Minnesota House Bill HF3249

Minnesota 2025-2026 Regular Session

• Introduced: 4/25/25
• Refer: 4/25/25

Caption

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

Impact

If enacted, HF3249 would require actuarial valuations to conform to newly established standards, fundamentally changing how retirement plans determine their unfunded liabilities. Retirement funds would need to account for changes in investments and benefits more rigorously, which could lead to more accurate assessments of financial health. This can help ensure that the plans remain solvent and can meet their obligations to retirees, while also affecting how the state budgets for these liabilities in the future.

Summary

House File 3249 aims to modify the method for amortizing unfunded liabilities related to various pension and retirement plans in Minnesota. The bill introduces new definitions concerning actuarial work standards and makes several conforming changes to existing statutes, particularly Minnesota Statutes 2024, section 356.215. By establishing a clearer framework for how unfunded actuarial liabilities are calculated and reported, the bill seeks to improve the financial stability of retirement funds across the state.

Contention

Some points of contention surrounding HF3249 may stem from how the new standards might impact various retirement plans differently, especially in terms of required contributions and financial reporting obligations. Stakeholders may be concerned about the potential for increased financial burdens on plans that are already struggling to meet funding requirements. Moreover, changes in actuarial assumptions could lead to significant adjustments in contributions, causing debate among legislators and affected parties about the fairness and feasibility of the new requirements.