Saturday, April 14, 2018

PERA Correctional Pension Update

Good news on our Pension front. 

According to  PERA: Strong year for PERA investments.

The investment performance for PERA's three largest retirement plans--the General Employees, Police & Fire, and Correctional Plans--for the fiscal year ending June 30, 2017, was excellent. The Combined Fund posted a 15.1 percent rate of return for the 12-month period.

and from the PERA Newsletter 

CORRECTIONAL PLAN

The 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.

1 comment:

Nick said...

Keep finding your deferred compensation and IRAs. Healthcare costs are outpacing the rate of inflation! Pensions and social suckurity benefits won't be enough!