Comprehensive Annual Financial Report - Minnesota State ...

Schedule of Changes in Unfunded
Actuarial Accrued Liabilities (UAAL)
66
Public Employees
Retirement Association
of Minnesota
For the Fiscal Year Ended June 30, 2012 (in thousands)
General
Employees
Retirement
Fund
Public
Employees
Police and
Fire Fund
Public
Employees
Correctional
Fund
Minneapolis
Employees
Retirement
Fund
A. UAAL at Beginning of Year (7/1/11) $4,443,096 $ 1,088,944 $ 9,889 $327,716
B. Change Due to Interest Requirements
and Current Rate of Funding
1. Normal Cost and Expenses 354,575 158,345 22,187 549
2. Contributions (689,449) (190,832) (23,901) (54,937)
3. Interest on A, B1 and B2 363,431 91,180 768 25,544
C. Expected UAAL at End of Year (A+B) $4,471,653 $ 1,147,637 $ 8,943 $298,872
D. Increase (Decrease) Due to Actuarial
Losses (Gains) Because of Experience
Deviations from Expected*
1. Age and Service Retirements 20,068 1,075 (931) 567
2. Disability Retirements (689) (4,584) (561) (90)
3. Death-in-Service Benefits 1,236 1,842 (2) 31
4. Termination of Employment (26,863) (5,822) (1,061) 25
5. Salary Increases (284,924) (63,598) (6,202) (1,028)
6. Investment Income 572,622 234,741 9,938 53,414
7. Mortality of Annuitants 5,446 12,792 88 (2,928)
8. Other 19,099 68,661 1,814 8,511
E. UAAL at End of Year Before Plan Amendments
and Changes in Actuarial Assumption (C+D) $4,777,648 $1,392,744 $12,026 $357,374
F. Change in UAAL Due to Change in
Plan Provisions 0 104,699 0 0
G. Change in UAAL Due to Change in 240,412 106,794 24,917 20,773
Actuarial Assumptions and Methods
H. Change in unfunded actuarial accrued liability due (80,845) 1,190 (198) (1,223)
to changes in decrement timing and methodology
I. UAAL at End of Year 6/30/12 (E+F+G+H) $4,937,215 $1,605,427 $36,745 $376,924
* Explanatory Notes: 1. If members retire earlier than assumed, there is a loss; if later, a gain.
2. If more members take a disability than assumed, there is a loss; if fewer, a gain.
3. If fewer active members die than assumed, there is a loss; if more, a gain.
4. If fewer members terminate employment than assumed, there is a loss; if more, a gain.
5. If there are larger salary increases than assumed, there is a loss; if smaller, a gain.
6. If there is a smaller investment return than assumed, there is a loss; if larger, a gain.
7. If benefit recipients live longer than assumed, there is a loss; if less, a gain.
8. Miscellaneous gains and losses.