No Thresholds for Used PTO Pay Starting July 1

PERA’s proposed legislation passed and the thresholds that supplemental pay must meet to be eligible for PERA contributions during an authorized leave will be eliminated starting with pay issued on July 1, 2026.

PERA eligibility for supplemental pay depends on when the pay is issued.

Pay issued on and after July 1, 2026

On and after July 1, 2026, supplemental pay is eligible for PERA contributions if:

• supplemental pay is used during an authorized leave, and
• supplemental pay, pay for time worked, plus any other payment the employee is receiving related to the authorized leave at your unit (for example: PFML payment, workers’ compensation payment, etc.) does not exceed the employee’s regular average salary.

Pay issued before July 1, 2026

For pay issued before July 1, 2026, the employee’s PERA-eligible salary must meet a certain percentage of their regular average salary for supplemental pay to be eligible for contributions if:

• they do not use all their available PTO in that pay period, and
• they are on a non-workers’ compensation authorized leave.

This threshold is 50% or more during a medical leave and 100% during a non-medical leave.

For guidance on pay issued before July 1, 2026, refer to the leave reporting recorded webinar, slides, and overview.

Questions about the elimination of supplemental pay thresholds?

• Message us on mnpera.org/employers/contact with the topic “Eligibility.”
• Email eligibility@mnpera.org
• Call 651-296-3636 (toll-free 1-888-892-7372), then select option 3 for the Eligibility team.
• Attend the upcoming live “Leave Reporting” webinar with refreshed content and updated guidance—including Paid Family and Medical Leave topics that relate to PERA.

Date: Thursday, June 25

Time: 11:00 a.m. – 12:30 p.m.

Length: 45 minutes for presentation + 45 minutes for questions