|
TO: |
Members of the Legislative Commission on Pensions and Retirement |
|
FROM: |
Lawrence A. Martin, Executive Director |
|
RE: |
Draft Proposed Legislation LCPR02-003: Various Plans; Implementing Recommended Changes in Statutory Salary Actuarial Assumptions and Draft Commission Resolution 02-1; Various Plans; Implementing Recommended Changes in Non-Statutory Actuarial Assumptions |
|
DATE: |
February 11, 2002 |
Summary of Draft Proposed Legislation LCPR02-003, Implementing Statutory Salary Increase Actuarial Assumption Changes
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.
Summary of Draft Resolution 02-1, Approving Other Actuarial Assumption Changes
Draft Resolution 02-1 implements the 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 following summarizes the nature and magnitude of the various non-statutory actuarial assumption changes recommended by the consulting actuary retained by the Commission:
|
Assumption |
MSRS-General |
PERA-General |
TRA |
DTRFA |
MTRFA |
StPTRFA |
|
1. Interest |
No change |
No change |
No change |
No change |
No change |
No change |
|
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 |
|
Total Payroll Growth |
No change |
No change |
No change |
No change |
No change |
No change |
|
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 |
|
Assumption |
MSRS-General |
PERA-General |
TRA |
DTRFA |
MTRFA |
StPTRFA |
|
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 |
|
Disability Rates |
Increase in rates |
No change |
Significant increase in male and female rates |
Significant reduction in rates |
Reduction in rates |
Reduction in rates |
|
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 |
|
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 |
|
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 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 |
|
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 2000 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% |
Background Information on Actuarial Assumption Revisions
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.
Based on the 2000 experience studies and the special Combined Service Annuity portability provision liability study, Milliman USA has formulated recommendations as to various actuarial assumption changes. Following the preparation of these recommendations and the compilation of the July 1, 2001, actuarial valuations, Milliman USA also prepared an estimate of the actuarial impact of the recommended actuarial assumption changes. A summary of those actuarial impact estimates is contained in Appendix A.
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, Milliman USA, affecting in various degrees 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.
The policy issue is the match between the actuarial assumption change recommendations assembled by the consulting actuary retained by the Commission, Thomas Custis, FSA, of Milliman USA, and the deviations of recent experience from current actuarial assumptions as disclosed in the recent experience studies and the recent actuarial valuation experience gain and loss assessments. Because of the time involved and the technical ability likely required, the Commission is not in the best position to determine the extent of the match between the recommended actuarial assumption changes and the recent experience results. The primary check that the Commission necessarily will rely on is the process of the experience study and actuarial valuation review conducted by the administrative staffs of the various retirement plans and by the consulting actuaries retained by the various retirement systems. The Commission may wish to take testimony from the various retirement plan administrators on the process they and their consultants used in reviewing the Milliman USA recommendations and their conclusions following that review, understanding that in the past, the perspective of some retirement plan administrators on prior actuarial assumption change proposals appears to have been shaped by their assessment of the estimated or likely cost impact of those changes on pending plan-sponsored benefit increase proposals.
-
Match Between Recent Experience and Actuarial Assumption Change Recommendations Specifically.
Related to the first policy issue, the additional policy issue is the specific evidence that recent public pension plan experience supports the recommended package of actuarial assumption changes. Of necessity, due to time, the Commission staff assessment will involve spot-checking. Using the assumption changes identified by Milliman USA as significant in its August 17, 2001, summaries of the MSRS-General, PERA-General, and TRA actuarial assumption changes, the Commission staff believes that four assumption change recommendations (separation, retirement rate, salary increase, and Combined Service Annuity load) as well as mortality assumption changes merit review. The following compares the nature of the recommended actuarial assumption change with the nature of the recent experience study results and the nature of the recent actuarial valuation gain and loss analyses:
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 |
* Note: 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:
(if image does not appear,
follow this link: image2.gif)
The consulting actuary retained by the Minneapolis Teachers Retirement Fund Association (MTRFA), when the Commission reviewed the 2001 actuarial valuations and the actuarial assumption change recommendations on January 22, 2002, notified the Commission staff that he questioned the proposed MTRFA salary increase assumption, suggesting either that it replicate the salary increase assumption change proposed for the Teachers Retirement Association (TRA) or that it remain unchanged. The MTRFA consulting actuary did not provide any written rationale for his reservations about the Milliman USA recommendation for the MTRFA salary increase actuarial assumption or for his recommendation.
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 |
|
MSRS-General |
PERA-General |
TRA |
DTRFA |
MTRFA |
StPTRFA |
|
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.
The policy issue is the accuracy of the loading factors recommended by the consulting actuary retained by the Commission to account for the Combined Service Annuity portability provision for the Duluth Teachers Retirement Fund Association (DTRFA) and for the Judges Retirement Plan. A loading factor is a relatively unsophisticated measure to offset a liability factor that is difficult for the actuary to estimate more directly. The load is simply a percentage increase applied to some other calculated liability amount. For DTRFA, Milliman USA is proposing a 10 percent load applied to the accrued liability calculated for active members and a 10 percent load applied to the accrued liability calculated for former members. For the Judges Retirement Plan, Milliman USA is proposing a 30 percent load applied to the accrued liability calculated for former members only. The two load recommendations raise questions because of the nature of the liability shifted by the Combined Service Annuity portability provision and because of the demographics of the two plans. The Combined Service Annuity tends to shift liability to the pension plan covering prior public service by a current plan member, since the prior pension plan values the previously earned pension in a limited way as either a deferred retiree or a non-vested former member while the person is actually rendering service in another plan, increasing the person’s highest five successive years average salary and potentially qualifying for early normal retirement under the "Rule of 90." A load on former member liability to account for the Combined Service Annuity is meaningful if the plan has former members with subsequent service in another pension plan. In the case of the Judges Retirement Plan, while there are 90 active judges and three former judges with service credit in another public pension plan, it is unclear that there are judges who have left judicial service for another public employment position that improves the person’s highest five successive years average salary and will shift unforeseen liability onto the Judges Retirement Plan. Milliman USA is proposing the same 30 percent former member liability load that it is proposing for the Legislators Retirement Plan, the Elected State Officers Retirement Plan, the MSRS-Correctional State Employees Retirement Plan, and the State Patrol Retirement Plan, even though the nature of judicial employment and demographics of the judicial workforce differ greatly from the other group. In the case of DTRFA, Milliman USA indicates that there are no former members with service credit in any other retirement plan, but still proposes a 10 percent load on former member liability.
-
Number And Frequency Of Recommended Actuarial Assumption Changes.
The policy issue is the number, the frequency, and the magnitude of actuarial assumption changes. This is the third set of actuarial assumption changes considered by the Commission in the past decade. The following summarizes the actuarial assumption changes adopted by the Commission in 1994 and 2000 and compares them with the 2002 actuarial assumption changes recommended by Milliman USA.
|
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
|
|
1994 Assumption Changes |
2000 Assumption Changes |
2002 Assumption Recommendations |
|
|
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
|
|
|
|
|
|
|
|
|
|
|
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.
The policy issue is the actuarial impact of the 2000 actuarial assumption changes on the General Employee Retirement Plan of the Public Employees Retirement Association (PERA-General) and its partial reversal by these recommended actuarial assumption changes. The principal assumption change in 2000 that drove a significant increase in the PERA-General actuarial cost was a change in the withdrawal/separation/ termination actuarial assumption. The termination of relatively short service employees in a pension plan creates a "turnover" actuarial gain. If no termination was assumed, the gain would accrue upon actual terminations. A withdrawal assumption anticipates that likely gain before it occurs. If the termination pattern is not well matched by the assumption, the actual gain will be overestimated or underestimated and funding problems may follow. In 2000, Milliman USA apparently overanticipated the termination pattern, assuming that there will be smaller future gains accruing to PERA. In these recommendations, Milliman USA proposes a softening of the 2000 withdrawal assumption. The estimated 0.43 percent reduction in the PERA-General contribution deficiency resulting from the recommendation apparently is largely attributable to this assumption softening and reduces modestly the still present need for future legislative action on the PERA-General funding problem.
-
Need To Make Assumption Changes Despite Actuarial Impact.
The policy issue is the appropriateness of authorizing assumption changes which have significant likely adverse actuarial impact on Minnesota public pension plans. The package of actuarial assumptions recommended by Milliman USA virtually eliminates the prior (2000) contribution sufficiency in MSRS-General, more than halves the prior contribution sufficiency in DTRFA, increases the prior MTRFA contribution deficiency by more than 30 percent, turns the prior StPTRFA contribution sufficiency into a significant contribution deficiency, significantly increases the prior MSRS-Correctional contribution deficiency, and will likely cause an increase in the contributions from either Minneapolis, from the State, or from both for MERF. However, if the Milliman USA actuarial assumption change recommendations accurately capture the trend line of recent experience and are accurate predictions of future experience, the assumption changes should be approved even if the actuarial impact of them is adverse. The actuarial valuation process is intended to provide policymakers and others with an accurate picture of the funded condition and financial requirements of a public pension plan and the process is not aided if it relies on incorrect or inadequate assumptions. If a trendline is established in recent experience, that trendline should be reflected in actuarial assumption changes, even if those assumption changes make the financing position of various plans appear worse than previously.
Appendix A
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
Valuation Results |
July 1, 2001
Valuation Results |
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
Valuation Results |
July 1, 2001
Valuation Results |
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
Valuation Results |
July 1, 2001
Valuation Results |
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
Valuation Results |
July 1, 2001
Valuation Results |
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
Valuation Results |
July 1, 2001
Valuation Results |
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
Valuation Results |
July 1, 2001
Valuation Results |
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
Valuation Results |
July 1, 2001
Valuation Results |
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
Valuation Results |
July 1, 2001
Valuation Results |
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
Valuation Results |
July 1, 2001
Valuation Results |
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
Valuation Results |
July 1, 2001
Valuation Results |
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
Valuation Results |
July 1, 2001
Valuation Results |
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 |
7.45% |
$2,226,000 |
7.45% |
$2,226,000 |
|
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 |
27.95% |
$8,350,000 |
27.95% |
$8,350,000 |
| |
|
|
|
|
|
|
|
Total Requirements |
27.03% |
$7,617,000 |
26.72% |
$7,984,000 |
26.77% |
$7,999,000 |
|
Total Contributions |
28.50% |
$8,033,000 |
27.95% |
$8,350,000 |
27.95% |
$8,350,000 |
|
Deficiency (Surplus) |
(1.47%) |
($416,000) |
(1.23%) |
($366,000) |
(1.18%) |
($351,000) |
Public Employees Police and Fire Retirement Plan (PERA-P&F)
| |
July 1, 2000
Valuation Results |
July 1, 2001
Valuation Results |
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
Valuation Results |
July 1, 2001
Valuation Results |
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
Valuation Results |
July 1, 2001
Valuation Results |
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 |
