MNCORA has opposed HF 1234 (see previous posts in this blog). HF 1234 and SF 1959 started out as Bills related to the Police and Fire pensions high PTSD rates. They were designed originally to provide treatment first before putting an officer out on a PTSD disability retirement. Then HF 1234 expanded the changes to include all PERA pensions, including the PERA Correctional plan. The expansion changed the disability retirement in the other plans but only provides treatment for Police and Fire.
This is a link to PERA's explanation on how it will work. https://mnpera.org/legislation/
MNCORA had many questions on how the changes would affect PERA Correctional Officers on disability retirement. Important note there was a change in statute in July of 2015 in how long one could be on a disability retirement. Prior to 2015 it was until age 65, after that 55 and then one switched to a regular retirement.
The following is MNCORA's exchange with PERA and their responses. MNCORA questions are in Black, PERA's responses in color ink (blue and red). It is pasted together from a series of emails.
- If this Bill becomes law what happens to a CO who went out on a Duty disability prior to 2015 and what happens to one who went out post 2015 if PERA now decides they are no longer disabled at age 57?
Answer: Your question focuses on a change to the Correctional Plan disability benefit termination provisions that occurred in 2015 – discontinuing Correctional Plan disability benefits at age 55 (regular retirement age for the Correctional Plan) rather than age 65 (Laws of 2015, Ch. 68, Art. 12, sec. 25). Your question also presents a scenario where a doctor states that the disability benefit recipient is fit for unrestricted duty (no longer disabled).
Here is how I see it:
Pre-July 1, 2015, 57-y.o. disability benefit recipient: the discontinued disability benefit recipient would have the option of beginning retirement benefits or not receive any benefit (we would make it clear to the member that retirement benefits were an option at that time).
Post June 30, 2015, 57-y.o. disability benefit recipient: the discontinued disability benefit recipient would automatically begin retirement benefits.
The difference is in the automatic nature of the shift from disability benefits to retirement benefits – the benefit recipient going out on disability before 7/1/15 would have to elect to begin retirement benefits while the benefit recipient going out on disability after 6/30/15 would begin receiving retirement benefits automatically.
- So prior to 2015 a CO's disability terminated at 65, after 2015 at 55. What happens to someone under this new Bill HF1234? For example, a female CO injured her back in a use of force with an inmate in 2010 and has been on disability since then. In 2022 she was in a car accident and lost a leg. If HF 1234 passes and PERA makes her reapply and a doctor says her back is now fine. It was the original reason for her disability and no longer relevant however she still can't perform the duties of a Corrections Officer but she's now 48. Is she just cut off rather than collecting until 60? Under HF1234 it appears so. So two questions on this scenario what happens to her under the new rule if she's 50? and what if she's 60?
Answers: the CO going out on a duty disability with a back injury and, if a doctor were to state that the back injury has resolved to the extent that the person was fit for duty without restrictions solely looking at the person’s back but then lost their leg while collecting disability benefits would have their disability benefits shift from duty (47.5% of ave. salary) to regular disability (19% of ave. salary).
A “regular disability” is based on a disease or injury that is expected to prevent a member from performing the normal duties of a CO, for at least one year, that arises from activities while not at work or while at work but performing duties that do not present inherent dangers specific to the positions covered by the Correctional Plan. This shift from duty disability to regular disability would occur under current law because the person would no longer be eligible for duty disability if the cause of the duty disability was no longer present.
If the person is age 50 when the doctor states that the back injury is completely healed but she lost her leg, she would have the option of beginning to collect a reduced retirement benefit. If she is age 60, she would have the option of beginning a full, unreduced retirement benefit.
I sent your answer to our Executive Board members last night, they asked for clarification on a couple of points.
On question 1 you answered:
The difference is in the automatic nature of the shift from disability benefits to retirement benefits – the benefit recipient going out on disability before 7/1/15 would have to elect to begin retirement benefits while the benefit recipient going out on disability after 6/30/15 would begin receiving retirement benefits automatically.
The Executive Board would like to know:
Pre 7/1/2015, If a Pre is 55 or older can they elect to go from Duty Disability to Regular Retirement at the same rate as a post 7/1/2015 at 47.5%?
Answer: yes, a Correctional Plan member who is age 55 can convert from disability to retirement at the same benefit level / amount regardless of whether they went on disability before or after 7//1/2015.
At 7/1/2015 at 55 a Duty Disability turns into a Regular Retirement at the rate of 47.5% per Statute 353E.06 subd 5c.
On question 2 you answered:
If the person is age 50 when the doctor states that the back injury is completely healed but she lost her leg, she would have the option of beginning to collect a reduced retirement benefit. If she is age 60, she would have the option of beginning a full, unreduced retirement benefit.
The question we have is regarding the age 60 part. What is a “full, unreduced retirement benefit”? Is it the continuation of the 47.5% or based on her time earned, paid into the plan?
Answer: the retirement benefit is the higher of 47.5% or “years of service x 1.9%”. The reference to “unreduced” is clarifying that no early retirement reduction occurs.