9.00% |
$544,000 |
9.00% |
$508,000 |
9.00% |
$508,000 |
|
Total Requirements |
55.88% |
$3,377,000 |
60.14% |
$3,395,000 |
61.75% |
$3,486,000 |
|
Total Contributions |
9.00% |
$544,000 |
9.00% |
$508,000 |
9.00% |
$508,000 |
|
Deficiency (Surplus) |
46.88% |
$2,833,000 |
51.14% |
$2,887,000 |
52.75% |
$2,978,000 |
Elected State Officers Retirement Plan
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
0 |
0 |
0 |
|||
|
Service Retirees |
8 |
8 |
8 |
|||
|
Disabilitants |
0 |
0 |
0 |
|||
|
Survivors |
5 |
5 |
5 |
|||
|
Deferred Retirees |
4 |
4 |
4 |
|||
|
Nonvested Former Members |
0 |
0 |
0 |
|||
|
Total Membership |
17 |
17 |
17 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$3,535,000 |
$3,775,000 |
$3,962,000 |
|||
|
Current Assets |
$199,000 |
$201,000 |
$201,000 |
|||
|
Unfunded Accrued Liability |
$3,336,000 |
$3,574,000 |
$3,761,000 |
|||
|
Funding Ratio |
5.63% |
5.32% |
5.07% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$0 |
$0 |
$0 |
|||
|
Benefits Payable |
$303,000 |
$330,000 |
$330,000 |
|||
|
Normal Cost |
$0 |
$0 |
$0 |
|||
|
Administrative Expenses |
$2,000 |
$1,000 |
$1,000 |
|||
|
Normal Cost & Expense |
$2,000 |
$1,000 |
$1,000 |
|||
|
Normal Cost & Expense |
$2,000 |
$1,000 |
$1,000 |
|||
|
Amortization |
$338,000 |
$370,000 |
$390,000 |
|||
|
Total Requirements |
$340,000 |
$371,000 |
$391,000 |
|||
|
Employee Contributions |
$0 |
$0 |
$0 |
|||
|
Employer Contributions |
$0 |
$0 |
$0 |
|||
|
Employer Add'l Cont. |
$0 |
$0 |
$0 |
|||
|
Direct State Funding |
$0 |
$0 |
$0 |
|||
|
Other Govt. Funding |
$0 |
$0 |
$0 |
|||
|
Administrative Assessment |
$0 |
$0 |
$0 |
|||
|
Total Contributions |
$0 |
$0 |
$0 |
|||
|
Total Requirements |
$340,000 |
$371,000 |
$391,000 |
|||
|
Total Contributions |
$0 |
$0 |
$0 |
|||
|
Deficiency (Surplus) |
$340,000 |
$371,000 |
$391,000 |
|||
Judges Retirement Plan
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
282 |
292 |
292 |
|||
|
Service Retirees |
153 |
155 |
155 |
|||
|
Disabilitants |
4 |
4 |
4 |
|||
|
Survivors |
82 |
88 |
88 |
|||
|
Deferred Retirees |
9 |
14 |
14 |
|||
|
Nonvested Former Members |
2 |
1 |
1 |
|||
|
Total Membership |
532 |
554 |
554 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$153,660,000 |
$165,244,000 |
$165,469,000 |
|||
|
Current Assets |
$111,113,000 |
$123,589,000 |
$123,589,000 |
|||
|
Unfunded Accrued Liability |
$42,547,000 |
$41,655,000 |
$41,880,000 |
|||
|
Funding Ratio |
72.31% |
74.79% |
74.69% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$28,186,000 |
$29,874,000 |
$29,874,000 |
|||
|
Benefits Payable |
$11,082,000 |
$12,228,000 |
$12,228,000 |
|||
|
Normal Cost |
16.30% |
$4,593,000 |
16.44% |
$4,913,000 |
16.44% |
$4,913,000 |
|
Administrative Expenses |
0.15% |
$42,000 |
0.14% |
$42,000 |
0.14% |
$42,000 |
|
Normal Cost & Expense |
16.44% |
$4,635,000 |
16.58% |
$4,955,000 |
16.58% |
$4,955,000 |
|
Normal Cost & Expense |
16.44% |
$4,635,000 |
16.58% |
$4,955,000 |
16.58% |
$4,955,000 |
|
Amortization |
10.58% |
$2,982,000 |
10.14% |
$3,029,000 |
10.19% |
$3,044,000 |
|
Total Requirements |
27.03% |
$7,617,000 |
26.72% |
$7,984,000 |
26.77% |
$7,999,000 |
|
Employee Contributions |
8.00% |
$2,255,000 |
8.00% |
$2,390,000 |
8.00% |
$2,390,000 |
|
Employer Contributions |
20.50% |
$5,778,000 |
20.50% |
$6,124,000 |
20.50% |
$6,124,000 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Other Govt. Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
28.50% |
$8,033,000 |
28.50% |
$8,514,000 |
28.50% |
$8,514,000 |
|
Total Requirements |
27.03% |
$7,617,000 |
26.72% |
$7,984,000 |
26.77% |
$7,999,000 |
|
Total Contributions |
28.50% |
$8,033,000 |
28.50% |
$8,514,000 |
28.50% |
$8,514,000 |
|
Deficiency (Surplus) |
(1.47%) |
($416,000) |
(1.78%) |
($530,000) |
(1.73%) |
($515,000) |
Public Employees Police and Fire Retirement Plan (PERA-P&F)
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
9,627 |
9,858 |
9,858 |
|||
|
Service Retirees |
3,991 |
4,188 |
4,188 |
|||
|
Disabilitants |
482 |
543 |
543 |
|||
|
Survivors |
1,205 |
1,267 |
1,267 |
|||
|
Deferred Retirees |
470 |
554 |
554 |
|||
|
Nonvested Former Members |
626 |
610 |
610 |
|||
|
Total Membership |
16,401 |
17,020 |
17,020 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$3,383,187,000 |
$3,712,360,000 |
$3,728,691,000 |
|||
|
Current Assets |
$4,145,351,000 |
$4,510,134,000 |
$4,510,134,000 |
|||
|
Unfunded Accrued Liability |
($762,164,000) |
($797,774,000) |
($781,443,000) |
|||
|
Funding Ratio |
122.53% |
121.49% |
120.96% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$494,134,000 |
$528,942,000 |
$528,942,000 |
|||
|
Benefits Payable |
$165,719,000 |
$192,245,000 |
$192,245,000 |
|||
|
Normal Cost |
19.93% |
$98,462,000 |
20.21% |
$106,905,000 |
20.21% |
$106,905,000 |
|
Administrative Expenses |
0.14% |
$692,000 |
0.13% |
$688,000 |
0.13% |
$688,000 |
|
Normal Cost & Expense |
20.07% |
$99,154,000 |
20.34% |
$107,593,000 |
20.34% |
$107,593,000 |
|
Normal Cost & Expense |
20.07% |
$99,154,000 |
20.34% |
$107,593,000 |
20.34% |
$107,593,000 |
|
Amortization |
(7.38%) |
($36,467,000) |
(7.22%) |
($38,190,000) |
(7.07%) |
($37,396,000) |
|
Total Requirements |
12.68% |
$62,687,000 |
13.12% |
$69,403,000 |
13.27% |
$70,197,000 |
|
Employee Contributions |
6.20% |
$30,636,000 |
6.20% |
$32,793,000 |
6.20% |
$32,793,000 |
|
Employer Contributions |
9.30% |
$45,954,000 |
9.30% |
$49,189,000 |
9.30% |
$49,189,000 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Other Govt. Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
15.50% |
$76,590,000 |
15.50% |
$81,982,000 |
15.50% |
$81,982,000 |
|
Total Requirements |
12.68% |
$62,687,000 |
13.12% |
$69,403,000 |
13.27% |
$70,197,000 |
|
Total Contributions |
15.50% |
$76,590,000 |
15.50% |
$81,982,000 |
15.50% |
$81,982,000 |
|
Deficiency (Surplus) |
(2.82%) |
($13,903,000) |
(2.38%) |
($12,579,000) |
(2.23%) |
($11,785,000) |
Local Government Correctional Service Retirement Plan (PERA-Correctional)
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
2,781 |
3,238 |
3,238 |
|||
|
Service Retirees |
9 |
20 |
20 |
|||
|
Disabilitants |
3 |
17 |
17 |
|||
|
Survivors |
0 |
0 |
0 |
|||
|
Deferred Retirees |
0 |
97 |
97 |
|||
|
Nonvested Former Members |
0 |
267 |
267 |
|||
|
Total Membership |
2,793 |
3,639 |
3,639 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$10,195,000 |
$25,453,000 |
$25,611,000 |
|||
|
Current Assets |
$11,116,000 |
$25,014,000 |
$25,014,000 |
|||
|
Unfunded Accrued Liability |
($921,000) |
$439,000 |
$597,000 |
|||
|
Funding Ratio |
109.03% |
98.28% |
97.67% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$80,818,000 |
$100,460,000 |
$100,460,000 |
|||
|
Benefits Payable |
$20,000 |
$173,000 |
$173,000 |
|||
|
Normal Cost |
14.26% |
$11,520,000 |
14.02% |
$14,093,000 |
14.02% |
$14,093,000 |
|
Administrative Expenses |
0.16% |
$129,000 |
0.16% |
$161,000 |
0.16% |
$161,000 |
|
Normal Cost & Expense |
14.42% |
$11,649,000 |
14.18% |
$14,254,000 |
14.18% |
$14,254,000 |
|
Normal Cost & Expense |
14.42% |
$11,649,000 |
14.18% |
$14,254,000 |
14.18% |
$14,254,000 |
|
Amortization |
(0.05%) |
($40,000) |
0.03% |
$30,000 |
0.04% |
$40,000 |
|
Total Requirements |
14.37% |
$11,609,000 |
14.21% |
$14,284,000 |
14.22% |
$14,294,000 |
|
Employee Contributions |
5.83% |
$4,712,000 |
5.83% |
$5,858,000 |
5.83% |
$5,858,000 |
|
Employer Contributions |
8.75% |
$7,072,000 |
8.75% |
$8,792,000 |
8.75% |
$8,792,000 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Other Govt. Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
14.58% |
$11,784,000 |
14.58% |
$14,650,000 |
14.58% |
$14,650,000 |
|
Total Requirements |
14.37% |
$11,609,000 |
14.21% |
$14,284,000 |
14.22% |
$14,294,000 |
|
Total Contributions |
14.58% |
$11,784,000 |
14.58% |
$14,650,000 |
14.58% |
$14,650,000 |
|
Deficiency (Surplus) |
(0.21%) |
($175,000) |
(0.37%) |
($366,000) |
(0.36%) |
($356,000) |
Minneapolis Employees Retirement Fund (MERF)
|
July 1, 2000 |
July 1, 2001 |
Actuarial Assumption Change Impact Estimate |
||||
|
Membership |
||||||
|
Active Members |
1,152 |
959 |
959 |
|||
|
Service Retirees |
3,757 |
3,796 |
3,796 |
|||
|
Disabilitants |
213 |
207 |
207 |
|||
|
Survivors |
1,056 |
1,040 |
1,040 |
|||
|
Deferred Retirees |
233 |
210 |
210 |
|||
|
Nonvested Former Members |
0 |
0 |
0 |
|||
|
Total Membership |
6,411 |
6,212 |
6,212 |
|||
|
Funded Status |
||||||
|
Accrued Liability |
$1,515,963,000 |
$1,615,972,000 |
$1,620,396,000 |
|||
|
Current Assets |
$1,416,491,000 |
$1,507,159,000 |
$1,507,159,000 |
|||
|
Unfunded Accrued Liability |
$99,471,000 |
$108,813,000 |
$113,237,000 |
|||
|
Funding Ratio |
93.44% |
93.27% |
93.01% |
|||
|
Financing Requirements |
||||||
|
Covered Payroll |
$56,392,000 |
$48,688,000 |
$48,688,000 |
|||
|
Benefits Payable |
$107,373,000 |
$120,415,000 |
$120,415,000 |
|||
|
Normal Cost |
18.11% |
$10,210,000 |
17.93% |
$8,730,000 |
17.96% |
$8,744,000 |
|
Administrative Expenses |
1.37% |
$772,000 |
1.50% |
$728,000 |
1.50% |
$728,000 |
|
Normal Cost & Expense |
19.48% |
$10,982,000 |
19.43% |
$9,458,000 |
19.46% |
$9,472,000 |
|
Normal Cost & Expense |
19.48% |
$10,982,000 |
19.43% |
$9,458,000 |
19.46% |
$9,472,000 |
|
Amortization |
17.37% |
$9,794,000 |
22.35% |
$10,883,000 |
23.16% |
$11,276,000 |
|
Total Requirements |
36.85% |
$20,775,000 |
41.78% |
$20,341,000 |
42.62% |
$20,748,000 |
|
Employee Contributions |
9.75% |
$5,498,000 |
9.75% |
$4,747,000 |
9.75% |
$4,747,000 |
|
Employer Contributions |
21.36% |
$12,046,000 |
22.76% |
$11,084,000 |
22.79% |
$11,098,000 |
|
Employer Add'l Cont. |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Direct State Funding |
5.73% |
$3,232,000 |
9.26% |
$4,510,000 |
10.07% |
$4,903,000 |
|
Other Govt. Funding |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Administrative Assessment |
0.00% |
$0 |
0.00% |
$0 |
0.00% |
$0 |
|
Total Contributions |
36.84% |
$20,775,000 |
41.77% |
$20,341,000 |
42.61% |
$20,748,000 |
|
Total Requirements |
36.85% |
$20,775,000 |
41.78% |
$20,341,000 |
42.62% |
$20,748,000 |
|
Total Contributions |
36.84% |
$20,775,000 |
41.77% |
$20,341,000 |
42.61% |
$20,748,000 |
|
Deficiency (Surplus) |
0.01% |
$0 |
0.01% |
$0 |
0.00% |
$0 |
Discussion of the Proposed Legislation and Draft Resolution
In combination, Draft Proposed Legislation LCPR02-003 and Draft Resolution 02-1 implement the changes in nine different actuarial assumptions, one statutory assumption change (salary increase), and eight non-statutory actuarial assumption changes (pre-retirement mortality, post-retirement mortality, post-disability mortality, retirement age, separation or withdrawal, disability, allowance for Combined Service Annuity, and optional annuity form election) that were recently recommended by the consulting actuary retained by the Commission, relating in various degrees to fourteen Minnesota public pension plans.
The actuarial assumption change recommendation approval package (Draft Proposed Legislation LCPR02-003 and Draft Resolution 02-1) raise several pension and related public policy issues that the Commission may wish to consider after taking any testimony presented by interested parties, as follows:
Appropriateness Of Recommended Actuarial Assumption Changes In Light Of Recent Experience In General
Match Between Recent Experience And Actuarial Assumption Change Recommendations Specifically
Separation/Withdrawal/Termination
|
MSRS-General |
PERA-General |
TRA |
DTRFA |
MTRFA |
StPTRFA |
|||||||
|
Proposed Actuarial Assumption Change |
Significant increases in both select and ultimate rates |
Significant softening in assumption |
Increase in select rates for both males and females for first year and reduction in second and third year |
Change to select and ultimate rate assumption |
Change to select and ultimate rate assumption reflecting a high turnover problem |
Change to select and ultimate rate assumption reflecting a high turnover problem |
||||||
|
Experience Study Results (F = Favorable U = Unfavorable) |
||||||||||||
|
All Terminations - Males |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
308% |
F |
384% |
F |
219% |
F |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
513% |
F |
600% |
F |
318% |
F |
|
1996-1997 |
262% |
F |
291% |
F |
130% |
F |
362% |
F |
371% |
F |
214% |
F |
|
1997-1998 |
183% |
F |
224% |
F |
129% |
F |
277% |
F |
272% |
F |
182% |
F |
|
1998-1999 |
158% |
F |
230% |
F |
123% |
F |
277% |
F |
350% |
F |
351% |
F |
|
1999-2000 |
161% |
F |
389% |
F |
129% |
F |
285% |
F |
373% |
F |
317% |
F |
|
Period |
190% |
F |
284% |
F |
128% |
F |
341% |
F |
399% |
F |
275% |
F |
|
All Terminations - Females |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
392% |
F |
259% |
F |
200% |
F |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
524% |
F |
166% |
F |
189% |
F |
|
1996-1997 |
306% |
F |
271% |
F |
132% |
F |
374% |
F |
294% |
F |
183% |
F |
|
1997-1998 |
179% |
F |
233% |
F |
138% |
F |
356% |
F |
246% |
F |
193% |
F |
|
1998-1999 |
154% |
F |
239% |
F |
136% |
F |
271% |
F |
251% |
F |
288% |
F |
|
1999-2000 |
146% |
F |
372% |
F |
132% |
F |
542% |
F |
222% |
F |
217% |
F |
|
Period |
195% |
F |
280% |
F |
134% |
F |
415% |
F |
241% |
F |
226% |
F |
|
Over 3 Yr. Terminations - Males |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
43% |
U |
109% |
F |
38% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
257% |
F |
215% |
F |
107% |
F |
|
1996-1997 |
335% |
F |
352% |
F |
105% |
F |
86% |
U |
167% |
F |
43% |
U |
|
1997-1998 |
209% |
F |
248% |
F |
118% |
F |
50% |
U |
150% |
F |
60% |
U |
|
1998-1999 |
189% |
F |
265% |
F |
121% |
F |
83% |
U |
224% |
F |
50% |
U |
|
1999-2000 |
170% |
F |
498% |
F |
130% |
F |
17% |
U |
205% |
F |
72% |
U |
|
Period |
230% |
F |
339% |
F |
118% |
F |
92% |
U |
181% |
F |
62% |
U |
|
Over 3 Yr. Terminations - Females |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
38% |
U |
85% |
U |
17% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
125% |
F |
130% |
F |
58% |
U |
|
1996-1997 |
435% |
F |
310% |
F |
112% |
F |
83% |
U |
143% |
F |
25% |
U |
|
1997-1998 |
182% |
F |
224% |
F |
134% |
F |
92% |
U |
137% |
F |
44% |
U |
|
1998-1999 |
178% |
F |
240% |
F |
142% |
F |
92% |
U |
186% |
F |
58% |
U |
|
1999-2000 |
163% |
F |
443% |
F |
141% |
F |
92% |
U |
146% |
F |
53% |
U |
|
Period |
248% |
F |
305% |
F |
132% |
F |
86% |
U |
142% |
F |
44% |
U |
|
Valuation (Gain)/Loss Results : (F = Favorable U = Unfavorable) |
||||||||||||
|
Other Items * |
||||||||||||
|
1997 |
(38,944,000) |
F |
18,616,000 |
U |
23,163,000 |
U |
5,548,000 |
U |
(3,317,000) |
F |
1,279,000 |
U |
|
1998 |
109,396,000 |
U |
107,800,000 |
U |
205,540,000 |
U |
(6,109,000) |
F |
3,917,000 |
U |
781,000 |
U |
|
1999 |
34,054,000 |
U |
26,381,000 |
U |
207,484,000 |
U |
104,000 |
U |
(3,922,000) |
F |
(13,910,000) |
F |
|
2000 |
44,563,000 |
U |
128,968,000 |
U |
185,473,000 |
U |
5,619,000 |
U |
21,870,000 |
U |
(2,433,000) |
F |
|
2001 |
13,977,000 |
U |
31,733,000 |
U |
4,892,000 |
U |
1,706,000 |
U |
17,173,000 |
U |
9,695,000 |
U |
* Other items are not allocated by source, but include terminations as a major component. Number is increase (decrease) in unfunded actuarial accrued liability.
Retirement Rates
|
MSRS-General |
PERA-General |
TRA |
DTRFA |
MTRFA |
StPTRFA |
|||||||
|
Proposed Actuarial Assumption Change |
Change to reflect greater early retirement experience |
Change to reflect greater "Rule of 90" utilization |
Change to reflect greater "Rule of 90" utilization |
No change |
Change to reflect greater early retirement utilization |
Change to reflect greater early retirement utilization |
||||||
|
Experience Study Results (F = Favorable U = Unfavorable) |
||||||||||||
|
Retirements Under 65 |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
76/33% |
F ** |
70/40% |
F * |
81/58% |
F * |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
89/33% |
F ** |
210/117% |
U * |
70/120% |
F/U * |
|
1996-1997 |
158% |
U |
127/126% |
U * |
81/134% |
F/U * |
147/40% |
U/F ** |
151/175% |
U * |
154/181% |
U * |
|
1997-1998 |
147% |
U |
169/149% |
U * |
100/149% |
F/U * |
111/100% |
U/F ** |
210/200% |
U * |
75/88% |
F * |
|
1998-1999 |
135% |
U |
160/151% |
U * |
67/226% |
F/U * |
153/60% |
U/F ** |
198/223% |
U * |
98/80% |
F * |
|
1999-2000 |
140% |
U |
288/184% |
U * |
117/210% |
U * |
184/129% |
U ** |
189/140% |
U * |
116/104% |
U * |
|
Period |
145% |
U |
175/153% |
U * |
88/179% |
F/U * |
128/76% |
U/F ** |
181/164% |
U * |
100/106% |
U * |
|
Retirements Over 65 |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
89%/NA |
U ** |
22/150% |
U/F * |
78/75% |
U * |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
67/500% |
U/F ** |
58/157% |
U/F * |
71/78% |
U * |
|
1996-1997 |
98% |
U |
96/93% |
U * |
100/96% |
F/U * |
109/300% |
F ** |
29/54% |
U * |
117/50% |
F/U * |
|
1997-1998 |
101% |
F |
145/106% |
F * |
60/93% |
U * |
111/100% |
F ** |
50/71% |
U * |
100/64% |
F/U * |
|
1998-1999 |
112% |
F |
105/95% |
F/U * |
67/92% |
U * |
73/0% |
U ** |
57/77% |
U * |
100/100% |
F * |
|
1999-2000 |
100% |
F |
194/97% |
F/U * |
133/113% |
F * |
145/400% |
F ** |
63/50% |
U * |
50/64% |
U * |
|
Period |
103% |
F |
131/98% |
U/F * |
93/98% |
U * |
102/280% |
F ** |
47/81% |
U * |
89/70% |
U * |
|
* Basic/Coordinated ** Old Law/New Law |
||||||||||||
|
Valuation (Gain)/Loss Results: Retirement Rates (included in "other items" category summarized above) |
||||||||||||
Salary Increase
|
MSRS-General |
PERA-General |
TRA |
DTRFA |
MTRFA |
StPTRFA |
|||||||
|
Proposed Actuarial Assumption Change |
Change in both select and ultimate components |
Change in both select and ultimate components |
Increase in the select component, with the creation of a "U"-shaped salary increase pattern |
Change to select and ultimate assumption |
Change to select and ultimate assumption |
Change to select and ultimate assumption |
||||||
|
Experience Study Results (F = Favorable U = Unfavorable) |
||||||||||||
|
Salary Increase |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
95% |
F |
19% |
F |
141% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
58% |
F |
113% |
U |
98% |
F |
|
1996-1997 |
117% |
U |
90% |
F |
84% |
F |
104% |
U |
126% |
U |
3% |
F |
|
1997-1998 |
86% |
F |
63% |
F |
98% |
F |
16% |
F |
122% |
U |
111% |
U |
|
1998-1999 |
97% |
F |
94% |
F |
125% |
U |
193% |
U |
122% |
U |
103% |
U |
|
1999-2000 |
151% |
U |
101% |
U |
83% |
F |
42% |
F |
131% |
U |
116% |
U |
|
Period |
114% |
U |
87% |
F |
97% |
F |
85% |
F |
123% |
U |
96% |
F |
|
Valuation (Gain)/Loss Results : |
||||||||||||
|
Salary Increases |
||||||||||||
|
1997 |
(12,704,000) F |
(51,416,000) F |
(115,603,000) F |
(2,683,000) F |
9,263,000 U |
(14,076,000) F |
||||||
|
1998 |
(45,026,000 F |
(127,058,000) F |
(74,652,000) F |
(6,718,000) F |
(591,000) F |
(1,482,000) F |
||||||
|
1999 |
(33,629,000) F |
(57,350,000) F |
8,630,000 U |
3,104,000 U |
14,753,000 U |
10,702,000 U |
||||||
|
2000 |
56,601,000 U |
(45,597,000) F |
(117,377,000) F |
(2,606,000) F |
7,869,000 U |
(8,419,000) F |
||||||
|
2001 |
(108,969,000) F |
(50,387,000) F |
7,300,000 U |
(1,811,000) F |
(12,689,000) F |
(2,602,000) F |
||||||
A comparison of the unusual "U"-shaped pattern in the TRA salary increase assumption proposal with the salary increase assumption proposals of the other three teacher retirement plans is shown in the following graph:
Combined Service Annuity Liability
|
MSRS-General |
PERA-General |
TRA |
DTRFA |
MTRFA |
StPTRFA |
|
|
Proposed Actuarial Assumption Change |
Increase from 1.0 percent to 1.2 percent load on active member liabilities, and the addition of 40 percent load on former member liabilities |
Decrease from 2.5 percent to 0.8 percent load on active member liabilities, and the addition of 60 percent load on former member liabilities |
Addition of initial 1.4 percent load on active member liabilities, 4.0 percent load on former member liabilities, with modification for retirement rate change |
Addition of 10 percent load on active and former member liabilities |
Addition of 4.0 percent load on active member liabilities and 30 percent load on former member liabilities |
Addition of 7.0 percent load on active member liabilities and 30 percent load on former member liabilities |
|
Combined Service Annuity Study Results |
||||||
|
Percentage Actives With Prior Service Covered By Another Plan |
7.42% |
2.84% |
9.95% |
28.45% |
31.50% |
37.55% |
|
Increase (Decrease) PVFB For Actives With Prior Service |
$16,770,000 |
$ (133,978,000) |
$36,997,000 |
$15,319,000 |
$32,149,000 |
$42,653,000 |
|
Percentage Inactives With Prior Service Covered By Another Plan |
4.81% |
0.81% |
4.08% |
0.00% |
2.53% |
2.83% |
|
Increase (Decrease) PVFB For Inactives With Prior Service |
$164,737,000 |
$276,815,000 |
$14,199,000 |
-- |
$58,627,000 |
$22,271,000 |
Mortality Assumption
|
MSRS-General |
PERA-General |
TRA |
DTRFA |
MTRFA |
StPTRFA |
|||||||
|
Proposed Actuarial Assumption Change : |
||||||||||||
|
Annuitant Mortality |
Setback for males increased from on year to two years |
Addition of one year setback for males |
Setback increased from five years to six years for males and decreased from four years to three years for females |
Reduction in setback for females from one year to no setback |
Setback for females reduced from two years to one year |
No change |
||||||
|
Disabilitant Mortality |
No change |
No change |
No change |
No change |
No change |
Change from 1987 Railroad Retirement Board Table to 1977 Railroad Retirement Board Table |
||||||
|
Active Member Mortality |
No change |
No change |
Setback increased from 10 years to 12 years for males and from four years to 10 years for females |
Setback increased from four years to 10 years for males and from three years to seven years for females |
Setback increased from six years for males and from four years to 10 years for females |
Setback increased from four years to seven years for males and from three years to five years for females |
||||||
|
Experience Study Results (F = Favorable U = Unfavorable) |
||||||||||||
|
Retiree Deaths - Males |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
NA |
-- |
120% |
F |
139% |
F |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
75% |
U |
176% |
F |
63% |
U |
|
1996-1997 |
92% |
U |
102% |
F |
87% |
U |
125% |
F |
91% |
U |
105% |
F |
|
1997-1998 |
99% |
U |
94% |
U |
99% |
U |
89% |
U |
104% |
F |
126% |
F |
|
1998-1999 |
106% |
F |
91% |
U |
98% |
U |
100% |
F |
111% |
F |
95% |
U |
|
1999-2000 |
93% |
U |
102% |
F |
97% |
U |
140% |
F |
96% |
U |
119% |
F |
|
Period |
99% |
U |
97% |
U |
95% |
U |
107% |
F |
115% |
F |
109% |
F |
|
Retiree Deaths - Females |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
NA |
-- |
114% |
F |
61% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
125% |
F |
158% |
F |
155% |
F |
|
1996-1997 |
122% |
F |
118% |
F |
114% |
F |
167% |
F |
173% |
F |
104% |
F |
|
1997-1998 |
120% |
F |
111% |
F |
115% |
F |
147% |
F |
123% |
F |
120% |
F |
|
1998-1999 |
111% |
F |
118% |
F |
129% |
F |
127% |
F |
168% |
F |
100% |
F |
|
1999-2000 |
108% |
F |
111% |
F |
132% |
F |
113% |
F |
96% |
U |
129% |
F |
|
Period |
115% |
F |
114% |
F |
122% |
F |
137% |
F |
139% |
F |
111% |
F |
|
Disabilitant Deaths - Males |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
NA |
-- |
0% |
U |
0% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
NA |
-- |
200% |
F |
200% |
F |
|
1996-1997 |
156% |
F |
140% |
F |
150% |
F |
NA |
-- |
NA |
-- |
NA |
-- |
|
1997-1998 |
175% |
F |
81% |
U |
86% |
U |
NA |
-- |
NA |
-- |
NA |
-- |
|
1998-1999 |
145% |
F |
86% |
U |
63% |
U |
NA |
-- |
NA |
-- |
NA |
-- |
|
1999-2000 |
105% |
F |
100% |
F |
63% |
U |
NA |
-- |
NA |
-- |
NA |
-- |
|
Period |
144% |
F |
102% |
F |
89% |
U |
-- |
-- |
100% |
F |
67% |
U |
|
Disabilitant Deaths - Females |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
NA |
-- |
50% |
U |
0% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
NA |
-- |
20% |
U |
0% |
U |
|
1996-1997 |
157% |
F |
100% |
F |
71% |
U |
NA |
-- |
20% |
U |
100% |
F |
|
1997-1998 |
127% |
F |
73% |
U |
113% |
F |
NA |
-- |
0% |
U |
0% |
U |
|
1998-1999 |
100% |
F |
100% |
F |
70% |
U |
NA |
-- |
0% |
U |
0% |
U |
|
1999-2000 |
111% |
F |
81% |
U |
36% |
U |
NA |
-- |
0% |
U |
0% |
U |
|
Period |
122% |
F |
88% |
U |
69% |
U |
0% |
U |
18% |
U |
20% |
U |
|
Actives Death - Males |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
0% |
U |
0% |
U |
50% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
100% |
F |
0% |
U |
200% |
F |
|
1996-1997 |
143% |
F |
111% |
F |
82% |
U |
0% |
U |
0% |
U |
150% |
F |
|
1997-1998 |
82% |
U |
134% |
F |
79% |
U |
0% |
U |
0% |
U |
0% |
U |
|
1998-1999 |
96% |
U |
121% |
F |
93% |
U |
0% |
U |
50% |
U |
100% |
F |
|
1999-2000 |
98% |
U |
75% |
U |
77% |
U |
0% |
U |
100% |
F |
50% |
U |
|
Period |
105% |
F |
110% |
F |
83% |
U |
17% |
U |
23% |
U |
86% |
U |
|
Actives Death - Females |
||||||||||||
|
1994-1995 |
-- |
-- |
-- |
-- |
-- |
-- |
0% |
U |
38% |
U |
0% |
U |
|
1995-1996 |
-- |
-- |
-- |
-- |
-- |
-- |
0% |
U |
0% |
U |
33% |
U |
|
1996-1997 |
119% |
F |
112% |
F |
100% |
F |
0% |
U |
0% |
U |
0% |
U |
|
1997-1998 |
88% |
U |
104% |
F |
37% |
U |
100% |
F |
33% |
U |
67% |
U |
|
1998-1999 |
119% |
F |
126% |
F |
79% |
U |
0% |
U |
33% |
U |
100% |
F |
|
1999-2000 |
107% |
F |
99% |
U |
90% |
U |
0% |
U |
25% |
U |
167% |
F |
|
Period |
107% |
F |
111% |
F |
77% |
U |
17% |
U |
21% |
U |
65% |
U |
|
Valuation (Gain)/Loss Results : |
||||||||||||
|
Mortality |
||||||||||||
|
1997 |
8,125,000 |
U |
(14,964,000) |
F |
9,244,000 |
U |
(1,084,000) |
F |
6,620,000 |
U |
(8,716,000) |
F |
|
1998 |
891,000 |
U |
7,708,000 |
U |
11,318,000 |
U |
(1,501,000) |
F |
(281,000) |
F |
(9,843,000) |
F |
|
1999 |
(528,000) |
F |
(83,033,000) |
F |
14,667,000 |
U |
3,125,000 |
U |
1,809,000 |
U |
(3,990,000) |
F |
|
2000 |
10,611,000 |
U |
(12,320,000) |
F |
4,775,000 |
U |
(2,603,000) |
F |
856,000 |
U |
(6,497,000) |
F |
|
2001 |
(3,788,000) |
F |
(14,319,000) |
F |
(21,143,000) |
F |
(2,194,000) |
F |
848,000 |
U |
(2,475,000) |
F |
Accuracy Of Some Of The Proposed Combined Service Annuity Loads
Number And Frequency Of Recommended Actuarial Assumption Changes
|
1994 Assumption Changes |
2000 Assumption Changes |
2002 Assumption Recommendations |
| MSRS-General | MSRS-General | MSRS-General |
| Payroll Growth | Post-Retirement Mortality | Post-Retirement Mortality |
| Salary Increase | Active Member Mortality | Retirement Age |
| Post-Retirement Mortality | Post-Disability Mortality | Separation/Withdrawal |
| Active Member Mortality | Retirement Age | Disability |
| Separation/Withdrawal | Combined Service Annuity Allowance | |
| Disability | Optional Annuity Form Election | |
| Optional Annuity Form Election | Salary Increase | |
| Combined Service Annuity Allowance | ||
|
PERA-General |
PERA-General |
PERA-General |
| Payroll Growth | Post-Retirement Mortality | Post-Retirement Mortality |
| Salary Increase | Active Member Mortality | Retirement Age |
| Post-Retirement Mortality | Post-Disability Mortality | Separation/Withdrawal |
| Post-Disability Mortality | Retirement Age | Combined Service Annuity Allowance |
| Active Member Mortality | Separation/Withdrawal | Optional Annuity Form Election |
| Disability | Salary Increase | |
| Combined Service Annuity Allowance | ||
|
TRA |
TRA |
TRA |
| Payroll Growth | Post-Retirement Mortality | Pre-Retirement Mortality |
| Salary Increase | Post-Disability Mortality | Post-Retirement Mortality |
| Post-Retirement Mortality | Active Member Mortality | Retirement Age |
| Post-Disability Mortality | Retirement Age | Separation/Withdrawal |
| Active Member Mortality | Separation/Withdrawal | Disability |
| Disability | Combined Service Annuity Allowance | |
| Optional Annuity Form Election | Optional Annuity Form Election | |
| Combined Service Annuity Allowance | Salary Increase | |
|
|
DTRFA |
DTRFA |
| Post-Retirement Mortality | Pre-Retirement Mortality | |
| Post-Disability Mortality | Post-Retirement Mortality | |
| Active Member Mortality | Separation/Withdrawal | |
| Retirement Age | Disability | |
| Separation/Withdrawal | Combined Service Annuity Allowance | |
| Disability | Optional Annuity Form Election | |
| Optional Annuity Form Election | Salary Increase | |
|
|
MTRFA |
MTRFA |
| Post-Retirement Mortality | Pre-Retirement Mortality | |
| Post-Disability Mortality | Post-Retirement Mortality | |
| Active Member Mortality | Retirement Age | |
| Retirement Age | Separation/Withdrawal | |
| Optional Annuity Form Election | Disability | |
| Missing Data | Combined Service Annuity Allowance | |
| Optional Annuity Form Election | ||
| Salary Increase | ||
|
|
StPTRFA |
StPTRFA |
| Post-Retirement Mortality | Pre-Retirement Mortality | |
| Post-Disability Mortality | Post-Disability Mortality | |
| Active Member Mortality | Retirement Age | |
| Retirement Age | Separation/Withdrawal | |
| Separation/Withdrawal | Disability | |
| Disability | Combined Service Annuity Allowance | |
| Optional Annuity Form Election | Optional Annuity Form Election | |
| Missing Data | Salary Increase |
Reversal Of A Portion Of The Actuarial Impact of 2000 Actuarial Assumption Changes On PERA-General
Need To Make Assumption Changes Despite Actuarial Impact
Correction In Employer Contribution Rates; Partial Employer Contribution Holiday For Certain Retirement Plans
|
Plan |
Contribution |
Two-Year General Fund Recovery Amount |
|
MSRS-General |
0.075 percent |
$3,026,000 |
|
TRA |
2.0325 percent |
122,414,000 |
|
DTRFA |
1.1625 percent |
1,270,000 |
|
State Patrol |
5.16 percent |
5,455,000 |
|
Judges |
1.2975 percent |
795,000 |
|
PERA-P&F |
1.6725 percent |
18,135,000 |
|
PERA-Correctional |
0.27 percent |
556,000 |
|
Total |
$151,651,000 |
If the actuarial condition of the affected retirement plans continues as estimated by the actuary for the two-year period, the temporary loss of three-quarters of the current funding sufficiency could produce budgetary assistance without actually harming those retirement plans. The primary threat to this potential no-harm scenario is the ongoing erosion of invested asset values. If the asset valuation smoothing technique adopted by the Legislature in 2000 masks a significant long-term decline in funding rather than bridges a short-term fluctuation in values, any temporary employer contribution holiday will further damage the affected retirement plans beyond the impact of a severe economic downturn.