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

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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