Public Employees Retirement Association of Minnesota GASB 68 Net Pension Liability Dave DeJonge Assistant Executive Director, PERA

Public Employees Retirement Association of Minnesota Agenda Total Pension Liability Fiduciary Net Position Collective NPL Allocation Methodology NPL Calculation

Public Employees Retirement Association of Minnesota Total Pension Liability (TPL) Calculated annually by PERA’s actuary Defined in GASB 67 as the portion of the actuarial present value of projected benefit payments that is attributed to past periods of service but reflects Anticipated benefit increases Projected salary growth Projected future service Determined using the Entry Age Normal cost method No anticipation for future members

Public Employees Retirement Association of Minnesota Pension Plan’s Fiduciary Net Position Calculated annually by PERA’s accounting staff Pension plan’s net assets at fair value Determined using the same valuation methods used by the pension plan for purposes of preparing its statement of fiduciary net position

Public Employees Retirement Association of Minnesota Net Pension Liability (NPL) Total Pension Liability Minus Pension Plan’s Fiduciary Net Position Equals Collective Net Pension Liability TPL – PPFNP = NPL

Public Employees Retirement Association of Minnesota Measurement Date PERA’s fiscal year end (June 30) Asset calculation finalized in September TPL calculation finalized in November June 30, 2014 June 30, 2015 June 30, 2016 June 30, 2017

Public Employees Retirement Association of Minnesota NPL Allocation The NPL will be allocated to all of PERA’s employers and included as a long-term liability on the government-wide financial statements. The allocation method will be based on employer’s contributions paid to PERA in relationship to all employer contributions received.

Public Employees Retirement Association of Minnesota More Information PERA’s Website   Employers tab  GASB 68 Toolkit Contact Dave DeJonge