City managers beginning employment August 1, 2024 or later must make a one-time, final decision to be excluded from the Coordinated Plan within 30 days of starting PERA-covered employment with a city. The city council must pass a resolution approving both the exclusion and the employee’s choice to participate in the Defined Contribution Plan or to have no PERA coverage 

City managers who started PERA-covered employment with a city should be given a Membership Election for City Managers Form to inform them of their membership options. The election form must be signed within 30 days of the city manager’s position start date. PERA must receive the election form and resolution within 60 days of the city manager’s start date. If these conditions are not met, and if the city manager’s earnings are greater than $425 per month, they must contribute to the Coordinated Plan.

If the new city manager was previously employed by the same city and the city contributed to the Coordinated, Police & Fire, or Correctional Plan or sponsored any supplemental pension or deferred compensation plan under Minn. Stat. § 356.24 on their behalf, the new city manager must participate in the Coordinated Plan if their earnings exceed the $425 threshold.

EXPANDED FIREFIGHTER DEFINITION FOR POLICE & FIRE PLAN MEMBERSHIP

The 2024 legislative changes expanded the definition of full-time firefighters for PERA Police & Fire Plan membership. Full-time firefighters now include full-time positions that are engaged in the hazards of or exposed to hazardous conditions resulting from firefighting or fire prevention, suppression, or investigation.

To be considered a firefighter, full-time employees must be:

• Employed in a fire department,
• Required by the employer to be (and are currently licensed by) the Board of Firefighter Training and Education under Minn. Stat. § 299N.05, and
• Assigned less than 50% of the time to perform employment duties that are not within the scope of full-time firefighter duties in the same department.

Fire department employees who meet the criteria listed above must be enrolled in the Police & Fire Plan with a position title of “firefighter”.

DUAL OR COMBINED POSITIONS WITH MANDATORY POLICE & FIRE PLAN MEMBERSHIP

According to the 2024 legislation, Police & Fire Plan membership is required for certain dual or combined full-time police officer or firefighter positions. Certain dual or combined part-time positions can be enrolled in the Police & Fire Plan with a resolution.

Full-time dual or combined police officer or firefighter positions

Full-time dual or combined police officer or firefighter positions are required to participate in the Police & Fire Plan if:  

• The full-time employees are assigned to perform other duties in the same police or fire department less than 50% of the time and
• The other duties are outside the scope of full-time police officer or firefighter requirements.

Full-time employees assigned to other duties in the same department less than 50% of the time do not need a resolution.

There are no options for Police & Fire membership for full-time positions that are assigned to other duties in the same department 50% or more of the time. Instead, these employees should be enrolled in the Coordinated Plan.

Part-time dual or combined police officer or firefighter positions

Part-time dual or combined police officer or firefighter positions can participate in the Police & Fire Plan if:

• The part-time employees are assigned to perform other duties in the same police or fire department less than 50% of the time,
• The other duties are outside the scope of part-time police officer or firefighter requirements, and
• The governing board of their employing unit certifies their eligibility and files a resolution.

There are no options for Police & Fire membership for part-time positions that are assigned to other duties in the same department 50% of the time or more. Instead, these employees should be enrolled in the Coordinated Plan if their earnings exceed the monthly threshold.

Position title “police officer” or “firefighter” for PERA purposes

Employees who meet the statutory criteria for Police & Fire Plan membership should be enrolled in the Police & Fire Plan with a position title of “police officer” or “firefighter” for PERA purposes.

CONTINUING POLICE & FIRE PLAN MEMBERSHIP WITH A TRANSFER

Transfers to a different position in the same police or fire department

To maintain Police & Fire Plan membership after transferring to a different position in the same police or fire department that would not otherwise be eligible for the Police & Fire Plan, the governing board of the employing unit must file a resolution.

Transfers to another police or fire department in the state of Minnesota

To maintain Police & Fire Plan membership after transferring to another police or fire department within Minnesota that would not otherwise be eligible for the Police & Fire Plan, the governing board of their new employing unit must file a resolution.

Cannot continue Police & Fire Plan with transfer to another department in the same agency

Members cannot maintain Police & Fire Plan membership if they are transferred to another department within the same agency.

Effective July 1, 2025, Correctional Plan contribution rates will increase.

Apply the new rates for all pay issued on or after July 1, 2025, regardless of when the pay was earned.

For example, work that takes place in June 2025 or before will have the new contribution rate if the paid date is July 1, 2025 or after.

The rate change is due to an increase in the plan’s benefit multiplier from 1.9% to 2.2% for service credit earned after July 1, 2025. This will mean higher future benefits for members.

Effective July 1, 2025, the following rates will apply:

• Members: 6.83%
• Employers: 10.25%

Minnesota has a statewide Section 218 Agreement with the Social Security Administration for election workers. The agreement rules apply to each governmental unit in Minnesota. 

Who is an election worker? 

Election workers are individuals hired by government entities to perform services at polling places in connection with national, state, and local elections. Election workers can also be called poll workers, ballot clerks, or voting officials. Election workers are often paid a set fee each day or a stipend for the election period, which includes attendance at training or meetings both before and after the election.   

No PERA participation 

According to statute, election workers do not qualify for PERA membership, regardless of the amount of pay they receive. 

Social Security and Medicare 

In Minnesota, election workers whose pay in a calendar year is less than $2,300 are not subject to Social Security and Medicare (FICA) coverage. However, if an election worker is paid more than $2,300, FICA taxes apply from the first dollar paid.

More information about election workers is available on PERA’s Social Security page. For current and historical threshold amounts, visit the Election Officials and Election Workers page of the Social Security website. The Election Workers page of the Internal Revenue Service has not been updated with the 2024 threshold, but it provides information about withholding and reporting.

Did you know you can host a PERA retirement program at your organization?

In addition to our regularly scheduled offerings, we coordinate with employers across the state to present employee PERA programs.

We offer a one hour presentation either in-person or virtual, depending on expected attendance. Our From Hire to Retire program includes a 45 minute presentation and then about 15 minutes for questions afterwards.

Minimum 50 Attendees for In-Person Programs

A minimum of 50 participants is required for in-person programs. If your organization has less than 50 employees, you can coordinate with other neighboring local government entities to sponsor a joint program.

We have the right to transition it to an online webinar due to low enrollment or other extenuating circumstances, such as inclement weather or sudden illness.

Ready to host a program?

Contact our education team at communications@mnpera.org to learn more.