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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!





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