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Letter to Senator Rosen

The Minnesota Legislature is still in session and the Delete Everything Amendment part of the Omnibus Bill is in discussion. The MNCORA Board sent the following to the LCPR Chair Senator Rosen today.


Senator Rosen,

Regarding the “Delete Everything Bill S3541-H4016.”

 It is the position of the Minnesota Correctional Officer Retirement Association (MNCORA) that if a benefit is being given to the PERA Police and Fire Plan and the MSRS Correctional Plan then parity should be given to the PERA Correctional Plan.

P&F and the MSRS Correctional Plan are being offered a 2% reduction in employee contributions in this Bill and no reduction is being offered to the PERA Correctional Plan.

We’ve heard it argued that P&F and the MSRS Correctional Plans contribute more to their plans, but they also receive a greater retirement benefit. The high 5 of P&F is 3% and the MSRS Correctional Plan 2.2%.

By comparison the high 5 for PERA Correctional is 1.9% and has been since its’ inception in 1999.

Police and Fire already receives $9 million a year from the General Fund to bolster its pension and this bill adds an additional $91 million to it! The PERA Correctional requires no such help.

A simple 1% reduction to the employee contribution of the PERA Correctional for two years, then a return to current levels seems to be very affordable and doable or consider a permanent increase to a 2.2% high 5 like the MSRS Correctional Plan.

The PERA Correctional Plan is funded over 100% and its members deserve a seat at the table.

 

Sincerely,

The MNCORA Board


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