Employers
Financial Resource Center
GASB Information
New accounting rules issued by the Governmental Accounting and Standards Board (GASB) that took effect in fiscal year 2015 for local and state governments have changed the way a public pension plan discloses its pension information. For defined benefit cost-sharing plans like PERA’s plans, GASB Statement No. 68 replaces the reporting requirements of GASB Statement No. 27, which was issued in 1994 and GASB Statement No. 50, which was issued in 2007.
These GASB rules apply only to accounting and financial reporting. They do not apply to funding, and will not be used to determine contribution requirements. Despite the new requirements, the actual cost of providing pension benefits will not change. The only thing that changes is where and how pension costs are accounted for in financial statements.
All financial disclosures made by PERA are contained in the audited Annual Comprehensive Financial Report (ACFR) published every December.
Numerous resources are available to help employers learn about the pension accounting and financial reporting requirements.
GASB Resources GASB Q&A
2023 GASB Toolkit 2022 GASB Toolkit 2021 GASB Toolkit 2020 GASB Toolkit 2019 GASB Toolkit 2018 GASB Toolkit GASB Informational Videos
OPEB Trust Fund
A political subdivision or other public entity that creates or has created an actuarial liability to pay other post-employment benefits (OPEB) to employees or officers after their termination of service may establish a trust used to pay the benefits. That trust, established under Minn. Stat. §471.6175, may be either revocable or irrevocable, and the assets may be administered by PERA, a bank, or an insurance company or agency.
Should PERA be chosen as the trust administrator, all money in the trust account will be invested by the State Board of Investment (SBI) in their Equity Index Fund, Fixed Income Fund, or Cash Management Fund established under Minn. Stat. §11A.14, subject to procedures set by SBI. The political subdivision will determine which account(s) contributions will be invested in. Contributions and withdrawals will flow through PERA via wire transfer or ACH. Each trade will be confirmed via email. PERA will reconcile all transactions, including investment gains and losses, with SBI and provide financial information at year end (and on demand) to the political subdivision.
To establish an OPEB trust using PERA as the administrator, please sign and return two copies of the trust agreement and one copy of the contact information form below. We will then send you wiring instructions and a signed copy of the trust agreement. If you have any questions, please contact us at PERA.accounting@mnpera.org.
Long-Term Investment Account
As outlined in Minn. Stat. §118A.09, certain cities and counties now have the option to invest a portion of their funds in index mutual funds or with the State Board of Investment in an account managed by the Public Employees Retirement Association (PERA). The expansion applies to cities and counties with a population of more than 100,000 or those that had their most recently issued general obligation bonds rated in the highest category by a national bond rating agency. It also applies to self-insurance pools including the League of Minnesota Cities Insurance Trust, the Minnesota School Boards Association Insurance Trust, the Minnesota Association of Townships Insurance and Bond Trust, and the Minnesota Counties Intergovernmental Trust.
The law limits that the invested assets are held for long-term capital plans or long-term obligations. The amount invested cannot exceed 15 percent of the sum of unassigned cash, cash equivalents, deposits, and investments. Investments are also limited to mutual funds indexed to the S&P 500, the Dow Jones U.S. Total Stock Market Index, or investments with SBI under their terms and conditions. Before investing in the expanded list of investment, the governing body of the municipality must adopt a resolution acknowledging the risks.