April PERA Meeting and Pension update

A lot has changed very recently. A Bill called the "Delete everything Amendment" was introduced.

Of note is that there was a proposed reduction in employee contributions to the pensions for every group EXCEPT PERA Correctional and the PERA General Plan.

PERA Executive Director Doug Anderson then put out a Legislative Update memo prior to the meeting.

In it he stated, "The exclusion of the General Plan from the bill has caused concerns." This emphasizes again why we need a PERA Correctional seat on the PERA Board.

I called him and we had several productive conversations.

My concern as MNCORA President was that every other pension plan was being considered for a reduction in employee contribution except PERA Correctional!

At the meeting Doug Anderson then added PERA Correctional to the list. I was not permitted to speak at the meeting but I had a very good conversation with the PERA President Thomas Stanley afterwards.

PERA does not write retirement law, the Legislature does, but the Legislature generally listens to PERA recommendations and we had PERA's ear today.

It is vitally important to contact your State Senator and Senator Rosen (she chairs the Pension Commission) and let them know you want PERA Corrections to receive a reduction in your employee contribution if the other Pensions get one.

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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