Defined Contribution Plan
The Defined Contribution Plan (DCP) is an optional 401(a) tax-qualified retirement savings that offers members a lump-sum payout upon termination.
DCP Eligibility
DCP participation is optional for eligible public officials, physicians, city managers, and other specific classes of positions listed under Minnesota Statutes Chapter 353D. If you meet eligibility requirements, you have 30 days from the start of your employment with the governmental subdivision to make a one-time, permanent election to participate in the DCP.
Public Officials
- Elected or appointed to a vacant elected position. Governing body positions include: county commissioner, city council, school board, township supervisor, soil and water board, or other special district board. Non-governing body positions: local city or county auditors, treasurers, attorneys, clerks, certain township clerks.
- Appointed to a board or commission.
- Elected county sheriff.
- Appointed or hired to a non-governing body public office and earnings do not exceed the monthly threshold. Examples include township and city clerk or treasurer, county auditor, treasurer, or recorder.
Physicians
- A physician whose earnings exceed the monthly threshold is automatically enrolled into the Coordinated Plan, unless they elect to participate in the DCP instead.
City Managers
- City managers and administrators whose earnings exceed the monthly threshold are automatically enrolled in the Coordinated Plan.
CERTAIN PUBLIC AMBULANCE SERVICE PERSONNEL, RESCUE SQUAD, AND VOLUNTEER FIREFIGHTER POSITIONS
- Basic and advanced life-support emergency medical service personnel
- Rescue squad
- Volunteer or emergency on-call firefighters
DCP Election by Certain Ambulance, Rescue, or Volunteer Firefighter Positions
DCP Contributions
Participating employees contribute a percentage of their gross salary, based on qualifying employment, and the public employer may also make a contribution based on plan provisions.
| DEFINED CONTRIBUTION PLANS | EMPLOYEE | EMPLOYER |
|---|---|---|
| Elected officials and Physicians | 5% | 5% |
| City Managers/Administrators | 6.5% | 6.5% |
| Volunteer or on-call firefighters | Rates set by employer. Must be 7.5% or more with member only or member + employer contributions | Rates set by employer. Must be 7.5% or more with member only or member + employer contributions |
| Ambulance Service Personnel | Members may choose to contribute up to the employer amount. | Contribution rate set by employer. |
DCP Investment Options
DCP members can designate a percentage of total contributions to be placed in one or more of seven investment accounts of the Minnesota Supplemental Investment Fund. The seven investment accounts are: U.S. Stock Index Fund, U.S. Stock Active Fund, International Stock Fund, Bond Fund, Balanced Fund, Stable Value Fund, and Money Market Fund.
The Minnesota Supplemental Investment Fund Prospectus is published annually on the Minnesota State Board of Investment's (SBI's) Supplemental Investment Fund page, showing the investment goals and actual returns of the accounts.
PERA benefit specialists are not financial advisors and cannot offer recommendations to DCP participants about where to invest their funds.