Reforms helped pension systemsPublished 10:04am Friday, February 1, 2013
In response to an Associated Press story that ran in the Albert Lea Tribune, it’s important to point out that legislative reforms enacted in 2010 had a dramatic positive impact on the state’s pension systems.
The Minnesota State Retirement System general plan has improved from 65.6 percent funded in 2009 to 82 percent funded in 2012, thanks in large part to the 2010 reforms. The Public Employees Retirement Association general plan went from 53.8 percent funded in 2009 to 73 percent funded in 2012. And the Teachers Retirement Association went from 59.8 percent funded in 2009 to 72.5 percent funded in 2012. In total, the 2010 reforms reduced benefit liabilities for the pension funds by $5.9 billion.
The boards of directors, executives and stakeholders of the three statewide retirement systems continually monitor the funds’ health and have a history of recommending proactive reforms that the state legislature has adopted in a bipartisan manner to ensure financial stability.
Mary Most Vanek
Public Employees Retirement Association