MNCORA change of plans

The MNCORA Executive Board met on December 17th. After PERA's planning meeting one of their objections to adding a CO seat to the board was it would make the board an even number. At the December 12 meeting PERA voted not to support another seat. MNCORA was going to pivot and ask for an additional Retiree seat to solve their dilemma.

Then we discovered the largest state pension plan TRA, the teachers retirement, only has a 10 member board!

After much discussion the MNCORA executive board decided to go back to our original plan to just add a CO seat to the PERA board.

This session the legislature seems to be in flux with the elimination of the Democratic trifecta and them having to work out power sharing. MNCORA believes it will be easier to get one seat then trying to add two. Last session Pension Commission Chair Representative Her did not allow our Bill a hearing in the Pension Commission, this year there will be new leadership.

MNCORA again points out the state CO's have a seat on the MSRS board. We have our own plan and deserve a seat too.

With a $5 billion dollar deficit looming we believe a bill that will cost zero dollars should stand a chance.

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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