Skip to main content

PERA updated our Correctional Plan on their website

MNCORA had asked PERA to update their website and let our members know of the changes to our plan especially the Federal change of our status to Public Safety Employee the same as police and fire. They promised to do this in February and have kept their word.



The changes due to the Secure Act 2.0 begin here:

Disability Recipients

Some recent changes may apply to your disability benefit:

>>The Pension Protection Act of 2006 in conjunction with Secure 2.0 also allows correctional officers receiving disability benefits to reduce their taxable income by up to $3,000 annually in costs paid for qualified insurance premiums, such as health, dental, and long-term care. Contact a tax professional if you have any questions.

>>As of January 1, 2025, Correctional disability benefits will no longer be reduced by worker’s compensation. Recipients will receive their 2024 annual earnings form in the next month and will be required to report worker’s compensation received in 2024.

>>Beginning in 2027, Correctional duty disability benefits will remain non-taxable when they convert to retirement benefits. More information will be shared with impacted members when we get closer to this date.

Review Other Employee Benefits

The Secure 2.0 Act of 2022 now includes correctional officers in the federal definition of public safety employees. Review your employee benefits for other impacts with this law change.




Labels:

Popular posts from this blog

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...
Read more

Confusion at today's PERA meeting

 I attended the PERA Board meeting remotely today (3/13/25). As all of you know there's lots of pieces at play in the PERA pension plans. There have been in the recent past attempts by 911 Dispatchers and Probation to be merged into the PERA Correctional Plan which MNCORA has vehemently opposed. The positive note from todays meeting is that the current discussion is centered around improved pensions (earlier retirement) for probation and dispatch without talk of adding them to the Correctional Plan.  The sad part is the apparent confusion among PERA Board members as to the difference between Essential Employees and Public Safety Employees. Some were using the terms interchangeably which could lead to future problems.  While Police, Fire, Corrections, Probation and 911 Dispatch are all essential employees  https://www.revisor.mn.gov/statutes/cite/179A.03 . Only Police, Fire and Correctional Officers are Public Safety! The Secure Act 2.0 spells out changes to the defi...
Read more

No seat on the PERA Board this year

  We are sad to report that our Bill to add a CO to the PERA Board is not going to be added to the Pension Omnibus Bill. We are told  it's due to PERA's opposition. We are thankful to those who authored the Bill-Representative Peggy Scott,  Representative Harry Niska, Senator Cal Bahr and Senator Jim Abeler.  The Bill is still good  next session and we have a couple of paths forward. PERA's main opposition is that adding another seat would make it an even numbered board. Disregarding the fact the largest pension board, the Teacher's TRA is even numbered. That can be remedied one of two ways. We can amend our bill to say one of the 3 existing General PERA Board seats will become a Correctional Plan member seat or because we are now Federally recognized as Public Safety Officers we make a bill to have the Police and Fire seat become Police, Fire and Corrections. There are after all more CO's than Firefighters and we are all now Public Safety Officers. Big decision...
Read more