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Positive news for the PERA Correctional Plan

The new Pension Bill H3100.S3162DE1 has some good things in it for the PERA Correctional Plan.

For a long time we have spoken to PERA Executive Director Doug Anderson about a weak spot in our plan. In it if the funding for our plan dropped below 85% for 2 years, or 80% for 1 year our COLA would be cut from a max of 2.5% to 1.5%. There was not a mechanism for it to rise back to 2.5% if the funding increased. He said he was for that and it needed to get done.

This new Bill fixes that! Changes in section 3 fix that so if after being lowered the funding goes back up on that January 1st the COLA goes back to 2.5%.

But wait there's more! 

You may recall in Governor Walz proposed Budget there was something for every PERA Pension except the PERA Correctional Plan.

Now the One Time State-Aid Appropriation; Pension Plans includes this:                       "local government correctional service retirement plan $5,255,535" 

This is money being put into our plan to keep it healthy.

MNCORA thanks the Legislative Commission on Pensions and Retirement and PERA Executive Director Doug Anderson.

MNCORA supports these changes and hopes it passes this session.

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