The Minnesota Legislative Commission on Pensions & Retirement on March 20 will consider lowering the assumed annual return rate for state and major local public pension plans to 8% from 8.5%.
The commission on Tuesday approved all other aspects of the state Legislature's 2012 Omnibus Pension Bill, which contained the rate-change provision.
The current language of the bill recommends lowering the annual rate to 8% for five years, starting July 1, 2012, and then raise it back to 8.5%, according to an analysis of the commission's actions by the Minnesota Public Employees Retirement Association, St. Paul, on its website.
According to PERA, state Sen. Theodore Daley tried unsuccessfully to amend the omnibus bill to set the assumed return at 8.25% for the 2012 and 2013 plan years and then decrease the rate to 8% after that. The commission will consider a redrafted amendment from Mr. Daley on March 20, PERA's website said.
State pension plans to be affected by the omnibus bill are PERA, which administers seven plans totaling $21.8 billion; the $11.3 billion Minnesota State Retirement Association, and the $17.3 billion Minnesota Teachers Retirement Association, all based in St. Paul. The assets of all three pension systems are invested in commingled pools managed by the Minnesota State Board of Investment, St. Paul.