Governor Walz recommends a one time increase for all Pensions except PERA Correctional!

This is Governor Walz ,Governor's budget for public pensions.

"Recommendation:

The Governor recommends transferring $78.12 million in general fund resources to Minnesota State Retirement System (MSRS), Teacher’s Retirement Association (TRA), Public Employees Retirement Association (PERA), and St. Paul Teachers Retirement Fund Association (SPTRFA) to fund a one-time non-compounded cost of living adjustment (COLA) increase for retirees in those plans.

Rationale/Background:

Recommended funding is intended to respond to inflationary pressures and provide necessary one-time increases so all MSRS, TRA, PERA, and SPTRFA retirees receive a 2.5% COLA adjustment in calendar year 2024. Under this proposal, approximately 255,000 retirees will see an increased retirement payment in 2024." (Emphasis mine).

The reasoning is "intended to respond to inflationary pressures." Inflation is running at 6%, the PERA Correctional Plans cost of living adjustment (COLA) is 2.5%.

This proposed budget is giving relief all to all of the other plans by raising their COLA one time for 2024.

While one may argue the PERA Correctional Plan already has a 2.5% COLA we also have a lower high 5 than the MSRS Correctional Plan. Our plan is based on 1.9% of our high five, the MSRS Correctional Plan is based on 2.2%. Members of the PERA Correctional Plan are also living with a shrinking benefit due to inflation!

It's rather disheartening to see the PERA Correctional Plan members being constantly left out or punished for having a well funded plan.

First PERA proposes changing our Disability benefit because Police and Fire are experiencing an increase in PTSD disability claims and now the Governor seeks to give relief from inflation to every other Minnesota Public Employee Pensions except the PERA Correctional Plan!

Contact your Representatives!

Session summary, wins and lossses

Governor Walz signed into law the Pension Omnibus Bill yesterday, May 15. It was a busy year for MNCORA and PERA Correctional Plan Legislation. MNCORA with your help was able to stave off yet another attempt to add dispatchers to our pension. Your petitions, calls and thousands of cards mailed to legislators was a success. Sadly we are not out of the woods. Rep. Wolgamott and Rep. Her both told MNCORA that the bill to add dispatch to our pension wouldn't be added to this year's Pension Omnibus Bill, but did not say the issue was dead for next session. MNCORA had a Bill to add a Correctional Officer to the PERA Board authored by Representatives Niska , Scott and Novotny on the House side, and a companion Bill in the Senate by Senators Bahr , Abeler and eventually Frentz . Sadly Pension Commission Chair Kaohly Her did not even allow our Bill a hearing. We will be back with this next year! Another bright note was the passage of a Bill raising the high 5 multipl...

Victory on keeping Dispatch out of Correctional Pension?

It's too early to declare victory as the Legislature is still in session. However there are signs the petitions from jails across the State and Cards to the Pension Commission are having the desired effect. Chair of the Pension Commission, Rep. Her wrote us saying- " Thank you for the letters. I always appreciate feedback. HF4796/SF4958 was not included in the Pension Omnibus bill. " Author of HF4796, Rep. Wolgamott wrote us and said- "Thank you for sharing your input regarding HF 4796. The bill will not receive a committee hearing and will not be moving through the legislative process this session. I hope you will continue to stay in touch and keep me updated with MNCORA’s perspective on issues and legislation affecting your members." There are still ways to sneak it in so we won't rest until the session is over, but we are cautiously optimistic. We thought the issue was settled after the Workgroup two years ago, but here it is again. Our hope is they ge...

PERA Correctional seat on the PERA Board, next step

Bill HF4342 authored by Rep. Niska and Scott now has a companion bill in the Senate, SF4464 authored by Sen. Bahr and co-authored by Sen. Abeler. MNCORA is thankful for the support of these Representatives and Senators. If passed for the first time a PERA Correctional Officer will have a seat on the PERA Board. The next step is for the Pension Commission to give it a hearing. If it is not heard the bill will die. What can you do? The Chair of the Pension Commission is Representative Her. This is her contact information: Phone 651-296-8799 E-mail: rep.kaohly.her@house.mn.gov The Vice chair on the Senate side is Senator Frentz. This is his contact information: Phone 651-296-6153 E-Mail sen.nick.frentz@senate.mn PLEASE contact them and ask them to have the Pension Commission give it a hearing and then contact your Representative and Senator and ask them to support these Bills. Make your voice heard!

Search This Blog