Skip to main content

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 the State Auditor. One could argue those 6 are Government seats, not member. Of the 5 member elected seats, two of the 5 come from Police and Fire.

A concern raised during discussion at the December 12 meeting was they were afraid a CO on the Board wouldn’t be able to represent all PERA members. That is insulting on the face of it. Especially since 3 seats are held by Police and Fire! 2 elected and 1 appointed. I’d venture to say a large portion of the PERA Board’s discussions have to do with the poor state the Police and Fire plan is in.

They out of hand dismissed MNCORA’s argument that the State CO’s have a seat on their MSRS Pension Board.

One new argument is the fact that on January 1, 2025 the Federal Government will recognize all State and County Correctional Officers as Public safety, the same as Police and Fire. This means we no longer should be lumped together with the General Plan members as they currently do because tax and disability numbers must be calculated differently.

The new logical choices are to give Corrections Officers either their own seat or allow them to compete for the only other Public Safety seat-Police and Fire!




Popular posts from this blog

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...