PERA Correctional Plan threat code red!

MNCORA has been monitoring the 911 Telecommunicators Pension Benefits Working Group established by the Minnesota State Senate.

Among considerations is adding 911 Dispatchers to the PERA Correctional Retirement Plan. They seem to be leaning very heavily towards this.

Talk at the last meeting has working group members comparing the stress of 911 dispatching to the very real physical dangers Correctional Officers face on the job!

Sources tell us at the last meeting PERA Executive Director Doug Anderson said it could cost as much as $79 million to add dispatchers to the Correctional Plan! This was only a ballpark because NO ACTUARIAL STUDY has been done or even approved by the legislature!

If dispatchers are added the up to 2.5% Cost of Living Adjustment (COLA) would probably end. With the current high inflation even the 2.5% COLA is a shrinking benefit!

It's quite possible this work group could recommend adding people to a high risk plan, that don't meet the criteria, destroying the healthy COLA without even knowing the full price tag. Oh, and the $79,000,000 ballpark estimate doesn't even include disability!

MNCORA plans to be heard.

Correctional Officers Federally Recognized as Public Safety Employees

As of January 1, 2025, Correctional Officers are Federally Recognized as Public Safety Employees the same as Police and Fire. This has implications for disability, taxes and retirement. As we face new challenges to our pension in 2025 this will further the distinction between PERA General Plan members like 911 Dispatch and Probation and CO's in the PERA Correctional Plan. It's part of the Secure Act 2.0. 26 USC § 72(t)()(10) definition of Public Safety Employee - qualified public safety employee (10) Distributions to qualified public safety employees and private sector firefighters (A) In general In the case of a distribution to a qualified public safety employee from a governmental plan (within the meaning of section 414(d) ) or a distribution from a plan described in clause (iii), (iv), or (vi) of section 402(c)(8)(B) to an employee who provides firefighting services, paragraph (2)(A)(v) shall be applied by substituting “age 50 or 25 years of service u...

New Bill for Corrections seat on the PERA Board

MNCORA thanks Representatives Peggy Scott and House Leader Harry Niska for Authoring HF708 in the House and senators Cal Bahr and Jim Abeler for authoring the bill in the Senate SF1556 . Next step is for the LCPR to hear this Bill. Here's a link to the Pension Committee (LCPR). It's very important to contact them and ask them to give it a hearing for it to move on. https://www.lcpr.mn.gov/members.htm

PERA Board votes against CO seat-arguments. What's next and options

On December 12, 2024 the PERA Executive Board voted unanimously not to support legislation to add a Correctional Officer seat to the PERA Board. This is disappointing but will not dissuade MNCORA from again seeking a Bill with the Legislature. I would like to counter some of the PERA Boards arguments. At the planning meeting and in PERA's letter they argued that adding a seat would make the number on the Board even. So, we revised our proposal to add an additional Retiree seat. After all retirees are almost 30% of PERA membership and Retirees have only one member elected seat. In their letter they state, “ The current makeup of the board is 6 member positions to 3 employer positions, adding additional board members representing member groups would weigh the board’s makeup further towards the membership .” Not exactly true. It’s an 11 person board. Source PERA 2023 PFAR The 11 person Board is made up of 5 seats that are appointed by the Governor and one more is th...

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