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!

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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