News Alerts
Fund directors to study retirement plan alternatives
The fund directors of PERA, the Minnesota State Retirement System (MSRS) and the Teachers Retirement Association (TRA) have been charged with developing a study of various retirement plan alternatives for public employees in the state of Minnesota. Part of this year’s omnibus pension legislation, the directive calls for the joint study to be delivered to the Legislative Commission on Pensions and Retirement (LCPR) by June 1, 2011.
The study will look at defined benefit plans (the current structure of the statewide plans), as well as defined contribution plans, hybrid plans and cash balance plans. It is to include an analysis of the “feasibility, sustainability, financial impacts and other design considerations of these retirement plans,” describing their advantages and disadvantages.
To view the study description and timeline, click here.
The funds will be seeking input and comments from stakeholders as the study is developed, and this input will be part of the final report. Individuals with questions or comments may contact Mary Most Vanek, PERA's executive director, at mary.vanek@state.mn.us
PERA phased retirement program extended
The experiment offering Coordinated members of PERA a way to “phase” into retirement has been extended to June 30, 2014. The legislation enacted last year was originally scheduled to sunset June 30, 2011. The extension gives PERA additional time to evaluate the impact the program is having members, employers and funding.
Phased retirement is totally at the discretion of employers. If they choose to offer it to an employee, it is by mutual agreement.
Coordinated members over age 62 can begin receiving a pension while bypassing the formal termination of employment and mandatory 30-day break in service. They are also not subject to PERA’s normal earnings limits. However, they must agree to reduce their hours worked by at least 25 percent and work less than 1,044 hours per year. Read more.
New member handbooks . . .
are available only on line.
We have updated the content of our Coordinated, Correctional and Police & Fire member handbooks to reflect the changes resulting from this year's Omnibus Pension Bill.
New handbooks will not be published until we can also incorporate new survivor tables that are currently under development. However, we wanted to make the other information available to you as quickly as possible.
Pension bill receives approval
Governor Tim Pawlenty signed this year's Omnibus Pension Bill one day before the end of the Legislative session. The legislation included the sustainability provisions designed to strengthen PERA's financial future.
The bill had strong bipartisan support in the Legislature. The final vote in the Senate was 52-14, while the House approved the bill 116-16. Read more.
The one exception to the rule
That which was irrevocable now has one exception. Once PERA benefit payments begin, the benefit option selected by the member IS irrevocable—EXCEPT in the case of a marriage dissolution or annulment decree that specifies the chosen survivor option be rescinded so the PERA benefit recipient’s pension is recomputed as a single-life pension.
In other words, the pension would be treated as if the designated survivor had died and the pension “bounces back” to the single-life level. A PERA retiree cannot designate a second survivor once this happens.
Part of this year’s Omnibus Pension Bill, the law requires that the revocation be included in the court order and that both individuals sign a PERA form acknowledging the bounce back. The Association is working out the details to accommodate the law change.
