PERA Meeting December 8th

I attended the PERA meeting on December 8th. As you can imagine with the markets being the way they are the PERA Correctional Plan fund performed at a -6.4% for 2022. Compare that to a +30.3% in 2021.

In short our fund lost money last year.

Currently the Actuarial Rate of Return (expected income from investments) is at 7.5% (set by the legislature) . Because of what the markets are doing PERA recommended that the legislature investment return assumption be lowered to between 5.64 and 6.55. This does not reflect what money actually comes in but gives PERA an idea of how healthy the funds are.

If the actuarial return assumptions do end up in the 6% range it's possible for our funding to drop below 85%. If that happens for more than 2 years our COLA drops down to 1-1.5% depending on the Social Security Cost of living! Currently we're at 2.5%! PERA Executive Director Doug Anderson pointed out if our COLA drops there is NO mechanism to bring it back up to 2.5% without legislative action.

Because of that I believe that in addition to pushing for our PERA Pension and Social Security to be exempt from the Minnesota State Tax I think MNCORA should push to add a mechanism to raise our COLA back up if it drops when the economy improves.

This was PERA's last meeting until February 16th 2023 when the new PERA Board is set. As you know I was endorsed by MNCORA for the Retired, Disabled and Survivor Representative seat. I would appreciate your vote when the Ballots come out in January.

Wade Laszlo

President MNCORA

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

MAPE and Teamsters gearing up for pension raid?

Currently there's an MSRS Correctional Plan Eligibility Work Group looking at who and should and should not be in the MSRS (State) Correctional Plan. The recommendations are due to the LCPR by January 10, 2025. As always there's a letter citing MAPE and Teamsters desire to add Probation Officers to both the MSRS and PERA Correctional Plans . Because why wouldn't they try this again out of our sight? Last year of course there was the Bill to add Dispatch to our Correctional Plan, and Rep. Wolgamott (the author) stated the issue was not dead. We fully expect another attempt this year. The last line of MAPE's letter says it all: This upcoming session will be challenging with possibly probation and dispatch both making a run at our pension. MNCORA will be watching. We plan to again submit a Bill to add a CO to the PERA Board (Something State CO's have). Last year Representative Niska authored it, but the LCPR declined to give it a hearing. This session Rep. Niska w...

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