PERA Board vote on CO seat

On October 12th the PERA Board voted unanimously NOT to recommend legislation for a CO seat on the PERA Board.

They want no legislation on it this year. They understand CO's wanting a voice on their plan and agreed to discuss it at their workshop next year.

In other words the can was kicked down the road.

It is not necessary to have the PERA Board's support as all pension changes come from the Minnesota Legislature. We have a good working relationship with the PERA Board and we didn't want to blindside the Executive Director with this and hoped for their support, but we will proceed taking the legislative path.

For too long our PERA Correctional Plan has had threats to it with little to no warning or input.

-The 2018 'share the pain' which changed our COLA from an annual 2.5% to a variable one based on Social Security's raise capping us at 2.5% resulting in years with a lower COLA.

-The attempt two years ago to add dispatchers to our pension which would have resulted in a $79 million hit to our plan.

-Last years 'Police and Fire' Bill HF1234 that changed our disability!

-Last years omnibus bill that gives a higher Cost of Living Adjustment (COLA) to every PERA pension for 2024 except the PERA Correctional Plan!

The path forward is two possible ways.

Preferred is to get our own dedicated seat on the PERA Board.

The second is to get added to the Police and Fire seat if option one fails. President Biden's Inflation Reduction Act contains the Secure Act 2.0 which designates that all County and City CO's are Public Safety Officers effective January 1, 2025. The Police and Fire seat on the PERA Board is a Public Safety seat!

Let's see what this year holds!

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

PERA Board votes against CO seat-arguments. What's next and options

On December 12, 2024 the PERA Executive Board voted unanimously not to support legislation to add a Correctional Officer seat to the PERA Board. This is disappointing but will not dissuade MNCORA from again seeking a Bill with the Legislature. I would like to counter some of the PERA Boards arguments. At the planning meeting and in PERA's letter they argued that adding a seat would make the number on the Board even. So, we revised our proposal to add an additional Retiree seat. After all retirees are almost 30% of PERA membership and Retirees have only one member elected seat. In their letter they state, “ The current makeup of the board is 6 member positions to 3 employer positions, adding additional board members representing member groups would weigh the board’s makeup further towards the membership .” Not exactly true. It’s an 11 person board. Source PERA 2023 PFAR The 11 person Board is made up of 5 seats that are appointed by the Governor and one more is th...

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