Minn. Stat. § 356.215 – Actuarial valuations and experience studies

Subd. 1. Definitions.
For the purposes of sections 3.85 and 356.20 to 356.23, each of the following terms have the meaning given:
1. (1) "Actuarial valuation" means a set of calculations prepared by the actuary retained by the legislative commission on pensions and retirement if so required under section 3.85, or otherwise, by an approved actuary, to determine the normal cost and the accrued actuarial liabilities of a benefit plan, according to the entry age actuarial cost method and based upon stated assumptions including, but not limited to rates of interest, mortality, salary increase, disability, withdrawal, and retirement and to determine the payment necessary to amortize over a stated period any unfunded accrued actuarial liability disclosed as a result of the actuarial valuation of the benefit plan.
2. (2) "Approved actuary" means a person who is regularly engaged in the business of providing actuarial services and who has at least 15 years of service to major public employee pension or retirement funds or who is a fellow in the society of actuaries.
3. (3) "Entry age actuarial cost method" means an actuarial cost method under which the actuarial present value of the projected benefits of each individual currently covered by the benefit plan and included in the actuarial valuation is allocated on a level basis over the service of the individual if the benefit plan is governed by section 69.773 or over the earnings of the individual if the benefit plan is governed by any other law between the entry age and the assumed exit age, with the portion of this actuarial present value which is allocated to the valuation year to be the normal cost and the portion of this actuarial present value not provided for at the valuation date by the actuarial present value of future normal costs to be the actuarial accrued liability, with aggregation in the calculation process to be the sum of the calculated result for each covered individual and with recognition given to any different benefit formulas which may apply to various periods of service.
4. (4) "Experience study" means a report providing experience data and an actuarial analysis of the adequacy of the actuarial assumptions on which actuarial valuations are based.
5. (5) "Current assets" means the value of all assets at cost, including realized capital gains or losses, plus one-third of any unrealized capital gains or losses.
6. (6) "Unfunded actuarial accrued liability" means the total current and expected future benefit obligations, reduced by the sum of current assets and the present value of future normal costs.
7. (7) "Pension benefit obligation" means the actuarial present value of credited projected benefits, determined as the actuarial present value of benefits estimated to be payable in the future as a result of employee service attributing an equal benefit amount, including the effect of projected salary increases and any step rate benefit accrual rate differences, to each year of credited and expected future employee service.
Subd. 2. Requirements.
1. (a) It is the policy of the legislature that it is necessary and appropriate to determine annually the financial status of tax supported retirement and pension plans for public employees. To achieve this goal, the legislative commission on pensions and retirement shall have prepared by the actuary retained by the commission annual actuarial valuations of the retirement plans enumerated in section 3.85, subdivision 11, paragraph (b), quadrennial experience studies of the retirement plans enumerated in section 3.85, subdivision 11, paragraph (b), clauses (1), (2), and (7), and, two years after each set of quadrennial experience studies, quadrennial projection valuations of at least one of the retirement plans enumerated in section 3.85, subdivision 11, paragraph (b), for which it determines that the analysis may be beneficial. The governing or managing board or administrative officials of each public pension and retirement fund or plan enumerated in section 356.20, subdivision 2, clauses (9), (10), and (12), shall have prepared by an approved actuary annual actuarial valuations of their respective funds as provided in this section. This requirement also applies to any fund that is the successor to any organization enumerated in section 356.20, subdivision 2, or to the governing or managing board or administrative officials of any newly formed retirement fund or association operating under the control or supervision of any public employee group, governmental unit, or institution receiving a portion of its support through legislative appropriations, and any local police or fire fund coming within the provisions of section 356.216.
2. (b) A quadrennial projection valuation required under paragraph (a) is intended to serve as an additional analytical tool with which policy makers may assess the future funding status of public plans through forecasting and testing various potential outcomes over time if certain plan assumptions or valuation methods were to be modified. In consultation with the executive director of the legislative commission on pensions and retirement, the retirement fund directors, the state economist, the state demographer, the commissioner of finance, and the commissioner of employee relations, the actuary retained by the legislative commission on pensions and retirement shall perform the quadrennial projection valuations, testing future implications for plan funding by modifying assumptions and methods currently in place. The commission-retained actuary shall provide advice to the commission as to the periods over which such projections should be made, the nature and scope of the scenarios to be analyzed, and the measures of funding status to be employed, and shall report the results of these analyses in the same manner as for quadrennial experience studies.
Subd. 3. Reports.
The actuarial valuations required annually must be made as of the beginning of each fiscal year. Two copies of the valuation must be delivered to the executive director of the legislative commission on pensions and retirement, to the commissioner of finance and to the legislative reference library, not later than the first day of the sixth month occurring after the end of the previous fiscal year. Two copies of a quadrennial experience study must be filed with the executive director of the legislative commission on pensions and retirement, with the commissioner of finance, and with the legislative reference library, not later than the first day of the 11th month occurring after the end of the last fiscal year of the four-year period which the experience study covers. For actuarial valuations and experience studies prepared at the direction of the legislative commission on pensions and retirement, two copies of the document must be delivered to the governing or managing board or administrative officials of the applicable public pension and retirement fund or plan.
Subd. 4. Actuarial valuation; contents.
The actuarial valuation must be made in conformity with the requirements of the definition contained in subdivision 1 and the most recent standards for actuarial work adopted by the legislative commission on pensions and retirement. The actuarial valuation must measure all aspects of the benefit plan of the fund in accordance with changes in benefit plans, if any, and salaries reasonably anticipated to be in force during the ensuing fiscal year. The actuarial valuation must be prepared in accordance with the entry age actuarial cost method.
The actuarial valuation required under this section must include the information required in subdivisions 4a to 4k.
Subd. 4a. Normal cost.
For a fund providing benefits in whole or in part under a defined benefit plan, the actuarial valuation must indicate the level normal cost of the benefits provided by the laws governing the fund as of the date of the valuation, calculated in accordance with the entry age actuarial cost method. The normal cost must be expressed as a level percentage of the present value of future payrolls of the active participants of the fund as of the date of the valuation.
Subd. 4b. Accrued liability.
For a fund providing benefits under a defined benefit plan, the actuarial valuation must contain an exhibit indicating the actuarial accrued liabilities of the fund. This figure is the present value of future benefits, reduced by the present value of future normal costs, calculated in accordance with the entry age actuarial cost method.
Subd. 4c. Defined contribution accumulations.
For each fund providing benefits under the money purchase or defined contribution plan, the actuarial valuation shall contain an exhibit indicating the member contributions accumulated at interest, as apportioned to members accounts, to the date of the valuation. These accumulations shall be separately tabulated in a manner which properly reflects any differences in money purchase or defined contribution annuity rates which may apply.
Subd. 4d. Interest and salary assumptions.
1. (a) The actuarial valuation must use the applicable following preretirement interest assumption and the applicable following postretirement interest assumption:
  preretirement postretirement
  interest rate interest rate
  plan assumption assumption
  general state employees
  retirement plan 8.5% 5.0%
  correctional state employees
  retirement plan 8.5 5.0
  state patrol retirement plan 8.5 5.0
  legislators retirement plan 8.5 5.0
  elective state officers
  retirement plan 8.5 5.0
  judges retirement plan 8.5 5.0
  general public employees
  retirement plan 8.5 5.0
  public employees police and fire
  retirement plan 8.5 5.0
  local government correctional
  service retirement plan 8.5 5.0
  teachers retirement plan 8.5 5.0
  Minneapolis employees
  retirement plan 6.0 5.0
  Duluth teachers retirement plan 8.5 8.5
  Minneapolis teachers retirement
  plan 8.5 8.5
  St. Paul teachers retirement
  plan 8.5 7.5
  Minneapolis police relief
  association 6.0 6.0
  other local police relief
  associations 5.0 5.0
  Minneapolis fire department
  relief association 6.0 6.0
  other local salaried firefighter
  relief associations 5.0 5.0
  local monthly benefit volunteer
  firefighter relief associations 5.0 5.0
2. (b) The actuarial valuation must use the applicable following single rate future salary increase assumption or the applicable following graded rate future salary increase assumption:
  1. (1) single rate future salary increase assumption
    future salary
    plan increase assumption
    legislators retirement plan 5.0%
    elective state officers retirement
    plan 5.0
    judges retirement plan 5.0
    Minneapolis employees retirement plan 4.0
    Minneapolis police relief association 4.0
    other local police relief associations 3.5
    Minneapolis fire department relief
    association 4.0
    other local salaried firefighter relief
    associations 3.5
  2. (2) graded rate future salary increase assumption
    future salary
    plan increase assumption
    general state employees retirement
    plan assumption A
    correctional state employees
    retirement plan assumption A
    state patrol retirement plan assumption A
    general public employees retirement
    plan assumption B
    public employees police and fire
    fund retirement plan assumption C
    local government correctional service
    retirement plan assumption C
    teachers retirement plan assumption D
    Duluth teachers retirement plan assumption E
    Minneapolis teachers retirement plan assumption F
    St. Paul teachers retirement plan assumption G
    age A B C D E F G
    16 7.2500% 8.71% 11.50% 7.25% 8.00% 7.50% 7.25%
    17 7.2500 8.71 11.50 7.25 8.00 7.50 7.25
    18 7.2500 8.70 11.50 7.25 8.00 7.50 7.25
    19 7.2500 8.70 11.50 7.25 8.00 7.50 7.25
    20 7.2500 7.70 11.50 7.25 8.00 7.50 7.25
    21 7.1454 7.70 11.50 7.25 8.00 7.50 7.25
    22 7.1094 7.70 11.00 7.25 8.00 7.50 7.25
    23 7.0725 7.70 10.50 7.20 7.90 7.40 7.25
    24 7.0363 7.70 10.00 7.15 7.80 7.30 7.20
    25 7.0000 7.60 9.50 7.10 7.70 7.20 7.15
    26 7.0000 7.51 9.20 7.05 7.60 7.10 7.10
    27 7.0000 7.39 8.90 7.00 7.50 7.00 7.05
    28 7.0000 7.30 8.60 7.00 7.40 6.90 7.00
    29 7.0000 7.20 8.30 7.00 7.30 6.80 6.95
    30 7.0000 7.20 8.00 7.00 7.20 6.70 6.90
    31 7.0000 7.10 7.80 7.00 7.10 6.60 6.85
    32 7.0000 7.10 7.60 7.00 7.00 6.50 6.80
    33 7.0000 7.00 7.40 7.00 6.90 6.40 6.75
    34 7.0000 7.00 7.20 7.00 6.80 6.30 6.70
    35 7.0000 6.90 7.00 7.00 6.70 6.20 6.65
    36 6.9019 6.80 6.80 7.00 6.60 6.10 6.60
    37 6.8074 6.70 6.60 7.00 6.50 6.00 6.55
    38 6.7125 6.60 6.40 6.90 6.40 5.90 6.50
    39 6.6054 6.50 6.20 6.80 6.30 5.80 6.40
    40 6.5000 6.40 6.00 6.70 6.20 5.70 6.30
    41 6.3540 6.30 5.90 6.60 6.10 5.60 6.20
    42 6.2087 6.30 5.80 6.50 6.00 5.50 6.10
    43 6.0622 6.30 5.70 6.35 5.90 5.45 6.00
    44 5.9048 6.20 5.60 6.20 5.80 5.40 5.90
    45 5.7500 6.20 5.50 6.05 5.70 5.35 5.80
    46 5.6940 6.09 5.45 5.90 5.60 5.30 5.70
    47 5.6375 6.00 5.40 5.75 5.50 5.25 5.65
    48 5.5822 5.90 5.35 5.70 5.45 5.20 5.60
    49 5.5405 5.80 5.30 5.65 5.40 5.15 5.55
    50 5.5000 5.70 5.25 5.60 5.35 5.10 5.50
    51 5.4384 5.70 5.25 5.55 5.30 5.05 5.45
    52 5.3776 5.70 5.25 5.50 5.25 5.00 5.40
    53 5.3167 5.70 5.25 5.45 5.25 5.00 5.35
    54 5.2826 5.70 5.25 5.40 5.25 5.00 5.30
    55 5.2500 5.70 5.25 5.35 5.25 5.00 5.25
    56 5.2500 5.70 5.25 5.30 5.25 5.00 5.25
    57 5.2500 5.70 5.25 5.25 5.25 5.00 5.25
    58 5.2500 5.70 5.25 5.25 5.25 5.00 5.25
    59 5.2500 5.70 5.25 5.25 5.25 5.00 5.25
    60 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
    61 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
    62 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
    63 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
    64 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
    65 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
    66 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
    67 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
    68 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
    69 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
    70 5.2500 5.00 5.25 5.25 5.25 5.00 5.25
3. (c) The actuarial valuation must use the applicable following payroll growth assumption for calculating the amortization requirement for the unfunded actuarial accrued liability where the amortization retirement is calculated as a level percentage of an increasing payroll:
  payroll growth
  plan assumption
  general state employees retirement plan 5.00%
  correctional state employees retirement plan 5.00
  state patrol retirement plan 5.00
  legislators retirement plan 5.00
  elective state officers retirement plan 5.00
  judges retirement plan 5.00
  general public employees retirement plan 6.00
  public employees police and fire
  retirement plan 6.00
  local government correctional service
  retirement plan 6.00
  teachers retirement plan 5.00
  Duluth teachers retirement plan 5.00
  Minneapolis teachers retirement plan 5.00
  St. Paul teachers retirement plan 5.00
Subd. 4e. Other assumptions.
The actuarial valuation must use assumptions concerning mortality, disability, retirement, withdrawal, retirement age, and any other relevant demographic or economic factor. These must be set at levels consistent with those determined in the most recent quadrennial experience study completed under subdivision 5, if required, or representative of the best estimate of future experience, if a quadrennial experience study is not required. The actuarial valuation must contain an exhibit indicating any actuarial assumptions used in preparing the valuation report.
Subd. 4f. Public sector accounting disclosure information.
The actuarial valuation must contain those actuarial calculations necessary to allow the retirement plan administration or participating employing units to prepare the pension-related portions of annual financial reporting that meet generally accepted accounting principles for the public sector.
Subd. 4g. Amortization contributions.
1. (a) In addition to the exhibit indicating the level normal cost, the actuarial valuation must contain an exhibit indicating the additional annual contribution sufficient to amortize the unfunded actuarial accrued liability. For funds governed by chapters 3A, 352, 352B, 352C, 353, 354, 354A, and 490, the additional contribution must be calculated on a level percentage of covered payroll basis by the established date for full funding in effect when the valuation is prepared. For funds governed by chapter 3A, sections 352.90 through 352.951, chapters 352B, 352C, sections 353.63 through 353.68, and chapters 353C, 354A, and 490, the level percent additional contribution must be calculated assuming annual payroll growth of 6.5 percent. For funds governed by sections 352.01 through 352.86 and chapter 354, the level percent additional contribution must be calculated assuming an annual payroll growth of five percent. For the fund governed by sections 353.01 through 353.46, the level percent additional contribution must be calculated assuming an annual payroll growth of six percent. For all other funds, the additional annual contribution must be calculated on a level annual dollar amount basis.
2. (b) For any fund other than the Minneapolis employees retirement fund, after the first actuarial valuation date occurring after June 1, 1989, if there has not been a change in the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a change in the benefit plan governing annuities and benefits payable from the fund, a change in the actuarial cost method used in calculating the actuarial accrued liability of all or a portion of the fund, or a combination of the three, which change or changes by themselves without inclusion of any other items of increase or decrease produce a net increase in the unfunded actuarial accrued liability of the fund, the established date for full funding for the first actuarial valuation made after June 1, 1989, and each successive actuarial valuation is the first actuarial valuation date occurring after June 1, 2020.
3. (c) For any fund or plan other than the Minneapolis employees retirement fund, after the first actuarial valuation date occurring after June 1, 1989, if there has been a change in any or all of the actuarial assumptions used for calculating the actuarial accrued liability of the fund, a change in the benefit plan governing annuities and benefits payable from the fund, a change in the actuarial cost method used in calculating the actuarial accrued liability of all or a portion of the fund, or a combination of the three, and the change or changes, by themselves and without inclusion of any other items of increase or decrease, produce a net increase in the unfunded actuarial accrued liability in the fund, the established date for full funding must be determined using the following procedure:
  1. (i) the unfunded actuarial accrued liability of the fund must be determined in accordance with the plan provisions governing annuities and retirement benefits and the actuarial assumptions in effect before an applicable change;
  2. (ii) the level annual dollar contribution or level percentage, whichever is applicable, needed to amortize the unfunded actuarial accrued liability amount determined under item (i) by the established date for full funding in effect before the change must be calculated using the interest assumption specified in subdivision 4d in effect before the change;
  3. (iii) the unfunded actuarial accrued liability of the fund must be determined in accordance with any new plan provisions governing annuities and benefits payable from the fund and any new actuarial assumptions and the remaining plan provisions governing annuities and benefits payable from the fund and actuarial assumptions in effect before the change;
  4. (iv) the level annual dollar contribution or level percentage, whichever is applicable, needed to amortize the difference between the unfunded actuarial accrued liability amount calculated under item (i) and the unfunded actuarial accrued liability amount calculated under item (iii) over a period of 30 years from the end of the plan year in which the applicable change is effective must be calculated using the applicable interest assumption specified in subdivision 4d in effect after any applicable change;
  5. (v) the level annual dollar or level percentage amortization contribution under item (iv) must be added to the level annual dollar amortization contribution or level percentage calculated under item (ii);
  6. (vi) the period in which the unfunded actuarial accrued liability amount determined in item (iii) is amortized by the total level annual dollar or level percentage amortization contribution computed under item (v) must be calculated using the interest assumption specified in subdivision 4d in effect after any applicable change, rounded to the nearest integral number of years, but not to exceed 30 years from the end of the plan year in which the determination of the established date for full funding using the procedure set forth in this clause is made and not to be less than the period of years beginning in the plan year in which the determination of the established date for full funding using the procedure set forth in this clause is made and ending by the date for full funding in effect before the change; and
  7. (vii) the period determined under item (vi) must be added to the date as of which the actuarial valuation was prepared and the date obtained is the new established date for full funding.
4. (d) For the Minneapolis employees retirement fund, the established date for full funding is June 30, 2020.
5. (e) For the following plans for which the annual actuarial valuation indicates an excess of valuation assets over the actuarial accrued liability, the valuation assets in excess of the actuarial accrued liability must be recognized in the following manner:
  1. (1) the public employees retirement association police and fire plan, the valuation assets in excess of the actuarial accrued liability serve to reduce the current contribution requirements by an amount equal to the amortization of the excess expressed as a level percentage of pay over a 30-year period beginning anew with each annual actuarial valuation of the plan; and
  2. (2) the correctional employees retirement plan of the Minnesota state retirement system, and the state patrol retirement plan, an excess of valuation assets over actuarial accrued liability must be amortized in the same manner over the same period as an unfunded actuarial accrued liability but must serve to reduce the required contribution instead of increasing it.
Subd. 4h. Actuarial gains and losses.
The actuarial valuation must contain an exhibit consisting of an analysis by the actuary explaining the net increase or decrease in the unfunded actuarial accrued liability since the last valuation. The explanation must subdivide the net increase or decrease in the unfunded actuarial accrued liability into at least the following parts:
1. (a) increases or decreases in the unfunded actuarial accrued liability because of changes in benefits;
2. (b) increases and decreases in the unfunded actuarial accrued liability because of changes in actuarial assumptions;
3. (c) increases or decreases in the unfunded actuarial accrued liability attributable to actuarial gains or losses resulting from any experience deviations from the assumptions on which the valuation is based, as follows:
  1. (i) actual investment earnings;
  2. (ii) actual postretirement mortality rates;
  3. (iii) actual salary increase rates; and
  4. (iv) the remainder of the increase or decrease not attributable to any separate source;
4. (d) increases or decreases in unfunded actuarial accrued liability because of other reasons, including the effect of any amortization contribution paid or additional amortization contribution previously calculated but unpaid; and
5. (e) increases or decreases in unfunded actuarial accrued liability because of changes in eligibility requirements or groups included in the membership of the fund.
Subd. 4i. Membership tabulation.
The actuarial valuation must contain a tabulation of active membership and annuitants in the fund. If the membership of a fund is under more than one general benefit program, a separate tabulation must be made for each general benefit program. The tabulations must be prepared by the administration of the pension fund and must contain the following information:
1. (1) Active members Number As of last valuation date New entrants Total Separations from active service Refund of contributions Separation with deferred annuity Separation with neither refund nor deferred annuity Disability Death Retirement with service annuity
  1. (1) service retirement annuitants;
  2. (2) disability benefit recipients;
  3. (3) survivor benefit recipients; and
  4. (4) deferred annuitants.
  Total separations As of current valuation date (2) Annuitants Number As of last valuation date New entrants Total Terminations Deaths Other
  Total terminations As of current valuation date
  The tabulation required under clause (2) must be made separately for each of the following classes of benefit recipients:
Subd. 4j. Administrative expenses.
The actuarial valuation must indicate the administrative expenses of the fund, expressed both in dollars and as a percentage of covered payroll. Administrative expenses are costs incurred by the retirement plans excluding investment expenses. Investment expenses include all expenses incurred for the retention of professional external investment managers and professional investment consultants, custodian bank fees, investment transaction costs, and the costs incurred by the retirement plans to manage investment portfolios or assets internally. Investment expenses must be deducted from investment return in the actuarial valuation, and not included in administrative expenses when calculating the allowance for expenses.
Subd. 4k. Plan summary.
The actuarial valuation must contain a summary of the principal provisions of the plan upon which the valuation is based.
Subd. 5. Quadrennial experience study; contents.
A quadrennial experience study, if required, must contain an actuarial analysis of the experience of the fund and a comparison of the experience with the actuarial assumptions on which the most recent actuarial valuation of the retirement fund was based.
Subd. 6. Actuarial services by approved actuaries.
1. (a) The actuarial valuation or quadrennial experience study must be made and any actuarial consulting services for a retirement fund or plan must be provided by an approved actuary. The actuarial valuation or quadrennial experience study must include a declaration that it has been prepared according to sections 356.20 to 356.23 and the most recent standards for actuarial work adopted by the legislative commission on pensions and retirement.
2. (b) Actuarial valuations, or experience studies prepared by an actuary retained by a retirement fund or plan must be submitted to the legislative commission on pensions and retirement within ten days of the submission of the document to the retirement fund or plan.
Subd. 7. Establishment of actuarial assumptions.
Actuarial assumptions used for actuarial valuations under this section that are other than those set forth in this section may be changed only with the approval of the legislative commission on pensions and retirement. A change in the applicable actuarial assumptions may be proposed by the governing board of the applicable pension fund or relief association, by the actuary retained by the legislative commission on pensions and retirement, by the actuarial advisor to a pension fund governed by chapter 352, 353, 354, or 354A, or by the actuary retained by a local police or firefighters relief association governed by sections 69.77 or 69.771 to 69.776, if one is retained.
* NOTE: Subdivision 4d was also amended by Laws 1997, *chapter 233, article 1, section 58, to read as follows:
* "Subd. 4d. Interest and salary assumptions. (a) For *funds governed by chapter 352B, and by sections 352.90 through *352.951 and 353.63 through 353.68, the actuarial valuation must *use a preretirement interest assumption of 8.5 percent, a *postretirement interest assumption of six percent, and a future *salary increase assumption of 6.5 percent.
* (b) For funds governed by chapter 354A, the actuarial *valuation must use preretirement and postretirement assumptions *of 8.5 percent and a future salary increase assumption of 6.5 *percent, but the actuarial valuation must reflect the payment of *postretirement adjustments to retirees, based on the methods *specified in the bylaws of the fund as approved by the *legislature. For a fund governed by chapter 422A, the actuarial *valuation shall use a preretirement interest assumption of six *percent, a postretirement interest assumption of five percent, *and an assumption that in each future year the salary on which a *retirement or other benefit is based is 1.04 multiplied by the *salary for the preceding year.
* (c) For all other funds not specified in paragraph (a), *(b), (d), or (e), the actuarial valuation must use a *preretirement interest assumption of five percent, a *postretirement interest assumption of five percent, and a future *salary increase assumption of 3.5 percent.
* (d) For funds governed by chapters 3A, 352C, and 490, the *actuarial valuation must use a preretirement interest assumption *of 8.5 percent, a postretirement interest assumption of six *percent, and a future salary increase assumption of 6.5 percent *in each future year in which the salary amount payable is not *determinable from section 3.099, 15A.081, subdivision 6, or *15A.083, subdivision 1, whichever applies, or from applicable *compensation council recommendations under section 15A.082.
* (e) For funds governed by sections 352.01 through 352.86, *353.01 through 353.46, and chapter 354, the actuarial valuation *must use a preretirement interest assumption of 8.5, a *postretirement interest assumption of six percent, and a graded *rate future salary increase assumption as follows:
General state General public
employees employees Teachers
retirement retirement retirement
Age plan plan plan
16 7.2500% 8.71% 7.25%
17 7.2500 8.71 7.25
18 7.2500 8.70 7.25
19 7.2500 8.70 7.25
20 7.2500 7.70 7.25
21 7.1454 7.70 7.25
22 7.1094 7.70 7.25
23 7.0725 7.70 7.20
24 7.0363 7.70 7.15
25 7.0000 7.60 7.10
26 7.0000 7.51 7.05
27 7.0000 7.39 7.00
28 7.0000 7.30 7.00
29 7.0000 7.20 7.00
30 7.0000 7.20 7.00
31 7.0000 7.10 7.00
32 7.0000 7.10 7.00
33 7.0000 7.00 7.00
34 7.0000 7.00 7.00
35 7.0000 6.90 7.00
36 6.9019 6.80 7.00
37 6.8074 6.70 7.00
38 6.7125 6.60 6.90
39 6.6054 6.50 6.80
40 6.5000 6.40 6.70
41 6.3540 6.30 6.60
42 6.2087 6.30 6.50
43 6.0622 6.30 6.35
44 5.9048 6.20 6.20
45 5.7500 6.20 6.05
46 5.6940 6.09 5.90
47 5.6375 6.00 5.75
48 5.5822 5.90 5.70
49 5.5405 5.80 5.65
50 5.5000 5.70 5.60
51 5.4384 5.70 5.55
52 5.3776 5.70 5.50
53 5.3167 5.70 5.45
54 5.2826 5.70 5.40
55 5.2500 5.70 5.35
56 5.2500 5.70 5.30
57 5.2500 5.70 5.25
58 5.2500 5.70 5.25
59 5.2500 5.70 5.25
60 5.2500 5.00 5.25
61 5.2500 5.00 5.25
62 5.2500 5.00 5.25
63 5.2500 5.00 5.25
64 5.2500 5.00 5.25
65 5.2500 5.00 5.25
66 5.2500 5.00 5.25
67 5.2500 5.00 5.25
68 5.2500 5.00 5.25
69 5.2500 5.00 5.25
70 5.2500 5.00 5.25"
* NOTE: The amendment to subdivision 4g by Laws 1999, *chapter 222, article 4, section 14, is effective July 1, 2000. *Laws 1999, chapter 222, article 4, section 21.