Public Employee Retirement Association (PERA)

TL;DR

PERA administers multiple retirement plans for public employees in Minnesota, including defined benefit plans and a defined contribution plan.

Transcript

the Public Employees Retirement Association or PE RA administers three statewide retirement plans providing defined benefit coverage to employees of local governments and school districts the Association also manages a statewide retirement plan providing deferred contribution coverage to elected officials and other personnel finally PE RA oversees ... Read More

Key Insights

• 🛟 PERA serves over 25,000 current and former public employees and provides monthly benefits to over a hundred thousand retirees.
• 🌱 They offer comprehensive retirement plans, including defined benefit plans subject to Social Security rules and plans for police officers and firefighters exempt from Social Security.
• 👻 PERA's defined contribution plan allows flexibility for government officials and other personnel to determine their retirement savings based on contributions made by both employees and employers.
• 🌱 Membership in PERA is automatic for eligible non-elected public employees, and both employees and employers contribute to the plans.
• 🧘 Certain positions, such as elected officials and seasonal/temporary personnel, may not qualify for PERA participation.
• 🏙️ City managers or administrators have the option to be excluded from PERA membership and may choose to contribute to a deferred compensation program instead.
• ⚾ Contributions to PERA are based on percentages of covered payroll and include matching contributions from employees and employers, as well as additional contributions from employers for actuarial deficits.

Questions & Answers

Q: What types of retirement plans does PERA administer?

PERA administers defined benefit retirement plans for city and county employees, non-teaching school employees, police officers, firefighters, and correctional officers. They also provide a defined contribution plan for government officials, ambulance personnel, and physicians.

Q: How do defined benefit plans differ from defined contribution plans?

Defined benefit plans guarantee fixed scheduled payments based on a formula, while defined contribution plans depend on the contributions made by the employee and employer, with no guaranteed benefit upon retirement.

Q: Who is eligible to participate in PERA plans?

Non-elected public employees in Minnesota who meet the eligibility requirements established by state statute are automatically enrolled in PERA plans. Participating employers must meet the definition of a governmental subdivision, such as counties, cities, towns, school districts, or any other revenue-funded governmental body.

Q: Are there any positions ineligible to participate in PERA?

Examples of positions not eligible for PERA participation include elected officials, seasonal or temporary personnel with employment periods less than six months, election judges, and full-time students under the age of 23. City managers or administrators may choose to be excluded from membership.

Summary & Key Takeaways

• PERA administers three defined benefit retirement plans for local government and school district employees, as well as a defined contribution plan for elected officials and other personnel.

• The defined benefit plans provide retirement, survivor, and disability benefits, with scheduled payments based on a formula.

• Membership in PERA is automatic for eligible non-elected public employees, and both employees and employers contribute to the plans.