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July 2026 Employer Newsletter |
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Articles in this newsletter include: |
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- Employer Contributions Required When Hiring a PERA Retiree
- New Retirement Plan for Probation Officers and 911 Telecommunicators
- No Thresholds for Used PTO Pay
- Contribution Rate Decreased for Correctional Plan Effective 1/1/2027
- Deadlines for Public Employees DCP Coverage
- School Employers: 2026 Reports Due
- Discontinuing PERA’s PO Box
- 2027 PERA Board Election
- New Name for govDelivery emails
- Did You Know?
- Ask PERA
- Employer Education
- Employer Contributions for Rehired Annuitants
- Flagged Contribution Reports
- Leave Reporting Webinar
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Employer Contributions Required When Hiring a PERA Retiree
Starting with the first paycheck issued on or after January 1, 2027, employers must pay employer contributions for any PERA retiree hired into an eligible position. This includes individuals participating in a Phased Retirement Option (PRO) and retirees who continue working after reaching full retirement age.
Employer contributions must be paid at the rate applicable to the current position held. No employee contributions should be withheld.
Examples
- A member participating in a Phased Retirement Option (PRO) continues working in a Coordinated Plan position. The employer contribution rate is 7.5% of eligible salary.
- A retiree returns to work at age 75 as a correctional officer. The employer contribution rate is 9.0% of eligible salary.
- A retiree returns to work as a part-time police officer. If your agency places all part-time police officers in the Police & Fire Plan through a resolution, the employer contribution rate is 17.7% of eligible salary.
Programming Updates
Three new Exempt Plan ID codes will be created:
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31: Retiree working in a Correctional Plan position
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32: Retiree working in a Coordinated Plan position
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33: Retiree working in a Police & Fire Plan position
If you hire anyone that should be reported in Exempt Plan ID 99 as of January 1, 2027, contact PERA for assistance.
Employers must report and pay contributions for Exempt Plan members separately from their regular contribution files and payments.
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New Retirement Plan for Probation Officers and 911 Telecommunicators
Starting January 1, 2027, PERA will administer the Local Government Probation & Telecommunicator Plan for local government probation officers and public safety telecommunicators. PERA will transfer eligible employees to the new plan.
Employers are responsible for certifying employee eligibility based on the definitions below. PERA will not review position descriptions (PDs). Employers will complete certifications through ERIS, similar to the current Correctional Plan process. Additional information will be provided this fall.
A Social Security referendum will take place in 2027. PERA will share detailed information in the coming months.
- Social Security eligibility carries over for employees who move from the Coordinated Plan to the new plan.
- Employees hired after January 1, 2027, will be eligible to vote in this referendum.
Members eligible for Rule of 90 are excluded from this new plan.
Eligibility Definitions
Probation Officer
A probation officer is an individual who:
- is employed as a probation officer by a county, community corrections agency, or state probation agency and provides community supervision services with direct offender contact, or
- directly supervises one or more individuals described in clause one (1).
Public Safety Telecommunicator
A public safety telecommunicator is an individual who:
- serves as a first responder by receiving, assessing, or processing requests for assistance from the public or other public safety partners and coordinating the appropriate public safety response,
- is assigned less than 50% of their work time to duties other than those described in clause one (1), or
- directly supervises one or more individuals described in clause one (1) or two (2).
Plan Highlights
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Vesting: Members are vested after three years of service. Service earned under any Minnesota public pension plan is used toward vesting.
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Employee contributions: 8.0% through August 31, 2028, and 8.82% beginning September 1, 2028.
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Employer contributions: 7.5%
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No Thresholds for Used PTO Pay
Starting July 1, 2026, supplemental pay during an authorized leave is eligible for PERA contributions if the employee's regular average salary is not exceeded when combining:
- pay for time worked, plus
Paid Family and Medical Leave (PFML), workers’ compensation, and short-term disability payments are not eligible for PERA contributions. Report any missed or ineligible salary on your Annual Leave Report.
For pay issued before July 1, 2026, if an employee did not use all their available PTO in a pay period, supplemental pay used during a non-workers’ compensation leave must have met the replacement threshold to be eligible for PERA contributions. Those thresholds were at least 50% of the employee’s regular average salary during a medical leave or 100% during a non-medical leave.
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Contribution Rate Decreased for Correctional Plan Effective January 1, 2027
As part of the legislation passed during the 2026 session,
- Employer contributions for the Correctional Plan decreased by 1.25%, from 10.25% to 9.0%.
- Employee contributions for the Correctional Plan decreased by 0.83%, from 6.83% to 6.0%.
Rates for the Coordinated, Police & Fire, and Public Employees Defined Contribution Plan will not change.
Contribution Rates
- From paid dates July 1, 1999–June 30, 2025,
- the employer rate was 8.75%
- the employee rate was 5.83%
- From paid dates July 1, 2025–December 31, 2026,
- the employer rate is 10.25%
- the employee rate is 6.83%
- Starting with pay issued on January 1, 2027,
- the employer rate will be 9.0%
- the employee rate will be 6.0%
To learn more about past contribution rates, visit the Contribution Rates page on our website.
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Deadlines for Public Employees DCP Coverage
Membership in the Public Employees Defined Contribution Plan (Public Employees DCP) is optional for public officials and certain other positions in their first 30 days of PERA-eligible work with that employer. An employee’s first day of work is the day they earn pay for work performed. Their first day of work is not necessarily the day they are hired, sworn in, elected, or appointed.
Positions that may be eligible for Public Employees DCP coverage include:
- Public ambulance service or rescue squad personnel and certain volunteer firefighters
Employer Responsibilities
Employer representatives must inform individuals eligible for optional PERA membership that they can join PERA. By law, it is the individual’s decision to participate in PERA when they are employed in a position eligible for optional PERA coverage.
- For each eligible individual, complete part A of the current Membership Election Form. Find the form for the individual’s position on Defined Contribution Plan | PERA
- Instruct the public official or employee to complete part B and sign the Membership Election Form within 30 days of their first day of work. Keep a copy of the form until the signed original is returned.
- Once parts A and B are completed, keep a copy for your records, then submit the Membership Election Form to PERA using the secure document upload feature in ERIS. After successfully submitting the form, you will receive a transmit ID code. You may also send the form by fax or mail; however, PERA must receive the form within 60 days of the individual’s first day of work. The election form must be submitted to PERA even if the individual chose not to participate.
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School Employers: 2026 Reports Due
Two important annual reports are due this summer from employers.
Annual Leave Report due July 31, 2026
Employers with one or more active PERA members must complete an Annual Leave Report. The report must list all authorized leaves that occurred in fiscal year 2026 that resulted in any missed or ineligible salary. You must complete an Annual Leave Report even if there were no employees with an authorized leave during the year.
Resources:
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Chapter 9 of the Employer Manual for file formatting and validation errors
Annual Exclusion Report due August 31, 2026
All PERA-eligible school employers must file an Annual Exclusion Report. The report must list employees and elected officials who worked any amount in fiscal year 2026 who did not have PERA contributions withheld from their earnings.
As a reminder, the Annual Exclusion Report must include all public officials who are not participating in PERA. Use exclusion code 201 for elected officials such as school board members.
Resources:
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Chapter 3 of the Employer Manual for a list of exclusion codes
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Chapter 9 of the Employer Manual for file formatting
For Assistance, Contact the Eligibility Team
- Email eligibility@mnpera.org
- Call the Employer Response Line at 651-296-3636 (toll-free at 1-888-892-7372) and select option 3 for Eligibility.
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PERA's PO Box Closes Effective December 31, 2026
Effective December 31, 2026, PERA's payment PO box address will be discontinued. Employers who mail paper checks should update their records and begin using PERA's physical mailing address now:
PERA
60 Empire Drive, Suite 200
St. Paul, MN 55103
To avoid potential payment delays or late fees, start using this address as soon as possible rather than waiting until the deadline.
Employers interested in a more convenient payment option may enroll in electronic funds transfer (EFT). EFT helps ensure timely payments and eliminates the need to mail checks.
For assistance with EFT setup, contact PERA's Account Operations team:
Thank you for updating your records and helping to ensure timely contribution payments.
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2027 PERA Board Election
The PERA Board of Trustees will start the election process to fill five open board positions in late summer 2026.
Open Positions
Five board positions will be elected to serve four-year terms. The open positions are:
- three positions for active employees representing the Coordinated, Police & Fire, and Correctional Plans,
- one position for an active member of the Police & Fire Plan, and
- one position for a former PERA member currently receiving a retirement or disability benefit.
Running for a Position
Election information and candidate application forms will be available on PERA’s website in August 2026. Interested candidates can review the requirements and apply at that time.
Voting Information
The five open board positions are elected by active members and benefit recipients of PERA’s General, Police & Fire, and Correctional Plans.
If you participate in the Public Employees Defined Contribution Plan (Public Employees DCP) or the Statewide Volunteer Firefighter Plans (SVF DBP or SVF DCP), you cannot vote unless you also participate in the General, Police & Fire, or Correctional Plan.
If you are eligible to vote, voting materials will be mailed to you at the end of December 2026. Votes can be submitted by mail or electronically. Voting closes on January 31, 2027.
Learn More
Refer to the Board of Trustees page of mnpera.org to learn more about the PERA Board of Trustees, board position responsibilities, and upcoming elections.
Questions? Contact Gladys Rodriguez by phone at 651-201-2691 or by email at gladys.rodriguez@mnpera.org.
2027 Board Election Timeline
August 2026
- Election information and candidate application forms will be available on PERA's website and social media platforms.
October 2026 (per statute)
- Candidate filing is accepted for seven days beginning October 1.
- No candidates may withdraw their name after October 15.
December 2026–January 2027
- Ballots are distributed and voting begins.
- January 31, 2027: last day votes will be accepted (postmarked).
February 18, 2027
- Election results are certified by the board.
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New Name for govDelivery Emails
govDelivery has a new name: Granicus Communications.
If you subscribe to our emails, you may notice updated branding in account taglines, subscription or notification emails, and topic administration notifications. The name change does not affect your subscriber experience—message delivery, subscriptions, communication preferences, and opt-in settings remain unchanged.
You will continue to receive this newsletter and other PERA emails from communications@gov.mnpera.org.
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Did You Know?
- Unless otherwise specified, PERA’s default deadlines are based on calendar days, not business days.
- Payments must be made by electronic funds transfer (EFT) or check. PERA does not process cash or coin payments.
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Ask PERA
Question: We have an employee who is reducing their hours and will be earning less than $425 a month for the rest of the year. Should we still withhold contributions?
Answer: Yes, once PERA membership is established, contributions must continue until termination of employment. Once membership is established, there are only two exceptions where you would stop or pause contributions for an employee:
- Stop contributions when an employee resigns from their regular non-temporary position and begins a temporary position that will end in six months or less.
- Pause contributions while an employee is ineligible due to their affiliation with certain educational institutions or programs. Contributions must resume immediately on the next full pay period after the exclusion no longer applies.
Exclusion codes to pause contributions include:
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001: Employees who are under age 23 and full-time students
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006: Residents or interns in a degree or residency program in a public hospital
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007: Students serving up to 5 years in an internship or residency program
For example, if you enrolled a part-time employee under the age of 23 who was not a full-time student and begins full-time classes while still under the age of 23, pause their contributions. Get updated documentation that proves their full-time student status every semester. As soon as they turn 23 or are no longer a full-time student, whichever is first, immediately resume contributions on the next full pay period after the exclusion no longer applies.
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Employer Education
Employer Contributions for Rehired Annuitants
Starting with the first paycheck issued on or after January 1, 2027, employers must pay employer contributions for any PERA retiree hired into an eligible position.
Webinar
In the recorded webinar “Employer Contributions for Rehired Annuitants,” we discuss who to report employer contributions for, how to look up PERA annuitants, and how to report employer contributions for rehired annuitants.
Recommended for: Payroll, HR, and business managers
Length: 12 minutes
Knowledge Café
Join us for the “Employer Contributions for Rehired Annuitants” Knowledge Café where our eligibility and reporting experts will answer your questions live. Send your questions in advance to eligibility@mnpera.org.
When: Thursday, July 23
Time: 1:00–2:00 p.m.
Flagged Contribution Reports Knowledge Café
Join us for the “Flagged Contribution Reports” Knowledge Café and get your questions about the Higher than Normal Salary and Contributions After Termination reports answered live by our reporting and eligibility experts. Send your questions in advance to eligibility@mnpera.org.
Recommended for: Payroll, HR, and business managers
When: Thursday, August 20
Time: 1:00–2:00 p.m.
Watch Now: Leave Reporting Webinar
Watch a refreshed presentation of the leave reporting process, which now also includes Paid Family and Medical Leave (PFML) topics that relate to PERA.
Recommended for: any contact responsible for member status or contribution reporting. Length: 40 minutes
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