PERA Board of Trustees approves legislative proposal for Correctional Plan

After meetings with myself and MNPEA Vice President Tom Perkins I am proud to share:

PERA Board of Trustees approves legislative proposal for Correctional Plan

The PERA Board of Trustees unanimously approved a legislative proposal for the Correctional Plan during their Jan. 9 special meeting. In December the Board approved legislative proposals for the General and Police & Fire Plans. The Board wanted PERA staff to receive additional input from stakeholder groups before voting on a legislative proposal for the Correctional Plan.

The modified Correctional Plan legislative proposal includes a post-retirement increase to provide 100 percent of the Consumer Price Index (CPI), with a 1 percent floor, and a 2.5 percent cap until the Plan’s funding ratio drops below 80 percent for one year or 85 percent for two consecutive years. The funding ratio would be measured on the market value basis every year. If the funding ratio does not meet the required level, the post-retirement increase would be 100 percent of CPI, with a 1 percent floor, and a 1.5 percent cap. Once the lower cap applies, no further triggers would exist.

The proposal preserves the opportunity for a post-retirement increase as high as 2.5 percent provided that the funded ratio exceeds the existing trigger which calls for that the funding ratio does not drop below the 80 percent for one year or 85 percent for two consecutive years.

Thank you PERA Executive Director Doug Anderson and PERA Board! Thank you Minnesota Public Employees Association (MNPEA) for standing with us!

No thanks to Teamsters Local 320, AFSCME Council 5 or LELS who were willing to let their Corrections Officer's cap out at 1.5%!