MNCORA has submitted a letter of support for  SF4721 (Frentz) ;  HF4514 (Lillie) : PERA Correctional; reducing the employee and employer contribution rates and increasing the postretirement adjustments. If passed this Bill will lower PERA Correctional Plan members contributions from 6.83 to just 6% and the Employer Contribution from 10.25 to 9% of salary!

  "America is careening toward a fiscal crisis that makes 2008 look manageable, yet most taxpayers remain unaware that it is coming. State and local governments currently owe  $1.37 trillion  more in pension benefits than they have saved to pay them, per the Equable Institute, and that uses accounting standards governments themselves prefer.  Apply the market-based discount rates Stanford economist  Joshua Rauh of the Hoover Institution  considers the only honest methodology, and the true shortfall reaches  $5.1 trillion , roughly the annual GDP of Japan. This a structural death spiral.  Rising pension costs force tax increases and service cuts, which drive out residents and businesses, which shrinks the tax base, which forces still higher taxes, until something breaks.  We have already seen a road map for what “breaks” looks like.  It is called Detroit." Full Story American Thinker

Last session Senator Bahr introduced SF1556/ HF708   a Bill to add a Corrections Officer to the PERA Board. The Bill was heard but laid over. PERA's objection was it would make the PERA Board even numbered. Rep Peggy Scott will be introducing an Amendment which would cure PERA's objection. MNCORA asks that you write Senator Frentz, Chair of the Pension Committee and tell him to bring the Amendment to a vote when introduced. sen.nick.frentz@mnsenate.gov make sure to cc  rep.peggy.scott@house.mn.gov sen.cbahr@mnsenate.gov If this session passes without getting a Correctional Officer seat on the PERA Board we have to start all over again next session! PERA UPDATE On March 12 PERA held their Executive Board meeting, MNCORA attended virtually. Some interesting things came to light. First a firefighter out on a duty disability who had been overpaid and was paying back the overage at 25% of her check was asking for a 'hardship' reduction to 10% a check. It came to light that t...