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.

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...

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...

August 8 PERA meeting

I attended the August 8th PERA meeting in person today. They discussed the funding levels of the plans. Police and Fire is funded at 87% and at current rates won't be fully funded until 2080! The PERA Correctional Plan is funded at 96.7% and will be fully funded by 2026! This includes the increase of the high five multiplier of 2.2% that begins July of 2025. Last year we pushed for a CO seat on the PERA Board. We had the Bill but it didn't get a hearing by the Pension Commission or pass. We tried to get the PERA Board to support that but they didn't want to last year, they said they'd take it up at 'next years planning meeting.' That meeting is October 30th of this year and PERA Executive Director Doug Anderson reminded them of that. The new session will be coming up after elections. We will again push for a long overdue seat on the PERA Board and will be watching for other attempts to raid our healthy plan. We look forward to a new session and new work on your...

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