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

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

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

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

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 AITKIN COUNTY $598, % ANOKA COUNTY 6,356, % BECKER COUNTY 814, % BELTRAMI COUNTY 932, % BENTON COUNTY REVENUE 672, % BIG STONE COUNTY 186, % BLUE EARTH COUNTY 1,333, % BROWN COUNTY 683, % CARLTON COUNTY 1,020, % CARVER COUNTY 2,114, % CARVER COUNTY HISTORICAL SOCIETY 9, % CASS COUNTY 849, % CHIPPEWA COUNTY 338, % CHIPPEWA COUNTY SWCD 9, % CHIPPEWA COUNTY HOSPITAL 980, % CHISAGO COUNTY 1,051, % CLAY COUNTY 1,119, % CLAY COUNTY SWCD 17, % … … …… $380,612, % 5

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 Code YE 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 AITKIN COUNTY$535,331$85,649$22,440$598,540$0$598, ANOKA COUNTY$5,477,764$876,443$241,438$243,840$6,356,610$358$6,356, BECKER COUNTY$702,298$112,368$814,665$316$814, BELTRAMI COUNTY$803,641$128,583$932,224$0$932, BENTON COUNTY REVENUE$579,551$92,728$672,279$0$672, BIG STONE COUNTY$160,891$25,742$186,634$0$186, BLUE EARTH COUNTY$1,149,687$183,949$1,333,636$0$1,333, BROWN COUNTY$588,987$94,239$683,227$0$683, CARLTON COUNTY$911,429$146,045$37,233$1,020,241$21$1,020, CARVER COUNTY$1,822,526$291,601$2,114,127$471$2,114, CARVER COUNTY HISTORICAL SOCIETY$8,602$1,376$9,979$0$9, CASS COUNTY$732,436$117,188$849,624$0$849, CHIPPEWA COUNTY$316,500$50,640$14,070$15,447$368,518$0$368, CHIPPEWA 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

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

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

Public Employees Retirement Association of Minnesota Suggested GASB 68 Footnotes 9

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.

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.

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

Public Employees Retirement Association of Minnesota 13