2010 reforms improved pension systems’ health
In response to an Associated Press story that ran in the News Tribune (“Minnesota state pension plans underfunded by more than $16 billion,” Jan. 21), 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 the state Legislature has adopted in a bipartisan manner to ensure financial stability.
LAURIE FIORI HACKING
The writer is executive director of the Teachers Retirement Association.
The writer is executive director of the Minnesota State Retirement System.
MARY MOST VANEK
The writer is executive director of the Public Employees Retirement Association.