|
PERA NEWS: MEMBER EDITION
|
|
Spring Newsletter | April 2025
Articles in this newsletter:
- Police & Fire Plan and Correctional Plan Update: Actuarial Factor Changes
- Correctional Plan Update: Multiplier and Contribution Rate
- Updated Website Coming in May 2025
- Review Your Beneficiaries
- PERA Board Appointment
- Cybersecurity Tip: Create a Strong and Secure Password
- Member Education
- Upcoming In-Person Presentations
- New myPERA Video for Retirees and Recipients
|
|
Police & Fire Plan and Correctional Plan Update: Actuarial Factor Changes
Actuarial factors will be updated for benefits effective on or after July 1, 2025 in the Police & Fire Plan and the Correctional Plan.
Actuarial factors are used when you:
- Retire before your full retirement age in the Correctional Plan,
- Designate a survivor option for a monthly benefit in the Police & Fire or Correctional Plan, or
- Purchase military service credit earned before public employment in the Police & Fire or Correctional Plan.
Actuarial factors may be updated when investment return assumptions, mortality rate assumptions, or plan provisions change. The new factors include these updated assumptions:
- The legislative change of the assumed rate of return from 7.5% to 7.0% and
- Updated mortality assumptions based on a recent actuarial experience study.
Retiring Soon?
The updated actuarial factors may impact your retirement decision if you are planning to:
- Retire early in the Correctional Plan.
- Select a survivor option with your benefit in the Police & Fire or Correctional Plan.
Benefits effective on or after July 1, 2025 are positively impacted by the new factors.
-
Benefit begins on or after July 1, 2025: Review your myPERA account for updated estimates with benefit effective dates July 1, 2025 or later. Your next annual Personal Benefit Statement will also include updated estimates reflecting this change.
-
Benefit begins before July 1, 2025: Compare your benefit estimates with a benefit effective date on or after July 1, 2025 to your estimates with a benefit effective date before July 1, 2025.
Early Retirement and the Pension Protection Act
If you retire at the Police & Fire or Correctional Plan's full retirement age, the Pension Protection Act of 2006 and Secure 2.0 allow public safety and correctional officers to reduce their taxable income by up to $3,000 annually in costs paid for qualified insurance premiums, such as health, dental, and long-term care. In other words, during the year, you will pay your insurance premiums directly to your providers; when you file your federal income taxes for that year, you will apply for the $3,000 reduction.
If you retire early, you cannot reduce your taxable income according to the Pension Protection Act and Secure 2.0. Contact a tax professional with any questions.
Note: This content was originally published in February 2025 on PERA's website and by email to impacted members.
The Correctional Plan multiplier will increase from 1.9% to 2.2% for any service credit earned on or after July 1, 2025. The multiplier for service earned before July 1, 2025 is 1.9%.
Contribution rates will also increase starting July 1, 2025:
- Members will contribute 6.83%.
- Employers will contribute 10.25%.
The contribution rate increase only impacts active employees contributing to the plan on or after July 1, 2025. The increase does not impact members already receiving benefits from the plan or members who terminated employment and deferred their benefit.
Over the past year, PERA’s Communications and Outreach team worked with a marketing firm to redesign our website to better reflect member needs and services. The refreshed website will improve navigation and enhance your overall experience.
New Website Highlights
Our updated website includes several new improvements:
-
Updated navigation. The main menu and dashboard landing page have been updated to help you find the information you need easily and efficiently.
-
Scannable content. Pension information can be complex. The new website will be scannable, and it will be easier to find important information.
-
Improved search. Content will be tagged to create better search results.
-
Dashboard pages. You will find the content you need in one place. Each main menu navigation category will have a dedicated dashboard landing page and sidebar menu.
-
Responsive design. The website will be responsive to the window size you are viewing our content on. It will be easier to view and navigate our website on your mobile phone, tablet, and desktop.
Take advantage of spring cleaning time! Review and update your beneficiaries in your myPERA account. Upon your death, listed beneficiaries will receive any balance in your account if no survivor benefits are payable.
|
Governor Tim Walz and Lieutenant Governor Peggy Flanagan announced the appointment of two individuals to PERA’s Board of Trustees. The board welcomes:
- David Minke, who was appointed to a four-year term through January 2029. Trustee Minke is serving as the representative of counties.
- Barb Johnson, who was re-appointed to a four-year term through January 2029. Trustee Johnson is serving as the representative of cities.
To learn more about PERA’s board, visit the Board of Trustees page on our website.
|
|
Cybersecurity Tip: Create a Strong and Secure Password |
|
World Password Day is May 1 – Use this day to learn about password security and safe online practices.
With the internet being part of our daily lives, it’s important to protect personal information from cybercriminals. Creating strong passwords and passphrases are an important first line of defense.
To keep your accounts safe,
-
Don’t share passwords. Sharing your password with others, whether they are a family member, friend, or coworker, puts your security at risk. Anyone with access to your password can access your account.
-
Use a strong passphrase instead of a password. A strong passphrase uses several unrelated words that are easy for you to remember, but difficult for others to guess (e.g., Pizza52SnowTruckJazz!). You can mix uppercase and lowercase letters, numbers, and special characters to create stronger passphrases. Avoid using personal information, common phrases, or predictable patterns. Most importantly, use a different passphrase for each of your accounts.
-
Use a password manager. Don’t leave passwords written down near your desk. Instead, use a password manager to securely store and manage your passwords in one encrypted location. Password managers are available in both free and paid versions, and examples include LastPass, 1Password, and Bitwarden.
-
Change your passwords regularly. Update your passwords every three to six months. Regular password updates help keep your information secure.
|
|
|
Upcoming In-Person Presentations
Join us for an in-person presentation about PERA pension benefits! A PERA representative will be traveling across Minnesota to 15 different cities. Two sessions will be offered at each location.
Program Description: The “From Hire to Retire” program is designed for all PERA members and discusses pension benefits in detail. The program covers
- PERA pension benefit options,
- life events that can impact your benefit,
- important decisions you make at retirement,
- the retirement application process, and
- self-service tools and resources.
Length: One hour plus time to answer questions.
Who Should Attend: This program is for all PERA members―no matter which career stage!
Pre-Registration Required: Spots are limited. To register, access your myPERA account or call 1-800-652-9026.
Presentation Schedule: PERA offers a morning and afternoon session at each location.
May 2025
Moorhead: May 8, 10:00 a.m. and 1:00 p.m.
Crookston: May 9, 10:00 a.m. and 1:00 p.m.
Ely: May 21, 10:00 a.m. and 1:00 p.m.
International Falls: May 22, 10:00 a.m. and 1:00 p.m.
June 2025
Owatonna: June 12, 10:00 a.m. and 1:00 p.m.
Worthington: June 25, 10:00 a.m. and 1:00 p.m.
Marshall: June 26, 10:00 a.m. and 1:00 p.m.
July 2025
Rochester: July 9, 10:00 a.m. and 1:00 p.m.
Little Falls: July 17, 10:00 a.m. and 1:00 p.m.
Alexandria: July 22, 10:00 a.m. and 1:00 p.m.
Elk River: July 23, 10:00 a.m. and 1:00 p.m.
August 2025
Grand Rapids: August 7, 10:00 a.m. and 1:00 p.m.
Winona: August 13, 10:00 a.m. and 1:00 p.m.
Albert Lea: August 14, 10:00 a.m. and 1:00 p.m.
September 2025
New Ulm: September 18, 11:00 a.m. and 1:00 p.m.
|
New myPERA Video for Retirees and Recipients
This video provides information for retirees and benefit recipients about the features available in your myPERA account once you begin receiving your benefit.
The menu options in your myPERA account will change when you start your benefit. The Defined Benefit Plan option will be replaced with Payment Information to provide you with access to the following:
- Tax Withholding
- Payment History
- View 1099-R Records
- Direct Deposit
- Income Verification
All of the myPERA videos can be found on the Member Videos page of mnpera.org.
|
|
|
|
|
