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.

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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