by Kim Crockett
Center of the American Experiment
February 20, 2014
The 2010 and 2013 pension Minnesota omnibus bills contained numerous changes to the various pension plans, tweaking contributions from employers and employees, vesting rules, retirement age, and cost of living adjustments. These myriad changes are an attempt to manage the funds with the traditional tools of a defined benefit plan. However, they are inadequate in the face of persistently growing liabilities despite record returns on assets. This report provides an update on the latest numbers. While the state considers all the alternatives to a defined benefit system, it would be wise to eliminate all cost of living adjustments to preserve assets.