Comprehensive Annual Financial Report - Minnesota State ...

Required Supplementary
Information Notes
42
Public Employees
Retirement Association
of Minnesota
(unaudited)
General Employees Public Employees Public Employees Minneapolis
Retirement Police & Correctional Employees
Fund Fire Fund Fund Retirement Fund
Valuation Date 6/30/2012 6/30/2012 6/30/2012 6/30/2012
Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age
Amortization Method Level Percent Level Percent Level Percent Level Percentage
Closed Closed Closed Closed
Remaining Amortization 19 Years 27 Years 19 Years 19 Years
Period
Asset Valuation Method Fair Market Fair Market Fair Market Market Value
Value Smoothed Value Smoothed Value Smoothed
Over 5 Years Over 5 Years Over 5 Years
Actuarial Assumptions:
Investment Rate of Return 8.0% FY13-17 8.0% FY13-17 8.0% FY13-17 8.0% FY13-17
8.5% FY18 and later 8.5% FY18 and later 8.5% FY18 and later 8.5% FY18 and later
Projected Salary Increases 3.50% - 12.03% 4.5% - 13.0% 4.0% - 9.0% 4%
Assumed Inflation Rate 3.0% 3.0% 3.0% 3.0%
Payroll Growth Rate 3.75% 3.75% 3.75% N/A
Mortality Table - Active RP 2000 Non- RP 2000 Non- RP 2000 RP 2000 Healthy
annuitant, Set Forward annuitant, Set Non-Annuitant Sex Distinct Annuitant,
5 Years Males; Back back 2 Years Projected to 2018
3 Years Females
Mortality Table - Retired RP 2000 RP 2000 RP 2000 RP 2000 Healthy
Annuitant, Set Back Annuitant Annuitant Sex Distinct Annuitant,
2 Years Females Projected to 2018
Cost of Living 1% Per Year Until 1% In 2011 & 2.5% Per Year 1% Per Year Until
Adjustment 90% Funded, Then 2012, Match CPI 90% Funded, Then
2.5% Per Year Up to 1.5% Until 2.5% Per Year
90% Funded, Then
2.5% Per Year