PERA Correctional Plan meeting

December 26, 2017 in MNPEA News by MNPEA

On December 19th, MNPEA Vice President Tom Perkins and Hennepin County Detention Deputy/MNPEA Retiree Wade Laszlo met with PERA Executive Director Doug Anderson.

MNPEA’s members are very appreciative of Doug Anderson’s time over this.

The topic was proposed changes to the PERA Correctional Pension.
Last session there was a proposal by Rep. O’Driscoll and Sen. Rosen to eliminate the 2.5% COLA (Cost of Living Adjustment) in favor of a 1% COLA with a 1.5% cap based on CPI (inflation).

Current law provides a 2.5% COLA as long as the fund is at least 90% funded. Currently it is 95.7% funded.

It is unclear if the vetoed O’Driscoll/Rosen Bill or a similar Bill will resurface this session, or if there will even be a session.

While the legislature makes the law, it was thought important to meet with PERA to have input into their recommendations.

PERA Executive Director Doug Anderson is revising his recommendation to the PERA Board to include a second proposal:

*Change current COLA to 100% of CPI, 1% floor, 2.5% cap (currently a fixed 2.5%).

This will mirror the current COLA benefit in place.

 

The MNPEA Board will meet and discuss a response.