1. Public Employees Retirement Association of Minnesota What GASB 68 Information Will PERA Provide to Employers? Presented by Jim Riebe, PERA Principal Accounting Officer 1

2. Public Employees Retirement Association of Minnesota Agenda GASB 68 Information to be Provided by PERA Timing and Communication of the GASB 68 Information 2

3. Public Employees Retirement Association of Minnesota Background GASB 68 requires that employers report their proportionate share of the plan’s net pension, liability, deferred inflows and outflows of resources, and pension expense. GASB 68 does not specify who prepares the GASB 68 information. AICPA “whitepapers” on employer reporting for cost- sharing plans recommend: Plans prepare and arrange for audit of Schedule Employer Allocations and Schedule of Pension Amounts by Employer. 3

4. Public Employees Retirement Association of Minnesota GASB 67/68 Actuarial Information Gabriel, Roeder, Smith prepares two valuation reports for each plan GASB 67/68 compliant valuation Funding valuation Use GASB 67/68 report to verify collective pension amounts, NPL +/- 1% sensitivity analysis 4

5. Public Employees Retirement Association of Minnesota Schedule of Employer Allocations Schedule of Employer Allocations (General Employees Retirement Fund) As of June 30, 2014 Unit IDEmployer Name ContributionsAllocation 0002-00AITKIN COUNTY $598,5400.1573% 0006-00ANOKA COUNTY 6,356,6101.6701% 0008-01BECKER COUNTY 814,6650.2140% 0010-00BELTRAMI COUNTY 932,2240.2499% 0012-00BENTON COUNTY REVENUE 672,2790.1766% 0014-00BIG STONE COUNTY 186,6340.0490% 0016-00BLUE EARTH COUNTY 1,333,6360.3504% 0018-00BROWN COUNTY 683,2270.1795% 0020-00CARLTON COUNTY 1,020,2410.2681% 0022-00CARVER COUNTY 2,114,1270.5555% 0022-09CARVER COUNTY HISTORICAL SOCIETY 9,9790.0026% 0024-00CASS COUNTY 849,6240.2232% 0026-00CHIPPEWA COUNTY 338,5180.0968% 0027-00CHIPPEWA COUNTY SWCD 9,9830.0026% 0028-00CHIPPEWA COUNTY HOSPITAL 980,1000.2575% 0030-00CHISAGO COUNTY 1,051,2660.2762% 0032-00CLAY COUNTY 1,119,3690.2941% 9115-00CLAY COUNTY SWCD 17,5000.0046% … … …… $380,612,334100.00000% 5

6. Public Employees Retirement Association of Minnesota 6 PERA Contributions Reconciliation Public Employees Retirement Association of Minnesota General Employees Retirement Plan Reconciliation of Employer Proportionate Share Contributions to Employer Financial Statement Contributions For the Year Ended June 30, 2014 Revenue Code40004005YE 2013YE 2014Subtotal Total Employer Unit No.Employer Name Employer Contributions - Matching (6.25 or 6.5%) Employer Contribution - Additional (1%) Adjustment for Employer Accrual (Received in Current FY but Recognized in Prior FY) Adjustment for Employer Accrual (Received in Future FY but Recognized in Current FY) Employer Contributions Allocated for GASB 68 Employer Contributions NOT Allocated for GASB 68 (Omitted Deductions, Member Buybacks, Employer Portion Paid by Employee, Interest) Employer Contributions Amount Reported on CAFR 0002-00AITKIN COUNTY$535,331$85,649$22,440$598,540$0$598,540 0006-00ANOKA COUNTY$5,477,764$876,443$241,438$243,840$6,356,610$358$6,356,968 0008-01BECKER COUNTY$702,298$112,368$814,665$316$814,981 0010-00BELTRAMI COUNTY$803,641$128,583$932,224$0$932,224 0012-00BENTON COUNTY REVENUE$579,551$92,728$672,279$0$672,279 0014-00BIG STONE COUNTY$160,891$25,742$186,634$0$186,634 0016-00BLUE EARTH COUNTY$1,149,687$183,949$1,333,636$0$1,333,636 0018-00BROWN COUNTY$588,987$94,239$683,227$0$683,227 0020-00CARLTON COUNTY$911,429$146,045$37,233$1,020,241$21$1,020,262 0022-00CARVER COUNTY$1,822,526$291,601$2,114,127$471$2,114,598 0022-09CARVER COUNTY HISTORICAL SOCIETY$8,602$1,376$9,979$0$9,979 0024-00CASS COUNTY$732,436$117,188$849,624$0$849,624 0026-00CHIPPEWA COUNTY$316,500$50,640$14,070$15,447$368,518$0$368,518 0027-00CHIPPEWA COUNTY SWCD$8,903$1,424$344$9,983$0$9,983 ……………………… Total All Employers$329,397,171$52,701,183$9,163,798$8,522,223$381,456,778$794,328$382,251,106

7. Public Employees Retirement Association of Minnesota Schedule of Pension Amounts by Employer (1 of 2) 7

8. Public Employees Retirement Association of Minnesota Schedule of Pension Amounts by Employer (2 of 2) 8

9. Public Employees Retirement Association of Minnesota Suggested GASB 68 Footnotes 9

10. Public Employees Retirement Association of Minnesota 10 Schedule of Contributions Schedule of {Insert Name of Employer} Contributions Public Employees {Insert Name of Retirement Fund} Required Supplementary Information (Last Ten Years*) Fiscal Year Ending Statutorily Required Contribution (a) Contributions in Relation to the Statutorily Required Contribution (b) Contribution Deficiency (Excess) (a-b) Covered- Employee Payroll (d) Contributions as a Percentage of Covered- Employee Payroll (b/d) June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 June 30, 2011 June 30, 2010 June 30, 2009 June 30, 2008 June 30, 2007 June 30, 2006 * Option to provide RSI for ten years at transition or to provide RSI prospectively.

11. Public Employees Retirement Association of Minnesota 11 Schedule of Proportionate Share of the Net Pension Liability Schedule of {Insert Employer Name} Proportionate Share of Net Pension Liability Public Employees {Insert Name of Retirement Fund} Required Supplementary Information (Last Ten Years*) Fiscal Year Ending Employer's Proportion (Percentage) of the Net Pension Liability (Asset) Employer's Proportionate Share (Amount) of the Net Pension Liability (Asset) (a) Employer's Covered- Employee Payroll (b) Employer's Proportionate Share of the Net Pension Liability (Asset) as a Percentage of its Covered-Employee Payroll (a/b) Plan Fiduciary Net Position as a Percentage of the Total Pension Liability June 30, 2014 * Schedule is to be provided prospectively beginning with the employer's fiscal year ended June 30, 2015, or after.

12. Public Employees Retirement Association of Minnesota Annual Timeline June 30—Fiscal year end (Measurement Date) August—Census and asset data sent to actuary November—Actuarial valuations finalized December 1—PERA prepares GASB schedules December—Auditor audits schedules January 10—PERA publishes GASB schedules and audit report 12

13. Public Employees Retirement Association of Minnesota 13