PERA, Pensions, Legislators and why things don't get done

I'm monitoring todays PERA Board meeting remotely by phone. This is an EDITORIAL post.

During the meeting while discussing Stakeholder Initiatives PERA discussed SF1122/HF139 a Bill "Increasing postretirement adjustments; decreasing the waiting period for a postretirement adjustment for the police and fire plan." The Bill was Laid Over by the Pension Commission, according to PERA because of lack of money. Fair enough.

MNCORA's Bill, HF708-SF1556 to add a correctional seat to the PERA Board was heard by the Pension Commission then "laid over" with no reason given. THIS BILL WILL NOT COST A PENNY! Last year the Pension Board didn't even give it a hearing. (Sources told us it was because there were no initial Democrat authors).

MNCORA realizes the State of Minnesota is in a dire financial condition. Last session the Democratic Trifecta ran through an $18 Billion surplus, increased the size of government exponentially (partly based on one time Federal Covid grants) and now is facing a $6 Billion shortfall. We're not trying to be partisan but this is a fact.

This Legislative session started weeks late because House Democrats stayed Home in a fight over control. They had a break for EID March 29-April 1st and now the entire legislature is going into an Easter/Passover break April 11-21! Another 10 days gone. The Legislative session ends May 19 and there seems to be no urgency judging from all the time off.

So to summarize, the State is facing a multi billion dollar shortfall of their own making, can't pass a Bill that costs nothing which will benefit thousands of PERA Correctional Plan members who contributed over one billion dollars to the fund, but can take weeks off work. Got it.

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

MAPE and Teamsters gearing up for pension raid?

Currently there's an MSRS Correctional Plan Eligibility Work Group looking at who and should and should not be in the MSRS (State) Correctional Plan. The recommendations are due to the LCPR by January 10, 2025. As always there's a letter citing MAPE and Teamsters desire to add Probation Officers to both the MSRS and PERA Correctional Plans . Because why wouldn't they try this again out of our sight? Last year of course there was the Bill to add Dispatch to our Correctional Plan, and Rep. Wolgamott (the author) stated the issue was not dead. We fully expect another attempt this year. The last line of MAPE's letter says it all: This upcoming session will be challenging with possibly probation and dispatch both making a run at our pension. MNCORA will be watching. We plan to again submit a Bill to add a CO to the PERA Board (Something State CO's have). Last year Representative Niska authored it, but the LCPR declined to give it a hearing. This session Rep. Niska w...

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