2019 Retirement benefit increases announced
October 12, 2018
Good news for retirees
Retired members of the PERA General Plan will receive a 1.4 percent increase in their PERA retirement benefits, effective Jan. 1, 2019.
The 1.4 percent increase reflects 2018 legislative changes to PERA’s retirement plans. The General Plan cost-of-living adjustment (COLA) will be equal to 50 percent of the increase announced by Social Security. Social Security announced a 2.8 percent benefit increase for 2019. The 1.4 percent increase is good news for PERA retirees since the previous increases were at 1 percent for many years.
Members of the Correctional Plan will receive a 2.5 percent increase in their PERA retirement benefits, effective Jan. 1, 2019. This increase is a result of the legislative change calling for the Correctional Plan COLA to be equal to 100 percent of the increase announced by Social Security, with a maximum 2.5 percent increase.
The Correctional Plan can provide a larger increase to plan members since the plan is relatively better funded than the other plans PERA administers. In the future, the Correctional Plan COLA maximum could be reduced to 1.5 percent if the plan’s funding status declines.
The Police & Fire Plan members will continue to receive a 1 percent increase in their PERA retirement benefits. The Police & Fire COLA is not currently tied to an inflation index.
Source: MNPERA.org
I again must point out that AFSCME, Teamsters Local 320 and LELS all had agreed to the lower 1.4% for the Correctional Plan as "shared pain". And that without ever bringing it to their members!
2 comments:
Seems to me that it's financially more beneficial to stay a Detention Deputy rather than getting a badge since the police and fire members will have to increase their contributions by 1.5% each of the next 2 years.
Correctional plan conrtribtions will remain the same for a more solvent fund.
Not to mention Detention Deputies will collect full Social Security Benefits and Licensed don't.
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