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HF3249 (Legislative Session 94 (2025-2026))

Method for amortizing unfunded liabilities modified, definition for standards for actuarial work added, and conforming changes made.

Related bill: SF3453

AI Generated Summary

Purpose of the Bill

This bill aims to modify how unfunded liabilities are amortized in retirement plans, establish definitions for standards of actuarial work, and make corresponding changes to related statutes.

Main Provisions

  • Amortization Method: The bill modifies the method used to calculate and manage unfunded actuarial liabilities within public employee retirement plans.
  • Actuarial Definitions: It introduces precise definitions for terms such as "actuarial valuation," "approved actuary," "entry age actuarial cost method," "experience study," "actuarial value of assets," "unfunded actuarial accrued liability," and "pension benefit obligation."
  • Actuarial Standards: A definition for "standards for actuarial work" is established, aiming to ensure that actuarial practices meet high standards for consistency and accuracy.

Significant Changes to Existing Law

  • Actuarial Calculations: Alters how these calculations determine the costs and liabilities associated with benefit plans using updated actuarial methods.
  • Valuation of Assets: Adjusts how the actuarial value of assets is determined by considering variations in market value and return assumptions over time.
  • Pension Obligations: Clarifies the methods for calculating pension benefit obligations, considering future employee service and salary projections.

Relevant Terms

  • Actuarial valuation
  • Approved actuary
  • Entry age actuarial cost method
  • Experience study
  • Actuarial value of assets
  • Unfunded actuarial accrued liability
  • Pension benefit obligation
  • Standards for actuarial work

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 24, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy
April 24, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "A definition for 'standards for actuarial work'."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies definitions related to actuarial valuations under section 356.215.",
      "modified": [
        "Revises the definitions and calculations related to actuarial valuations and liabilities."
      ]
    },
    "citation": "356.215",
    "subdivision": "subdivision 1"
  }
]

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