2024 Benefit Recipient Information

December 26, 2023

WHEN WILL I RECEIVE MY JANUARY PAYMENT?

January 2024 payments will be paid on the first banking day of the month: Tuesday, January 2, 2024. You’ll be able to view your new payment amount in your myPERA account as early as December 21.

1099-R TAX FORM

If you receive monthly benefits, you can access your myPERA account to download your Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. (1099-R). Your 1099-R will also be mailed to you. If you received a refund from PERA in 2023, your 1099-R will be mailed only (not available on myPERA). 1099-Rs are printed and mailed in batches, and benefit recipients may receive them at differing dates. However, all 1099-Rs will be mailed out by the end of January.

Note: If you haven’t received your paper 1099-R by February 9, please contact PERA to reissue a duplicate copy. We will not be able to reissue copies prior to this date.

To learn more about 1099-Rs, visit Tax withholding and 1099s.

ANNUAL INCREASE

Annual increases for monthly benefits are determined by Minnesota Statutes. If you’re eligible, your increase will be reflected in your January 2024 payment.

» Coordinated, Basic, and MERF: 1.5%

» Police & Fire: 1%

» Correctional: 2.5%

New to receiving PERA benefits? Your first increase will depend on the type of benefit, the plan, and the start date. Your first increase amount may be prorated. After your first increase, all future increases will be the full amount. To determine if you are eligible for the annual increase, review the Annual Increase web page.

INCOME VERIFICATION

Income verification reports—also known as pension award letters—may be downloaded on or after December 21 to reflect your 2024 pension benefit information. You may access your report on-demand in your myPERA account.

ONE-TIME PAYMENT

The 2023 Pension Omnibus Budget Bill authorized a one-time payment to most PERA benefit recipients. This amount will be made as a lump-sum payment to eligible recipients by March 31, 2024.

WHO IS ELIGIBLE?

Eligible recipients include members receiving monthly benefits in Coordinated, Basic, Minneapolis Employees Retirement Fund (MERF), and Police & Fire, including consolidated relief associations eligible for PERA annual increases. To qualify, you must have received a retirement, survivor, or disability benefit from one of these Plan for at least 12 full months before June 30, 2023. Note: Correctional Plan benefit recipients will receive a 2.5% annual increase and do not qualify for the one-time payment.

WHAT IS THE AMOUNT?

The amount of the one-time payment is based on your 2023 gross benefit (as of December 31, 2023) and your 2024 annual increase. This payment is NOT a 13th check. As it is a percentage of your benefit, it will be less than your regular monthly check. This one-time payment is non-compounding. Meaning, it is not added into your future benefits.

First, we find the difference between the approved overall increase percentage and the 2024 annual increase percentage. The increase difference is then multiplied by your 2023 annual benefit to calculate your payment.

For most recipients, the one-time increase percentage will be:
» Coordinated: 1% (2.5% overall increase – 1.5% annual increase)
» Basic and MERF: 2.5% (4% overall increase – 1.5% annual increase)
» Police & Fire: 3% (4% overall increase – 1% annual increase)

Exceptions: For eligible Police & Fire members who do not qualify for the 2024 annual increase but still qualify for the one-time payment, your one-time increase will be 3%. For eligible recipients receiving a prorated 2024 annual increase, the one-time increase percentage will be difference between the overall increase and the partial annual increase. Basic, MERF, and Police & Fire recipients do not receive Social Security benefits and therefore have a larger approved overall increase.

CALCULATE YOUR ONE-TIME PAYMENT

Calculating your one-time payment is easy to do! All you need is your one-time increase percentage and your 2023 annual benefit amount. All one-time payment examples listed below are gross amounts (before taxes).

Here are three calculation examples to show you the process:

» Coordinated: If your 2023 annual benefit is $12,000 ($1,000/month), then the one-time payment will be $120 (1% x $12,000).

» Basic and MERF: If your 2023 annual benefit is $12,000 ($1,000/month), then the one-time payment will be $300 (2.5% x $12,000).

» Police & Fire: If your 2023 annual benefit is $12,000 ($1,000/month), then the one-time payment will be $360 (3% x $12,000).

OTHER INFORMATION

The one-time payment will match the taxability of your monthly benefit. For most members, this payment will be fully taxable. The one-time payment will be made the same way you receive your current benefit payment: direct deposit or paper check. For more information on the one-time payment, view our Winter Newsletter or Annual Increase web page.

ADDITIONAL QUESTIONS?

The best way to reach us is through email at benefits@mnpera.org.