PERA

Merger of Minneapolis pension plans with PERA clears first hurdle


The Omnibus Pension Bill, including a merger of  Minneapolis’ fire and police pension funds with PERA’s Police and Fire Fund, was approved during the special legislative session Wednesday, July 20. The merger of the Minneapolis Police Relief Association and the Minneapolis Fire Relief Association with PERA was added late in the regular session by Minneapolis DFL Senators Scott Dibble and Larry Pogemiller, and Representative Jim Davnie.


Although the legislation clears the way for the mergers on the state level, much remains to be done before they can actually take place. 

Judge Rules on Minnesota Pension Reform Law


In a decision issued Wednesday, June 29, District Court Judge Gregg Johnson upheld the constitutionality of provisions of 2009 and 2010 pension reform laws which amended the statutory formula for future pension adjustments for retirees of Minnesota’s three statewide systems, the Minnesota State Retirement System (MSRS), the Public Employees Retirement Association (PERA) and the Teachers Retirement Association (TRA).  The lawsuit was filed by six retirees from those systems.


The three statewide systems all advanced financial sustainability legislation designed to address their long-term funding deficiencies following the recession of 2008-2009.  Limits on future retiree increases were just one part of the bill, and the modification of the formula for those increases was the only component challenged in this lawsuit.


In his decision, Judge Johnson noted that last year’s sustainability legislation was a “reasonable response to a fiscal threat that jeopardized the long-term interests of Plan members, the State, and the State’s taxpayers.”  He noted that the Legislature sought to balance the interests of all plan members with statute changes affecting all parties involved, not just retirees.