Gov. Dayton signs 2012 pension bill

MAY 10 – Gov. Mark Dayton today signed a 2012 pension bill that reflects bipartisan compromise on a number that is of great significance to public pension systems.

The law lowers the pension systems’ investment return assumption from 8.5 percent to 8 percent for five years, allowing for study during the five-year “select” period to determine a long-term rate and whether a return to 8.5 percent is advisable. The three statewide retirement systems – TRA, PERA and MSRS – supported the bill. ...MORE

Minnesota pension fund directors
respond to Pioneer Press editorial

Read their guest commentary "Minnesota's reforms
are a model for others" HERE

Pension spending pumps $5.7 billion into Minnesota economy

A new economic analysis study finds that pension benefit expenditures provide critical economic stimulus to the Minnesota economy, including $5.7 billion in total economic output. Pensionomics 2012: Measuring the Economic Impact of Defined Benefit Pension Expenditures, reports the national economic impacts of public and private pension plans, as well as the impact of state and local plans on a state–by–state basis.

The study calculates that pension expenditures supported some 41,337 jobs in Minnesota that paid $1.9 billion in income. Pension benefits accounted for some $5.7 billion in total economic output and $3.3 billion in value added in Minnesota. These expenditures also supported some $806.0 million in tax revenue at the local, state, and federal levels. ...